I stumbled across Jeffrey Tucker’s article “Free Bernie Madoff” a week or so ago and I’m only just now getting around to blogging about it.
For those who are just too caught up in coverage of Michael Jackson’s funeral to remember the prime orchestrator behind the largest ponzi scheme in history, Wikipedia has a nice summary of his malfeasance:
Bernard Lawrence “Bernie” Madoff (pronounced /ˈmeɪdɒf/; born April 29, 1938) is a convicted felon and former financier. Madoff, who served as a non-executive chairman of the NASDAQ stock exchange, pled guilty to an 11-count criminal complaint, admitting to defrauding thousands of investors of billions of dollars and was convicted of operating a Ponzi scheme that has been called the largest investor fraud ever committed by a single person.[3][4] Federal prosecutors estimated client losses, which included fabricated gains, of almost $65 billion.[5] On June 29, 2009, he was sentenced to 150 years in prison, the maximum allowed.[6][7] As there is no parole in the federal correctional system, it was tantamount to a life sentence.
That’s $65 billion with a B.
His crimes listed over there on Wikipedia reads like a thesaurus entry for Deceit:
Securities fraud, investment advisor fraud, mail fraud, wire fraud, money laundering, false statements, perjury, making false filings with the SEC, theft from an employee benefit plan
And he knows it. He knows and admitted that his scheme was just a big lie. That in itself makes me wonder if he isn’t some sort of sociopath. Bottom line: this guy is just a very fancy form of scum.
So, imagine how disgusted I was to see this alleged advocate of liberty, Jeffrey Tucker, calling to have Bernie Madoff freed from prison.
Mr. Tucker’s argument seems to be something like this:
- Madoff is financially ruined.
- Madoff is unpopular.
- Jailing him is expensive.
Therefore, we should just set him free.
Mr. Tucker them proceeds to address some of the common arguments for punishing criminals. He sees the idea of jail as a rehabilitative effort as foolish, and I agree. He speculates that perhaps the goal of jail is to impose feelings of remorse, a suggestion that I find ludicrous and pointless; why should I, let alone our justice system, care how Madoff feels?
Mr. Tucker gives another possibility that I’d like to come back to in a moment, but basically, he sees jailing Madoff as pointless.
What, then, precisely, is the point of jailing him? He is no direct threat to anyone. Society would not be safer because he is in the slammer. He is not going to rob people or beat people up. He might write a book and donate the funds to charity or make some restitution to his victims. I, for one, would like to read that book.
I’m tempted to go on a tangent here, snark that there is no guarantee that this “poor, downtrodden soul” won’t turn violent and quibble about the fact that he has proven his willingness to rob people. But I will get into why skimming from his future income is a grotesque injustice.
But first, let’s look at Mr. Tucker’s moral outrage at the Madoff sentence.
First, he says, “Maybe the idea of jail is punishment. I don’t see how it can be a worse punishment than he would face on the outside.” And then he says
Prisoners … face a kind of metaphysical transformation. They go from being valued members of society to being treated like blobs of flesh taking up space. Their wardens see them as objects. They are abused by fellow inmates and live in a state of incredible degradation everyday.
All prisoners are therefore living amidst a kind of torture. It isn’t modern. It isn’t even medieval. It is contrary to all principles of civilization.
So, jail, as punishment, IS worse than being left free to suffer the social punishment! But even more offensive is the snotty, and frankly sneaky, way in which Mr. Tucker invites us to engage in a bit of duplicity of our own:
For decades we’ve been told by sociologists that the real criminals in society are not muggers and murderers and rapists but rather “white-collars criminals” who are capitalists sneakily stealing money using fancy finance.
Can I interrupt here for a second? “Capitalists” don’t steal. Criminals steal. Capitalists trade. FUNDAMENTALLY. If you are mooching, you’re not a capitalist. If you are stealing, you’re not a capitalist. If you are exchanging value for value in commerce, then you can call yourself a capitalist, but I resent the idea that I, a capitalist, I am in some way “sneaky” or even possibly stealing anything from anyone. The fact that Mr. Tucker doesn’t seem recognize the difference is enough to tell you that dude is way off base. (Is if the headline “Free Bernie Madoff” weren’t clue enough.)
So, Mr. Tucker doesn’t reject the idea of a hierarchy of viciousness for crimes. He just wants to invert the one offered by these “bourgeoisie” sociologists and he wants to go further than any of them and simply stop prosecuting the “lesser” crimes at all. I’m sure it wouldn’t be difficult to come up with an example of a case in which a mildly violent criminal has been set free to roam the streets while Bernie Madoff rots in jail for stealing a mere $65 billion dollars, but I’ve never heard of anyone suggesting that we set serial killers and mass murderers free. Yet, in the analogy between these two lines of reasoning, Bernie Madoff is the equivalent of a mass murderer.
I think we, Mr. Tucker and I — I cannot speak for these nameless, purported sociologists — agree that when possible, victims should have their property restored to them. I also think we agree that whatever sentences are doled out, they should be proportionate in some way to the crime committed. But we disagree on two other key points.
First, Mr. Tucker seems to think that the only reasonable goal behind imprisonment is to prevent violent criminals from being violent again. I can only assume that if someone say snatches and old lady’s purse, he proposes to jail them for life, because anyone can be violent, but the only people who warrant any government action against them — apparently, according to Mr. Tucker — are the ones who’ve proven to be willing violent. And since anyone can be violent at any time, they have to be jailed forever as a preventative measure.
Secondly and more importantly, Mr. Tucker is one of these idiots who seem to think the only real crimes are the ones that involve fists and guns. Simply lying and misrepresenting one’s self and intentions to others is perhaps “not good” but it doesn’t seem to warrant any punishment at all. Mr. Tucker even says that Madoff’s “investors” acted according to their own volition — as if consent can be given in cases of fraud.When one marches to the edge of a cliff at the point of a gun, one is exercising volition, just as one would be doing if one refused to march at the point of a gun, but in both cases one is being coerced.
He seems to think that the government should just take the fruits of the fraud back and then tell everyone that the person in question is a big, fat liar and that is all. But he does not seem to think these are actual crimes which warrant punishment. And that’s getting the real point that Mr. Tucker misses.
Both the alleged sociologists and Mr. Tucker have failed to identify the principle underlying the concept of justice, which is to simply give people what they deserve. When you violate another person’s rights either through force or fraud you are a ciminal and you deserve to be punished. The punishment should be proportionate to the crime.
But Mr. Tucker doesn’t think criminals like Madoff actually deserve anything. They don’t deserve their loot, but they also don’t deserve any punishment. At worst, Mr. Tucker thinks they deserve public scorn.
Mr. Tucker even fails to comprehend the role of proportion in assigning punishments to crimes. Because, he says, Bernie Madoff’s crimes aren’t “unusually evil.” He ignores the fact that Madoff orchestrated a $65 BILLION scam — the largest in the history of individual criminals. Comparing this to the trillion dollar scam that is the Social Security System does not in any way mitigate Madoff’s crime here.
Aside from all the plain stupidity in this article, the most irritating part is that Mr. Tucker does it all with a sneer and an implied accusation of emotionalism toward those who would disagree. He implies that the righteous outrage people feel about the crime and the scale of the crime are not merely barbaric and vengeful, but are also silly busy-bodies who can’t mind their own business. After all, who cares that he stole $65 BILLION from a bunch of rich people?
This is pretty typical of Libertarians like Mr. Tucker. They don’t comprehend the meaning of “rights,” “freedom,” or even “crime.” As a result, they don’t understand the fundamental role of government in the lives of individuals, let alone its role in crime and punishment.