European Popular Rejection of Austerity Is Exciting!

[Lloyd Danforth]

http://www.dollarvigilante.com/blog/2012/5/9/european-popular-rejection-of-austerity-is-exciting.html


Editors note: the following post is by Menno Troyer, TDV Subscriber and a pioneer of the Free State Project]

In the latest issue of TDV Premium, Ed Bugos described his sentiments following the recent victory of French socialist Francois Hollande, as "sad" and "disappointment, frustration, despair, and even a sense of defeat" (TDV Portfolio: Review & Outlook). It surprised me that Mr. Bugos would express such sentiments over this development. You see, as a champion of free markets and an (amateur) observer of the big picture, my own sentiments upon reading the news of Hollande's victory were, if anything, just the opposite.

Being apolitical, I generally pay only passing attention to political developments around the world. But I have been noting with gleeful interest that the pendulum has lately been swinging hard to the left in much of Europe. Hollande's victory may be the most important one, but there have been similar developments in the past two weeks in Romania, the Czech Republic, and Greece, with pro-austerity governments being hamstrung or outright defeated by leftists propelled by the popular outcry over austerity measures.

Of course, as an advocate of Austrian economics, I recognize that those very austerity measures, while hardly adequate, are the bitter medicine needed to stabilize the European economy. But, pray tell, why would anyone who wishes to see the parasitism of government rejected and free markets prevail - the sooner the better – root for measures that stabilize and prolong the very system that stands in the way of this beautiful dream?

I am encouraged by the sharp rejection of austerity by the people of Europe. If this attitude prevails, as I hope it will, it means they will soon be facing an even more severe reality than the austerity measures they are rejecting, and this time no amount of childish tantrums will change the outcome. Only once the nanny-state addicted sheeple are rudely awakened by inescapable reality, is there any chance that the rationality of Austrian economics and free market principles can prevail. There is no better time than the present for radical socialism to burst upon the scene in Europe: If it prevails, it will lead to one of the most spectacular crash and burns in history. This is a good thing!

The case for free markets and liberty has never stood a chance with the nanny-state addicted masses. As long as they get to suck on the tit of the state, not only are these ideas boring to them, but in fact represent a threat to their way of life. To imagine that free markets and liberty can somehow gain ground while the broader market for these simply does not exist, is delusional. There were only two possible outcomes in Europe (and soon in the US as well), and a long term move toward less government was not among them: Either the masses are subjected kicking and screaming to austerity measures that would allow their respective governments to retrench for the long haul, or the masses prevail in their demands for more destructive government policies. Only the latter, with its inevitable consequences, can pave the way for a genuine transformation from government controlled economies to free markets.

Mr. Bugos correctly notes that "the case for free markets and liberty has made inroads at the intellectual level". This is even more cause for optimism, because this means that these ideas are poised for ascendancy once the masses come face to face with the harsh consequences of the policies they now demand.

Not only is the complete destruction of the present system via radical socialism the most promising outcome one can hope for (if one longs to see free market principles widely embraced), there is a separate silver lining for individuals who are aware and prepared: The final feeding frenzy in Europe, while perhaps initially triggering a flight to the US dollar, should ultimately lead to a massive surge of interest in precious metals. Those who get in position now will ride this coming wave.

While irrational exuberance can get in the way of dealing effectively with reality, rational optimism enhances one's life experience and helps drive success. Pessimism only leads to despair, inaction, and ultimate failure. Anytime optimism is warranted by a big picture review of the facts, it is important for one's own well-being to recognize and indulge it. The latest developments in Europe are just such an opportunity!

Menno Troyer is a voluntaryist, atheist, and an advocate of free markets. He currently resides in New Hampshire, and is one of the "First 1000" movers of the Free State Project. Forbidden to do so by his Old Order Amish father, he defiantly read the book The Neo-Tech Discovery at the tender age of sixteen – and thus began an inexorable odyssey toward objective thinking and personal freedom. At the age of twenty, he left his Amish roots to pursue his dreams in "the real world", and has never looked back. Menno counts among his mentors and kindred spirits Dr. Frank R. Wallace, Ayn Rand, Andrew J. Galambos, Ian Bernard, Doug Casey, Jeff Berwick, and – ironically – his own father, Daniel Troyer, who was a renegade in his own right.

[Tom Sawyer]

Cool, good job Menno.

I too am somewhat optimistic that the turn to socialism to solve the economic woes of some european countries will lead to faster destruction of the those ideas.

[Jim Johnson]

Menno... always seems to be able to find the happy place in everything.   

[Pat K]

   

[Russell Kanning]

I guess I have always disagreed with him about wanting destruction to happen so something better can happen.