The Gateway Objectivist 

The monthly newsletter of the Gateway Objectivists, St. Louis, Missouri 

April 2000 

Vol. 8, No. 04 Newsletter Editor:  Jon Litton

The Gateway Objectivists' April Meeting: 
"Property: Bulwark to Liberty" 

At our April meeting, Bob Greene will present "Property: Bulwark to Liberty," a lecture on the evolution of property rights and its importance to the restriction of government power. The meeting will be on Saturday, April 15, at 8 p.m., at the home of Joy & Jeff Kiviat. Call (314) 469-2723 for directions.

Bob's talk will examine how property rights have kept absolutism in check, from its beginnings in ancient Greece, through its codification into law in the Roman Republic, to its refinement during the Renaissance. He will look at the methods used by power-seeking governments to get needed funds and how these led to political liberties, such as the Magna Carta and English Bill of Rights.

Since our property is always under threat of attack from progressive taxation, forfeitures, seizures and takings, we must understand how property rights evolved so that we may protect our property, liberty and lives.

"The Myth of Market Failure" 

At our last meeting, Jeff Kiviat gave an informative lecture on "The Myth of Market Failure." Jeff spoke primarily about three economic factors that are claimed to prevent some mutually beneficial transactions from taking place, resulting in "market failure." He showed that each of these do not in fact lead to market failure, but that public policy causes failures.

The first supposed cause, market power (or monopoly), is actually what drives innovation. Almost every company has market power because their brand differentiates their product from others. Farm commodities come the closest, but even some of them can be different. Therefore, absolutely perfect competition is unachievable and should not be held as the standard of a free market.

Secondly, there are public goods, which is the problem of non-exclusability leading to non-production (or the free rider problem). By using a number of examples, Jeff showed that reputed public goods are supplied in abundance, using methods such as tying or converting to private goods to get around the problem.

The third major argument for market failure is externalities, or that transactions costs keep potential gains from trade from being realized. But, like perfect competition, the zero transactions costs model is not a good model because it is unattainable.

The solution for those who think free markets will fail is always government intervention, but this is what actually leads to market failure. Public policy produces inefficient outcomes for a number of reasons, including rational ignorance, the special interest effect, and the fact that it is inherently short-sighted. The only way public policy can contribute to free markets is to clearly define property rights.

By looking in depth at these reasons, Jeff explained that the idea of market failure is just a myth -- free markets can't be blamed for not achieving an unachievable goal.

The Return of Camp Indecon 

After a successful first year, Camp Indecon is now offering enrollment for its second summer. The week-long program aimed at building independence and confidence is expanding to allow 40 campers this year, in two sessions for ages 8 to 11 and ages 12 to 16. It will once again take place in Deerwood, Minnesota, with a variety of outdoor and recreational activities, as well as a Montessori-based learning program. Last year, the children discovered basic philosophical principles such as nature's rules and free will, as well as learning about life planning and money management.

More information about the camp, as well as pictures from last summer, can be found at www.campindecon.org

The Future of Education

In St. Louis, the three charter schools which have been approved are recruiting students for the coming school year. The Ethel Lyle Hedgeman Academy, the St. Louis Charter School, and the Thurgood Marshall Academy will enroll up to 1,300 students from the city of St. Louis this fall.

Meanwhile, Kansas City charter schools are going strong, with 15 opening last year. They have become so popular that the Kansas City School District is closing four of its public schools this fall. The "St. Louis Post-Dispatch" reported on March 9 that the district, once home to 70,000 public school students, now has fewer than 32,000, along with a $22 million deficit.

The first statewide school voucher system in Florida has been ruled unconstitutional by Tallahassee Circuit Judge L. Ralph Smith Jr. His decision on March 14 stated that Florida's Constitution bars public money from financing private education, according to the "Post-Dispatch." Opponents of the program argued that the program violated the separation of church and state, but the judge did not address that issue in his decision. Florida Governor Jeb Bush, a supporter of the program, plans to appeal the ruling 

Get Your Daily Dose of Stossel

Even with frequent segments on "20/20," as well as his own prime time specials, the world needs more John Stossel. And it soon may be available. Stossel is planning his own hour-long weekday talk show. If it's finalized after shooting pilot episodes in April, the news-driven, single topic show will be syndicated, hopefully airing this summer or fall.

Stossel's latest ABC special, "What's Happening to Free Speech," aired on March 23.   

We welcome submissions of reviews, articles, columns and commentary. Direct all correspondence to gwobjctvst@aol.com.