Transcript Liberalism in a Post-9/11 World

Liberalism in a Post-9/11
World
Peter J. Boettke
2004 Hayek Visiting Fellow
London School of Economics
Terrorism Strikes a Nerve in Western
Society
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Use of modern technology to
inflict harm – turn our
instruments of progress into
weapons of destruction
Use of civilians (e.g.,
passengers) and the targeting
of civilians and symbols of
modern society
Suicide missions by individuals
who blended easily within
modern society and who had
significant opportunity costs
Helpless to stop terrorism if
individuals are willing to pay
the ultimate price and can
strike anytime and anywhere
Beslan, Russia --- September 2004
Terrorism and Rational Deterrence
Price
PH
PL
Demand
QH
QL
Quantity
Rational Responses
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First, increase the probability of detection.
Second, increase the penalty of being
caught.
e.g., Walter Williams policy on cell phones
BUT WAIT!!! Does this make
sense?
What if the demand curve is inelastic?
Price
Raising the “price” of
terrorism will be relatively
ineffective, emphasis
must be on shifting the
entire demand curve in
not just moving along the
curve.
PH
Demand
PL
QH
QL
Quantity
What About Liberal Values?
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“The great rule of conduct for us, in regard to foreign
nations, is, in extending our commercial relations, to
have with them as little political connexion as
possible. So far as we have already formed
engagements, let them be fulfilled with perfect good
faith. Here let us stop. It is our true policy to steer
clear of permanent alliances with any portion of the
foreign world.” --- George Washington
“They who would give up an essential liberty for
temporary security, deserve neither liberty or
security.”
--- Benjamin Franklin
Can you defend liberalism by illiberal
means?
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Lesser Evil thesis (e.g., Ignatieff)
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Strong Minimal State (e.g., Buchanan)
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Measured violence
Importance of the protective state
Empire thesis (e.g., Lal, Ferguson)
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Importance of hegemony
Liberalism by Liberal Means
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Principled Non-Interventionism
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George Washington’s farewell address
Bastiat -- "When goods don't cross borders,
soldiers will.“
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Free trade as a way to explore peaceful interaction
Free trade as a way to bring an enemy into friendship
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Cowen’s idea of cultural gains from exchange
A Few Additional Concerns
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Islam as an Ideology
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Religious toleration as a core liberal value
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But this doesn’t mean that we cannot address troublesome
issues associated with certain ideas and their impact on
economic life
Spontaneous Order versus Command and Control
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Military
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Terrorist cells
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E.g., cyber terrorism
Self-Help
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Post-9/11 responses in NYC