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Today I’m here to tell you that the Western world is in danger. And it is in danger because those who are supposed to have to defend the values of the West are co-opted by a vision of the world that inexorably leads to socialism and thereby to poverty.
Unfortunately, in recent decades, the main leaders of the Western world have abandoned the model of freedom for different versions of what we call collectivism. Some have been motivated by well-meaning individuals who are willing to help others, and others have been motivated by the wish to belong to a privileged caste.
Free trade capitalism
Far from being the cause of our problems, free trade capitalism as an economic system is the only instrument we have to end hunger, poverty and extreme poverty across our planet. The empirical evidence is unquestionable.
Therefore, since there is no doubt that free enterprise capitalism is superior in productive terms, the left-wing doxa has attacked capitalism, alleging matters of morality, saying – that’s what the detractors claim – that it’s unjust. They say that capitalism is evil because it’s individualistic and that collectivism is good because it’s altruistic. Of course, with the money of others.
So, they therefore advocate for social justice. But this concept, which in the developed world became fashionable in recent times, in my country has been a constant in political discourse for over 80 years. The problem is that social justice is not just, and it doesn’t contribute to general well-being.
Taxation, freedom
Quite on the contrary, it’s an intrinsically unfair idea because it’s violent. It’s unjust because the state is financed through tax and taxes are collected coercively. Or can any one of us say that we voluntarily pay taxes? This means that the state is financed through coercion and that the higher the tax burden, the higher the coercion and the lower the freedom.
Those who promote social justice start with the idea that the whole economy is a pie that can be shared differently. But that pie is not a given. It’s wealth that is generated in what Israel Kirzner, for instance, calls a market discovery process.
Thanks to free trade capitalism, the world is now living its best moment. Never in all of mankind or humanity’s history has there been a time of more prosperity than today. This is true for all. The world of today has more freedom, is rich, more peaceful and prosperous. This is particularly true for countries that have more economic freedom and respect the property rights of individuals.
Countries that have more freedom are 12 times richer than those that are repressed. The lowest percentile in free countries is better off than 90% of the population in repressed countries. Poverty is 25 times lower and extreme poverty is 50 times lower. And citizens in free countries live 25% longer than citizens in repressed countries.
Libertarianism
Now, what is it that we mean when we talk about libertarianism? And let me quote the words of the greatest authority on freedom in Argentina, professor Alberto Benegas Lynch Jr, who says that libertarianism is the unrestricted respect for the life project of others based on the principle of non-aggression, in defence of the right to life, liberty and property.
Its fundamental institutions are private property, markets free from state intervention, free competition, and the division of labour and social cooperation, in which success is achieved only by serving others with goods of better quality or at a better price.
In other words, capitalist successful business people are social benefactors who, far from appropriating the wealth of others, contribute to the general well-being. Ultimately, a successful entrepreneur is a hero.
Socialism
Now, if the free enterprise, capitalism and economic freedom have proven to be extraordinary instruments to end poverty in the world, and we are now at the best time in the history of humanity, it is worth asking why I say that the West is in danger.
And I say this precisely because in countries that should defend the values of the free market, private property and the other institutions of libertarianism, sectors of the political and economic establishment are undermining the foundations of libertarianism, opening up the doors to socialism and potentially condemning us to poverty, misery and stagnation.
It should never be forgotten that socialism is always and everywhere an impoverishing phenomenon that has failed in all countries where it’s been tried out. It’s been a failure economically, socially, culturally, and it also murdered over 100 million human beings.
The essential problem of the West today is not just that we need to come to grips with those who, even after the fall of the Berlin Wall and the overwhelming empirical evidence, continue to advocate for impoverishing socialism.
But there’s also our own leaders, thinkers and academics who are relying on a misguided theoretical framework to undermine the fundamentals of the system that has given us the greatest expansion of wealth and prosperity in our history.
Neoclassical regulation
The theoretical framework to which I refer is that of neoclassical economic theory, which designs a set of instruments that, unwillingly or without meaning to, end up serving intervention by the state, socialism and social degradation.
The problem with the neoclassicals is that the model they fell in love with does not map reality, so they put down their mistakes to supposed market failures rather than reviewing the premises of the model.
Under the pretext of a supposed market failure, regulations are introduced. These regulations create distortions in the price system, prevent economic calculus and, therefore, also prevent saving, investment and growth.
Neoclassical economists [must] think outside of the box. When the model fails, you shouldn’t get angry with reality but rather with a model and change it. The dilemma faced by the neoclassical model is that they say they wish to perfect the function of the market by attacking what they consider to be failures. But in so doing, they don’t just open up the doors to socialism but also go against economic growth.
However, faced with the theoretical demonstration that state intervention is harmful – and the empirical evidence that it has failed couldn’t have been otherwise – the solution proposed by collectivists is not greater freedom but rather greater regulation, which creates a downward spiral of regulations until we are all poorer and our lives depend on a bureaucrat sitting in a luxury office.
Social conflicts
Given the dismal failure of collectivist models and the undeniable advances in the free world, socialists were forced to change their agenda: they left behind the class struggle based on the economic system and replaced this with other supposed social conflicts, which are just as harmful to life and to economic growth.
The first of these new battles was the ridiculous and unnatural fight between man and woman. Another conflict presented by socialists is that of humans against nature, claiming that we human beings damage a planet which should be protected at all costs, even going as far as advocating for population control mechanisms or the abortion agenda.
Unfortunately, these harmful ideas have taken a stronghold in our society. Neo-Marxists have managed to co-opt the common sense of the Western world, and this they have achieved by appropriating the media, culture, universities and also international organizations.
In conclusion, I would like to leave a message for all business people. Do not be intimidated by the political caste or by parasites who live off the state. Do not surrender to a political class that only wants to stay in power and retain its privileges. You are social benefactors. You are heroes. You are the creators of the most extraordinary period of prosperity we’ve ever seen.
Let no one tell you that your ambition is immoral. If you make money, it’s because you offer a better product at a better price, thereby contributing to general wellbeing.
Do not surrender to the advance of the state. The state is not the solution. The state is the problem itself. You are the true protagonists of this.
Thank you very much and long live freedom!
Click here for full transcript of Argentine President Javier Milei's speech.
