Competition helps us to discover things
The message of freedom of the FMRS arrived to the Bosnian capital last April 24th
Without any doubt, economist Pierre Garello was the “man of the hour”. Garello, a follower of the Austrian School of Economics, gave a brilliant talk about three topics: subsidiarity, competition and taxation.
The French economist started praising subsidiarity: “If we like freedom we should like that principle”. However, according to Garello, this begs the question about who decides what is left to the upper levels.
On competition, Garello took an unequivocal Hayekian position: “Competition is a discovery process. We do not know what is best. Competition helps us to discover things”.
His remarks about taxation were to the point. Firstly, Garello focused on the idea of tax harmonization. “With the whole continent ‘harmonized’ the costs of exit would raise sharply. Therefore you would be trapped”. The tragic consequence of tax harmonization would be the “death of democracy”.
He then turned his attention towards the philosophies that lie behind taxation. The “classical” view sees taxation as a necessary evil. But there is a new philosophy that considers taxation as an instrument to change the behavior of the population. Needless to say, this contemporary view poses a serious threat on individual freedom.
Also participating were the economists Adisa Omerbegovic-Arapovic and Barbara Kolm. Their presentations complemented the topic what incentives are needed to stop the “brain drain”. As Kolm put it: “If we want our most talented to remain on the continent, we need to transform Europe into much less regulated area and implement the principle of competition as a prerequisite to create growth”.
The Austrian Economics Center (AEC), in cooperation with the local partners Sarajevo School of Science and Technology (SSST), Sloboda i Prosperitet and in association with international partners such as the Liberty Fund, Global Philanthropic Trust, European Students for Liberty, Ruefa and the F.A. v. Hayek Institut, proudly organized this event in Sarajevo. This was the fifteenth stop of the 7th Annual Free Market Road
More photos from Free Market Road Shows 2014