The slow and hidden road to serfdom

Authors

  • Peter Bernholz Center for Economics and Business (WWZ).

DOI:

https://doi.org/10.52195/pm.v10i2.195

Abstract

Without the rule of law limiting the discretionary powers of government agencies, but also of other organizations and in-dividuals no individual freedom is possible. If government re-presentatives or private persons can order at their discretion individuals to behave in certain ways, no individual liberty is guaranteed. As Immanuel Kant expressed it «man is free if he needs to obey no person but solely the law.» And even if indi-viduals are only obliged to follow the law, their freedom is al-ways threatened if these laws can be changed arbitrarily by any individuals or government authorities. This is even true for de-mocracies in which duly elected parliamentary majorities (that is minorities) are allowed to introduce new laws or change old ones relating to any sphere of human activities. The problem has been clearly stated by Alexis de Tocqueville (1945, vol. I, p.270):

When I see that the right and the means of absolute command are conferred on any power whatever, be it called a people or a king, an aristocracy or a democracy, a monarchy or a republic, I say there is the germ of tyranny, and I seek to live elsewhere, under other laws.

Similar ideas are expressed by Friedrich v. Hayek (1944, p. 62):

The Rule of Law thus implies limits to the scope of legislation: it restricts it to the kind of general rules known as formal law, and excludes legislation either directly aimed at particular people, or at enabling anybody to use the coercive power of the state for the purpose of such discrimination.

References

ARNOLD, J. (2008): «Do Tax Structures Affect Aggregate Econo-mic Growth? Empirical Evidence from a Panel of OECD countries». Paris: OECD Economics Department Working Paper 643.

BAUM, A.; WESTPHAL, C. and POTHER, P. (2012): «Debt and Growth. New Evidence from the Euro Area». European Central Bank: Working Paper Series 1450, July.

BERGH, A. and KARLSSON, M. (2010): «Government Size and Growth. Accounting for Economic Freedom and Globalization». Public Choice 142 (1-2), 195-213.

BERNHOLZ, P. (1986): «Growth of Government, Economic Growth and Individual Freedom». Journal of Institutional Economics (Zeitschrift für die gesamte Staatswissenschaft) 142, 661-683.

BÖRSCH-SUPAN, A.H. (2012): «Policy Mixes in the Current Euro - pean Pension Reform Process». CESifo DICE Report 10 (4), 9-15.

ELAND, I. (2013): «Obama’s Drone War Could Legally Kill Ame-ricans But Not Anywhere». Posted February 18. http://www.independent.org/newsroom/article.asp?id=3553

FRIEDMAN, M. (1955): «The Role of Government in Education». Robert Solo (Hrsgb.): Economics and the Public Interest, I 1955. New Jersey: Rutgers College.

GATTUSO, J.L. (2013): «REINS Act of 2013»: Promoting Jobs, Growth and Competitiveness. Testimony before The Subcommitty on Regulatory Reform, Commercial and Antitrust Law. Committee on the Judiciary. United States House of Repre-sentatives. http://www.heritage.org/research/testimony/reins-act-of-2013.

HÖLDERLIN, F. (1946): Hyperion. Ulm: Aegis-Verlag.

IW (2012): Deutschland in Zahlen. Kölner Institut der deutschen Wirtschaft.

KORNAI, J. (1971): Anti-Equilibrium. Amsterdam: North Holland.

KIRCHHOF, P. (2011): Ein einfaches Bundessteuergesetzbuch - politische Notwendigkeit oder akademischer Traum? Zur Debatte (Themen der Katholischen Akademie Bayern) 8/11, 9-12.

LIPFORD, Y.W. and YANDLE, B. (2012): «Tax Payers and Tax Spenders: Does a Zero Tax Price Matter?» Independent Review 16(4), 517 -531.

REINHART, C.M. and ROGOFF, K.S. (2011): «A Decade of Debt. Po-licy Analysis» in International Economics 95. Washington, D.C.: Peterson Institute of International Economics (Sep-tember).

ROMER, C.D. and ROMER, D.H. (2001): «The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fis-cal Shocks». American Economic Review.

SINN, H.-W. (2004): Ist Deutschland noch zu retten? München: Econ.

— (2012): Die Target Falle. Gefahren für unser Geld und unsere Kin-der. München: Karl Hanser.

TANZI, V. and SCHUKNECHT, L. (2000): Public Spending in the 20th Century. Cambridge: Cambridge University Press.

TOCQUEVILLE, A. DE (1945): Democracy in America. 2 vols. New York; Vintage Books.

WEEDE, E. (1991): «The Impact of State Power on Growth Rates in OECD Countries». Quality and Quantity 25, 421-438.

— (2012): Freiheit und Verantwortung, Aufstieg und Niedergang. Tübingen: Mohr Siebeck.

Downloads

Published

2013-07-01

Issue

Section

Notes

How to Cite

The slow and hidden road to serfdom. (2013). REVISTA PROCESOS DE MERCADO, 10(2), 201-237. https://doi.org/10.52195/pm.v10i2.195