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The US Census Bureau just released state population data for mid-year 2025, along with updates for all previous years back to the 2020 Census. The Census estimates population growth with data on births, deaths, international migration, and “domestic migration” (among states and territories of the US). I always enjoy looking at the domestic migration data because they tell us a lot about where Americans prefer to live.

Freedom predicts net domestic migration fairly well. A lot of people have been pointing out the fact that Americans tend to move from “blue” to “red” states. The driving factor is not partisanship itself, but the different policies offered to residents of these states. The federal level has long been more complicated, but at the state level, Republican-led states still tend to enact “Reaganite” policies of limited government and free enterprise, while Democrat-led states tend to enact special-interest-oriented regulations and spending programs.

I’ve also seen a lot of people ranking states by total number of net domestic migrations (interstate moves in or out). Obviously, bigger states are going to dominate the top and bottom end of these rankings. Net domestic migrants over a period, as a percentage of the initial population, is much more useful. To make comparisons across periods of different lengths (as reported data often differ), divide by the number of years to yield an estimated average annual rate of net domestic migration.

Table 1 ranks the top and bottom ten states on average annual net migration rate for the April 2020 to July 2025 period, encompassing virtually all of the pandemic.

RankStateRateRankStateRate
1Idaho1.52%41Rhode Island–0.18%
2South Carolina1.48%42Maryland–0.44%
3Montana1.10%43New Jersey–0.48%
4Delaware1.08%44Massachusetts–0.52%
5North Carolina0.91%45Louisiana–0.62%
6Tennessee0.85%46Alaska–0.66%
7Maine0.83%47Illinois–0.71%
8Florida0.83%48Hawaii–0.82%
9Arizona0.79%49California–0.86%
10Nevada0.62%50New York–1.09%

Table 1: State Average Annual Net Domestic Migration Rates, 2020–2025

Some of these rates are quite large! New York, for example, is losing fully one percent of its population to other states every year, on average. At the other extreme, Idaho, South Carolina, Montana, and Delaware are growing by more than one percent of their population moving in from other states, on average per year. 

The only Democratic-leaning states in the top 10 are Delaware and Maine, and the only Republican-leaning states in the bottom 10 are Louisiana and Alaska. When we look at these exceptions, unusual levels of freedom stand out. Louisiana is quite low on freedom for its region, #31 overall according to the Ruger-Sorens index of economic and personal freedom. The only Deep South state worse than Louisiana is its neighbor, Mississippi (#40). Mississippi, not coincidentally, was the only other Deep South state to experience net domestic out-migration over that five-year period (–0.15 percent per year).

While Delaware and Maine score low on freedom (#44 and #43, respectively), both were much higher on freedom relatively recently, and even now they score a lot better than New Jersey (#47), California (#48), Hawaii (#49), and New York (#50). Delaware was #15 on freedom as recently as 2001 and only fell consistently into the bottom 10 from 2017 on. Maine fell into the bottom 10 for the very first time in 2020 and is still #3 on personal freedom alone.

More sophisticated evidence from our study suggests that both economic and personal freedom independently drive in-migration.

Paul Krugman once criticized our findings on the grounds that housing costs supposedly explain migration better than freedom. (The lefty Center for Budget and Policy Priorities more recently made a similar claim.) But that’s wrong. Now, housing costs certainly do help explain state-to-state migration, and migration in turn affects housing costs, but our results stand up even when we control for overall state-level cost of living (the lion’s share of which reflects housing costs).

How else do you explain why Louisiana and Mississippi do so poorly? Their housing costs are low. And the parts of New York that have had the most out-migration are upstate New York, where housing costs are also low. New York City and Long Island have held up better. Illinois isn’t super-expensive either, and the affordable low-freedom states of New Mexico, Minnesota, and Nebraska are also losing people.

The strongest evidence might be from changes over time. West Virginia has had one of the biggest increases in freedom in recent years as a result of its partisan shift from heavily Democratic to heavily Republican. As its freedom has risen, it’s flipped from a net out-migration state to a net in-migration state (Figure 1).

Figure 1: Freedom and Net Migration in West Virginia Over Time

I also checked out Wisconsin, the #1 state for increase in freedom since 2010, largely as a result of Scott Walker’s governorship and the transformative changes Republicans made to the first state to adopt an income tax. Lo and behold, the same pattern emerges (Figure 2). Wisconsin’s big increase in freedom has been followed by a turnaround in its migration fortunes.

Figure 2: Freedom and Net Migration in Wisconsin Over Time

It’s a similar story with New Hampshire. New Hampshire’s always been high on freedom, unlike West Virginia and Wisconsin, but it’s also increased a great deal in recent years because of the efforts of the Free State Project. While the FSP has been around for a long time, people who moved to New Hampshire for the movement first took office in significant numbers in 2011 after the 2010 wave election. And their influence really built after about 2017, with the election of Chris Sununu as governor. Thus, New Hampshire’s increase in freedom has been plausibly a result of an exogenous political change, like the revolutions that have happened in West Virginia and Wisconsin. And we see a similar result (Figure 3). Again, New Hampshire always had a lot of freedom and was a state people wanted to move to, but those differences have strongly reasserted themselves in the 2020s.

Figure 3: Freedom and Net Migration in New Hampshire Over Time

What about states that have gone the other way and become less free as a result of exogenous political changes? Colorado and Virginia come to mind as states that have moved from the Republicans toward the Democrats, but Virginia did elect a Republican governor recently, and Colorado and Virginia merely had slightly lower than average increases in freedom between 2010 and 2020. Still, their migration rates fell off historic norms, with Virginia actually losing population on net to other states since 2020.

The two states that lost the most freedom between 2010 and 2020 were Hawaii and Oregon. We’ve already seen that these states have poor migration records. Figure 4 shows how freedom and migration have changed over time in Oregon.

Figure 4: Freedom and Net Migration in Oregon Over Time

The relationship isn’t perfect, because people moved to Oregon in greater numbers in the 2010s even after freedom had fallen. But by the 2020s, people had noticed – or so I would surmise. Freedom kept falling, and Oregon’s usual flood of in-migrants not only slowed to a trickle, but actually reversed to an outflow. It’s noteworthy that this happened even as the state of Oregon and the city of Portland made substantial reforms to increase the supply and reduce the cost of housing – reforms I support, but which are not enough to turn a state around economically from damaging taxes and regulation.

The latest Census data confirm what most of us knew all along: state policy regimes matter, and Americans prefer to live in states that offer more economic and personal freedom. Legislatures and governors, take notice!

Prediction markets seem to be everywhere these days. Now you can bet not only on the outcomes of sporting events, but also elections, wars, and natural disasters. Yet many people react to these markets with disgust. For instance, in a recent article in Jacobin, political commentator David Moscrop calls them “demented” and “grotesque.”

The main moral objection to prediction markets seems to be that it’s wrong to profit from someone’s misfortune. And intuitively there does seem to be something immoral about raking in thousands of dollars because you correctly predicted that a hurricane would hit a particular city or a particular war would break out, resulting in tremendous amounts of suffering. As Moscrop puts it, “Bettors will hold financial stakes in particular outcomes, including some of the most heinous events imaginable. It’s a fundamentally cynical and dehumanizing turn.” But as natural as the gut-level unease with prediction markets is, we shouldn’t trust it. Prediction markets are both useful and morally benign.

Prediction markets are useful precisely because they incentivize accurate forecasting. The prospect of making or losing money gives participants a strong reason to seek out new information and to process that information in an unbiased way. Think about sports betting. When you don’t have any money on the line, you probably indulge in wishful thinking that your favorite team is going to win this week, even though they’re 14 point underdogs. But if you suddenly stood to lose $1,000 if you turn out to be wrong, you’ll quickly start to think more rationally about the team’s chances.

In short, prediction markets tend to deliver accurate forecasts for the simple reason that they reward accuracy and punish inaccuracy. And at the risk of making an obvious point, accurate forecasts are useful because people plan their lives around expectations about what the future holds. For instance, if you live in an area where a hurricane will hit or a war will start, that’s important information for you to know. It could quite literally be lifesaving. 

This point also helps explain why you shouldn’t accept the objection that prediction markets are morally bad because they enable people to profit from catastrophes. As the ethicists Jason Brennan and Peter Jaworski have noted, many people routinely make money by accurately predicting bad things will happen without the use of prediction markets, and no one finds them immoral. Meteorologists make money forecasting hurricanes, epidemiologists make money forecasting disease outbreaks, political analysts make money forecasting electoral outcomes and wars, and so on.

The reason why no one thinks that these forecasters are doing something morally wrong is because, as already mentioned, accurately predicting bad events is actually beneficial; accurate predictions of bad events help people prepare for the bad events. (This should go without saying, but the fact that someone earns money by being right about something bad happening doesn’t mean they caused it or wanted it to happen.) Maybe the action of the bettor feels different than the action of the meteorologist, but morally, it’s the same. Someone who correctly predicts hurricanes and profits by getting a job with the Weather Channel “makes money from a catastrophe” just as much as someone who correctly predicts hurricanes and profits by placing bets on Kalshi.

You might worry that prediction markets incentivize what is in effect insider trading—they reward people for acting on information others don’t have. But that’s a feature, not a bug. If you see someone place a huge bet on an outcome that seems highly unlikely, that suggests that the outcome is more likely than you thought; maybe someone has inside information that makes them confident it’s going to happen. You don’t have to act on this signal, of course, but at least you have it in case you want to.

Critics of prediction markets also overlook the possibility that the money bettors earn can be used to mitigate the harms of the very disasters they predict. Suppose someone correctly predicts that a hurricane will make landfall and profits from a prediction market as a result. They now have additional resources that can be used to mitigate the suffering caused by the hurricane. They can donate to emergency relief, help fund rebuilding efforts, support local clinics, or contribute to flood mitigation projects. So if you’re concerned that a catastrophe is likely to occur, making an accurate prediction and allocating your winnings to help those harmed by the catastrophe is far more productive than simply watching it unfold.

Lastly, consider the objection that using prediction markets isn’t immoral, but self-destructive. These markets allow people to make risky bets that they might lose and, in turn, put them in serious financial straits.

Note, though, that it doesn’t follow from the fact that prediction markets enable people to take unwise financial risks that government officials should ban them. Suppose your neighbor asks you to make a large investment in her startup producing perpetual motion machines. That investment would be an unwise financial risk to say the least. Nevertheless, government officials shouldn’t intervene because you have the right to take that risk. It’s your money after all.

Prediction markets don’t cause or celebrate disasters, nor do they force people to gamble recklessly. Instead, they allow people to test their predictions in a system that rewards them for being right and penalizes them for being wrong. The result is accurate information that others can use to help plan their lives. If anything, that’s a positive moral good.

Towards the end of last year, Pope Leo XIV released his first Apostolic Exhortation, titled Dilexi Te (Latin for “I have loved you”). Many of the major themes of this exhortation closely carried over from the themes developed by Francis in his papacy. 

Included in this is a specific ethical focus on economic actions and economic systems. The exhortation spans nearly 20,000 words, covers significant ground, and maintains a central focus on God’s love for the poor. The pope argues that the dignity of the poor is central both in scripture and in the history of the Roman Catholic Church. 

I agree with much of what Leo has to say throughout the exhortation, so I will focus most of my comments on the area where I would differ most sharply from him — on the economic system. 

Paragraph 92 in particular addresses economic policy. Leo says: 

We must continue, then, to denounce the “dictatorship of an economy that kills,” and to recognize that “while the earnings of a minority are growing exponentially, so too is the gap separating the majority from the prosperity enjoyed by those happy few. This imbalance is the result of ideologies that defend the absolute autonomy of the marketplace and financial speculation. Consequently, they reject the right of states, charged with vigilance for the common good, to exercise any form of control. A new tyranny is being born, invisible and often virtual, which unilaterally and relentlessly imposes its own laws and rules.” There is no shortage of theories attempting to justify the present state of affairs or to explain that economic thinking requires us to wait for invisible market forces to resolve everything. Nevertheless, the dignity of every human person must be respected today, not tomorrow, and the extreme poverty of all those to whom this dignity is denied should constantly weigh upon our consciences. 

When reading this, I felt mostly surprised by the characterization of our current situation. A significant chunk of this involves a quote from Pope Francis’ Evangelii Gaudium, wherein he claims inequality has bred ideologies that defend absolute autonomy of the marketplace against state regulation. 

The difficulty I find here is that, insofar as these ideologies have been bred (which I’m unsure of), they appear not to have been very successful. Regulation and regulatory agencies continue to outpace market freedom in the West. While measuring this isn’t easy, we have some indications. The Fraser Institute’s Economic Freedom of the World Report shows the current economic freedom score of the US is 8.1 out of 10. This is the fifth-lowest score since The Fraser Institute started keeping annual data in 2000.

Another indicator is that government spending is 36.3 percent of GDP, according to the International Monetary Fund. Excluding outlier events like World War II and the Great Depression, this is a higher level than nearly any time in American history. How could we say the government’s “right” to exercise control over markets is too limited at a time when it commands a larger share of resources than at any time in the country’s history? 

The pope isn’t writing only about America, but many of the notable trends in America are also unfolding elsewhere. Europe’s regulatory ramp-up has been even more pronounced with the exhaustive bureaucratic standards that permeate the EU.

What about outside the West? Well, over the decades, economic freedom has tended to increase throughout the developing world, and importantly, increasing economic freedom has corresponded with a rise in the standard of living. Economically free countries tend to be richer and healthier than economically unfree countries. 

Does the Invisible Hand Fix Everything? 

The exhortation seems to anticipate this kind of response, saying, “there is no shortage of theories attempting to justify the present state of affairs or to explain that economic thinking requires us to wait for invisible market forces to resolve everything.” 

My difficulty with this statement is that I’m unsure of anybody who argues that we are required to wait for invisible market forces to resolve everything. Champions of free markets tend to be very open about the fact that some problems are not solved by the market, and defer to the importance of individual responsibility, private charity, and formal and informal institutions to handle some problems. 

This section seems to rebuff the belief that “the invisible hand” is the only way for things to get better. But this has never been claimed by anyone. Rather, supporters of markets argue that the invisible hand is a solution to some significant problems, and we inhibit this force at the peril of the poor. Claiming descriptively that the market is important for helping people escape poverty is far from identical to claiming that no one should be allowed to help anyone in any other manner. 

We could imagine a society where the cultural bias is to believe only impersonal market forces should solve problems, but I think it would be mistaken to believe that our society has that bias. Rather if we have a bias, it is that any time there is a problem, it demands a top-down, political solution. 

On a similar note, the pope argues, “At times, pseudo-scientific data are invoked to support the claim that a free market economy will automatically solve the problem of poverty.” I’m not sure what data he’s referring to, but I think it’s reasonable to argue that, at times, some economists, focused on the mere models of economics, have put the “automatic equilibrium adjustment” of the market in the foreground. 

Many defenders of economics have, however, labored to demonstrate that the process is not automatic, but rather, is the result of individuals endowed with creativity, opportunity, and grit attempting to add value in previously unforeseen ways. On this, consider FA Hayek’s piece The Meaning of Competition

Perhaps the “automatic” aspect bothers some people, as economists assert that markets can improve the lot of the poor regardless of the intention of the market participants. While we would certainly prefer people to want to improve the lot of the poor, I see it as a Common Grace that there could be a system that does not depend on that intentionally. 

Importantly, markets do not require good intentions, but do not prevent them, and, I’d argue, the humanizing aspects of markets even encourage good intentions. 

The Dignity of the Least of These 

Pope Leo continues by arguing that the current economic system emphasizes self-reliance and success, and asks based on this: 

Does this mean that the less gifted are not human beings? Or that the weak do not have the same dignity as ourselves? Are those born with fewer opportunities of lesser value as human beings? Should they limit themselves merely to surviving? 

In this, I have no problem agreeing with the pope. I don’t believe a person’s dignity is contingent on their ability. If we accept this, though, the necessary next step is to ask how do we best ensure the dignity of the poor? A state, even one charged with the upholding of the common good, may be constrained by incomplete knowledge or perverse incentives such that its intervention will only harm the dignity of the poor more. 

While it is unwise to outsource responsibilities to impersonal invisible forces and hope improvement trickles down, the same is true of relying on impersonal central forces.

To Leo’s credit, he seems to recognize this issue as well, though it seems to be more in the background. He argues, citing Francis, that welfare projects are, at best, provisional responses until deeper structural issues are resolved. He also acknowledges that solutions do not necessarily come from above: 

One structural issue that cannot realistically be resolved from above and needs to be addressed as quickly as possible has to do with the locations, neighborhoods, homes and cities where the poor live and spend their time. 

He echoes this sentiment later and critiques those who say, “ it is the government’s job to care for them, or that it would be better not to lift them out of their poverty but simply to teach them to work.” 

Here, I think we find the key to Leo’s argument and my central area of agreement. Pope Leo argues that our responsibility to care for the poor cannot be simply outsourced to some external process (whether government, market, spiritual or otherwise). 

While I tend to think the exhortation overstates the zeal of defenders of free markets and the extent to which we live in a world dominated by markets (rather than regulation), the message that moral responsibility for the poor cannot be outsourced to “someone else” is a valuable one.

The largest event on the American sports calendar is once again about to take place, but with an interesting twist this year. Super Bowl LX ticket prices have declined sharply as kickoff approaches, offering what appears, at first glance, to be a rare instance of consumer relief. As of February 2, secondary-market “get-in” prices had fallen into the mid-$4,000 range, with major platforms listing entry points between roughly $4,400 and $4,700. Average resale prices — still elevated by any historical standard — have eased into the vicinity of $8,000. Most notable is the pace of adjustment: minimum prices dropped by more than 25 percent in the final week alone.

Superficially, this resembles deflation. In reality, it reflects a market-clearing process under tightening household budget constraints rather than any meaningful improvement in purchasing power.

The decline in Super Bowl ticket prices should not be interpreted as evidence that high-end entertainment has become more affordable. Instead, it illustrates how discretionary luxury markets respond when consumers encounter binding affordability limits, even as the general price level remains structurally higher. The Super Bowl is not becoming cheaper; marginal demand is simply proving more price-sensitive than sellers initially assumed.

Venue and location amplify these dynamics. Super Bowl LX is being held at Levi’s Stadium in Santa Clara, within one of the highest-cost metropolitan areas in the United States. Travel, lodging, and food prices in the Bay Area already rank near the top nationally, and Super Bowl week magnifies those pressures. Hotel rates surged early, flights filled quickly, and basic logistical costs carried substantial premiums.

Under these conditions, the ticket market becomes particularly sensitive to late-cycle demand elasticity. Price declines have been concentrated in upper-level end-zone seating — the lowest-quality inventory — while midfield and lower-bowl seats continue to command significantly higher prices. This segmentation suggests that consumers remain willing to attend, but only within a narrower willingness-to-pay band.

Demand composition further explains the volatility. Interest from Washington State and Massachusetts fans has been strong, but that enthusiasm has not translated into unlimited price tolerance. As the event approaches, sellers who priced aggressively earlier in the cycle face increasing inventory risk. Unsold tickets rapidly transition from appreciating assets to expiring liabilities, forcing repricing.

Late-stage price declines are typical in Super Bowl ticket markets, particularly within the final 72 hours. What distinguishes this year is the magnitude and speed of the adjustment. A decline exceeding 25 percent in a single week points to a binding affordability constraint rather than routine tactical discounting. Interpreting this price movement as evidence of disinflation would be a mistake. If anything, it reflects the opposite: households are making increasingly sharp consumption tradeoffs because essential costs remain elevated.

Luxury Prices are Adjusting — Because the Cost of Living Isn’t

CPI “Average Prices by Product” data highlight the persistence of these pressures. Coffee prices have risen more than 120 percent since 2019 and remain over 30 percent higher than a year ago, transforming a low-salience daily purchase into a recurring budgetary strain. Egg prices, despite falling more than 30 percent over the past year, remain roughly 75 percent above their 2019 level, indicating that volatility has subsided but the price floor has shifted upward. Orange juice prices — particularly frozen concentrate — have more than doubled since 2019 and continue to edge higher year over year, underscoring ongoing supply-side constraints.

There are limited offsets. Staple carbohydrates such as pasta and potatoes are up only about 10 percent since 2019 and are cheaper than a year ago. Gasoline prices have risen less than 25 percent since 2019 and have declined modestly over the past year. But these improvements are insufficient to materially offset higher costs elsewhere in household budgets.

Lower fuel prices have not translated into broad grocery relief, and marginal savings on select staples are overwhelmed by sustained increases across other categories.

Importantly, affordability pressures operate not only through aggregate inflation measures but also through psychologically salient price thresholds. Egg prices falling below $4 per dozen and gasoline slipping under $3 per gallon provide visible, if limited, relief. At the same time, bread prices remaining above $2 per loaf and coffee prices moving decisively out of “low-cost staple” territory reinforce the perception that the overall cost structure of daily life has permanently shifted upward.

These reference points shape consumer behavior more directly than year-over-year inflation rates. They form the backdrop against which discretionary purchases — such as Super Bowl attendance – are evaluated. Super Bowl celebrations at home have also increased in price, with Wells Fargo estimating an increase of 1.6 percent to $140 (for 10 guests) this year. 

PepsiCo recently announced it is cutting the suggested retail prices on several of its core snack brands — including Lay’s, Doritos, Cheetos and Tostitos — by up to 15 percent in an effort to address consumer affordability concerns amid broader economic strain. The price reductions, rolling out ahead of Super Bowl weekend, are framed by the company as a response to rising everyday costs that have made purchase decisions “harder” for many households, particularly those with tighter budgets. PepsiCo executives indicated that prior price increases had weighed on demand, and that lowering prices was intended to make its products more accessible and stimulate volume growth after consumers began trading down or curbing discretionary purchases. 

Discretionary Spending is Tightening

The Super Bowl remains a luxury good. An $8,000 average resale price does not indicate broad affordability. The rapid late-stage price decline, however, offers insight into consumer behavior in the current environment. Households appear willing to allocate resources to exceptional experiences, but only after exhausting adjustment margins: delaying purchases, accepting lower quality, reducing ancillary spending, or opting out altogether. In effect, discretionary markets are absorbing the adjustment that essential-goods prices have failed to deliver.The ticket selloff is not a consumer victory so much as a pressure release that allows the market to clear. It highlights a broader economic reality heading into Super Bowl weekend: even as inflation moderates in certain categories, households continue to operate under a permanently higher price level for everyday necessities. A 25-percent drop in the cost of attending the largest sporting event of the year does not signal renewed affordability. It signals that consumers are already constrained — and that sellers are increasingly aware of where those limits lie.

We will probably never know the true death count of the courageous Iranian revolutionaries, but what has been shared in graphic detail is the horrific brutality of the Iranian theocracy towards its own people. 

In a recent New Yorker essay, “A Massacre in Mashhad,” Cora Engelbrecht reported on one multi-day slaughter of an enormous crowd of Iranian protesters filling the streets, bridges, and highways of Mashhad. Children with their mothers and grandparents were among the dead. One Iranian sharing documentation with Engelbrecht reported, “For three nights, the streets of my hometown turned into a killing field.”

For some, the mindset that gave rise to the Iranian theocracy seems like a different world, thousands of miles away or hundreds of years ago. FA Hayek would say: don’t be so sure

The Iranian regime is a form of theocratic totalitarianism. Its supreme leader, Ayatollah Ali Khamenei, says, “God speaks through my mouth.” A dissenter is considered an “enemy of God,” which justifies unimaginable brutality and lethal force against them. Foreign mercenary thugs have been brought into Iran to join forces with the IRGC to put down the revolution. They were given instructions to target the face and head of protesters, with the aim of blinding them.

America has its own growing theocratic groups. For now, their actions are tempered by American sensibilities and laws. Yet the mindset of these groups is as destructive and vicious as the Iranian theocracy.

We find one of the roots of America’s growing theocratic mindset in the writings of French political philosopher Jean-Jacques Rousseau. Without irony, in his chapter titled “The Legislator” from his book The Social Contract, Rousseau wrote, “In order to discover the rules of society best suited to nations, a superior intelligence beholding all the passions of men without experiencing any of them would be needed.”

Rousseau continued,

This intelligence would have to be wholly unrelated to our nature, while knowing it through and through; its happiness would have to be independent of us, and yet ready to occupy itself with ours; and lastly, it would have, in the march of time, to look forward to a distant glory, and, working in one century, to be able to enjoy in the next. 

Rousseau ended that paragraph, again without irony, “It would take gods to give men laws.”

What Rousseau envisioned would overturn the whole basis of Western civilization’s progress—trial and error and the freedom to grow beyond what doesn’t work.

In The Fatal Conceit, FA Hayek argued that a fundamental error of socialism—and this error mirrors theocratic thinking—is its attempt to impose the morality of the “small band” or “tribe” onto the “extended order of human cooperation.” 

He explained how “socialist morality would destroy much of present humankind and impoverish much of the rest.” We can observe that Americans are mostly sustained by a decentralized market, made orderly by people voluntarily cooperating with each other, yet each aiming to achieve their own ends. To replace this spontaneous order with a centralized “moral” plan would collapse the very system that produces the resources required for human survival. Khamenei has collapsed the Iranian economy primarily by directing resources to fund terror all over the world.

Socialist morality is stripped of the supernatural justifications of theocratic morality, but retains a totalitarian soul. To believe “the rules of society” can be discovered and human nature molded to suit that design is to invite a “superior” person to step in and do the molding. Millions of people supported despots like Hitler, Stalin, or the Ayatollahs, believing a “superior” person in the seat of power would create a better world. This is the fatal conceit. 

The Iranian regime believes it can design an Islamic society. Western theocrats believe they can design an equitable society, a green society, and on and on, through administrative engineering.

Hayek showed that no “superior intelligence” exists that can grasp the incalculable preferences of human beings. Hayek explains that what is responsible for the miracle of modern life is not an Ayatollah or a secular dictator but “the rules of human conduct that gradually evolved (especially those dealing with property, honesty, contract, exchange, trade, competition, gain, and privacy).” 

The rules of conduct generated under totalitarian regimes are vastly different from those generated in a liberal society. In Law, Legislation, and Liberty, Hayek distinguishes between nomos and thesis. 

Liberty exists only under nomos—rules that tell us how to act toward one another (e.g., “don’t steal,” “don’t kill”) without telling us what we should achieve. In Hayek’s words: “The Great Society arose through the discovery that men can live together in peace and mutually benefit each other without agreeing on the particular aims which they severally pursue.” Only these “abstract rules… made it possible to extend the order of peace beyond the small groups pursuing the same ends.”

Theocracy operates through thesis. The Ayatollah and, for example, the DEI Dean both use rules as commands to achieve specific social outcomes (e.g., make society more Islamic or make society more equitable). 

While the IRGC uses bullets, the American administrative theocracy uses rules as its cudgel to gain compliance with its social designs. The American theocrat attempts to replace nomos with thesis. 

Hayek warned in The Road to Serfdom, “to undertake the direction of the economic life of people with widely divergent ideals and values is to assume responsibilities which commit one to the use of force.” Because it is impossible for everyone to agree on what a just outcome looks like, the state exercises arbitrary power to impose its own design.

To what extent has thesis replaced nomos in America? In the spirit of Hayek, here is a list of questions for evaluating “laws,” political policies, executive orders, or administrative mandates. When you can answer these questions in the affirmative, the law or rule fosters liberty. 

  • Does this rule apply to everyone, including those who created it and those who currently hold power?
  • Is the rule defined without a specific “goal” or “end” in mind? 
  • Can an individual know in advance how the rule will affect them, regardless of an administrator’s whims?
  • Does the rule allow individuals to pursue their own diverse ends, rather than forcing them to serve a common good?
  • Does this policy assume that the government knows less than the dispersed knowledge held by the people? 
  • Does the rule avoid naming specific groups (racial, religious, or economic) for special treatment?
  • Does the rule focus on what people must not do (prohibitions) rather than what they must do (positive obligations)?
  • Is the rule based on a long-standing tradition and “discovered” practice? (A rule crafted overnight by a committee is not a discovered practice.)
  • Is the policy free of words like “social,” or “equitable” that blur the limits of power?
  • Would you feel safe if your worst political enemy oversaw the enforcement of this exact rule?

Evaluate today’s rules and “laws” using these questions, and notice that many are commands to mold people to fit an engineered design.

The “superior intelligence” Rousseau sought cannot be found in a person or a bureaucratic state, but rather in the dispersed knowledge of a free people.

Whether the governing force is a religious elite or a secular bureaucracy, the outcome of a totalitarian soul is a collapse of the very civilization required for human survival.

The list of Trump administration foreign-policy moves in recent weeks is long. It conducted an attack on Venezuela, brought President Nicolas Madura and his wife Cilia Flores to stand trial in New York for illegal drug smuggling and secured sway over massive petroleum reserves. Along with this far-reaching action, Trump pursued control of Greenland “one way or another” and said that Cubans should prepare for collapse, Colombia and Mexico should tread lightly and Iran should expect “very strong action” if protestors there are executed.

Asked in an interview if there were any constraints limiting what he might do on the world stage, Trump replied: “Yeah, there is one thing. My own morality. My own mind. It’s the only thing that can stop me.” He added “I don’t need international law. I’m not looking to hurt people.”

Some Trump critics — no matter how shocked or opposed to his actions they are— may be welcoming the thought that he, like most of the rest of us, is thinking about conscience and how it affects behavior. By no means does this ensure peaceful outcomes, but it’s not unreasonable to think that it makes those outcomes more likely.

Conscience is a virtue; acting on it is also a tool of self-interest. As moral philosopher and economist Adam Smith proposed in his 1759 Theory of Moral Sentiments, we are each equipped with an “impartial spectator” — a “man within the breast” — who observes and affects our actions. Smith argued implicitly that this helps form an invisible hand, similar to that of the free market, which enables self-interested people to become more moral creatures.

The mental process Smith described, similar to what Sigmund Freud termed the “super ego,” chastens what might otherwise be driven by greed, jealousy, an insatiable desire for power and other less divine appetites. Smith’s spectator develops from social interactions that result from the human tendency to desire respect, welcome the larger community’s praise and, for politicians, to keep their base aligned. These form habits of the heart that lead us toward long-term gains in social settings.

Smith more famously explained how self-interest enables the most efficient allocation of society’s resources. Describing human action in a world where force and coercion are not an option, he remarked that it was not from “the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest” as they earn customers through superior products and pricing.

When there is competition (or even the threat of competition) in our commercial dealings, each person’s self-interest balanced against that of others can have a positive effect on overall human wellbeing; indeed, it’s a necessary part of freedom’s machinery that delivers a happy outcome.

But what about the world of international politics, where force and coercion are part of the equation? Can the competing self-interests of surging and receding world leaders still lead to a balance that serves the whole? Can such a process be chastened by the “man within the breast”?

Trump’s deputy chief of staff, Stephen Miller, suggests that this is no time to rely on “niceties” to do the right thing: “We live in a world … that is governed by strength, that is governed by force, that is governed by power. These are the iron laws of the world since the beginning of time.”

As certain as Miller sounds, there is another reality to acknowledge: competition has its role to play. Yes, the United States has the power to forcibly remove a leader in Venezuela and to secure a different relationship with Greenland. But we are not the only game in town to partner with. There are other world powers — small and large — which have something to offer these nations, and to us for that matter.

We are seeing this competition unfold now as Canada signals an end to a long-term special U.S. friendship and discusses trade deals with India and China. We see it as Denmark moves to strengthen NATO after enduring the president’s threats to take over Greenland.

Though there are many things at play, the incentive still exists for powerful nations and their leaders to heed the impartial spectator, encourage trade and seek a more harmonious world.

For the past few years, the world has been falling into what Foundation for Individual Rights and Expression (FIRE)’s Matthew Harwood calls a “free speech recession.”

It’s tempting for those of us who grew up in a robust culture of free speech to think that the problem is just limited to authoritarian regimes like China and Iran and Russia. But unfortunately the problem runs much deeper. Many developed countries, including countries that pride themselves on their democracy and international respectability, are deciding that they ought to have the power to imprison citizens who say anything that these countries’ leaders disagree with.

In the United Kingdom, for instance, police approached Gideon Falter, who was walking near a pro-Palestinian march dressed in a kippah, and told him that if he didn’t leave he would be arrested for breaching the peace. What was Falter’s crime? Police told him that he appeared “quite openly Jewish,” and as such his appearance might provoke the nearby protestors.

Last year (and also in the United Kingdom), Iraq war veteran Jamie Michael was arrested and spent 20 days in jail for a Facebook video. After seeing stories about the brutal murder of three children by a second-generation United Kingdom immigrant, Michael had argued in the video that his community was “under attack” by “scumbags” and “psychopaths.” He was promptly arrested for what police termed “dehumanizing language.”

It’s not just Falter and Michaels. In 2023 alone, the United Kingdom made over 12,000 arrests for online speech. Thousands of people have had to pay exorbitant fines or else languished in jail because they had the nerve to express an opinion that ran contrary to the will of police and elected officials.

It’s also not just the United Kingdom. 

In Germany, American satirist CJ Hopkins was prosecuted for tweeting that the facemasks required by many governments during the COVID-19 pandemic were just “symbols of ideological conformity” (quote translated from German). 

Also in Germany, after a 15-year-old girl was gang-raped by nine perpetrators, a woman in Hamburg sent one of the convicted rapists messages on WhatsApp calling him a “disgusting rapist pig.” The rapist complained, and the woman who messaged him was sentenced to a weekend in jail. She’s hardly the only one: Hamburg authorities investigated an astounding 140 suspects for insulting or threatening the rapists.

Many European countries have passed laws against so-called hate speech on the grounds that such laws are essential to protect the dignity of minority communities. Apparently that now includes tiptoeing around the feelings of convicted rapists.

Earlier this month, ten Parisians were found guilty of cyber-harassment of France’s first lady, Brigitte Macron. The perpetrators, eight men and two women, accused Macron of being transgender, and equated her age difference with her husband (Brigitte is 24 years younger than husband Immanuel) to “paedophilia.” For that, the ten Parisians were given fines and jail sentences ranging up to eight months.

I’m sure that being accused of being born male hurt the first lady. But do such online comments really warrant eight months in jail?

Unfortunately, the list goes on. 

In Norway, lesbian filmmaker Tonje Gjevjon was prosecuted after she argued on Facebook that biological males cannot be lesbians. Gjevjon was never convicted, but as FIRE president Greg Lukianoff writes, “the process is the punishment.” Being dragged through the courts for making a common-sense statement threatened to chill the speech of Gjevjon and of anyone else who might challenge the prevailing orthodoxy.

In Finland, Päivi Räsänen criticized the Evangelical Lutheran church leadership because it supported Helsinki Pride, and posted a photo of Romans 1:24-27 (which condemns homosexual relations). Police charged her with “agitation against a minority group.” They even charged the Lutheran Bishop who co-published a pamphlet she wrote arguing that gay marriage is sinful.

In Switzerland, Emanuel Brünisholz posted on Facebook that, “If you dig up LGBTQI people after 200 years, you’ll only find men and women based on their skeletons. Everything else is a mental illness promoted through the curriculum.” For this allegedly hateful comment, he was forced to pay a fine of 500 Swiss francs. Brünisholz refused to pay on principle, and instead will serve 10 days in jail.

Such censorship is even making its way to the United States.

On January 12 of this year, Raquel Pacheco received a visit from police over a Facebook comment she made criticizing Miami Mayor Steven Meiner. After Meiner posted that, “Miami Beach is a safe haven for everyone. We will always stand firm against any discrimination,” Pacheco replied with, “‘We will stand firm against any discrimination’ — unless you’re Palestinian, or Muslim or you think those people have a right to live” and “Careful your racism is showing.”

Public officials ought to have thick enough skins to brush off the occasional rude comment. But instead, Pacheco found herself investigated and intimidated; as one policeman told her, “I would think to refrain from posting things like that, because that can get something incited.”

Meiner’s response is even more chilling. In a statement following the police visit, he wrote that “In this situation, our police department believed that inflammatory language that is false and without any factual basis was justification for follow-up to assess the level of threat and to protect the safety of all involved.”

Meiner’s statement displays a shocking disregard for the First Amendment. While true threats are not protected speech, Pacheco’s fiery comment falls far short of that standard. And there is no First Amendment exception for speech that a public official claims is false.

It’s not just Meiner who’s willfully ignoring the freedoms our forefathers fought and died for. 

In response to widespread ICE raids, a new app called ICEBlock enables users to report sightings of ICE officers. The app serves a clear democratic purpose in a country in which citizens often film interactions between law enforcement and ordinary people, and even explicitly warns its users not to use it “for the purposes of inciting violence or interfering with law enforcement.”

Nonetheless, the Trump administration threw a fit at the mere existence of the app. The administration claims that the app puts ICE agents in danger, and threatened to prosecute the app’s developer. Even more chilling, the administration is actively trying to prosecute CNN for writing about the app. Secretary of Homeland Security Kristi Noem announced that her agency is “working with the Department of Justice” to see if they could prosecute the news network.

Prosecuting a news network for writing about an app might be a new low, but it’s far from the only time the Trump administration has blatantly disregarded the First Amendment. Last year, when Congresswoman Alexandria Ocasio-Cortez published flyers and a webinar reminding people of their constitutional rights when it came to interactions with ICE, border czar Tom Homan asked the Department of Justice to investigate her for “impeding our law enforcement efforts.” Given that a Congresswoman reminding constituents of their rights is hardly illegal, it’s tough not to see this as naked political persecution.

Supporters of hate speech laws often couch their support in terms of wanting to protect the dignity of marginalized communities from hateful comments. That’s a worthy goal, but again and again, we see that it doesn’t work out that way in practice. Instead, governments wield the powers granted to them by hate speech laws in order to punish dissent, shut down conversation, and prosecute political opponents.

If we really care about the rights of marginalized people, perhaps it’s time to stand up for the free speech rights of the ordinary citizens who dare to make statements that politicians and law enforcement don’t agree with.

About 10 years ago, economist Matthew Mitchell and the Mercatus Center published a short video titled “The Wrath of CON: How Certificate-of-Need Laws Affect Access to Health Care.” The video described certificate-of-need (CON) laws, an obscure niche in healthcare policy known best by a handful of policy wonks and healthcare professionals, and the barriers CON laws create.

Under the video’s humor lay a dark truth: CON laws hurt patients and providers at their outset and the laws’ continued existence compounds that harm. Repealing CON laws can help improve access and affordability in healthcare.

Fortunately, over the past decade, many states have moved to reform or repeal their respective CON laws. However, there is still much progress to be made. Mitchell’s 2024 paper, “Certificate of Need Laws in Health Care: Past, Present, and Future” and a 2025 review of academic literature from economists Charles J. Courtemanche and Joseph Garuccio provide updates on CON laws and guidance for future research and policy.

What is CON?

Certificate-of-Need (CON) laws require the approval of states’ health planning agencies for health care providers to engage in regulated actions such as opening or expanding facilities or purchasing equipment. Additionally, in many states with CON regulations, the decision to grant a CON is made by a board whose members may work for incumbent providers. This is sometimes referred to as a “competitor’s veto.” Mitchell also notes that in all but six CON states, incumbent providers are allowed to participate in the process and object to the application of a would-be competitor and often use the objection as leverage against the potential competitor from encroaching on their territory. Mitchell calls it “a type of territorial collusion that would be a per se violation of the Sherman Antitrust Act were it not facilitated by the state.”

CON laws were first applied to healthcare by New York State in 1964, and by 1970, 25 additional states had similar regulations. In 1974, Congress passed the National Health Planning and Resources Development Act (NHPRDA), where the federal government threatened states into adopting CON regulations by saying they would withhold federal funding for healthcare for any state without CON laws. 

The desire to push CON came from a misguided belief that such regulations could, in Mithcell’s words, “cause hospitals to acquire fewer beds, fill them with fewer patients, and therefore spend less money.”

The threats to withhold federal funding never materialized, but by the early 1980s every state had a CON program for healthcare. As Medicare reimbursement switched from retrospective (hospitals get paid whatever they spend with little incentive to control costs) to prospective reimbursement (hospitals are paid a fixed, predetermined amount for services), CON policies were reexamined. 

Finding that CON laws did little to control costs, especially under prospective reimbursement, policymakers in DC rolled back CON requirements. While the federal CON requirements were repealed, most states maintained CON regulations, which led to greater variation among state CON regulations. By 1990, eleven states had followed suit and repealed CON laws, with only Wisconsin reinstating the program. By 2000, Indiana, North Dakota, and Pennsylvania had repealed most CON laws. 2000 Wisconsin has since re-repealed its CON regulations. In 2016, New Hampshire was the last state to fully repeal CON.

In their 2025 review of the academic literature on CON, Courtemanche and Garuccio find “in at least some cases, CON laws restrict both entry of new competitors and expansion of existing hospitals. The reduction in competitors increases the number of procedures in hospitals.” They continue by noting such findings provide

“[L]ittle evidence that this translates to increased prices or higher hospital profitability, and hardly any research tests for reduced closure rates. Studies on hospital efficiency and quality of care for procedures performed exclusively at hospitals mostly point to null or negative effects, but evidence on quality is more favorable for services that can be provided outside of hospitals.”

While there may be other factors at play (such as government subsidies, the Affordable Care Act implementation, or the variation of CON laws among states), costs can still be passed onto patients without changing prices. Higher costs may look like longer wait times (whether in a hospital or fewer scheduling options), staffing shortages, or the opportunity cost of patients traveling to see a specialist either on the other side of their state or in other states.

If one thing is clear, CON regulations have failed to deliver on the promise of affordable and accessible healthcare.

Mitchell’s Findings on State Experiments with CON Reform

As of December 2025, 15 states have fully repealed CON regulations. Additionally, numerous states have reformed their CON regulations to shrink the healthcare services that require a CON. Mitchell’s map is reprinted as Figure 1 and table is reprinted as Table 1.

 Figure 1. Number of Health Care Services in Which a CON is Required (2023)

Reprinted from Mitchell MD. Certificate of Need Laws in Health Care: Past, Present, and Future. Inquiry. 2024 Jan-Dec;61.
Reprinted from Mitchell MD. Certificate of Need Laws in Health Care: Past, Present, and Future. Inquiry. 2024 Jan-Dec;61.

Figure 1 summarizes the number of health care services subject to CON regulation while Table 1 identifies the services most commonly regulated. Arizona, Minnesota, and New Mexico limit CON requirements to ambulatory services while Indiana, Ohio, and South Carolina (as of 2025) only apply CONs to nursing homes. Hawaii regulates the most activities, requiring CON approval for 28 services and technologies. Mitchell finds that nursing home beds are the most frequently regulated, followed by psychiatric services, new hospitals, and intermediate care facilities for individuals with intellectual disabilities. Investment thresholds triggering CON review vary from state to state and are generally lower for non-hospital providers (a $3 million expenditure trigger for ambulatory services in Maine) than for hospitals (excess of $12.365 million in capital expenditures in Maine).

From Mitchell’s findings and his survey of the academic literature, he finds that CON laws are generally associated with high variable costs in general acute hospitals, fewer available hospitals, higher Medicaid costs for at-home care and long-term care, and higher health expenditures. The more stringent and numerous the CON laws in the state, the worse access and affordability for healthcare.

In states that did repeal CON laws, Mitchell found that hospital charges in states without CON are 5.5 percent lower five years after CON repeal. Additionally, safety-net hospitals in states without CON had higher margins than similar hospitals in states with regulation. While repealing or reforming CON will not fix all healthcare policy challenges, doing so can help increase affordability and healthcare access.

What Comes Next?

As Mitchell’s map shows, many states have the opportunity to reform and repeal CON to their betterment. States such as West Virginia (one of the most stringent CON states) have residents that seek healthcare in neighboring states like Pennsylvania (0 CON regulations) because there is greater access to care outside of the state.

To this end, there are a myriad of options for CON reform. Aside from a full immediate repeal or a regulatory sunset provision, state policymakers can also eliminate the competitor’s veto. 

Preventing incumbent providers from participating in the CON review process (including requesting hearings and appeals) can help reduce cronyism in the CON application process. Increasing transparency in the CON application process and CON laws can also help reduce cronyism as well.

Americans are strained by the cost of healthcare. Reforming CON laws can help alleviate some of that strain. A full repeal can provide even greater help.

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Summary

A longstanding debate between libertarians and conservatives pits freedom against virtue. Is freedom an instrumental or an intrinsic good — that is, should freedom be cherished for its own sake, regardless of the outcomes, or because it leads to better outcomes? Can one divorce the moral from the political? “Fusionism,” which emerges from the work of Frank Meyer in the twentieth century, attempts to reconcile that antagonism.

While many see tension or outright contradiction between freedom and virtue, Fusionism’s more enthusiastic advocates seek harmony between the two. The challenge of the Fusionist project is to gather advocates of tradition, advocates of limited government, and advocates of individual liberty. Though some hope to build consensus on how these values can be reconciled harmoniously, the experience of the past 75 years suggests such a goal may not be feasible — especially when some view the state as essentially pathological. Instead, a successful Fusionism requires forming a coalition among those willing to cooperate and collaborate.

This may be a tall order, especially as ideological divides deepen and as many on the political right have begun rejecting “liberalism.” Just as Alasdair MacIntyre made waves by rejecting the modern and post-modern turns in philosophy, Post-Liberal thinkers take a similar approach to modern political thought, including in some cases rejecting the ideals of the American founding. Advocates of Fusionism may be criticized as being timid or feeble on important social issues and simply wrong on many economic issues, making them out to be ineffective and their ideas irrelevant.

Yet a reinvigorated conservative liberal Fusionism — emphasizing limited government, free enterprise, and a transcendent moral order — may offer the best hope at reconciling a broad array of communities and values to live peacefully together. It also serves as a bulwark against authoritarian tendencies. A new Fusionism might also form a powerful coalition to counter the radical collectivist bent in academia and on the political left more broadly.

Key Points

Fusionism:

  • consists of belief in limited government, free enterprise, and transcendent moral order;
  • forms an important intellectual coalition;
  • sustains tension and disagreement;
  • represents a plural movement rather than a single community;
  • aims to address conservatives’ concerns about establishing moral order, libertarians’ concerns about advancing free enterprise, and both groups’ concerns about limiting government power;
  • unites natural law conservative liberals, libertarians, and traditionalists;
  • excludes Post-Liberals, the reactionary “Alt-Right,” Progressives, and collectivists who reject liberalism.

Introduction

Fusionism took shape as a practical political philosophy in the United States during the Cold War. Its proponents sought to forge a “grand bargain” of sorts between economic libertarians and social conservatives to resist communism abroad and collectivism at home. The intellectual right in the post-World War II era was small enough that its leading lights regularly corresponded and collaborated on projects, from National Review to Modern Age and from the Philadelphia Society to the Mount Pelerin Society. Prominent figures included Frank Meyer, William F. Buckley, Friedrich Hayek, Milton Friedman, and Russell Kirk.

Meyer, especially, framed Fusionism in terms of libertarians and traditionalists within the conservative movement. He argued that libertarians were too quick to jettison custom, tradition, and virtue. He thought traditionalists, on the other hand, were far too accommodating of the statist status quo post World War II. They often failed to hold the freedom of the individual as dearly as they should. At a philosophical level, Meyer argued that a “sharp antithesis between reason and tradition distorts the true harmony that exists between them and blocks the development of conservative thought.”[1]

But the Fusionist coalition has fallen on hard times in recent decades. Increasingly, it has fractured along political, ideological, and economic lines. Libertarians, following the ideas of Murray Rothbard and other liberty radicals, have increasingly distanced themselves from more traditionalist conservatives as well as from natural law conservative liberals. Their liberty-first principles put them at odds with traditional conservative positions on immigration, drugs, marriage, foreign policy, and other social issues.

More recent jousting between the national conservatives (Natcons) and the freedom conservatives (Freecons) reveals important contours of this debate.

Natcons focus on specific traditional national values while Freecons care more about liberty and limited government. In recent political formulations, Natcons fall on the traditionalist side and Freecons on the libertarian side, representing what Meyer described as the “ends of conservatism.”

The national conservative Statement of Principles posits: “We are conservatives because we see such virtues [patriotism, courage, honor, loyalty] as essential to sustaining our civilization. We see such restoration as the prerequisite for recovering and maintaining our freedom, security, and prosperity.” The Natcons parallel the rise of the “Alt-Right” and the nationalistic populism of Trump and the Make America Great Again (MAGA) movement. They are also responding to the influence of unelected elites and unaccountable international organizations directing people’s lives. But some elements of the Natcon statement don’t fit well with Fusionism.

One such element is the claim in the Natcon statement that “the free market cannot be absolute.” The statement goes on to talk of foreign nations “despoiling” America of its manufacturing capacity, weakening it economically, and dividing it internally. They criticize “trans-national corporations” for promoting censorship, pornography, and destructive drugs. And then they point to “national economic policy” as a solution. The Natcon statement also emphasizes the importance of “public research” since private funding of research may be insufficient to compete with China when it comes to national defense-related technology. Similarly, Natcons want to subordinate, or really direct, economic policy to “foster family and congregational life and child-raising.”

These are all issues that Freecons dislike and criticize. The freedom con-servative Statement of Principles restates much of the older 1960 Sharon Statement of conservative principles, beginning with “Liberty.” Both groups want strong institutions and a robust moral order, but they differ on how to achieve those things. The Natcons are more willing to use government power to pursue social and moral ends; even when doing so curtails freedom.

Yet freedom and virtue are the two magnetic poles that should draw people towards Fusionism. Both the Natcon and the Freecon statements talk about freedom and virtue, and as Meyer wrote more than a half century ago, “those two streams of thought, although they are sometimes presented as mutually incompatible, can in reality be united within a single broad conservative political theory, since they have their roots in a common tradition and are arrayed against a common enemy.”[2] Historically, Fusionism was the project of synthesizing the ideas of libertarians and conservatives.

Libertarians tend to value human freedom as the highest political good and therefore protecting it should be the sole focus of government. Libertarians often insist either that there are no other absolute moral standards or, if there are, they cannot be known with any confidence. Nor can such standards impose legal obligations of moral duties. As a result, they view government action (beyond the basic protection of rights) as an imposition of some people’s preferences on others. Widespread disagreement over the importance of even central moral questions means the best and wisest course governments can take is to remain neutral and to allow each person to live by his own lights.

Another common refrain from libertarians is that moral choices must be made freely, rather than under constraint. How can decisions be morally excellent when made under compulsion or under threat? After all, doing the right thing for the wrong reason can hardly be the height of virtue. Rather, choosing the good when one is free not to do so represents deeper moral conviction and right internal desires rather than superficial conformity.

Conservatives, on the other hand, value order — especially moral order — as a political good. They believe tradition, customs, and norms contain valuable information and should not be lightly cast aside. Furthermore, they are skeptical that unbridled freedom is really the highest political end when it can be, and so regularly is, abused. Is a free Sodom better than an ordered Jerusalem? And can we really expect a free society to sustain itself if its members engage in debauchery and license?

A libertarian may share conservatives’ concerns about the devolution of society, decadence, and license, yet reject the idea that laws and legal rules can proactively make citizens more moral, or even check immoral tendencies. Libertarians are often quick to point to the distortions created by governments — including in society’s customs and mores. Legal force is like fire: useful for cooking dinner, but destructive if it is not tightly controlled.

Fusionists try to hold the opposing conservative and libertarian positions together not only in a political coalition, but in a philosophical one. The move is not unlike efforts towards ecumenism among Christian denominations. Although there are distinctions between Baptists, Presbyterians, and Anglicans, for example, they share a great deal of theology. And what they share is often more important than their disagreements. So too, Fusionists would say, with most conservatives and libertarians.

A passing familiarity with the libertarian Cato Institute and the conservative Heritage Foundation, or with Bill Buckley and Murray Rothbard, reveals how much ground these institutions and individuals shared:

  • They opposed high (especially progressive) taxation.
  • They opposed bureaucratic direction of the economy and of society.
  • They were skeptical of most federal regulations.
  • They believed in strong property rights, profit, and market competition.

Similarly, Nathan Schlueter and Nikolai Wenzel, in their book exploring the libertarian-conservative debate, offer several areas where most libertarians and conservatives agree:

  • “We reject modern liberalism (or what we shall call here Progressivism).
  • We regard the modern administrative state as both unconstitutional and unjust.
  • We affirm the basic moral equality of persons.
  • We agree that virtue is a necessary, though not a sufficient, condition for free government.
  • We agree that economic freedom is a matter of basic justice and a necessary component of human flourishing.”[3]

Although Fusionism was originally framed in the context of the libertarian-conservative debate,[4] that frame has limited value because of the wide scope of beliefs held among conservatives and among libertarians today. Some libertarians, like Friedrich Hayek, tend to be much closer philosophically to conservatives like Russell Kirk than to other libertarians like Murray Rothbard or Ayn Rand. And both Kirk and Hayek might be perceived as closer to the classical blend of liberalism and conservatism seen in thinkers like Adam Smith, Edmund Burke, and Alexis de Tocqueville.

An influential Fusionist thinker, Michael Novak, famously proposed a “three-legged stool” supporting free society. In his book The Spirit of Democratic Capitalism, he argued that democratic capitalism was supported by a market economy, a democratic polity, and a fundamentally moral culture. During the Cold War, Novak emphasized democratic polity. And as the US and the UK experimented with heavy-handed central planning in the 1970s, he emphasized the market economy.

Recently, R. R. Reno, a signer of the Natcon statement, criticized Novak’s for-mulation of the three-legged stool. Reno specifically claimed that not only has the moral culture leg been neglected, but that a market economy undermines that moral culture: “ever-greater economic activity can crowd out political engagement and sideline religious and moral authority…. Capitalism, now global in scope, is swallowing up more and more of civic life.”[5]

This paper does not try to defend Novak’s formulation. Instead, it argues that going forward, a conservative liberal Fusionism should rest on a three-legged stool consisting of a desire for limited government, support for free enterprise, and a commitment to a transcendent moral order with moral duties extending beyond non-aggression. These three principles can help us assess which camps can be a part of a Fusionist coalition and which ones cannot. The paper will also highlight the different commitments and compatibility of various strains of political thought, as compared with a common Fusionist project or coalition.

Imagine the Fusionist three-legged stool as a Venn diagram with three overlapping circles (Figure 1). The core of Fusionism lies in the central overlap between limited government, free enterprise, and a transcendent moral order ( labeled F for Fusionism). The adjacent regions (A, B, & C) could be characterized as “fellow travelers,” or simply as “adjacent,” with Fusionism. Then there are a few schools of thought on the periphery and, of course, large swaths of the intellectual and academic classes that don’t share any of these three commitments.

Figure 1: Fusionism’s Legs

Conservative liberals[6] (F) with deep commitments to all three legs of the stool form the core of Fusionism. Consequentialist libertarians (A & F) and traditionalist conservatives (C & F) are close fellow travelers with clear commitments to at least two of the three legs of the stool and openness or ambivalence to the third leg. More strident rights-based libertarians agree on two legs of the stool but often reject the Fusionist view that knowable moral duties can justify legal obligations.

Table 1 illustrates how other schools of thought and thinkers align with conservative liberal Fusionism’s three-legged stool.

Table 1: Three Legs of Fusionism

 Limited GovernmentFree EnterpriseTranscendent Moral Order  Thinkers
Natural Law Conservative Liberals     Burke, Smith, Tocqueville
Consequentialist Libertarians    ?Hayek, Buchanan
Traditionalist Conservatives  ?  Kirk, Scruton, Berry
Rights-Based Libertarians      Rothbard, Rand, Nozick
Neoconservatives???Strauss, Jaffa
Post Liberals      Deneen, Vermeule
Reactionary Right      Pappin, Ahmari

The diagram and the table illustrate how several different traditions or schools of thought can be related. But they are not perfect and have some analytical difficulties, such as whether limited government and free enterprise are independent of one another. Can free enterprise exist without clear limits to government power? And could one really have a robust view of limited government that somehow didn’t extend to the economic realm? There are also questions of how anarchists relate to “limited government” and whether principled, rights-based libertarians subscribe to a transcendent moral order.

But setting these difficulties aside, the paper considers how representative thinkers from these various traditions “fit” the criteria of Fusionism. It looks at the ideas of Adam Smith, Friedrich Hayek, Russell Kirk, and Murray Rothbard on the topics of limited government (Section I), free enterprise (Section II), and a transcendent moral order (Section III). The paper concludes with brief explanations of why Post Liberals and the reactionary “Alt-Right” are incompatible with Fusionism.

The point of this paper is to give a “lay of the land” on the political and philosophical right while providing terminology and distinctions to identify fruitful areas of potential agreement and collaboration as well as where such collaboration would be far more difficult or strained. Building a clear intellectual tent can create more space for like-minded advocates of freedom and virtue to gather and to collaborate. It may also help readers understand why various thinkers on the political right might not get along with each other.

Limited Government

For the past 300 years, the political right has generally favored limited government in its rhetoric, if not always in its governance.[7] Sometimes individual rights justified limited government. Sometimes limited government was built on criticism of the abuse of power by flawed individuals. We have thinkers from diverse traditions — rights-based libertarians, consequentialist libertarians, natural law conservative liberals, and traditionalist conservatives — all favoring limiting government power. In this section, we’ll examine how and why Murray Rothbard, Friedrich Hayek, Russell Kirk, and Adam Smith advocated for limited government.

The discussion of rights is long and highly contested, but libertarians have consistently highlighted the importance of individuals. Rothbard, for example, grounds his entire philosophical and political system on the fundamental rights of individuals — namely the “absolute” natural right of self-ownership which he claims can be known by reason. This self-ownership implies the “axiom” of non-aggression.[8] This non-aggression axiom supports Rothbard’s (and rights-based libertarians’) policy prescriptions. Does a law impinge on someone’s ability to use their body as they see fit? Then it is unjust.

Children also have the right to run away when they become old enough to do so[9] – and the state, according to Rothbard, should not intervene. From the principles of absolute self-ownership and the non-aggression axiom, Rothbard concludes all government to be illegitimate and unjust: “War is Mass Murder, Conscription is Slavery, and Taxation is Robbery.”[10]

Not all rights-based libertarians go quite as far as Rothbard. Nozick and Rand, for example, both stop short of advocating anarcho-capitalism and grant that certain individual rights can be abrogated in extreme circumstances.[11] But when it comes to high taxes, burdensome regulation, government over-stepping individual’s rights, and the like, Rothbard and other rights-based libertarians are solidly on the side of liberty against the state. In fact, many would go much further, advocating a minimalist state, or no state at all.

Hayek, although also in the libertarian tradition, takes a much different tack when arguing for limited government. Those who have read Hayek probably know his four most relevant works on political economy: “The Use of Knowledge in Society,”[12] The Road to Serfdom,[13] The Constitution of Liberty,[14] and Law, Legislation, and Liberty.[15] Hayek spent most of his life studying and explaining spontaneous order. He focuses on tradition, innovation, prosperity, and successful market institutions.

His arguments assume human prosperity and peace are worthy goals. He argues that overly powerful and expansive political states are inimical to the market process, and so also to human flourishing. Prices coordinate the activities of millions of people to productively use resources in the pursuit of millions of different goals. Prices reflect dispersed knowledge of scarcity (relative supply and demand) and serve as metaphorical signals to every individual. They also provide incentives for people to use less of scarce resources with highly valued opportunity costs (high prices) and to use more of relatively abundant resources (low prices).

Hayek extended his investigation of the order that emerges in markets to political and social dimensions. How does law evolve? Where do norms and traditions come from? What drives innovation? Hayek explores these questions in The Constitution of Liberty, after arguing incisively in The Road to Serfdom that government commands and dictates are clearly not the source of prosperity, experimentation, innovation, or human flourishing.

The narrow knowledge of legislators and bureaucrats inherently limits their capacity to direct resources or social activity towards productive ends. In Law, Legislation, and Liberty, Hayek contrasts “laws” that provide rules and a framework within which people are free to pursue their own plans with “legislation” that tells people what they must do.[16] Legislation substitutes the will and goals of legislators for those of citizens – with predictably bad results. Hayek was likely drawing on Smith’s ideal of: “allowing every man to pursue his own interest his own way, upon the liberal plan of equality, liberty, and justice.”

Though one might argue that Hayek sounds like a traditionalist, he distances himself from traditionalists with his postscript: “Why I Am Not a Conservative.” He expresses doubt that there can really be a set of conservative principles to guide policy. Instead, Hayek describes conservatism as a disposition against change. In the US, conservatives often sound like classical liberals (or old Whigs) because they want to conserve the policies, ideas, and values of their classical liberal founders: Madison, Jefferson, Adams, Washington, and others.[17]

Although some traditionalists may subsume the individual within a broader group, most conservative traditionalists believe in individual rights and human dignity. Yet they also see other moral goods in society beyond the individual’s autonomy. And these other moral goods can sometimes supersede an individual’s rights. Traditionalists do not agree on the origin of rights. Most will accept metaphysical or theological grounding for individual rights, but such explanations vary, and there is no broad agreement about the extent, scope, and content of these rights.

In fact, some conservatives like Russell Kirk generally eschew the language of natural or individual rights in favor of “moral order,” “natural law,” and “tradition.”[18] On occasion, Kirk did refer to the “rights of Englishmen.” He also talked about how “[j]ustice means that every man and every woman has a right to what is their own.”[19] But he mostly emphasized the importance of custom, tradition, and legal precedents in shaping and defining rights. He follows Edmund Burke in this view of society as an evolving dynamic community with explicit and implicit rules, commitments, duties, and rights — and in being critical of “abstractions.”

Still, Kirk argued consistently that conservatives must advocate and preserve liberty. He had no interest in politicians or bureaucrats telling people how to run their lives. In fact, he left his academic position after just a few short years because of the overbearing bureaucratic mindset of the university’s administrators. Kirk argued that the scope of government ought to be limited and that, “[s]o far as possible, political power ought to be kept in the hands of private persons and local institutions.”[20]

For Kirk, preserving Western civilization included preserving natural rights and individual liberty, but also much more. Focusing too narrowly on defining and defending natural rights distracts people from developing a “moral imagination” in literature, in education, and in other walks of life to develop a truly humane society.

An important forerunner of modern conservative liberal Fusionism, Adam Smith, rarely talks about “rights.” He does, however, talk frequently about liberty and about the abuses of governments. Whether through the corrupt advancement of narrow business interests through subsidies and trade protection or by restricting the movement of the poor to find the best opportunity for work, legislators often took power and responsibilities for themselves that were unjust and for which they were unqualified.

Smith argued that everyone has property in their labor: “The property which every man has in his own labor, as it is the original foundation of all other property, so it is the most sacred and inviolable.”[21] While Smith’s use of the term “rights” is limited, he uses the terms liberty and property frequently. He describes, for example, the purpose of government as promoting the “simple system of natural liberty.”[22] As a result, he criticized overly expansive political power exercised by public officials:

The statesman, who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted to no single person what-ever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.[23]

Or in another famous passage, Smith condemns the man of system:

The man of system, on the contrary, is apt to be very wise in his own conceit; and is often so enamoured with the supposed beauty of his own ideal plan of government, that he cannot suffer the smallest deviation from any part of it….He seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon the chess-board. He does not consider that the pieces upon the chess-board have no other principle of motion besides that which the hand impresses upon them; but that, in the great chess-board of human society, every single piece has a principle of motion of its own, altogether different from that which the legislature might chose to impress upon it…If they are opposite or different, the game will go on miserably, and the society must be at all times in the highest degree of disorder.[24]

While all these folks deeply distrusted government, conservative liberal Fu-sionists believe that governments are legitimate entities and can serve the common good within narrowly defined constraints.

Free Enterprise

Ownership of property and the ability to transact freely are fundamental to Fusionism. Some difference exists between those who justify property rights as good primarily because they contribute to human flourishing and those who believe in a fundamental right to property. This divide, however, does not fall between conservatives and libertarians. While libertarians like Hayek and classical liberals like Burke and Smith defended property rights as an emergent useful phenomenon, conservatives like Frank Meyer emphasized the fixed natural right of property.

The tension, of course, arises in how one limits property rights. For example, some rights-based libertarians argue that all taxation is fundamentally theft because it violates one’s property rights.[25] Then there are those who argue certain constitutional or social contract agreements allow for modification or abrogation of property rights. Recently, some right-leaning thinkers have been quite willing to override property rights for all kinds of “common” goods. Post-Liberals like Adrian Vermeule[26] and Patrick Deneen,[27] and reactionaries like Sohrab Ahmari,[28] see property rights as secondary to “public,” “common,” or national interests.

Rothbard argued that private property and free enterprise were the essence of society but not of political community. In fact, his views of the rights of property precluded the existence of a political state entirely. As an anar-cho-capitalist, he argued that commercial transactions and private relations were the sum total of legitimate society. Every law hindering commerce, therefore, would be unjust. This includes all inspections of food or buildings, all licensing rules, all sales and income taxes, all laws regarding worker or product safety, and every other government intervention that prevents voluntary exchange.[29]

Instead of the state, Rothbard thought consumers would “police” companies by choosing whether to purchase their products. Companies would compete, not only on products themselves, but on branding, quality, standards, and safety, through voluntary associations or stamps of approval from private inspectors. Individuals and companies would also operate under private systems of arbitration — private police and private courts.

In no case would Rothbard allow any property to be taken forcibly from another person simply to redistribute it. Ayn Rand’s famous slogan from Atlas Shrugged describes the Rothbardian mindset well: “I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine.”

Hayek was also an ardent defender of markets and free enterprise. He argued that competition was essential to the market process.[30] Prices could only coordinate market activity and communicate meaningful signals if people owned their own businesses and property and were able to buy and sell in a relatively free manner. They must also be able to profit (and lose) from their decisions. Taxation of all forms, regulation, and restrictions on trade, hinder this market process.

Rather than taking a stark justice approach to rejecting government intervention, Hayek points out that government intervention dampened market signals, created inefficiency, and reduced innovation. But in some cases, Hayek grants that there may be other social concerns that still warrant such intervention. Some libertarians argue that Hayek let the camel’s nose under the tent when it comes to state intervention with these social concerns. The third part of The Constitution of Liberty, for example, gives case after case where Hayek defers to the modern welfare state on basic income, housing, education, health, town planning, and more.

Hayek knew, however, that as the number and extent of such interventions accumulate, the free society, including free enterprise, could eventually be strangled resulting in totalitarian serfdom — making the extent of his compromises all the more puzzling.

Free enterprise was not at the top of Kirk’s interests, but he strongly supported it as part of conservatism. He wrote a textbook about economics, highlighting how supply and demand work, the importance of profit and risk-taking, the distortions caused by government regulation and taxes, and how economic activity is essential for human flourishing and living the good life — food and clothing, buildings, transportation, books, and all the rest.

Though he personally chose to live in a small town removed from most of the hustle and bustle of commerce and technological development, Kirk advocated people’s rights to engage in such things. And he included property and free enterprise in principles three and four in his Concise Guide to Conservatism. In a debate with Michael Harrington about capitalism, Kirk defended capitalism, but not as a capitalist. He made the comment that Harrington was presumably more of a capitalist than Kirk himself, since Harrington had a bank account and presumably some investment in the stock market, while Kirk at the time had neither.[31]

Yet Kirk’s defense of capitalism was based on the principle of liberty which extended to exchange. He wrote: “the true conservative does stoutly defend private property and a free economy, both for their own sake and because these are means to great ends.”[32] He also wrote against, and debated, economic collectivists of all stripes. Forcible transfer of property from citizens to governments where it would be directed by officials and bureaucrats could only be justified in limited cases of legitimate government activity.[33]

Otherwise, such resource transfers merely fed bureaucracy that tramples on people’s liberty and undermines their dignity. Such expansions of state action and direction also undermine voluntary, private, civil society and its variegated associations.[34] Liberty, though not the highest abstract ideal for Kirk, was nevertheless an essential element of our western inheritance. And so he argued that the founding fathers were conservative, at least as much as they were revolutionary.[35] They were fighting to preserve their way of life, their rights, and their liberty, not to create something wholly or radically new.[36]

Adam Smith (and Burke as well as many contemporary Scottish Enlightenment thinkers) thought that any particular system of property or manners or government found its authority partly in convention. But they also thought that it was natural for some such convention to have authority. Property and law, along with tradition, were bulwarks against factions and tyranny. More than that, though, property in a regime that protected trade, profit-making, and competition, which are conducive to the common good. Smith’s famous invisible hand passage is worth quoting:

Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can com-mand. It is his own advantage, indeed, and not that of the society, which he has in view. But the study of his own advantage natu-rally, or rather necessarily leads him to prefer that employment which is most advantageous to the society….As every individu-al, therefore, endeavours as much as he can both to employ his capital in the support of domestic industry, and so to direct that industry that its produce may be of the greatest value; every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither in-tends to promote the public interest, nor knows how much he is promoting it….he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.[37]

Smith made a pragmatic case for the usefulness of property and markets in addition to the principled defense of custom, convention, and rights. The notion of spontaneous order via decentralized decision-making around personal interest radically altered the role of the statesman and the philosopher. No more did such people need to make plans or design extensive market or trade systems.

Such plans could and should be left to those in the markets: “What is the species of domestic industry which his capital can employ, and of which the produce is likely to be of the greatest value, every individual, it is evident, can, in his local situation, judge much better than any statesman or lawgiver can do for him.”[38] Hayek framed the argument as the importance of “local knowledge of time and place.”[39]

Coupled with his warnings about misguided political interference, Smith advocated for natural liberty to counter the aspirations of kings, politicians, and colluding businessmen. Smith disliked the tendency of businesspeople to use government laws to advance their own interests at the expense of consumers: “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”[40] There’s a difference between being pro-market and pro-business. Smith was pro-market when he advocated private property, prices, and profit.

All systems either of preference or of restraint, therefore, being thus completely taken away, the obvious and simple system of natural liberty establishes itself of its own accord. Every man, as long as he does not violate the laws of justice, is left perfectly free to pursue his own interest his own way, and to bring both his industry and capital into competition with those of any other man, or order of men. The sovereign is completely discharged from a duty, in attempting to perform which he must always be exposed to innumerable delusions, and for the proper per-formance of which no human wisdom or knowledge could ever be sufficient; the duty of superintending the industry of private people, and of directing it towards the employments most suitable to the interest of the society.[41]

His ideal government was limited to promoting national defense, limited public works, and basic enforcement of commutative justice — leaving others’ property alone — not enforcement of distributive justice (using your own property well) or other virtues. These, he believed, were best left to civil society and to conscience to define and to enforce. Fusion’s emphasis on free enterprise is pro-market rather than pro-business. It means favoring minimal restrictions on competition as well as limiting government interventions.

Each of these thinkers saw free enterprise as not only right in a free society, but as integral to human flourishing. Free enterprise benefits all of society. The beauty of private property, prices, and profit and loss is how they harmonize personal advantage with social good.

Aesthetics, Morals, and Flourishing

There seems to be great diversity within Fusionism regarding the nature of transcendent moral order. When it comes to aesthetics, morality, and conceptions of flourishing, Adam Smith and Russell Kirk seem to differ from each other almost as much as they differ from Friedrich Hayek and Murray Rothbard. Can there be an objective or general standard for human flourishing? Or is it up to individuals to define flourishing for themselves?

Fusionists try to thread the needle of advocating individual rights while also emphasizing moral duties and obligations. Conservative liberals like Smith, Burke, and Tocqueville point to voluntary associations in civil society as a way of defending individual rights while also keeping significant individual duties and obligations. Traditionalists like Kirk and libertarians like Hayek follow suit. And even though their individual judgments varied, all of these thinkers participated in what Kirk (and before him Burke) called the moral imagination.[42]

This moral imagination involves educating people for liberty, yes, but even more so educating them as to what it means to be human. Even agnostics or skeptics in the Fusionist tradition like Hayek or Meyer had sympathy for religion (Christianity primarily) and custom. Conservative liberal Fusionists recognize that civilization is about much more than technology, progress, or liberation — though those can all be good.

The moral imagination contrasts with the idyllic (or in some cases the diabolical) imagination of collectivists and other radicals. The idyllic imagination “rejects old dogmas and old manners and rejoices in the notion of emancipation from duty and convention.” Hence the most radical (in the political and philosophical sense) wing of libertarianism could be said to have an idyllic, rather than a moral, imagination. Fusionists share similar ends of teaching people their true nature within a (mostly) constrained vision of the world.[43]

The moral imagination teaches “the dignity of human nature, which instructs us that we are more than naked apes.”[44] Apart from a theological interpretation, someone like Hayek can recognize that civilization itself, though emerging as the result of human action but not of human design, brings depth and meaning for human beings beyond mere biology.

Modern Progressivism, on the other hand, attacks individual rights and transcendent or natural moral duties and obligations. Patrick Deneen rightly highlights the perverse alliance between individualism and the total state. Focusing only on individuals and their ability to choose invites the state to eradicate all other institutions: family, church, business, civic associations.

Progressives (and the French radicals that preceded them) happily obliterate institutions such as marriage and the family because they impose obligations or restrictions on individual autonomy. They embrace the “Idyllic Imagina-tion” when they tear down old conventions, dogmas, and manners and replace them with their own extensive set of moral obligations that should motivate censure and, more importantly, state sanction.

Progressives, of course, think people are obligated to do many things, but not out of a metaphysical or transcendent footing. The obligations change over time, are culturally determined, and are based on abstract ideas or even on a thinly veiled will to power. The Emotivism of Keynes and the Bloomsbury Group are one example.[45] The cultural Marxism coalescing around expressive individualism and identity politics is another. The moralizing from these folks are really an expression of desire rather than some metaphysical or transcendent ethic.

While different, those who see the world solely through the lens of rights often claim that moral obligations beyond protecting other people’s rights cannot be legally enforced. Rothbard makes the most extreme case against moral duties beyond non-aggression. Ayn Rand and Robert Nozick make many similar arguments. And modern libertarians seem to agree.

For Rothbard, beyond self-ownership and non-aggression, the moral order has no real obligations or consequences for people. While Rothbard himself may have followed certain moral norms in his personal life, it is difficult to assess whether he did so for any reason other than he believed doing so was most conducive to his happiness. In what ways would he prescribe those norms to others? After all, what would make one’s personal choice to watch pornography any more praiseworthy or blameworthy than listening to classical music? And on what basis can or should parents discipline their children? This raises the question of whether it is possible to do harm or evil (even to another) that is not coercive in nature.[46]

But once one allows for non-coercive evil or harm, they must address questions about human flourishing and standards of good and evil that will almost certainly extend beyond the non-aggression axiom. Libertarians hesitate to travel such roads for epistemic reasons — that is, they are skeptical that these standards of good and evil can be known with any confidence[47] — and because they do not want to undermine their basic moral and legal principles of absolute self-ownership and non-aggression.

Conservative liberal Fusionists do not agree on all the details of moral or ethical behavior, but they do share a kind of disposition towards the existence of ethics — whether they think ethics can be discovered primarily through reason and philosophy, or whether ethics come to be established over generations of experience and embodied in traditions, customs, habits, and manners.

A radical skepticism of ethics, that moral ideas are undiscoverable in general, though they can be known with certainty in a few particulars, seems to be at odds with the Fusionist view of a fixed transcendent moral order. Though such an order cannot be known perfectly—just as the economy cannot be known perfectly—it is not unreasonable to assume that a moral order extends beyond the non-aggression axiom.

On the point of a transcendent moral order, Hayek comes much closer to the rights-based libertarian view than a traditionalist or natural law conservative liberal view. But he does acknowledge that customs, traditions, and beliefs have moral weight. Without taking any metaphysical stand himself, Hayek points out that societies must have norms of behavior in order to function. He argues that such norms of behavior emerge over time through a process of social competition and evolution.[48] Societies whose practices and beliefs best promote cooperation and punish anti-social behavior tend to grow, expand, and flourish, while societies without such practices and beliefs tend to have internal discord, resulting in weakness or collapse.

Thus even for Hayek, the development of western civilization has not been arbitrary. One should not simply try to cut down all the traditions, practices, or laws that restrict individuals’ freedom, autonomy, or self-ownership. From a Hayekian perspective, Rothbard’s political program to abolish the state could lead to catastrophic consequences because it ignores the wisdom, and even justice, embedded in institutions of common law, constitutional orders, family, and civil society.[49] Rothbard may have thought the family and civil society would continue just fine without the state, but such a view has been largely untested.

This more organic view of society might seem to lend itself to collectivism, but Hayek, like Kirk, was nothing if not hostile to Progressivism and radical collectivism. Unlike the leveling tendency of collectivists to reduce society to individuals and the state, the conservative Kirk was an ardent defender of the family and local associations. He would argue along the lines of subsidiarity, that higher levels of governance or authority should only intervene in lower levels when those levels become dysfunctional.

Kirk described conservatism in terms of exercising the moral imagination. He veered away from describing an explicit system of rights, duties, and obligations. Part of this was due to his dislike of overly rigid philosophical systems, or “abstractions,” which he called ideology. But part of it was due to viewing conservatism as a disposition and an aesthetic, rather than as a “system” of thought. Of course, thought must be involved in conservatism; hence his important book The Conservative Mind.

Ultimately, one must discern what is good to conserve it. But one must study tradition and civilization to discover what is good. And even more funda-mentally one must believe that there is good and that it can be discovered. Kirk thought radicalism and revolution had nearly always been destructive of humanity, both socially and individually. In this he closely follows Burke’s Reflections on the Revolution in France. The idyllic imagination, such as that of Rousseau, French revolutionaries, and radicals in general, with their disdain for old manners, old traditions, and old customs, leads to the following reductionist state of mind:

All the decent drapery of life is to be rudely torn off. All the su-peradded ideas, furnished from the wardrobe of a moral imagi-nation, which the heart owns and the understanding ratifies, as necessary to cover the defects of our naked shivering nature, and to raise it to dignity in our own estimation, are to be exploded as ridiculous, absurd, and antiquated fashion.

On this scheme of things, a king is but a man; a queen is but a woman; a woman is but an animal; and an animal not of the highest order.[50]

One might say that although he was hesitant to speak at length about individual rights, the dignity, the value, and the worth of the individual human person dominated Kirk’s writing and thinking about civilization, politics, and government. That the rights and dignity of individuals inhere in nature, and that individuals ought to be respected as autonomous moral agents, and that custom and tradition has moral weight, form a core part of the transcendent moral order.

Smith wrote extensively about ethics and moral psychology in The Theory of Moral Sentiments, a decade and a half before publishing Wealth of Nations. He argued that one learns how to form moral judgments through sociability. Children learn from their parents. Students learn from their peers. Adults learn from their co-workers and their fellow citizens.

Smith’s ethical system is primarily practical, emphasizing mutual sympathy with others through empathy as the basic mechanism for moral judgments. To evaluate one’s own behavior, Smith proposed imagining how an “impartial spectator” would view the situation and motives. This impartial spectator serves as a barometer for propriety and a check on natural passions and appetites, helping individuals to humble their self-love and to act in ways that others will approve.

In this respect, we should not be surprised to find colorful condemnations, even of subjective consumption decisions, in Smith:

Power and riches…are, enormous and operose machines…ready every moment to burst into pieces, and to crush in their ruins their unfortunate possessor….[Who] will find [riches] to be in no respect preferable to that humble security and contentment which he had abandoned for it….[and] that wealth and greatness are mere trinkets of frivolous utility, no more adapted for procur-ing ease of body or tranquillity of mind than the tweezer-cases of the lover of toys; and like them too, more troublesome to the person who carries them about with him than all the advantages they can afford him.[51]

The “father” of economics, who championed economic growth, still thought part of his work was educating readers in the moral imagination.

Even though Smith wrote that, “The sole end of production is consumption,” according to the impartial spectator many consumption choices could be wrong or blameworthy. Yet we may not want to have such actions policed coercively by state actors because they may lack knowledge or have poor judgment. The standards of most moral actions are loose, vague, and indeterminate since they derive from several sources of approval: intentions, outcome, conformity with general rules, etc. Legal force, however, should be limited largely to rules of commutative justice that are more precise and grammar-like; hence the importance of a “constrained” mindset.

The Fusionist Future

So, what does the future of Fusionism look like? The original framing of Fu-sionism as bridging traditionalists and libertarians inadequately addresses the current intellectual landscape. I humbly suggest that going forward, conservative liberal Fusionism will be a coalition of those who advocate, in one form or another, limited government, free markets, and a transcendent moral order, or who advocate at least two of the three without opposing the third.

This means some groups can only be limited and temporary allies of the Fusionist project. Post-Liberals, for example, generally reject limited government and free markets. And even though they share the idea of a moral order, their views of the substance of such an order necessarily conflict with Fusionists, whose vision of a moral order demands (or at least accepts) the importance of limiting government and promoting free enterprise.

The Natcons are debating within their own coalition whether certain Post-Lib-erals or Reactionaries are pushing the envelope too far. If we think of Freecons, Natcons, Post-Liberals, and reactionaries as different spheres of intellectual influence, we can see why separating Fusionism from its detractors matters. The Natcons are being pulled in different directions with the Freecons on one side and the Post-Liberals and Reactionaries on the other side. Updating and advocating Fusionism plays into this philosophical tug of war. It offers a clear and forceful alternative to the siren song of Post-Liberalism and Reactionary extremism. Fu-sionism must be broad enough to encompass most Natcon concerns, while clearly drawing lines between itself, Post-Liberals, and Reactionaries.

Similarly, radical libertarian positions that emphasize markets but that reject government as oppression or theft, and that also reject the idea of moral goods and moral obligations beyond respecting the property rights of individuals, can only occasionally ally with Fusionists. They share some negative views of government policy and some positive views of markets, but they cannot build a society together. They tend to have the idyllic imagination rather than the moral imagination

Traditionalists tend to care more about limiting government and protecting moral order. Libertarians tend to care more about defending markets and limiting government than enforcing a transcendent moral order. Yet both traditionalists and libertarians can care about all three: limited government, free enterprise, and a transcendent moral order, even as they approach these topics from different angles and with different priorities. There is no party line Fusionist position. Instead, the camp can be characterized as holding similar priorities and dispositions — against radicalism and collectivism — and towards a constrained moral and political view of the world.

Those who believe in Fusionism as a project ought to define and clarify the center of the conservative liberal Fusionism that they invite people towards. The project involves demonstrating how advocating limited government, free enterprise, and a transcendent moral order is not only consistent, but in many ways mutually reinforcing.

Nothing in the distinctions drawn in this paper should be read to suggest that those “outside” the Fusionist camp should be ignored. Nor should these distinctions lead those in the Fusionist camp to exclude advocates of other traditions from conferences, societies, or conversations. This author, though considering himself a conservative liberal Fusionist, has enjoyed reading Rothbard, Nozick, and Rand as well as Deneen.

While Fusionists should be hesitant to police the term too tightly when people agree on at least two of the three legs of the stool, they should also clearly contrast their position with those who are truly outside the Fusionist camp. Ultimately, a broad and clearly delineated conservative liberal Fusionism may be able to keep diverse swaths of the political right from spinning off into Reactionary, Post-Liberal, radical, or other collectivist orbits.

Endnotes

[1]Frank S. Meyer, In Defense of Freedom (Henry Regnery Co., 1962), 21.

[2] Meyer In Defense of Freedom pg. 15-16.

[3] Nathan W. Schlueter and Nikolai G. Wenzel. Selfish Libertari-ans and Socialist Conservatives? The Foundations of the Libertari-an-Conservative Debate. (Stanford University Press, 2020), 6-7.

[4] George W. Carey, ed., Freedom and Virtue: The Conservative/ Libertarian Debate (1984; reprinted, Intercollegiate Studies Institute, 1998).

[5] R. R. Reno, “The Spirit of Democratic Capitalism,” First Things, October 1, 2017, https://firstthings.com/the-spir-it-of-democratic-capitalism/.

[6] This is quite like what Schlueter calls “natural law liberal-ism.” See Schlueter & Wenzel, Selfish Libertarians and Socialist Conservatives? The Foundations of the Libertarian-Conservative Debate.

[7] Presidents Bush, Nixon, and Eisenhower were not particu-larly focused on limiting government.

[8] See Murray N. Rothbard. For a New Liberty (Ludwig von Mises Institute, 1978) and The Ethics of Liberty (1982).

[9] Rothbard, The Ethics of Liberty, 103: “The absolute right to run away is the child’s ultimate expression of his right of self-ownership, regardless of age.”

[10] Murray N. Rothbard, For a New Liberty: The Libertarian Man-ifesto (1973; reprinted, Ludwig von Mises Institute, 2006), 24-25.

[11] Ayn Rand, The Virtue of Selfishness (Penguin, 1964); Robert Nozick, Anarchy, State, and Utopia (John Wiley and Sons, 1974).

[12] F. A. Hayek, “The Use of Knowledge in Society,” The American Economic Review 35, no. 4 (September 1945): 519-30.

[13] F. A. Hayek, The Road to Serfdom. (1944; reprinted Chicago: University of Chicago Press, 2007).

[14] F. A. Hayek, The Constitution of Liberty. (Chicago: University of Chicago Press, 1960).

[15] F. A. Hayek, Law, Legislation and Liberty, (University of Chica-go Press, Vol. I: Rules and Order. 1973; Vol. II: The Mirage of Social Justice. 1976. Vol. III: The Political Order of a Free People. 1979).

[16] See also Hayek, The Constitution of Liberty 342-366: “The Decline of the Law.”

[17] Hayek, The Constitution of Liberty 530: Hayek says for exam-ple, “It was in Whig societies that the young James Madison and John Adams developed their political ideas….it was Whig principles which, as Jefferson tells us, guided all the lawyers who constituted such a strong majority among the singers of the Declaration….The profession of Whig principles was carried to such a point that even Washington’s soldiers were clad in the traditional ‘blue and buff’ colors of the Whigs.”

[18] Russell Kirk, Russell Kirk’s Concise Guide to Conservatism, (Simon and Schuster, [1957] 2019) 2. Kirk’s first principle of conservatism basically describes natural law: “Men and na-tions are governed by moral laws; and those laws have their origin in a wisdom that is more than human—in divine justice.

[19] Kirk, Russell Kirk’s Concise Guide to Conservatism, 3.

[20] Kirk, Russell Kirk’s Concise Guide to Conservatism, 4.

[21] Adam Smith, An Inquiry into the Nature and Causes of The Wealth of Nations. Volume 2, (Liberty Fund, 1981).

[22] Smith, An Inquiry into the Nature and Causes of The Wealth of Nations . Volume 2, 687, IV.ix.51.

[23] Smith, An Inquiry into the Nature and Causes of The Wealth of Nations. Volume 2, 456.

[24] Adam Smith, The Theory of Moral Sentiments. Volume 1, (Lib-erty Fund, 1981) 233-234.

[25] See Rothbard For a New Liberty and Nozick Anarchy, State, and Utopia.

[26] Adrian Vermeule, Common Good Constitutionalism. (John Wiley & Sons, 2022).

[27] Patrick J. Deneen, Why Liberalism Failed. (Yale University Press, 2019).

[28] Sohrab Ahmari, Tyranny, Inc.: How Private Power Crushed American Liberty–and What to Do About It. (Forum Books, 2023).

[29] Murray N. Rothbard, For a New Liberty: The Libertarian Man-ifesto. (Ludwig von Mises Institute, 1978).

[30] F. A. Hayek, “Competition as a Discovery Procedure,” Quar-terly Journal of Austrian Economics 5, no. 3 (2002): 9-23.

[31] The author read a transcript of Kirk’s remarks in this debate with Michael Harrington while visiting Mecosta as a graduate student. Unfortunately, he has been unable to find the tran-script again in subsequent trips.

[32] Kirk, Russell Kirk’s Concise Guide to Conservatism, 7.

[33] Kirk, Russell Kirk’s Concise Guide to Conservatism, 61 “The state…is entitled to interfere with established rights of prop-erty only in times of great emergency, and then only for what is an unquestioned general good.”

[34]Kirk, Russell Kirk’s Concise Guide to Conservatism, 59..

[35] Russell Kirk, The Roots of American Order. (Simon and Schus-ter, [1974] 2023)..

[36] Kirk, The Roots of American Order.

[37] Smith, An Inquiry into the Nature and Causes of The Wealth of Nations. Volume 2, 454, 456.

[38] Smith, An Inquiry into the Nature and Causes of The Wealth of Nations. Volume 2, 454.

[39] Hayek, “The Use of Knowledge in Society,” 519-530.

[40] Smith, An Inquiry into the Nature and Causes of The Wealth of Nations. Volume 2, 145.

[41] Smith, An Inquiry into the Nature and Causes of The Wealth of Nations. Volume 2, 687-688.

[42] Russell Kirk, The Essential Russell Kirk: Selected Essays (ISI Books, 2007) 206-218.

[43] Thomas Sowell, Conflict of Visions (William Morrow & Co., 1987).

[44] Kirk, The Essential Russell Kirk: Selected Essays, 208.

[45] Alasdair Macintyre, After Virtue (Notre Dame Press, 1981) 23-36.

[46] “Libertarianism essentially denies that both self-regarding harms and moral harms exist and maintains that the only real injustice is coercion. Accordingly, it promotes a legal re-gime in which some individuals are legally entitled to harm others in noncoercive ways.” See Schlueter, and Wenzel. Selfish Libertarians and Socialist Conservatives? The Foundations of the Libertarian-Conservative Debate, 115.

[47] “This expectation reflects a Cartesian rationalism that no human knowledge, including knowledge of economics, can successfully meet and that can only end in skepticism about all knowledge, including the knowledge of libertarianism.” Ibid, 164. See also Hayek, The Constitution of Liberty, 125 “That we ought not to believe anything which has been shown to be false does not mean that we ought to believe only what has been demonstrated to be true.”

[48] Hayek, The Constitution of Liberty, 118 “for in social evolution, the decisive factor is not the selection of the physical and inheritable properties of the individuals but the selection by imitation of successful institutions and habits.”

[49] Hayek, The Constitution of Liberty, 119 “Not Locke, nor Hume, nor Smith, nor Burke, could ever have argued as Bentham did, that ‘every law is an evil for every law is an infraction of liberty.””

[50] Kirk, The Essential Russel Kirk: Selected Essays, 207; quoting Edmund Burke’s Reflections on the Revolution in France.

[51] Smith, The Theory of Moral Sentiments. Volume 1, 181.

Appendix: Conservative Statements

The Sharon Statement: A Timeless Declaration of Conservative Principles

The Sharon Statement was adopted on September 11,1960 by a group of 100 young conservatives who convened at the home of William F. Buckley in Sharon, Connecticut with the purpose of creating Young Americans for Freedom. In 2015 The New York Times recognized the Sharon Statement as a “seminal document” of the Conservative Movement and it is widely regarded by historians and thought leaders as one of the most important declarations in the history of American conservatism. Its message is timeless and has been championed by countless conservative leaders since its adoption, including President Ronald Reagan who served as YAF’s Honorary National Chairman. The Sharon Statement continues to function as the foundational document for every YAF chapter across the country.

The Sharon Statement

In this time of moral and political crises, it is the responsibility of the youth of America to affirm certain eternal truths. We, as young conservatives, believe: That foremost among the transcendent values is the individual’s use of his God-given free will, whence derives his right to be free from the restrictions of arbitrary force; That liberty is indivisible, and that political freedom can-not long exist without economic freedom; That the purpose of government is to protect those freedoms through the preservation of internal order, the provision of national defense, and the administration of justice; That when government ventures beyond these rightful functions, it accumulates power, which tends to diminish order and liberty; That the Constitution of the United States is the best arrangement yet devised for empowering government to fulfill its proper role, while restraining it from the concentration and abuse of power; That the genius of the Constitution—the division of powers—is summed up in the clause that reserves primacy to the several states, or to the people, in those spheres not specifically delegated to the Federal government; That the market economy, allocating resources by the free play of supply and demand, is the single economic system compatible with the requirements of personal freedom and constitutional government, and that it is at the same time the most productive supplier of human needs; That when government interferes with the work of the market economy, it tends to reduce the moral and physical strength of the nation; that when it takes from one man to be-stow on another, it diminishes the incentive of the first, the integrity of the second, and the moral autonomy of both; That we will be free only so long as the national sovereignty of the United States is secure; that history shows periods of freedom are rare, and can exist only when free citizens concertedly defend their rights against all enemies; That the forces of international Communism are, at present, the greatest single threat to these liberties; That the United States should stress victory over, rather than coexistence with, this menace; and That American foreign policy must be judged by this criterion: does it serve the just interests of the United States?

National Conservatism: A Statement of Principles

The following statement was drafted by Will Chamberlain, Christopher DeMuth, Rod Dreher, Yoram Hazony, Daniel McCarthy, Joshua Mitchell, N.S. Lyons, John O’Sullivan, and R.R. Reno on behalf of the Edmund Burke Foundation. The statement reflects a distinctly Western point of view. However, we look forward to future discourse and collaboration with movements akin to our own in India, Japan, and other non-Western nations. Signatories’ institutional affiliations are included for identification purposes only, and do not imply an endorsement on the part of any institution other than the Edmund Burke Foundation.

We are citizens of Western nations who have watched with alarm as the traditional beliefs, institutions, and liberties underpinning life in the countries we love have been progressively undermined and overthrown.

We see the tradition of independent, self-governed nations as the foundation for restoring a proper public orientation toward patriotism and courage, honor and loyalty, religion and wisdom, congregation and family, man and woman, the sabbath and the sacred, and reason and justice. We are conservatives because we see such virtues as essential to sustaining our civilization. We see such a restoration as the prerequisite for recovering and maintaining our freedom, security, and prosperity.

We emphasize the idea of the nation because we see a world of independent nations—each pursuing its own national interests and upholding national traditions that are its own—as the only genuine alternative to universalist ideologies now seeking to impose a homogenizing, locality-destroying imperium over the entire globe.

Drawing on this heritage, we therefore affirm the following principles:

  1. National Independence. We wish to see a world of independent nations. Each nation capable of self-government should chart its own course in accordance with its own particular constitutional, linguistic, and religious inheritance. Each has a right to maintain its own borders and conduct policies that will benefit its own people. We endorse a policy of rearmament by independent self-governing nations and of defensive alliances whose purpose is to deter imperialist aggression.
  2. Rejection of Imperialism and Globalism. We support a system of free co-operation and competition among nation-states, working together through trade treaties, defensive alliances, and other common projects that respect the independence of their members. But we oppose transferring the authority of elected governments to transnational or supranational bodies—a trend that pretends to high moral legitimacy even as it weakens representative government, sows public alienation and distrust, and strengthens the influence of autocratic regimes. Accordingly, we reject imperialism in its various contemporary forms: We condemn the imperialism of China, Russia, and other authoritarian powers. But we also oppose the liberal imperialism of the last generation, which sought to gain power, influence, and wealth by dominating other nations and trying to remake them in its own image.
  3. National Government. The independent nation-state is instituted to establish a more perfect union among the diverse communities, parties, and regions of a given nation, to provide for their common defense and justice among them, and to secure the general welfare and the blessings of liberty for this time and for future generations. We believe in a strong but limited state, subject to constitutional restraints and a division of powers. We recommend a drastic reduction in the scope of the administrative state and the policy-making judiciary that displace legislatures representing the full range of a nation’s interests and values. We recommend the federalist principle, which prescribes a delegation of power to the respective states or subdivisions of the nation so as to allow greater variation, experimentation, and freedom. However, in those states or subdivisions in which law and justice have been manifestly corrupted, or in which lawlessness, immorality, and dissolution reign, national government must intervene energetically to restore order.
  4. God and Public Religion. No nation can long endure without humility and gratitude before God and fear of his judgment that are found in authentic religious tradition. For millennia, the Bible has been our surest guide, nourishing a fitting orientation toward God, to the political traditions of the nation, to public morals, to the defense of the weak, and to the recognition of things rightly regarded as sacred. The Bible should be read as the first among the sources of a shared Western civilization in schools and universities, and as the rightful inheritance of believers and non-believers alike. Where a Christian majority exists, public life should be rooted in Christianity and its moral vision, which should be honored by the state and other institutions both public and private. At the same time, Jews and other religious minorities are to be protected in the observance of their own traditions, in the free governance of their communal institutions, and in all matters pertaining to the rearing and education of their children. Adult individuals should be protected from religious or ideological coercion in their private lives and in their homes.
  5. The Rule of Law. We believe in the rule of law. By this we mean that citizens and foreigners alike, and both the government and the people, must accept and abide by the laws of the nation. In America, this means accepting and living in accordance with the Constitution of 1787, the amendments to it, duly enacted statutory law, and the great common law inheritance. All agree that the repair and improvement of national legal traditions and institutions is at times necessary. But necessary change must take place through the law. This is how we preserve our national traditions and our nation itself. Rioting, looting, and other unacceptable public disorder should be swiftly put to an end.
  6. Free Enterprise. We believe that an economy based on private property and free enterprise is best suited to promoting the prosperity of the nation and accords with traditions of individual liberty that are central to the Anglo-American political tradition. We reject the socialist principle, which supposes that the economic activity of the nation can be conducted in accordance with a rational plan dictated by the state. But the free market cannot be absolute. Economic policy must serve the general welfare of the nation. Today, globalized markets allow hostile foreign powers to despoil America and other countries of their manufacturing capacity, weakening them economically and dividing them internally. At the same time, trans-national corporations showing little loyalty to any nation damage public life by censoring political speech, flooding the country with dangerous and addictive substances and pornography, and promoting obsessive, destructive personal habits. A prudent national economic policy should promote free enterprise, but it must also mitigate threats to the national interest, aggressively pursue economic independence from hostile powers, nurture industries crucial for national defense, and restore and upgrade manufacturing capabilities critical to the public welfare. Crony capitalism, the selective promotion of corporate profit-making by organs of state power, should be energetically exposed and opposed.
  7. Public Research. At a time when China is rapidly overtaking America and the Western nations in fields crucial for security and defense, a Cold War-type program modeled on DARPA, the “moon-shot,” and SDI is needed to focus large-scale public resources on scientific and technological research with military applications, on restoring and upgrading national manufacturing capacity, and on education in the physical sciences and engineering. On the other hand, we recognize that most universities are at this point partisan and globalist in orientation and vehemently opposed to nationalist and conservative ideas. Such institutions do not deserve taxpayer support unless they rededicate themselves to the national interest. Education policy should serve manifest national needs.
  8. Family and Children. We believe the traditional family is the source of society’s virtues and deserves greater support from public policy. The traditional family, built around a lifelong bond between a man and a woman, and on a lifelong bond between parents and children, is the foundation of all other achievements of our civilization. The disintegration of the family, including a marked decline in marriage and childbirth, gravely threatens the well-being and sustainability of democratic nations. Among the causes are an unconstrained individualism that regards children as a burden, while encouraging ever more radical forms of sexual license and experimentation as an alternative to the responsibilities of family and congregational life. Economic and cultural conditions that foster stable family and congregational life and child-raising are priorities of the highest order.
  9. Immigration. Immigration has made immense contributions to the strength and prosperity of Western nations. But today’s penchant for uncontrolled and unassimilated immigration has become a source of weakness and instability, not strength and dynamism, threatening internal dissension and ultimately dissolution of the political community. We note that Western nations have benefited from both liberal and restrictive immigration policies at various times. We call for much more restrictive policies until these countries summon the wit to establish more balanced, productive, and assimilationist policies. Restrictive policies may sometimes include a moratorium on immigration.
  10. Race. We believe that all men are created in the image of God and that public policy should reflect that fact. No person’s worth or loyalties can be judged by the shape of his features, the color of his skin, or the results of a lab test. The history of racialist ideology and oppression and its ongoing consequences require us to emphasize this truth. We condemn the use of state and private institutions to discriminate and divide us against one another on the basis of race. The cultural sympathies encouraged by a decent nationalism offer a sound basis for conciliation and unity among diverse communities. The nationalism we espouse respects, and indeed combines, the unique needs of particular minority communities and the common good of the nation as a whole.

Freedom Conservatism: A Statement of Principles

On September 11, 1960, a group of young conservatives gathered in the home of William F. Buckley, Jr., in Sharon, Connecticut. For decades, the timeless ideals embodied in the document they produced animated the American conservative movement.

Today’s public policy challenges are different than the ones faced by the Sharon Statement signatories in 1960. Authoritarianism is on the rise both at home and abroad. More and more people on the left and right reject the distinctive creed that made America great: that individual liberty is essential to the moral and physical strength of the nation.

In order to ensure that America’s best days are ahead, we affirm the following principles:

  1. Liberty. Among Americans’ most fundamental rights is the right to be free from the restrictions of arbitrary force: a right that, in turn, derives from the inseparability of free will from what it means to be human according to the laws of nature and nature’s God. Liberty is indivisible, and political freedom cannot long exist without economic freedom.
  2. The pursuit of happiness. Most individuals are happiest in loving families, and within stable and prosperous communities in which parents are free to engage in meaningful work, and to raise and educate their children according to their values. Neither individual liberty nor human flourishing is sustainable outside a civil society of strong institutions that inculcate virtue, deter corruption, foster community, comfort the afflicted, and nourish the soul.
  3. The foundation of prosperity. The free enterprise system is the foundation of prosperity. Americans can only prosper in an economy in which they can afford the basics of everyday life: food, shelter, health care, and energy. A corrosive combination of government intervention and private cronyism is making these basics unaffordable to many Americans. We commit to reducing the cost of living through competitive markets, greater individual choice, and free trade with free people, while upholding the rule of law, property rights, freedom of contract, and freedom of association.
  4. Full faith and credit. The skyrocketing federal debt—which now exceeds the annual economic output of the United States—is an existential threat to the future prosperity, liberty, and happiness of Americans. We commit to building a constructive reform agenda that can restore America’s fiscal sustainability, ensuring that future generations inherit a more prosperous and secure nation than the one we now inhabit.
  5. A nation of laws, not men. Equality under the law is a foundational principle of American liberty. Unfortunately, today this principle is under attack from those who believe that the rule of law does not apply to them. One manifestation of this problem is the explosion of unaccountable and unelected regulators who routinely exceed their statutory authority and abridge Americans’ constitutional rights. The President should only nominate policymakers and judges who are committed to upholding these rights.
  6. Americans by choice. Immigration is a principal driver of American prosperity and achievement. America is exceptional because anyone—from any corner of the earth—can seek to live in America and become an American. Nearly all American citizens descend from someone who came here from somewhere else, and we must treat all citizens equally under the law. To this end, the United States, as a sovereign nation, has the right to secure its borders and design a rational immigration policy—built on the rule of law—that advances the interests and values of American citizens.
  7. Out of many, one. The best way to unify a large and diverse nation like the United States is to transfer as many public policy choices as possible to families and communities. Much of the discord in America today comes from the fact that too many decisions are made for us by centralized authorities. The Constitution of the United States is the best arrangement yet devised for granting government the just authority to fulfill its proper role, while restraining it from the concentration and abuse of power.
  8. America’s promissory note. Martin Luther King, Jr. described the Constitution and the Declaration of Independence as containing “magnificent words…a promissory note to which every American was to fall heir.” Prior to 1964, however, slavery and segregation were enforced by state governments and, in many cases, by the federal government. Many who descend from victims of this system now face economic and personal hurdles that are the direct result of this legacy. We commit to expanding opportunity for those who face challenges due to past government restrictions on individual and economic freedom. We adamantly oppose racial discrimination in all its forms, either against or for any person or group of people.
  9. The shining city on a hill. American foreign policy must be judged by one criterion above all: its service to the just interests of the United States. Americans are safest and freest in a peaceful world, led by the United States, in which other nations uphold individual liberty and the sovereignty of their neighbors.
  10. Freedom of conscience. Essential to a free society is the freedom to say and think what one believes to be true. Under the First and Fourteenth Amendments to the Constitution, federal and state governments have a legal obligation to uphold and protect these freedoms. Private institutions have a moral obligation to do the same.

President Trump has nominated Kevin Warsh  to succeed Jerome Powell, whose term as Federal Reserve Chair expires in May 2026. Trump has made no secret of his desire to influence monetary policy. He has consistently called for “Too Late” Powell to bring rates down and seems to believe the president should have a say in interest rate decisions. But the real problem goes beyond Mr. Trump: the next Fed chair will inherit far too much discretionary power. 

The Fed has spent nearly two decades accumulating emergency authorities that never sunset and expanding its reach beyond its statutory mandate. It operates with little oversight from or accountability to Congress. The Fed’s ever-expanding powers, when combined with political pressure, is a recipe for disaster.

Three areas illustrate the pattern. First, consider the Fed’s standing overnight repurchase agreement (repo) facility. The Fed deployed a repo facility in 2008 and 2019 to deal with market disruption. But, in July 2021, it transformed this crisis tool into permanent market infrastructure. The Fed’s standing repo facility now provides up to $500 billion daily in liquidity. What began as emergency support became a permanent backstop with no sunset clause. 

Second, consider the emergency lending powers authorized under Section 13(3). The Fed rolled out six emergency lending facilities in 2008: Primary Dealer Credit Facility (PDCF), Term Securities Lending Facility (TSLF), Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), Commercial Paper Funding Facility (CPFF), Money Market Investor Funding Facility (MMIFF), and Term Asset-Backed Securities Loan Facility (TALF). 

The Fed’s emergency lending powers were purportedly constrained by Dodd-Frank (section 1101). The 2020 COVID-19 pandemic showed, however, how weak those constraints were. Four facilities (CPFF, PDCF, TALF, and the Money Market Mutual Fund Liquidity Facility (MMLF), which was just a slightly revised AMLF) were revived, and five new facilities were established. 

These new facilities included the Primary Market Corporate Credit Facility (PMCCF), Secondary Market Corporate Credit Facility (SMCCF), Paycheck Protection Program Liquidity Facility (PPPLF), Main Street Lending Program (MSLP), Municipal Liquidity Facility (MLF) New. Whereas the older facilities might generally be reconciled with the Fed’s emergency lending facilities, the newer facilities permitted the Fed to extend credit to entities Congress never authorized it to support. What began as a crisis improvisation in 2008 became standard practice in 2020, with few constraints on what the Fed could do through its lending facilities.

Third, consider the regulatory authority the Fed has asserted in recent years. It has denied master accounts to cryptocurrency-focused institutions like Custodia Bank. A master account provides access to the Fed’s payment rails and has traditionally been granted to regulated depository institutions. Yet, the Fed has repeatedly denied applications from crypto banks. These denials demonstrate how discretionary power enables the Fed to pursue policy goals beyond its statutory remit.

The Fed is not blind to its expanded discretionary powers. Federal Reserve officials have openly acknowledged the institution’s expanded role. Former Chair Ben Bernanke defended the Fed’s crisis interventions as “necessary” to prevent financial collapse because, at the time, “no federal entity could provide capital to stabilize AIG and no federal or state entity outside of a bankruptcy court could wind down AIG.” But perceived necessity doesn’t grant legitimacy.

The accumulation of discretionary power increases the risk of politicization. When the Fed wields significant power and discretion over credit allocation, market functioning, and financial access, the president’s appointments to the Fed’s Board of Governors are all the more important. It is also more tempting to apply political pressure. Politicians will find it difficult to resist if the Fed might be used to improve their re-election odds. The Fed’s independence and credibility suffer as a result.

The accumulation of discretionary power — and trillions of assets on the Fed’s balance sheet — also makes financial institutions more dependent on the Fed. If financial institutions come to expect support from a big, powerful Fed in times of stress, they will be encouraged to take on excessive risk. This moral hazard creates a positive feedback loop, where dependent financial institutions require a bigger, more powerful Fed. The end result is a Fed that continuously increases its regulatory reach.

Perhaps worst of all, the accountability mechanisms in place have generally failed to keep up with the Fed’s expanded powers. Congress checks in twice a year. But, unlike other major federal agencies, the Fed lacks an independent inspector general. It has gained abilities to influence corporate and municipal bond markets, but it still operates under an oversight structure designed for a much narrower scope. 

The Fed’s power problem is not limited to a particular chair or administration. It is institutional. Over the last two decades, the Federal Reserve has accumulated vast discretionary powers that enable mission creep and invite political pressure. Whoever follows Powell will inherit this vast discretionary power — and, if history is any guide, will be tempted to expand it further. But the Fed’s credibility and independence will suffer until its discretionary power is reined in.