
Hyperbole has its rhetorical or pedagogical advantages, but it must not overcome reality. I am not casting the first stone at Financial Times columnist Edward Luce, but I do want to criticize a recent column of his (“Beware Elon Musk’s Warped Libertarianism,” May 24, 2023).
On what basis does Mr. Luce claim that Elon Musk is a libertarian? I have never seen anything written by Mr. Musk that would show his support for this political philosophy. Andrea Mays, who teaches economics at California State University in Long Beach, has “no idea how thoroughly he has considered [libertarian principles],” and she has “never come across any of his writings on the subject” (personal correspondence). Surely, she adds, he could hire someone to write op-eds for him if he wished to explain his personal philosophy.
I haven’t completely given up on Musk but, as John Maynard Keynes wrote, “in the field of economic and political philosophy there are not many who are influenced by new theories after they are twenty-five or thirty years of age.”
Consider the following quotes from Luce’s column, followed by my comments:
Billionaire libertarians … have the money to do whatever they want.
This is hyperbole, of course. Nobody has the money to do whatever he wants. The first lesson of economics is that resources are scarce compared to human desires, which are quasi-infinite. This limitation also applies to Mr. Musk—although obviously not as much as to you and me, but envy is not the greatest virtue.
American libertarians should rarely be taken at face value.
There is some truth in that, as for any group of partisans, but the “rarely” is exaggerated. Among defenders of minority ideas, who feel like Martians in their society, you are bound to find eccentric figures. I confess that, in another life, I myself co-translated a book from one of them (I am not speaking of my translation work on James Buchanan’s The Limits of Liberty). But libertarian thought remains necessary to understand our world, even from its American theorists!
It is as rare to find an impoverished libertarian as it is to find a wealthy socialist.
This is a statement is simply baseless and must contradict the experience of most people who know, personally or in writing, more than one libertarian and one socialist. Luce mentions George Soros, who is a mild socialist. Incidentally, I agree when the Financial Times columnist condemns “Soros demonization,” like when Musk tweeted that this fellow billionaire “hates humanity.” Rich socialists are very numerous, even if you consider only the first percentile of total income, which starts below $500,000 in the US. Luce could have mentioned many woke habitués of the World Forum in Davos. Bernie Sanders is less rich, but probably qualifies. Hugo Chavez (of “21st-century socialism” fame) and his family did better, like Friedrich Engels. One can also find candidates for the rich-socialist label among the rulers or high-level apparatchiks of past communist countries or socialist banana republics of our days. In our countries, socialists are fortunately constrained on what they can suck from the state, but Mr. Luce must have heard of what in France is called la gauche caviar (“the caviar left”).
Young idealistic libertarians are often poor. Many of Andrea’s students must be. I certainly wish that all libertarians were wealthy. Wealth is not a sin by itself. To simplify a bit, it depends on whether a rich person has made his money through voluntary transactions and interactions, or whether he has stolen it.
[The American libertarians’] libertarianism rarely stretches beyond their personal freedoms, especially the liberty not to be taxed. Other people’s freedom is their own lookout.
There are certainly some libertarians who have not reflected on all the implications of their beliefs. But again, I don’t think Mr. Luce’s sample is representative. Libertarians, who may be conceived as the radical wing of classical liberalism, have this rather rare virtue of defending a formal liberty that, by construction, can only belong equally to all individuals—contrary to the sort of “freedom” requiring that some be harmed by the state in order to favor others. One reason why libertarians are often seen as eccentrics is, indeed, that they defend the freedom of prostitutes or drug consumers, the right of self-defense for ordinary people (ordinary people, ma chère!), as well as the freedom of great entrepreneurs and famous journalists. The only constraint is the respect of everybody’s equal liberty: as John Stuart Mill wrote (in his 1859 On Liberty), “Over himself, over his own body and mind, the individual is sovereign.”
The continuity between classical liberalism and libertarianism is an interesting topic. Anarchist economist Anthony de Jasay describes himself as a liberal. I give other examples in my EconLog post “The Continuum Between Liberalism and Anarchism.” Needless to say that this current of thought covers a wide spectrum of ideas and analytical approaches, which contrasts with the poverty of American “liberalism,” an adulterated liberalism that the Financial Times seems close to. But let’s continue with the quotes from Mr. Luce:
[Musk’s] philosophical confusion … applies to many in his cohort, such as Peter Thiel, Ken Griffin and Charles Koch.
Perhaps Peter Thiel and Ken Griffin are in Musk’s cohort, I don’t know. Some years ago, Mr. Thiel made noises that sounded libertarian: see my Regulation review of his 2014 book From Zero to One (pp. 54-56 in the linked file). He has now stopped. Only Charles Koch seems to me to be clearly a classical liberal. I would argue that the philosophical confusion is, anyway, at least as much on the side of the Financial Times columnist.
Some of Musk’s fellow billionaires support Donald Trump, who is the most un-libertarian figure in US politics. … Not much of this seems to bother the libertarians.
Like myself, nearly all libertarians, I think, would agree that Trump is a very authoritarian, i.e., un-libertarian, figure. Some eccentric libertarians have other opinions; a few hope, or hoped, that Trump would lead to a crash of the statist system and open the field for anarchic nirvana. Yet, there are a number of other candidates for “the most un-libertarian figure in US politics” in both the Republican and Democratic parties.
As for the second sentence in the quote above, there must not be many libertarians who are not bothered. So I don’t know whom Mr. Luce refer to as “the libertarians.” Does he see the world in terms of woke identity groups?
Musk’s Tesla, for example, received $465mn of taxpayers’ stimulus money in 2009.
I heard about that, and I would agree that it is worse than socialists purchasing iPhones or sending their children to private schools. We must concede this criticism, but it adds to Luce’s burden of showing that Musk is a libertarian.
Musk’s love of free speech vanishes when it comes to China.
I also find that troubling, as I think virtually all classical liberals and libertarians do.
One thing that seems clear anyway is that Mr. Luce has not demonstrated that he understands what libertarianism or classical liberalism is.
READER COMMENTS
David Henderson
Jun 5 2023 at 12:33pm
Nicely done, Pierre.
Two disagreements, both about Musk.
First, I know many libertarians who accept and accepted government funds. Some of my libertarian friends applied for and received Trump’s Covid payments. Many of us went to government-funded universities and instead, we could have gone to private universities that received few government funds. Those universities, of course, charged high tuitions and so many of us would have had to save money in advance or go into larger debt. We chose not to. In my view, the key is not whether you accept the funds but whether you argue for, or even lobby for, the funds.
Second, I don’t think his love of free speech vanished when it came to China. As Musk pointed out recently, I think in response to Matt Yglesias, Twitter had a choice about whether to go along with Chinese government censorship or to keep its presence in China so that at least some people could speak freely about some things. He chose the latter. I don’t think it was clearly a bad choice. I don’t blame employers for withholding income taxes and payroll taxes from their employees’ pay. That certainly reduces those employees’ freedom. But the employers wouldn’t be able to survive as employers without doing so, as Vivien Kellems learned the hard way.
Pierre Lemieux
Jun 5 2023 at 12:51pm
Thanks, David. Your criticisms are valid, at least up to a point. With regard to the first one, it seems to me there is a difference between making necessary compromises in order to survive (granted, often above subsistence level!) in a statist system, and in order to earn one billion dollars more.
Andrea Mays
Jun 5 2023 at 2:06pm
steve
Jun 5 2023 at 2:14pm
“Young idealistic libertarians are often poor.” And they usually have pretty well to do parents. Eating ramen for a few years doesnt really count as poor.
Musk has done very well at obtaining govt money. A major source of his early SpaceX money was government money. Probably helps that the guy in charge of making decisions about the money was a former Tesla employee. Also, selling tax credits has been a major source of Tesla’s profits.
“We chose not to. In my view, the key is not whether you accept the funds but whether you argue for, or even lobby for, the funds.”
Pragmatic libertarianism? I think this is pretty common. Willing to accept govt aid when it is helpful. I think the issue is not that you didnt argue in favor of what you received but arguing against other people receiving the same aid that you received so that they could also be helped.
Steve
David Henderson
Jun 6 2023 at 12:28am
You write:
I have a sense that you’re aiming this at me. Of course, arguing against aid you received will entail arguing against other people receiving that aid too. It makes little sense to argue against government aiding you but not to argue against government aiding others.
steve
Jun 6 2023 at 9:17am
It would carry a bit more weight if you had not first accepted that aid. Many others are not able to afford a private college and would like to have the option you had.
Steve
David Henderson
Jun 6 2023 at 2:22pm
You write:
I’m not sure it would. I had a chance once to get my employer to fire me instead of quitting so that I could get unemployment insurance. I decided that because I didn’t in compulsory unemployment insurance, I should not take it. So instead I quit. My reasoning was that if I spoke against unemployment insurance, I would be more credible. In short, I thought the way you do.
What happened? When I’ve criticized UI, a common comeback is, “Yeah, have you ever been on unemployment insurance?” I answer no. Then the next response, almost always, is, “Well then, what would you know?”
Craig
Jun 6 2023 at 3:00pm
Always give strong consideration to availing yourself of every subsidy the law entitles you to because the taxation you’re subjected to isn’t voluntary.
MarkW
Jun 5 2023 at 2:42pm
One thing that seems clear anyway is that Mr. Luce has not demonstrated that he understands what libertarianism or classical liberalism is.
Of course he doesn’t. His column is just yet another repackaging of the standard leftist tropes and misrepresentations of libertarianism. But he is probably correct in thinking that it is what his readership would like to hear and that they will nod along in agreement as they read his column.
Mark Brady
Jun 5 2023 at 3:26pm
Pierre, I recommend that you abridge and revise this post, and submit it for publication as a letter to the Financial Times. There’s a good chance that it would be published, and read by so many more people than read EconLog.
Andrew_FL
Jun 5 2023 at 3:48pm
Luce seems to figure that Musk must be a libertarian because he’s rich and not a left winger.
john hare
Jun 5 2023 at 5:39pm
It’s possible that one of my wrong turns financially has to do with my mostly libertarian mindset. In the early 2000s I had several chances to work with aerospace start ups that mainly lived off of SBIRs (Small Business Innovative Research) grants. My ability to come up with unique and possibly viable ideas should have been a strong plus to a company. I passed as I didn’t like the concept of living off of the government.
Phase 1 six month paper studies were up to $150,000 or so with no hardware. Phase 2 for a two year study could hit 7 digits. Phase 3 was said to involve “real money”. Turning out a useful product was barely required.
Sometimes I question my intelligence.
David Seltzer
Jun 5 2023 at 5:45pm
Pierre: Luce said, “Billionaire libertarians … have the money to do whatever they want.”
By reason, wouldn’t that apply to billionaire left wingers as well? Of course to your point, the first lesson of economics is; resources are scarce compared to quasi-infinite human desires. In addition to Luce’s hyperbole, I think he is being morally presumptuous.
Pierre Lemieux
Jun 5 2023 at 6:01pm
David: Perhaps you care to elaborate on what you mean by “morally presumptuous”? I do get the impression that he wants to “demonize” the billionnaires who are not, or don’t appear to be, on his side.
David Seltzer
Jun 5 2023 at 6:54pm
Pierre: By Morally presumptuous I mean to say, Luce’s assertions are characterized by an unfounded or unsupported presumed certainty that he is correct or morally superior. In the case of me, the individual libertarian, how could he know, without knowing me, how I treat others in the same manner I hope be treated? How charitable I am? Would Hayek characterize this as “insuperable limits to his knowledge?”
Thanks!
Craig
Jun 5 2023 at 10:33pm
I’m of two minds about him. I admire his entrepreneurship and detest his businesses’ reliance on cronyist benefits.
As for his political beliefs I remember one quote from him on twitter: “By the way, I am actually a socialist. Just not the kind that shifts resources from most productive to least productive, pretending to do good, while actually causing harm. True socialism seeks greatest good for all.”
Pierre Lemieux
Jun 5 2023 at 11:34pm
Craig: Very interesting! I had noticed that Musk quote, but didn’t keep a record of it. Of course, “the greatest good for all” is just a slogan that would usually, at best, be taken to mean that the political rulers can add up individual “goods” or, in other words, make interpersonal comparisons of utility. In practice, it is collectivism, where the greatest number oppress the smallest number. Anthony de Jasay said it in immortal words:
Coincidentally, just before reading your comment, I found another Musk quote (in a tweet of his), which I should have remembered because I used part of it in a 2021 post:
In brief, Musk doesn’t know what he is talking about. Or else he just wants his money and for other people to be forced to do what is necessary for the greatest good of them. This political philosophy looks very much at the level of Trump and DeSantis.
Craig
Jun 6 2023 at 10:07am
Right now he is definitely perceived as being on the right. Before Twitter acquisition he would tend to say some things that would make one equivocate and which might’ve been difficult to reconcile, just googling it now I am seeing a self-description as ‘fiscally conservative/socially liberal’ which is often perceived as libertarianesque at times. See some insistence at voting mostly for Democrats, but also contributing to both Republicans and Democrats. Before we condemn him as not knowing what he’s talking about, I’d suggest we might need to consider the possibility that he had previously adopted the camouflage of a political chameleon on purpose.
But why speculate, there’s even a wiki article on his views: https://en.wikipedia.org/wiki/Views_of_Elon_Musk
I just edited it to reflect him joining the Libertarian Part in 2022 😉
Pierre Lemieux
Jun 6 2023 at 11:55am
Craig: The Wikipedia notice tends to support my previous comment. An individual can change his mind, and should do so if he realizes he was wrong. He may even say A one day, and non-A the next day. But he must have rational reasons, which he can explain. (I hope your dark humor will not fool our readers into thinking that Musk joined the Libertarian Party. But he would not be the first eccentric there!)
Thomas Hutcheson
Jun 5 2023 at 10:52pm
Ho Hum. All the criticism of Musk remain whatever label one applies to him.
Pierre Lemieux
Jun 5 2023 at 11:38pm
Thomas: You care to elaborate? I don’t understand what you mean.
Dani Freidus
Jun 6 2023 at 1:00pm
To me, it seems superficial to criticise libertarians for benefiting from the state.
If you believe that the free market is simply the best way to organise society – not that it is inherently more moral – then the following don’t seem inconsistent:
A) I don’t believe society is organised ideally; and
B) Given the way society has chosen (democratically) to organise itself, I may as well benefit from it.
However, if you were to believe that, wealth redistribution say, is also immoral, then I see a distinction:
It seems perfectly reasonable to accept from the state (whether in the form of grants or other) up to the amount you pay in taxes. To accept more from the state than you pay in taxes – whilst believing redistribution is immoral – seems hypocritical. (Although, also courageous, as you would be arguing for a policy which would have a negative impact on you personally).
I think similar arguments could also be made to defend the caviar left.
Richard Fulmer
Jun 11 2023 at 9:37pm
I don’t know whether anyone has ever done a study to determine whether there is a correlation between political beliefs and poverty, but I wouldn’t be surprised if libertarians are less likely to be poor than, say, socialists.
Someone who believes in agency and self reliance is probably more likely to be employed than someone who believes that they have a right to food, clothing, housing, education, and healthcare simply because they exist. Statistically, we know that, in the U.S., the employed are very unlikely to live in poverty.
Comments are closed.