Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

18 February 2021

Economic Theories of the Great Depression

The Great Depression is among the most consequential periods in American economic history. The collapse that began in 1929, and the economic, social, and political consequences of the subsequent decade, has been an enormously popular subject of historians, economists, writers, and novelists. And yet despite this significant scholarly achievement, we are still unable to fully understand what happened. As Ben Bernanke (who would later serve as Chairman of the Federal Reserve from 2006-2014) wrote in 1995:
To understand the Great Depression is the Holy Grail of macroeconomics....[F]inding an explanation for the worldwide economic collapse of the 1930s remains a fascinating intellectual challenge. We do not yet have our hands on the Grail by any means....
To that extent, historians and economists have provided a range of explanations both for what caused the Great Depression and for how it ended. Some of these explanations overlap and some are contradictory or mutually exclusive. In either case, we would be wise to heed the words of the political theorist James Burnham, who wrote that "[c]hanges in society do not result from the exclusive impact of any single cause, but rather from the interdependent and reciprocal influences of a variety of cases...." We should consider single cause explanations, but only when they fit within a larger "pluralistic theory of history." 


The monetarist explanation, as provided by Milton Friedman and Anna Schwartz, argue that the Federal Reserve allowed a reduction in the money supply which caused deflation and its associated effects, including falling incomes and prices and more unemployment. This theory was endorsed and expanded upon by Bernanke, who in a 2002 speech said:
Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again.
A modern monetarist explanation for the end of Great Depression is provided by Christina Romer, who advances the argument that an inflow of gold to the United States during the mid and late 1930s served to stimulate aggregate demand.

Keynesian economics, on the other hand, finds the cause of the Great Depression in an unrestrained capitalist boom during the 1920s which eventually crashed; a reduction of investment then caused a decrease in aggregate demand. A negative difference between aggregate demand and potential output denotes a recessionary gap. The Keynesian prescription for a recessionary gap is to boost aggregate demand primarily through government-directed stimulus spending. This narrative also relies on a belief that then-President Herbert Hoover failed to act in any meaningful way following the stock market crash of 1929, which prolonged and worsened the Great Depression. The most prominent modern exponent of Keynes is Nobel laureate and New York Times columnist Paul Krugman, who has argued that World War II was "the great natural experiment in the effects of large increases in government spending" to stimulate a depressed economy. War spending as the reason for the end of the Great Depression is consistent with the standard Keynesian model.

A third explanation, which can be seen as an extension of the classical economic theory of Adam Smith and David Ricardo, is the Austrian school. According to the Austrians (among them, Ludwig von Mises and Murray Rothbard), the boom of the 1920s was caused not by unrestrained capitalism but by the Federal Reserve through artificially low interest rates. Instead of reducing interest rates, as the Fed did after the crash, it should have allowed rates to rise (the Fed's aggressive rate cuts between 1929 and 1931 cut strongly against the monetarist explanation). This would have allowed employment to shift to different areas of the economy. The Fed's intervention in the economy is the chief cause of "boom" and "bust" business cycles, of which the Great Depression is the prime example. Moreover, Benjamin Anderson and Rothbard exploded the now-tired myth that President Hoover failed to act. The key distinction between monetarists and Keynesians, on one hand, and Austrians, on the other hand, is the role of the government in ending the Great Depression. Monetarist and Keynesian explanations support government intervention, while Austrians contend that intervention made the Great Depression much longer than it would have been. Mises would scoff at Krugman's notion that war could end a depression; he wrote that "[w]ar prosperity is like the prosperity that an earthquake or plague brings." Austrians argue, then, that wealth cannot result from destruction. 

Scholarship by Robert Higgs, Steven Horowitz, and Michael McPhillips have shown that the "consensus" view that wartime spending ended the Great Depression is incorrect. Instead, as Higgs and Larry Schweikert explain, savings and bond holdings accumulated during the war were spent as the ending of the war became more certain. Optimism and confidence rebounded. Despite a 61 percent decrease in federal government spending from 1945 to 1947, a 20.6% decline in GNP in 1946, and an influx of ten million servicemen into the civilian economy, the private sector rebounded and flourished, in part because the "regime uncertainty" of the 1930s (as explained by Higgs) had subsided. As Horowitz and McPhillips write, "[t]hose who credit the war with economic recovery by virtue of giant government expenditures and rising GNP must also explain the absence of any genuine economic downturn following the war."

The monetarist and Keynesian explanations for both the cause of the Great Depression and for its end are compelling narratives. But heterodox views such as those of the Austrian school have continued to deflate the validity of these narratives, first, by challenging the underlying evidence; and second, by proposing an alternate theory that is more consistent with the available data. Although the debate over the economic theories of the Great Depression will not be resolved by a single blog post, my review of the relevant literature finds the Austrian narrative to be a more persuasive explanation.

Bibliography

Anderson, Benjamin M. Economics and the Public Welfare: Financial and Economic History of the United States, 1914-1946. Princeton: D. Van Nostrand Company, 1949.

Bernanke, Ben S. "The Macroeconomics of the Great Depression: A Comparative Approach." Journal of Money, Credit and Banking 27, no. 1 (1995): 1-28. 

Burnham, James. The Machiavellians: Defenders of Freedom. New York: The John Day Company, 1943.

Friedman, Milton, and Anna J. Schwartz. A Monetary History of the United States, 1867-1960. Princeton: Princeton University Press, 1971.

Higgs, Robert. Depression, War, and Cold War: Studies in Political Economy. Oxford: Oxford University Press, 2006.

Horwitz, Steven and Michael J. McPhillips. "The Reality of the Wartime Economy: More Historical Evidence on Whether World War II Ended the Great Depression." The Independent Review 17, no. 3 (2013): 325-347.

"Interest Rates, 1914-1965." Federal Reserve Bank of St. Louis. October 1965.

Keynes, John Maynard. The General Theory of Employment, Interest, and Money. Cham, Switzerland: Palgrave Macmillan, 2018.

Krugman, Paul. "Oh! What A Lovely War!" New York Times, August 15, 2011.

Mises, Ludwig von. Between the Two World Wars: Monetary Disorder, Interventionism, Socialism, and the Great Depression. Indianapolis: Liberty Fund, 2002.

______. Nation, State, and Economy. New York: New York University Press, 1983.

Remarks by Governor Ben S. Bernanke, At the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois, November 8, 2002. https://www.federalreserve.gov/boarddocs/speeches/2002/20021108/default.htm.

Romer, Christina D. "What Ended the Great Depression?" The Journal of Economic History 52, no. 4 (1992): 757-84.

Rothbard, Murray N. America's Great Depression. Auburn, AL: Ludwig von Mises Institute, 2000.

Schweikert, Larry. "The Economic Impact of War on Business." Liberty University.

18 March 2016

"Books You're Not Supposed to Read" Bibliography

A complete list of the "Books You're Not Supposed to Read" from Robert P. Murphy's The Politically Incorrect Guide to Capitalism. You can also find this list on Goodreads.

Cross-posted on Liberty Leanings.

Planned Chaos by Ludwig von Mises; Irvington-on-Hudson, NY: Foundation for Economic Education, 1947.

How the West Grew Rich by Nathan Rosenberg; New York: Basic Books, 1986.

Capitalism and the Historians by Friedrich Hayek; Chicago: University of Chicago Press, 1954.
by Walter Block, Milton Friedman, Friedrich A. Von Hayek, Basil Kalymon, Edgar O. Olsen, eds.; Vancouver: Fraser Institute, 1981.

The Age of Oil: The Mythology, History, and Future of the World’s Most Controversial Resource by Leonardo Maugeri; Westport, CT: Praeger, 2006.

Cornerstone of Liberty: Property Rights in 21st-Century America by Timothy Sandefur; Washington, DC: Cato Institute, 2006.

Economics in One Lesson by Henry Hazlitt; New York: Harper & Brothers, 1946.

The Strike Threat System by William Hutt; New York: Arlington House, 1973.

Out of Work: Unemployment and Government in Twentieth-Century America by Richard Vedder and Lowell Gallaway; New York: New York University Press, 1997.

Freedom in the Workplace: The Untold Story of Merit Shop Construction’s Crusade against 
Compulsory Trade Unionism by Samuel Cook; Washington, DC: Regnery, 2005.

The State against Blacks by Walter Williams; New York: McGraw-Hill, 1984.

Capitalism: The Cure for Racism by George Reisman; The Jefferson School of Philosophy, Economics & Psychology, 1992.

Reflections of an Affirmative Action Baby by Stephen L. Carter; New York: Basic Books, 1991.

Race and Culture: A World View by Thomas Sowell; New York: Basic Books, 1994.

The Real Lincoln: A New Look at Abraham Lincoln, His Agenda, and an Unnecessary War by Thomas DiLorenzo; Roseville, CA: Prima, 2002.

Emancipating Slaves, Enslaving Free Men by Jeffrey Rogers Hummel; Peru, IL: Open Court, 1996.

The Ultimate Resource by Julian Simon; Princeton, NJ: Princeton University Press, 1983.

Energy: The Master Resource by Robert L. Bradley, Jr. and Richard W. Fulmer; Dubuque, IA: Kendall/Hunt Publishing Company, 2004.

Environmental Overkill: Whatever Happened to Common Sense? by Dixy Lee Ray; Washington, DC: Regnery, 1993.

Economics and the Environment: A Reconciliation, ed. Walter Block; Vancouver: Fraser Institute, 1990.

Trashing the Planet: How Science Can Help Us Deal with Acid Rain, Depletion of the Ozone, and 

Nuclear Waste (Among Other Things) by Dixy Lee Ray; New York: Perennial, 1992.

Free to Choose: A Personal Statement by Milton and Rose Friedman; New York: Harcourt Brace Jovanovich, 1980.

The Death and Life of Great American Cities by Jane Jacobs; New York: Random House, 1961.

Money Mischief: Episodes in Monetary History by Milton Friedman; New York: Harcourt Brace Jovanovich, 1992.

What Has Government Done to Our Money? by Murray Rothbard; Auburn, AL: Ludwig von Mises Institute, 2005.

The Rationale of Central Banking and the Free Banking Alternative by Vera Smith; New York: Liberty Press, 1990.

America’s Great Depression by Murray Rothbard; Auburn, AL: Ludwig von Mises Institute, 2000.
FDR’s Folly: How Roosevelt and His New Deal Prolonged the Great Depression by Jim Powell; New York: Crown Forum, 2003.

The Roosevelt Myth by John T. Flynn; San Francisco: Fox & Wilkes, 1998.

Economics on Trial: Lies, Myths, and Realites by Mark Skousen; Scarborough, Ontario: Irwin, 1990.

What Do You Care What Other People Think? by Richard Feynman; New York: W. W. Norton, 1988.

Bureaucracy by Ludwig von Mises; Grove City, PA: Libertarian Press, 1994.

Street Smart: Competition, Entrepreneur-ship, and the Future of Roads, ed. Gabriel Roth; New Brunswick, NJ: Transaction, 2006.

The Myth of the Robber Barons by Burton Folsom; Washington, DC: Young America’s Foundation, 2003.

Antitrust Policy: The Case for Repeal by Dominick Armentano; Washington, DC: Cato Institute, 1986.

Economic Sophisms by Frédéric Bastiat.

The Wealth of Nations by Adam Smith.

Free Trade Under Fire by Douglas A. Irwin; Princeton, NJ: Princeton University Press, 2002.

Equality, the Third World, and Economic Delusion by P.T. Bauer; Cambridge, MA: Harvard University Press, 1983.

In Defense of Global Capitalism by Johan Norberg; Washington, DC: Cato Institute, 2003.

Creative Destruction: How Globalization Is Changing the World’s Cultures by Tyler Cowen; Princeton, NJ: Princeton University Press, 2002.

In Defense of Globalization by Jagdish Bhagwati; New York: Oxford, 2005.

Why Globalization Works by Martin Wolf; New Haven: Yale University Press, 2005.


The Power of Economic Thinking by Mark Skousen; Washington, DC: BNA Books, 2002.

16 October 2013

Vending machine licenses...what are they good for?

In Maryland, the license fee is $2.50 for each vending machine. Apparently, no one renews these licenses because many of the vending machines I have encountered have expired licenses. In fact, all of the vending machines where I took this photo had expired licenses. Perhaps there is another explanation.

Pursuant to Maryland law, an inspector could "seal the vending machine to prevent further use." Md. BUSINESS REGULATION Code Ann. § 17-1905(c)(2)(i) (2013). Selling through a vending machine without license is a misdemeanor subject to a fine not exceeding $100. § 17-1906(b).

Other than paying $2.50 for the license, Maryland law does not appear to have any provision to inspect the machines or for any sort of regulation. Other than generating revenue, I don't really see the point of these licenses. By not enforcing them, Maryland apparently doesn't see the point either. So why not eliminate them?

12 August 2013

Maryland, delayed foreclosures, and herd immunity

The Washington Post notes that thousands of Marylanders are losing homes in a second wave of foreclosures. Others have already noted this hit. Worse yet, the Post article acknowledges that "foreclosure experts and state officials knew [it] was coming but no one wanted to see." So they knew it was coming, and did it anyway. Thanks for nothing. Like an ostrich with its head in the sand.

For what its worth, I think the Post is somewhat disingenuous in acknowledging that state officials knew the inevitable was coming. While it is true that some rhetoric acknowledged that the state was just delaying the inevitable, other statements suggested that the state was taking preventative measures.

The article does contrast the Maryland foreclosure process, which has been painfully drawn out over an average of 575 days (among the longest), with Virginia, whose foreclosure crisis has largely run its course (an average of 184 days, the shortest in the nation). I will be very curious to see economists do a post-mortem comparing Maryland's heavy-handed, interventionist approach to foreclosures vs. Virginia's hands-off approach.

What this article fails to deliver is a definitive verdict on Governor O'Malley's policies: is the second wave worse than it would have been if the state had just allowed foreclosures to happen? Or have they, as expected, made things worse?

In at least one measurable way, these policies have made things worse. Maryland's intervention has delayed the recovery of housing prices in Maryland, as predicted last year. As a result, homeowners not affected by foreclosures have felt the impact because their mortgages continue to be underwater. Delaying foreclosures in Maryland is akin to people choosing not to vaccinate their kids; as a result, the herd immunity (so to speak) suffers. I like to think of timely foreclosures acting as a firewall to the spread of more foreclosures. When foreclosures are delayed, everyone suffers through lower housing prices.

I was one of many who warned this time would come. I take no small bit of pride in acknowledging this. I would rather have been wrong. And while I an not a housing expert, I take my predictions and warnings seriously. I make them with due consideration to all of the available information. My track record stands by itself. And I have not been hesitant to admit when I have been wrong.

It is also no small bit of irony that this article came to my attention when it was tweeted by Occupy Wall Street. That loose collective appears to have the same short institutional memory as Anonymous--the Occupy movement has fought foreclosures at every turn. Now, it's somehow newsworthy that a policy that Occupy actively advocated--indeed, actively participated in favor of--comes back to kick people in the ass.

06 March 2012

DEFCON CFP submission: "Flex Your Rights: The Constitution & Political Activism in the Hacker Community"

I have no idea if it's a good idea or bad idea to post my DEFCON CFP submission online. For one reason or another, I have never posted my proposals. To be honest, I have never thought about it, until now. I can't see any good reason why not. On the other hand, I have been fortunate to have written a number of successful proposals for DEFCON talks in the past, so maybe this will help others in some small way.

Title & Abstract
Outline
Whitepaper
Bio

Title: Flex Your Rights: The Constitution & Political Activism in the Hacker Community

Abstract: Let's be clear upfront: I don't care if you're a Republican or Democrat (or another party), I don't care if you're pro-life or pro-choice. This presentation isn't about politics in the traditional sense. What we should be willing to acknowledge, however, is that public policy issues and the political process increasingly overlap with issues and interests that are important to the hacker community. Issues like free speech, privacy, and copyrights manifest themselves in legislation like SOPA, PIPA, ACTA, the Cybersecurity Act, DMCA (and many others). Surely these issues are worth our time and attention. By exploring recent legislation, court cases, and newsworthy events, it's my aim to convince you that we, the hacker community, need to flex our rights right now, more than ever. Won't you join me?

Outline: I try to write detailed outlines of my presentation that give the speaker selection folks a good idea of what I plan to talk about. By the time my slides are up on the screen, I have often changed things around, added and deleted entire sections, but that's just the way it goes. When I wrote it, this is what I planned to do. Things will change (they already have), but it paints a picture for the selectors.


I. Introduction
A. Present background: why should you listen to me? Qualifications
B. Present background: why should be skeptical! IANAL, for example
C. Explain agenda
D. Introduce topic
E. Caveats1: explain why this isn't really a "political" presentation in the traditional sense
F. Caveats2: this is not "hactivism" either, I'm asking you to become a part of the process
1. Every action has costs and benefits
2. "Hactivism" has benefits, but how high are the costs?
II. Politics in the Hacker Community
A. The status quo
1. Mostly apolitical, especially at conferences
2. Activity tends to be limited to rare issues that go viral (SOPA/PIPA)
3. A sense that things are beginning to change as more issues invade our space
B. What I am asking of you?
1. Nothing more than the EFF is already doing
2. I'm asking you to start doing it yourself, too
3. This should not be a radical change for the community
III.Issues
A. First Amendment
   1. Concepts
a. Free speech
b. Speech as it applies online/impact of technology
2. Issues of interest
a. Censorship (H5N1 research, blocking)
(1) H5N1 flu research
(2) disclosure debate comparison
(3) Paypal "legal" censorship (SmashWords)
b. SOPA/PIPA (and their inevitable follow-ups)
B. Fourth Amendment
1. Concepts
a. Reasonable expectation of privacy
b. Impact of technology on privacy (see DEFCON19)
2. Issues of interest
a. Administrative searches
b. Administrative warrants & subpoenas
c. Surveillance (cameras, GPS, cells, drones)
d. It's your fault, too (our own behavior impacts the reasonable expectation of privacy)
e. Drone technology and the ad coelum doctrine
C. Copyrights and Patents
1. Civil forfeiture abuse (US Customs, Secret Service)
2. Patent abuse/trolls
3. Digital Millennium Copyright Act
4. Golan v. Holder and public domain issues
D. Licensing laws
1. Some licensing may be desireable
2. Other serves as a high barrier to entry to protect "insiders"
a. Locksmiths
b. Private investigators
c. Digital forensics
E. Lens of Liberty
1. Potentially the most controversial, but doesn't need to be
a. Lens analogy (good? bad?)
b. process rather than substance; we can agree on process and disagree on substance
2.  Current worldview:
a. Islands of liberty in a sea of power
b. Not surprising giving massive size of govt bureacracy
c. "Red hat" analogy
3.  Proposed worldview:
a. Islands of power in a sea of liberty
b. A fundamentally different way of asking the question
c. Scepticism
(1) does the law actually accomplish its intent?
(2) short term solution or long term solution?
(3) What the consequences to all groups, not just a few (special interests/groups)
(4) or, does it benefit the whole, or just a few
d. Social contract
e. Balance of powers
f. Separation of powers
g. Federalism
4.  You may view issues through this lens and still come up with the same answers, or not
IV. Conclusions
    A. Restate argument
1. this isn't really a "political" in the traditional sense
2. this is not "hactivism" either
3. I'm asking you to become a part of the process
4. Nothing more than the EFF is already doing
    B. What can we do?
1. Vote (if you don't like the choices, do something about it)
2. Participate: in person, online, writing, calling, etc.
3. Educate
a. Yourself: read proposed legislation, don't rely on other people's work (or lack thereof)
b. Others: convince people that your rights and their rights are one in the same


Whitepaper: Even though CFP technically stands for "call for papers", I have always treated it like "call for proposals"; and in fact, I have never submitted a whitepaper before this year (to any conference). So they're certainly not required. But I felt like my subject was at least marginally controversial enough (for a hacker conference) that I wanted more space to expound upon my ideas. In reality, it's just a fleshed out version of my outline and the general direction that I want to go.


INTRODUCTION
The hacker community has mostly been an apolitical force. The Hacker Ethic lends itself to a libertarian-ish type of philosophy, but at conferences, and in general, hackers tend to stay away from overt shows of partisan politics (one notable exception: 2600/HOPE). Generally speaking, I think this is a good thing. On the few issues which do rise up and go viral (i.e., SOPA/PIPA), the hacker community will stand up and make its voice heard: not always in unison, but heard nonetheless.

The increasing role of invasive forms of technology in our everyday lives brings many issues to the forefront that the hacker community has typically left to its legal support organizations such as the Electronic Frontier Foundation. The EFF appears to be well-supported from the hacker community from a financial perspective, but support in other forms—manpower, boots on the ground, phone calls, letters and visits to legislators, in short, political activism—seems less clear.

As a growing avalanche of issues threaten to scale back our constitutionally-guaranteed freedoms, more issues begin to invade the space of the hacker. Free speech is not just for flag-burning, it increasingly manifests itself through technology—online speech and censorship are but two ways. Invasive technology has also forced the courts to interpret outdated laws on searches and seizures and the right to privacy. How these laws and rulings impact cell phones, computers, email, encryption, are all vitally important to the everyday work of the hacker community. And this is just the beginning.

It should be clear that the “traditional” political activism this presentation recommends seeks to distinguish itself from more common hacktivism often seen in the hacker community. This is not to say that hacktivism does not have its benefits; clearly, it does. It also has costs. It is my contention that, more often than not, the benefits of hacktivism (primarily awareness) are outweighed by the costs (possible jail time, the likelihood of more stringent laws). Likewise, this presentation isn’t advocating a move to transform the hacker community into a political movement—only to do (as an example) what the EFF is already doing. But financial contributions aren’t enough—hackers need be personally involved—to be the foot soldiers for freedom. And we not limit our issues to those embraced by the EFF—any issues that impact our freedom need action.

ISSUES
A. First Amendment. The First Amendment is usually analogous with the idea of free speech, and understandably so. In some ways, we have come so far in speech freedoms that we take them for granted. In other ways, small, insidious measures threaten to limit our speech—sometimes without even a peep from us.

Free speech also brings domain seizures to the forefront. Using civil forfeiture laws, the government can effectively limit speech. Worse yet, these laws flip justice on its head: the owner is now presumed guilty, and must “prove” his innocence.

Bloggers and others in other countries are under fire for their content—but that couldn’t happen here, right? Except it already does—the Department of Homeland Security has already admitted to monitoring social media. Perhaps this is not as invasive as it might be in other places, but it is chilling nonetheless.

Companies such as PayPal may deny service to organizations that produce or support content with which PayPal disagrees. This, in many ways, is a sort of legal censorship as it applies to publishers like Smash words. On that many of us can agree. The solution, on the other hand, is more perplexing. Should the government have the power to force PayPal to provide service to all businesses who want to use it? It’s not difficult to see the slippery slope here.

B. Fourth Amendment. My presentation last year was entitled “WTF Happened to the Constitution? The Right to Privacy in the Digital Age.” This presentation focused primarily on privacy issued related to the Fourth Amendment.

The Fourth Amendment is primarily based upon the concept of “reasonable expectation of privacy.” It’s a concept with variables, and our behavior can change the value of those variables. Unfortunately, to this point humans have been the weakest link. Our own behavior has weakened our reasonable expectation of privacy in many ways. Fortunately for us, the opposite is also true. If there were ever an issue that so clearly called for the involvement of the hacker community, this is it. One person opting out of an invasive airport scan may not signify a change in behavior, but 100 or 1,000 opt-outs may begin to turn the tide. Obviously, this doesn’t apply to airport opt-outs.

Recently, the Fort Worth city council decided to purchase a cell phone tracking system for the police—and with the express intent of developing probable case. This is a grave violation of the Fourth Amendment. Maybe your town is next.

Recent legislation and the explosion in drone technology promises further invasions into our homes and backyards. The ad coelum doctrine, rewritten once already last century due to the advent of air travel, is likely to see further revisions as drones become ubiquitous over our homes and businesses.
Other issues are equally important: administrative searches, administrative warrants, public surveillance.

C. Copyrights and Patents. SOPA/PIPA were the rare issues that went viral. We needed Anonymous to remind us of the history of Hollywood, that movie producers moved to California to avoid Edison’s patents. But these issues remain, and they will not give up after one loss.

There are other copyright and patent issues lurking that are important to hackers. Among them are civil forfeiture abuse (sounds boring? Kit Dotcom and others wouldn’t think so), patent abuse and patent trolls, the ever-present Digital Millennium Copyright Act, and public domain issues.

Who would have ever thought that Congress could take things out of the public domain? Yet the Supreme Court ruled that, upon signing the Uruguay Rounds, the Congress could remove works already in the public domain and restore their copyrights.

D. Licensing Laws. While most of this presentation has focused on the federal government, they have, by no means, a monopoly on actions that impact our freedoms. Some states have restrictive licensing laws for hacker-related occupations like locksmithing, private investigators, or digital forensics. While some of these licensing laws may be desirable, others serve as a barrier to entry to protect insiders.

E. Lens of Liberty.
The Lens of Liberty is a proposed worldview: potentially controversial, but need not be. It is more philosophical than political. In fact, it is an argument that suggests we can agree on issues of process while disagreeing on issues of substance.

Our current worldview is dominated by the idea that we have small islands of liberty in a sea of government power. This is not surprising given the massive size of our federal bureaucracy. I’ve asked the question in the past: Do I have the right to wear a red hat on Wednesdays? A search of the Constitution and Bill of Rights will find no such right. Can the government outlaw my hat?

The Lens of Liberty argument suggests that this question is asked in a fundamentally wrong way. In fact, the question should be: Does the government have the power to prevent me from wearing a red hat on Wednesday? Now, the answer becomes unequivocally clear: it does not.

At the core of the lens is the idea of skepticism: Does a law actually accomplish its intent? Is it a short term solution or long term solution? What are the consequences to all groups, not just a few (special interests or specific groups)? Does the law benefit the whole, or just a few at the expense of the whole?

This brings up many other issues: the social contract, the balance of powers, the separation of powers, and federalism. This presentation is not a political science lesson, but it will show how these issues are important to the hacker community.

CONCLUSIONS
It should be clear by this point that this presentation is not “political” in the traditional sense. A hacker’s position on any number of otherwise divisive issues should not prevent the community from taking a more active stand on issues of freedom that affect us all. Whether someone is a Republican or Democrat or other party should not matter that our freedoms are increasingly under attack from legislation written by representative who admit their technological shortcomings and treat it as humor.

The number one recommendation from this presentation is a simple one: vote. It is often said, and more true than not, that one cannot complain if they do not vote. It is often said in response that “I don’t like the choices.” True enough. Then do something about it. Change the choices. Why can’t you be the next candidate for school board, city council, or even state legislature and beyond?

Number two: participate. Sending money to the EFF every year is a great first step, but we have to move beyond that. The city council will probably buy a nice new shiny cell phone monitoring system for the police without thinking twice about it—unless you’re there to raise legitimate concerns. Participation means in person, online, on the phone, in the mail.

Number three: education. First, yourself. Don’t rely on other people to tell you what’s in a proposed bill—in many cases, they’re pushing a particular vision or they may have not done their homework!—go read it yourself (it’s shocking how few people actually do this). Second, educate others. Convince people that your rights and their rights are one in the same. Your free speech online is the same as their free speech at the Occupy movement, or wherever. We don’t have to agree on policy to share belief in the same freedom.

Biography: I typically have a generic biography and then customize it to the talk. So, for example, since this talk is about the Constitution, I included a few items that would be relevant.

Michael Schearer ("theprez98") is the founder of MyFreeState, the Freedom Report, and the Assault on Privacy, projects which document abuses of our freedom and liberty.  Michael is the owner of Leverage Consulting & Associates, a computer security business. He spent nearly nine years in the United States Navy as an EA-6B Prowler Electronic Countermeasures Officer. His military experience includes aerial combat missions over both Afghanistan and Iraq and nine months on the ground doing counter-IED work with the U.S. Army. He is a graduate of Georgetown University's National Security Studies Program and a speaker at ShmooCon, DEFCON, HOPE, and other conferences. Michael lives in Maryland with his wife and four children.