Quotulatiousness

July 18, 2020

QotD: Peace can also be the health of the state

War, we libertarians are fond of telling each other, is the health of the state. Peruse the most recent posting here by our own WW1 historian, Patrick Crozier, to see how we often think about such things. So, what about that increasingly obtrusive and kleptocratic Brazilian state that has been putting itself about lately, stirring up misery and libertarianism? There have been no big wars to make the Brazilian state as healthy as it now is, and especially not recently. What of that?

The story Bruno Nardi told made me think of the book that explains how peace is also the health of the state, namely Mancur Olson’s public choice theory classic, The Rise and Decline of Nations. It is years since I read this, but the story that this book tells is of the slow accumulation and coagulation of politics, at the expense of mere business, as the institutions of a hitherto thriving nation gang up together to form “distributional coalitions” (that phrase I do definitely recall). The point being that if you get involved in a war, and especially if you lose a war, the way Germany and Japan lost WW2, that tends to break up such coalitions.

The last thing on the mind of a German trade unionist or businessman, in 1946, was lobbying the government for regulatory advantages or for subsidies for his particular little slice of the German economy. Such people at that time were more concerned to obtain certificates saying that they weren’t Nazis, a task made trickier by the fact that most of them were Nazis. Olson’s way of thinking makes the post-war (West) German and then Japanese economic miracles, and the relative sluggishness of the British economy at that time, a lot more understandable. Winning a war, as Olson points out, is not nearly so disruptive of those distributional coalitions, in fact it strengthens them, as Crozier’s earlier posting illustrates.

Brian Micklethwait, “The view from Brazil is that peace is also the health of the state”, Samizdata, 2018-04-13.

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