Yesterday, in , CONTEMPORARY ECONOMICS. ITS TRUE ORIGINS AND WHY IT IS FAKE, I gave you the first part of an essay, On the Science of Economics and Its Relation to Free Exchange and Socialism, written by the brilliant Henry Dunning MacLeod, an eminent banking lawyer of his day and a man who knew more about trade and reality than all those who have since lived and died who have called themselves "economists".
Today, I give you the second part of the essay, itself in two parts. In the first part, MacLeod is gives a lesson on free trade. This lesson holds true whether such trade is insular or foreign. In the second part, MacLeod is gives a lesson on the foolishness of socialism.
When reading this lesson you could apply his lesson upon Obamacare, an example of regulated insular trade, or any so-called contemporary "free trade agreements," which, long ago, all thinking men recognized as treaties of reciprocity designed to promote particular interests.
Here MacLeod begins to lay down his argument that while free trade is inherently right, any force that interferes in free trade between two is little more than robbery by another name.
And here MacLeod lays down what libertarians would recognize as the non-aggression principle long before 20th century libertarians existed.
And then MacLeod reveals how the interference by legislators in the trade of property to the benefit of favored parties amounts to robbery by other means.
To help the reader understand, MacLeod provides an example.
From here, MacLeod dives into his argument.
Though in other writing, MacLeod finds fault with Adam Smith and his many confused, false beliefs, MacLeod praises Smith for his work on free trade.
MacLeod then describes the rise of the dangerous and harmful doctrine of socialism in France.
MacLeod then reveals how “reciprocity” and “fair trade” are merely protectionism under different names.
MacLeod further exposes socialism.
MacLeod reveals the true meaning of value. It's a ratio.
MacLeod reveals that property known as wealth becomes wealth precisely because of trade and by no other means. Said another way, nothing in itself has value but a value arises from the trade rate as expressed by the ratio of one thing traded for another.
MacLeod reveals how the otherwise smart John Locke blew it when it came to economics.
And then MacLeod reveals the errors of Adam Smith, errors that David Ricardo would repeat and from which Karl Marx derived his entire erroneous theory.
MacLeod shows how David Ricardo erred much like Adam Smith. Ricardo's errors provided the basis for Karl Marx's beliefs.
And here MacLeod connects the Socialists with the fallacies of Adam Smith and David Ricardo.
MacLeod shows how the existence of credit exposes the foolishness of socialist belief.
MacLeod sums up his thoughts here.