FOR A NEW LIBERTY THE LIBERTARIAN MANIFESTO SECOND EDITION MURRAY N. ROTHBARD Ludwig von Mises Institute AUBURN, ALABAMA Copyright © 1973, 1978 by Murray N. Rothbard Copyright © 2006 by the Ludwig von Mises Institute All rights reserved. No part of this book may be reproduced in any manner whatsoever without written permission except in the case of reprints in the context of reviews. For information write the Ludwig von Mises Institute, 518 West Magnolia Avenue, Auburn, Alabama 36832. ISBN 13: 978-0-945466-47-5 ISBN 10: 0-945466-47-1 TO JOEY, still the indispensable framework CONTENTS Introduction by Llewellyn H. Rockwell, Jr. .ix 1. The Libertarian Heritage: The American Revolution and Classical Liberalism . .1 Part I: The Libertarian Creed 2. Property and Exchange . .27 3. The State . .55 Part II: Libertarian Applications to Current Problems 4. The Problems . .89 5. Involuntary Servitude . .97 6. Personal Liberty . .115 7. Education . .145 8. Welfare and the Welfare State . .175 9. Inflation and the Business Cycle: The Collapse of the Keynesian Paradigm . .213 10. The Public Sector, I: Government in Business . .241 11. The Public Sector, II: Streets and Roads . .249 12. The Public Sector, III: Police, Law, and the Courts . .267 13. Conservation, Ecology, and Growth . .301 14. War and Foreign Policy . .329 Part III: Epilogue 15. A Strategy for Liberty . .371 Index . .405 vii INTRODUCTION here are many varieties of libertarianism alive in the world today, but Rothbardianism remains the center of Tits intellectual gravity, its primary muse and conscience, its strategic and moral core, and the focal point of debate even when its name is not acknowledged. The reason is that Mur- ray Rothbard was the creator of modern libertarianism, a political-ideological system that proposes a once-and-for-all escape from the trappings of left and right and their central plans for how state power should be used. Libertarianism is the radical alternative that says state power is unworkable and immoral. “Mr. Libertarian,” Murray N. Rothbard was called, and “The State’s Greatest Living Enemy.” He remains so. Yes, he had many predecessors from whom he drew: the whole of the classical-liberal tradition, the Austrian economists, the Ameri- can antiwar tradition, and the natural-rights tradition. But it was he who put all these pieces together into a unified system that seems implausible at first but inevitable once it has been defined and defended by Rothbard. The individual pieces of the system are straightforward (self-ownership, strict prop- erty rights, free markets, antistate in every conceivable respect) but the implications are earthshaking. Once you are exposed to the complete picture—and For a New Liberty has been the leading means of exposure for more than a quarter of a century—you cannot forget it. It becomes the indispensable lens through which we can see events in the real world with the greatest possible clarity. ix For a New Liberty This book more than any other explains why Rothbard seems to grow in stature every year (his influence has vastly risen since his death) and why Rothbardianism has so many enemies on the left, right, and center. Quite simply, the science of liberty that he brought into clear relief is as thrilling in the hope it creates for a free world as it is unforgiving of error. Its logical and moral consistency, together with its empirical- explanatory muscle, represents a threat to any intellectual vision that sets out to use the state to refashion the world according to some pre-programmed plan. And to the same extent it impresses the reader with a hopeful vision of what might be. Rothbard set out to write this book soon after he got a call from Tom Mandel, an editor at Macmillan who had seen an op-ed by Rothbard in the New York Times that appeared in the spring of 1971. It was the only commission Rothbard ever received from a commercial publishing house. Looking at the original manuscript, which is so consistent in its typeface and nearly complete after its first draft, it does seem that it was a nearly effortless joy for him to write. It is seamless, unrelent- ing, and energetic. The historical context illustrates a point often overlooked: modern libertarianism was born not in reaction to socialism or leftism—though it is certainly antileftist (as the term is com- monly understood) and antisocialist. Rather, libertarianism in the American historical context came into being in response to the statism of conservatism and its selective celebration of a conservative-style central planning. American conservatives may not adore the welfare state or excessive business regula- tion but they appreciate power exercised in the name of nationalism, warfarism, “pro-family” policies, and invasion of personal liberty and privacy. In the post-LBJ period of Ameri- can history, it has been Republican presidents more than Democratic ones who have been responsible for the largest expansions of executive and judicial power. It was to defend a pure liberty against the compromises and corruptions of con- servatism—beginning with Nixon but continuing with Rea- gan and the Bush presidencies—that inspired the birth of Rothbardian political economy. x Introduction It is also striking how Rothbard chose to pull no punches in his argument. Other intellectuals on the receiving end of such an invitation might have tended to water down the argu- ment to make it more palatable. Why, for example, make a case for statelessness or anarchism when a case for limited government might bring more people into the movement? Why condemn U.S. imperialism when doing so can only limit the book’s appeal to anti-Soviet conservatives who might oth- erwise appreciate the free-market bent? Why go into such depth about privatizing courts and roads and water when doing so might risk alienating people? Why enter into the sticky area of regulation of consumption and of personal morality—and do it with such disorienting consistency— when it would have surely drawn a larger audience to leave it out? And why go into such detail about monetary affairs and central banking and the like when a watered-down case for free-enterprise would have pleased so many Chamber-of- Commerce conservatives? But trimming and compromising for the sake of the times or the audience was just not his way. He knew that he had a once-in-a-lifetime chance to present the full package of liber- tarianism in all its glory, and he was not about to pass it up. And thus do we read here: not just a case for cutting govern- ment but eliminating it altogether, not just an argument for assigning property rights but for deferring to the market even on questions of contract enforcement, and not just a case for cutting welfare but for banishing the entire welfare-warfare state. Whereas other attempts to make a libertarian case, both before and after this book, might typically call for transitional or half measures, or be willing to concede as much as possible to statists, that is not what we get from Murray. Not for him such schemes as school vouchers or the privatization of gov- ernment programs that should not exist at all. Instead, he presents and follows through with the full-blown and fully bracing vision of what liberty can be. This is why so many other similar attempts to write the Libertarian Manifesto have not stood the test of time, and yet this book remains in high demand. xi For a New Liberty Similarly, there have been many books on libertarianism in the intervening years that have covered philosophy alone, politics alone, economics alone, or history alone. Those that have put all these subjects together have usually been collec- tions by various authors. Rothbard alone had mastery in all fields that permitted him to write an integrated manifesto— one that has never been displaced. And yet his approach is typically self-effacing: he constantly points to other writers and intellectuals of the past and his own generation. In addition, some introductions of this sort are written to give the reader an easier passage into a difficult book, but that is not the case here. He never talks down to his readers but always with clarity. Rothbard speaks for himself. I’ll spare the reader an enumeration of my favorite parts, or speculations on what passages Rothbard might have clarified if he had a chance to put out a new edition. The reader will discover on his or her own that every page exudes energy and passion, that the logic of his argument is impossibly compelling, and that the intellectual fire that inspired this work burns as bright now as it did all those years ago. The book is still regarded as “dangerous” precisely because, once the exposure to Rothbardianism takes place, no other book on politics, economics, or sociology can be read the same way again. What was once a commercial phenomenon has truly become a classical statement that I predict will be read for generations to come. Llewellyn H. Rockwell, Jr. Auburn, Alabama July 6, 2005 xii 1 THE LIBERTARIAN HERITAGE: THE AMERICAN REVOLUTION AND CLASSICAL LIBERALISM n Election Day, 1976, the Libertarian party presidential ticket of Roger L. MacBride for President and David P. OBergland for Vice President amassed 174,000 votes in thirty-two states throughout the country. The sober Congres- sional Quarterly was moved to classify the fledgling Libertar- ian party as the third major political party in America. The remarkable growth rate of this new party may be seen in the fact that it only began in 1971 with a handful of members gathered in a Colorado living room.