A compelling argument against libertarianism…from Glenn Reynolds:
…if bankruptcy law is “anti-freedom.” then what’s pro-freedom? Debtor’s prison?
Glenn is responding to a reader questioning how a devout libertarian like him can be so opposed to the bankruptcy bill that would make it harder for those who fail in the free market to mitigate the effects of that failure. The reader’s right: if the free market is really a just and efficient tool that distributes goods according to virtue, any good libertarian should see the existence of bankruptcy law as a reward for bad behavior or even a “perverse incentive,” and staunchly support a bill like this one to further shred that protection net. Protections for debtors are a good idea, and this bill is a trainwreck, because – contra the libertarians – it’s too often the obstensibly free market which fails citizens, not the other way around. Contemporary libertarianism is, dare I say it, bankrupt precisely because it posits a vision of economic freedom which fosters greater economic slavery for the majority by accelerating the race to the bottom, encouraging exploitation, further marginalizing the already vulnerable, and denying the rights and freedoms which enable consumers and workers to leverage demands from employers. As Glenn himself recognizes, a system which leaves someone who goes bankrupt to rot leaves him less free. But so does a system which allows employers to lock their employees inside for the night with impunity, or forces parents to choose between medical treatment for themselves or their children. Debtor’s prison is certainly “anti-freedom,” but so is child labor, so is union-busting, so is social security privatization, so is cutting tax cuts for the rich, and so is the Senate’s refusal to reverse the near decade-long decline in the value of the minimum wage. It’s nice to see Glenn and other conservatives recognize that this bankruptcy bill is a threat to real freedom, but the threat isn’t just this bill: it’s the broader economic agenda this administration is inflicting on America.