Is Liechtenstein a Libertarian Utopia?

Liechtenstein isn’t just one of the world’s smallest countries, it’s one of the most prosperous.

Despite having just 37,000 citizens and covering just 61 square miles in central Europe, the microstate has a per capita income of about $100,000, a corporate flat tax of 12.5 percent, and an income tax of just 1.2 percent.

Now well-known as a banking and financial hub, the principality wasn’t always so flush. In fact, in 1967 the royal family had to sell a prized possession—Leonardo da Vinci’s first known portrait—just to keep the country afloat.

Reason's Nick Gillespie talked with the country’s leader, Prince Hans-Adams II, at the International Students for Liberty Conference in Washington, D.C. about how Liechtenstein turned itself around while becoming world famous for its banking privacy and openness to immigrants.

And he talked with Hans-Adams' about his new book, The State in the Third Millennium, which outlines the reforms he brought to Liechtenstein and argues that modern government should treat citizens as customers who have the option to live elsewhere.

About 8 minutes. Produced by Joshua Swain.

[MichaelNaness]

This country is legit one medium sized town and a mountain

[CarlyleA]

So this whole country is a swiss bank?

[thesoundofthesuburbs]

"openness to immigrants"? It is next to impossible to settle in Liechtenstein.

[ruzzelladrian]

Integrating immigrants in Liechtenstein from countries that are western, democratic, capitalist, and secular is easy. But if said immigrants are from Sharia Law countries, that's a different story.

[newweaponsdc]

When people talk about Somalia being the Libertarian paradise, I always tell them "you're thinking of Liechtenstein there, bub!" Prince Hans-Adam is the most intelligent world leader, he's an intellectual powerhouse.

[behrouz]

This should be the future of humanity. Tiny countries, limited governments, small military spendings, no intimidation by superpowers or mad totallitarians

[viorelurs]

I think we have more homeless in CA then they entire population 🤔😂

[tmsupreme]

It's a tax haven, that is how microstates operate. Look at Monaco or Luxembourgh

[tnerbtnerb]

Just going to point this out: the Prince freely admits his system only works as well as it does, and the government is capable of being so hands off, because of Lichtenstein's extremely small size. Furthermore, he recommends parsing larger countries into many smaller subsets and having local municipalities providing their OWN taxes to deal with social issues like welfare.

So in the Prince's mind, the larger the Nation, the higher the taxes overall.

And furthermore this raises an interesting point about Lichtenstein directly. This 1.4 percent tax rate...does that include *all* possible taxes? Or just what the National Government will take? Perhaps local groups cover additional considerations like healthcare (and consequencial tax hikes).

[dogguy]

I just find it funny how, Lichtenstein, which is currently the closest thing to an absolute monarchy that is in Europe (the power of the price is quite far reaching) is also the most libertarian, it seems he passed it on to his kids. While he is the current price until his death, he is more or less retired and his son has taken responsibilities of the prince

[SapientSpaceApe]

In my experience, most Irish people don't give a shit about Polish immigration to Ireland. For the most part, the Poles have been very well received here. They're our friends, neighbours, and co-workers.

[BrotherWoody]

Liechtenstein is the only specifically Catholic nation left in Europe. That plus their size gives them a distinction that's otherwise unchallenged as far as "utopias" go.

[freedom_aint_free]

So, they are smaller than the District of Columbia?!

[dr-syfs]

The EU is gradually turning into a USSR bureaucracy, if Lichtenstein becomes part of the EU they will be chained to the Titanic.

[empirestate]

To be fair, Lichtenstein is incredibly small and mountainous. It has more registered companies than people. The country is used as a tax haven and offshore banking site. Small countries like Lichtenstein and Singapore can become wealthy like that, but large countries like the U.S. and India need to produce goods, not just offer banking services. After all, there's only a limited amount of money that people can put into banks!

[bidhandahal]

Liechtenstein has an excellent standard of compulsory state funded healthcare with well trained Medical staff. The healthcare system in Liechtenstein is available to all citizens and registered residents. Private healthcare is also available here. All employed citizens and their employers contribute to the system. The Office of Public Health oversees the health service. All resident citizens are entitled by law to equal access to healthcare.

[legendre]

Very interesting! Just the other day I learned that the city of Gurgaon in India has a private firefighting service and that it even privatized wastewater management. And now you introduce me to Liechtenstein and its prince. I am definitely going to look further into this. Thank you. ^_^

[TheBrianp]

Sometimes using strange women lying in ponds distributing swords as a basis of government works out pretty well.

[hegestratos]

Other ancaps referenced liechtenstein as the most libertarian place on earth (except liberland, but it's not really independent and recognized as liechtenstein).

[zfan]

Technically the crown prince is referred to as "His/Your Serene Highness, " but I think Prince Hans-Adam will let that slide. lol Great interview though.