Brazil and the Spirit of Liberty [Article]

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Aug 18, 2007
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This is written by my friend Jeffrey Tucker during his recent visit to Sao Paolo Brazil for the Mises Brazil conference.

Brazil and the Spirit of Liberty | Laissez-Faire Bookstore

My most surprising findings in Brazil, aside from the amazing fruits that I didn’t know existed because the U.S. government doesn’t think I need them, were the young American kids who have moved here to find economic opportunity. This I had not expected, but now fully understand.

Brazil is a marvelous and massive country where private wealth thrives without embarrassment, where well-protected and healthy familial dynasties form the infrastructure of social and economic life, where technology is popular and beloved by everyone, where the police leave you alone and where Americans can feel right at home.

The world is changing fast. Freedom in America is slipping away so quickly that we are already seeing a wave of young people leaving in search of new opportunities, just as people from the around the world once came to America to live the dream. Brazil is one of many countries benefiting from the generational emigration from the U.S.

Discovering this rattled me more than I might have expected. But the young people themselves are not unhappy, and I can see why. They are valued. They are earning good money doing interesting things. They have access to one of the most beautiful and exotic and friendly places on Earth. They eat well, live well and have rich social lives.

More than anything else, they have the sense of freedom.

Now, you might wonder how it is that people have to leave the “home of the free” to find freedom. Over the last 10 years, something horrible has happened to the United States. The police state has cracked down hard, not so much on “terrorists” or real criminals, but on regular citizens. The news items spill out of my feed on an hourly basis, things that just shock and alarm those who are paying attention.

Maybe it is not so surprising. The U.S. military is larger than most of the world’s militaries combined. We have the largest prison population on the planet, and most are locked up for nonviolent crimes. The political culture focuses more on the need for security than for freedom. Add it all up and you have the perfect recipe for the emergence of a police state.

But most Americans are not entirely conscious of the change. It has been fast, but slow enough not to cause alarm. It hits you only once you leave. This happened to me two years ago when I went to Spain. I could move about and do what I wanted without bumping into authority at every turn. I felt it again in Austria last year. It is not something you can quite put your finger on, just a sense that you are not under constant surveillance in suspicion. You can breathe easily.

It was the same in Sao Paulo, Brazil, a happy and prosperous land of exotic fruits, thriving markets, consumer products that actually work and are not depreciated by regulatory mandates, and polite and warm people.

I received a very generous invitation to be a main speaker at the third conference on Austrian economics sponsored by Mises Brasil, a young organization with a very bright future. It was founded only four years ago. Yet today, it has a gigantic presence in Brazilian intellectual life. The hunger for the intellectual basis of freedom is palpable.

Three hundred or more people were here to listen to lectures and engage in debates on ideas. The audience was a sea of young people, most everyone under 30. They were students, professionals, traders and workers of all sorts, all passionate about freedom and the economic answers provided by the Austrian tradition of Ludwig von Mises, F.A. Hayek and Murray Rothbard.

What most excited them was the classic idea of laissez faire — that is, the idea that society can thrive on its own in the absence of central management and that the government operates as a drain on society. The culture of the group was certainly more intellectual and educational than political. They were invigorated by ideas and given hope by the idea of freedom. Apparently, nothing like this organization existed in Brazil until recently. Now the group’s website is one of the most heavily trafficked in the country.

My hosts were enormously generous with their time, and they knew exactly what I really wanted to do on the first day: see the delights of the open-air markets. I was told they are in the center of town. If you had seen a map of Sao Paulo, you would know just how odd it is even to imagine such a thing. The city seems to be everywhere in sight, everywhere you turn, going on forever. It is like 100 New Yorks.

 


[ame=http://www.youtube.com/watch?v=_664t4rIGYM]IF YOU DON'T LIKE IT YOU CAN GETTTTTTTTTT OUTTTTTTTTTTTTT!!!!!!!!!11!1 - YouTube[/ame]
 
Read the analysis as an anarchist. It sounds pretty good to me.

"Despite some progress, organizing new investment and production remains cumbersome and bureaucratic. It is costly and time-consuming to launch or close a business. On average, it takes more than 119 days to start a company, compared to the world average of 30 days. Stifling labor regulations continue to undermine employment and productivity growth. Mandated benefits amplify overall labor costs. Inflationary pressures remain significant."

???
 
Read the analysis as an anarchist. It sounds pretty good to me.

Really?

Contracts are generally considered secure, but Brazil’s judiciary is inefficient and subject to political and economic influence.
Public spending is over one-third of GDP, resulting in chronic budget deficits. Government debt is 66.8 percent of GDP.
Corruption continues to undermine economic freedom. Businesses bidding on government procurement contracts can encounter requests for bribes, also seen as a problem in the lower courts.
Despite some progress, organizing new investment and production remains cumbersome and bureaucratic. It is costly and time-consuming to launch or close a business. On average, it takes more than 119 days to start a company, compared to the world average of 30 days. Stifling labor regulations continue to undermine employment and productivity growth. Mandated benefits amplify overall labor costs. Inflationary pressures remain significant.


Although as an anarchist I'm sure you'd love Somalia's ranking!
The rule of law does not exist in the absence of a functioning central government. Numerous armed groups and militias control different parts of the country, exercising their own informal rule of law. In April 2009, Somalia’s transitional federal parliament ordered that Islamic Sharia law be applied throughout the country. However, in practice, local authorities or elders enforce laws based on traditional customs.
There is no fully effective national government that can provide basic services. Other than the collection of very limited duties and taxes, little formal fiscal policy is in place. In southern Somalia, taxes are often levied by local warlords or clan leaders and used to pay militiamen.


But in all seriousness, there are a ton of countries that have much lower taxes, much less regulations, much smaller governments, and much less corruption. Why Brazil?

Edit: papajohn beat me to it
 
Why Brazil?

Adriana_Lima_168.jpg
 
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"Despite some progress, organizing new investment and production remains cumbersome and bureaucratic. It is costly and time-consuming to launch or close a business. On average, it takes more than 119 days to start a company, compared to the world average of 30 days. Stifling labor regulations continue to undermine employment and productivity growth. Mandated benefits amplify overall labor costs. Inflationary pressures remain significant."

???
This is all generalized rambling. I am sure with a couple well placed bribes you can move things faster, and I wasn't talking about doing business where I live.

Did any of you lazy cocksuckers read the full article in the OP?

grass is greener

Brazil has lots of corruption
I don't have a problem with public corruption. It's when the people believe in a corrupt system that you have a dangerous and dishonest society.
 
Although as an anarchist I'm sure you'd love Somalia's ranking!
I do love what has happened to Somalia since it's government fell. Life expectancy among other factors have improved significantly.

Even if you're the most braindead statist, there is such a thing as government so bad that anarchy is better.

But in all seriousness, there are a ton of countries that have much lower taxes, much less regulations, much smaller governments, and much less corruption. Why Brazil?
Did you read the OP?
 
All judiciaries are a farce, I like one I can bribe. Politicians too. Nothing worse than an ideological zealot, whether he is a secular democrat or a religious fanatic (essentially the same thing IMO)

High government debt is a better trend than low government debt, because governments with little debt grow. Governments with a lot of debt are near their ceiling.

Corruption is ok with me. There is corruption all around us. Don't think for a minute your American politicians are not bought and sold every single day. In countries like Brazil, everyone knows that is how the system works.
 
:usa:

Glad I didnt read the article
didnt_read_dance_gif.gif
That's my point. I post a well written, insightful article about the effects of inheritance tax and the variety in foreign culture, and you guys don't bother to read it but try to score points by referencing the statist and arbitrary Heritage stats.

I don't plan to move to Brazil. I never said it was a great place. I just posted an article from someone who is there, a person who is a very good writer and a well known economist/social thinker.

What doesn't surprise me, as I seem to get this conclusion frequently, is how knee jerk and anti-intellectual people are. And how proud of it they are (see your post).

What's truly bizarre to me is that intelligent guys like PJ and Cardine, who live in an inflationary police state that engages in violent foreign adventurism, are casting stones.
 
All judiciaries are a farce, I like one I can bribe. Politicians too. Nothing worse than an ideological zealot, whether he is a secular democrat or a religious fanatic (essentially the same thing IMO)

High government debt is a better trend than low government debt, because governments with little debt grow. Governments with a lot of debt are near their ceiling.

Corruption is ok with me. There is corruption all around us. Don't think for a minute your American politicians are not bought and sold every single day. In countries like Brazil, everyone knows that is how the system works.

So you'd prefer all that compared to:
The legal system’s efficiency encourages respect for the rule of law. The constitutional framework, provided by the Basic Law, protects private property rights and freedom of exchange. The judiciary is independent of influence from the executive and legislative branches. A strong tradition of minimum tolerance for corruption, further institutionalized by effective anti-
corruption measures, promotes government integrity.
The standard income tax rate is 15 percent, and the top corporate tax rate is 16.5 percent. The tax system is simple and efficient, and the overall tax burden is low at 13.9 percent of total domestic output. Government spending is equivalent to 17.3 percent of GDP. The budget balance has recorded large surpluses, which the government has chosen to reduce through per capita cash payments and tax rebates. Public debt is low.
The regulatory environment is highly supportive of business efficiency. With no minimum capital required, launching a business takes only three days. The impact of installing a statutory minimum wage has been relatively subdued, with labor productivity far exceeding the low minimum wage rate enforced in 2011. Monetary stability is well maintained, although inflationary pressures have increased. The government controls all land.
The trade regime is one of the world’s most competitive and efficient, with a zero tariff rate and minimal non-tariff barriers. A robust and transparent investment framework, in place for many years, continues to attract foreign investment. Hong Kong has further solidified its competitive status as a dynamic international financial center with a high degree of transparency and prudent regulatory enforcement.

I would prefer to have streamlined business, low taxes, low tariffs, low government spending (with government surplus being returned in way of tax credit), high transparency, and low government regulation.

I feel like you are shaping your facts around what you want the answer to be instead of shaping your answer around what the facts are. Brazil is not very economically free compared to most countries out there and you being ok with that really defeats the purpose of being a capitalist. Are you ok with socialism as well since "government spending exists everywhere"?
 
So you'd prefer all that compared to:
YtP1L.png
Again, look at that as an anarchist.

The only good news in there is the lower tax rate.

I would prefer to have streamlined business, low taxes, low tariffs, low government spending (with government surplus being returned in way of tax credit), high transparency, and low government regulation.
That's the great thing about values. No two people value the same things, the same way.

I feel like you are shaping your facts around what you want the answer to be instead of shaping your answer around what the facts are.
What answer?

Again, I posted an article that made some excellent points specifically about the consequences of an inheritance tax.

I never posted a conclusion. I've never said I prefer Brazil over my current locale, or your locale, or any number of other locales.

It seems to me, you assumed something that was never there.

Unless you can post my answer or conclusion from the OP.

Can you do that?
 
What answer?

Again, I posted an article that made some excellent points specifically about the consequences of an inheritance tax.

I never posted a conclusion. I've never said I prefer Brazil over my current locale, or your locale, or any number of other locales.

It seems to me, you assumed something that was never there.

Unless you can post my answer or conclusion from the OP.

Can you do that?

Based on your defense of Brazil in subsequent posts, your promotion of Brazil in this post, and previous posts in which you've mentioned you want to live somewhere in South America (and mentioned Brazil). From your OP, probably not.
Again, look at that as an anarchist.

The only good news in there is the lower tax rate.

That's the great thing about values. No two people value the same things, the same way.
If you, as an anarchist, would prefer a country laden with bureaucratic restrictions over one that doesn't (in addition to the tax differences), more power to you.
 
So basically, you can't substantiate your assumption.

Want a cookie?

PS, anytime you want to debate political and governmental system with me, I am happy to do it. Just don't erect strawman arguments. That's dishonest.