Category Archives: Protectionism

Un petit baiser pour le cinéma Français

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Au cours des longues annéees de ma vie américaine, j’ai eu l’occasion de dire des tas de choses désagréables sur la pauvreté du cinéma français pourtant surnourri de subsides publics. J’aimême publié un article méchant en Anglais sur la question.( “Can protectionism ever be respectable? A skeptic’s case for the cultural exception, with special reference to French movies.” The Independent Review 9-3:353-374. 2005.)

Malgré tout, de temps en temps, le même cinéma me procure une agréable surprise, souvent une si minuscule surprise qu’on aurait pu la rater. Je viens de regarder “Emma”, un film sorti en 2011. C’est l’histoire d’une jeune fille mal dans sa peau. Il y a une scène avec un garçon de quinze ou seize ans quelle n’avait pas vu depuis leur petite enfance. En vacances dans la même maison, ils sont assis ensemble sur un lit. Ils parlent de tout et de rien,évoquant même la peluche que le garçon aurait volé, jadis, à la fille.

Soudain, le garçon se penche et dépose un baiser sur le genou (couvert) de la fille. Il y a dans ce geste infime toute la tendresse du monde. C’est le geste juste, plus que juste. Après cela, la fille lui appartient corps et âme, bien entendu.

Malgre tout ses péchés, je pardonne beaucoup au cinéma français pour ce simple baiser au genou.

Mais bien sûr, c’est un film français où donc, le tordu, l’insolite, le gratuit remplacent l’émotion, l’imagination, et même l’érotisme. Le petit ami se revèle vite être plus précoce voyeur qu’ enthousiaste pénétrateur. Enfin, personne n’est parfait, comme on dit.

A la fin du film, aussi la fin des vacances, la jeune fille dit au revoir à son demi-frère. Elle se fait la réflexion, dans son fors intérieur, qu’elle souhaiterait être plus libre des ses paroles, pour pouvoir lui dire, “Je t’aime” - “comme dans un film américain.”

* “Instead of the eager penetrator you would expect, the boyfriend turns out to be mostly a voyeur.”

Looking into the Crystal Ball

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Since the rise of the first civilization, a centralized organization having access to the levers of influence on certain types of infrastructure has been a given. Specifically these are information, commercial transactions (especially the flow of goods), and human movement. The institutions of government and society have been structured to reflect this circumstance.  As I will demonstrate below, this paradigm will shift dramatically. Of course, new institutions will be needed to adapt to this reality, which is where my interests lie as should those of other liberty lovers concerned with the future.

The introduction of the internet is beginning of the direct unraveling of the first lever, and indirectly of the second. With the advent of global real time communication, boundless storage capacity and near universal access, centralized control of information is coming to a close. The internet is decentralized compared to other infrastructure.  So the only way a centralized organization, for example, the state, can control information is by a complete shutdown of the internet, i.e., the internet kill switch used in Syria during civil unrest recently and championed by many government officials around the world. The way this works is if there is a centralized structure, which in this case is your local Internet Service Provider (ISP), through whose lines people access the internet. However, advancements are being made to create a fully decentralized internet, void of middle men ISPs, functioning like a peer to peer network. Silk Road, an invitation only “internet” on which many things are traded, is a prototype of a fully decentralized network.

The internet has also a great deal of influence on the second lever. It has unleashed three dimensional printing, or the ability to create or scan and recreate practically any non-biological or electronic object. From wrenches to shoes soles to burritos to guns and even a house, they have all been constructed without any physical human labor. It is only a matter of time till this becomes widespread and supersedes the need for most objects to be centrally created, hindering any potential efforts to limit production and distribution of such products. Once this happens, economies of scale will struggle to remain relevant as customization, ubiquity, and efficiencies in material usage achieved by 3D printing will supersede any value created by mass manufacturing.

If the first two sound tantalizing, the end of final lever of influence will be even more consequential than the first two combined. That is the advancement in what I like to call three dimensional travel. Vehicles that are ubiquitous such as cars and ships are limited to what is known as two-dimensional travel, meaning they can only go forwards/backwards and left/right.  The rise of private rocket company SpaceX , successfully accomplishing what only the government agencies of the U.S.A. China and Russia have been able to accomplish in space, shows private space exploration is catching up to the established players. It’s not the only rocket company with massive firepower behind it.  But getting back to Earth, nine different companies vying are for governmental approval to launch flying cars. Both are examples of three dimensional movement which aim to be available to the masses. Once successful, no one will have an inescapable dominance nor be able to realistically limit the movement of people as they will be able to escape barriers otherwise impossible in the prevalent “two dimension” travel.

As the control of these levers is decentralized, it will become imperative to understand the transformation of institutions and concepts such as economies of scale being overturned and anticipating the challenges that such innovations will bring. This however will not be enough. A focus on developing alternative institutions and solutions to mitigate those hazards must also be taken into account.

And that is where I believe libertarians need to focus. On the institutuions of the future. If we are to secure liberty for our prosterity and its future, we must study and build the institutions that will anticipate and seek to amelorite that challenges of the future well before and better than the state. Then and only then will we see the permananet demise of the state as a temprary blot on human history and a relic of agricultural society.

Cyprus, the EU and Competing Currencies

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There have been many critiques over the European Union from many different quarters over the decades since its inception. With the seizure of cash from customers of banks in Cyprus, the worst threat imaginable has now come to pass for Euroskeptics. Economist Frederic Sautet explains how the heist has so far gone down:

Some depositors at Cyprus’ largest bank may lose a lot of money (e.g. see article in FT). Those with deposits above €100,000 could lose 37.5 percent in tax (cash converted into bank shares), and on top of that another 22.5 percent to replenish the bank’s reserves (a “special fund”). Basically “big depositors” are “asked” to pay for (at least part of) Cyprus’ bailout (the rest will be paid by other taxpayers in the EU).

I cannot think of a faster way to completely destroy a banking system than to expropriate its depositors. This is the kind of policies one would expect from a banana republic, not from a political system that rests on the rule of law. But this is the point: the EU does not respect the principles upon which a free society is based.

An economist over at ThinkMarkets also has a good piece on the Cyprus heist. The EU has taken an incredibly good arrangement – free trade throughout Europe – and turned it into an attempt to unify Europe into a single behemoth of a state. And all under the auspices of “federalism.” This is a bad development for a number of reasons. Continue reading →

The Disaster: A Teenage Victory

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Last Tuesday (11/6/2012) there was a vote about the future and the teenagers won. They now have the keys to the family car.

I have never in my life so wanted to be wrong in my judgment. Here it is: President Obama’s re-election is an even worse disaster than his election was. Do I think that many of the people who voted for him gave serious thought to the giant national debt, to the impending entitlement implosion, to the tepid economic growth, or even to the unusually high rate of unemployment? No. Do I think a sizable percentage did? No. Do I think a few did consider all or any of this? I am not sure.

President Obama won re-election decisively. His margin in the popular vote was nearly three million votes. Apparently* there were none of the gangsterish electoral tactics that marred his 2008 election. This makes the results worse as far as I am concerned.

President Obama is still not a monster. It’s possible that he is manipulated by a brand of leftists we thought had disappeared long ago. It’s also possible that someone like me will nurture in his brain paranoid notions at a time of major anxiety, such as now. Continue reading →

Secession within the EU?

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While I’m on the topic of secession, I thought I’d point readers to the upcoming vote in Catalonia to see if they want to secede from Spain. Central to my arguments for secession is the role that new states would have within a broader free trade zone (like the U.S. or the E.U.). For Catalonia, the British paper Telegraph reports:

Catalonia wants to collect its own taxes, to control how they are spent and it seems prepared to break away from Spain to do so.

But with a clear road map yet to be outlined the process of separating from Spain promises to be burdened with hurdles.

While Catalans prize their role as citizens of Europe, EU officials have warned that membership of the union won’t be automatic. Instead Catalonia would have to gain admission, joining the queue of a list of new European nations seeking membership, and the process would likely be blocked by a vengeful Spain.

This is key to not only Catalonia’s success, but also the success of secessionist movements everywhere. If regions within current states want independence, they have to be sure to not confuse political independence with economic independence. The latter will only lead to poverty. I highlight this point because new states formed during the beginning of the post-colonial revolution of the 60′s and 70s thought that economic independence was the key to liberty. How wrong they were. Continue reading →

A European Union of More Nations?

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Wouldn’t that be so bad ass? Or am I just a geek?

The New York Times picks up on concepts that libertarians have been talking about for years. From the article:

The great paradox of the European Union, which is built on the concept of shared sovereignty, is that it lowers the stakes for regions to push for independence.

Has the NYT been reading NotesOnLiberty? That’s a tongue-in-cheek question, of course, but one that makes me feel smug and sexy at the same time!

I have largely addressed the crisis in Europe from a political standpoint on this blog, and I don’t see that changing much over the next few years. Fiscal responsibility and civil society can only flourish if political institutions are well-defined.

The NYT article decided to quote a scholar at the European Council on Foreign Relations (which is not *sigh* a think tank dedicated to furthering the interests of a small, elite circle of bankers and industrialists) instead of me: Continue reading →

Separatism (Secession) in Spain, and the Rest of the World

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Separatist agitations in Spain have prompted some observers to reconsider the concept of secession as a viable option in politics again. The BBC has a very good report here, and the Economist has an even better one here.

When I was taking an Honors course on Western civilization and we got to the European Union, a thought immediately came to my head and I shared it with the class: does the European Union mean the demise of the big nation-states of Europe?

My hope is that it will, but my Professor and my Left-leaning classmates either thought ‘no’ or had not thought about this question at all. One sexy girl did think it was possible, though I think she was just humoring me so that I would ask her out on a date (yes, I did, but she couldn’t get into UCLA, though, so she ended up at Berkeley!).

I thought about the confederation of states in Europe that the EuroZone has created, and remembered that many regions within the nation-states of Europe have harbored separatist sentiments since being absorbed into the nation-states of Europe (sometimes hundreds of years ago, sometimes decades ago), as well as the peaceful split-up of Czechoslovakia into two states within the EuroZone.

The purpose of the nation-states was to streamline trade between regions by standardizing trading policy and eliminating parochial tariffs that regions within the nation-states had erected over the course of centuries. So, in what is now Germany, for example, there were hundreds of small states that each had their own economic policies, and most of these states had erected protectionist tariffs, even on neighboring states. The German state standardized trading policy in what is now Germany so that a tariff-free zone of trade eventually emerged within Germany. The federal set-up of the United States accomplished the same thing.

Now, though, the European Union has essentially taken the place of the nation-state as the chief entity in charge of standardizing trading policies in Europe. My line of thought leads me to conclude that this political setup is a great opportunity for regions that have been absorbed into larger nation-states to assert more fiscal (local taxes) and political (local elections) independence because of these region’s new interdependence with a larger part of the European economy thanks to the elimination of tariffs between the larger nation-states currently in place. In short, the confederation has provided the opportunity for smaller states to emerge while at the same time eliminating the parochial and self-defeating aspects (trade policy) of small state polities that often accompanies “smallness.” The best of both worlds has the chance to flower: local governance and total participation in world trade.

I realize that the EuroZone shot itself in the foot with the creation of a central bank and the attempts to delegate to itself ever more political power, but with these two blemishes notwithstanding the European Union is a good thing for both peace and prosperity.

The question of secession in political science has recently emerged as a good one for many scholars, but unfortunately their focus has tilted heavily towards Europe and Canada (Quebec and Nunavut). If we apply this concept to other regions of the globe – especially China, Africa, the Middle East and India – then the notions of violence and despotism that Westerners largely harbor towards these regions disappears.

I hope this makes sense. If it doesn’t you know where the ‘comments’ section is!

States and Secession: Lamenting the Failure of the Euro Zone

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The Guardian has a so-so map on secessionist movements in Africa that’s worth checking out. I say it’s only so-so because it doesn’t really cover all the secessionist movements in the region, just the violent ones or the ones favored by Western diplomats.

I’m interested in secessionist movements because of the effects that they have on nationalism, one of the most dangerous ideologies to haunt mankind since the industrial revolution. Nationalism is probably worse than racism, or at least on par with it, when it comes to ideas gone horribly wrong.

That’s why I support free trade between states, and the deeper the better. The true tragedy of the EuroZone crisis is not the inevitable and predictable collapse of the euro but the fact that anti-liberal policies like the central bank and more political integration between states (and away from the people) are being misconstrued as liberal, in the classical sense.

The smaller the states the better, and the freer the trade the better. Mexicans should be able to travel and live in the US and Canada the same way that Nevadans are able to travel and live in California. The EuroZone could have been beautiful, but the pressure for a central bank and more control from a center, in Brussels, has probably ended it. It’s a good primer on how beautiful ideas often don’t pan out the way people would like them to.

Here’s how to fix the EuroZone crisis:

  1. Eliminate the monopoly of the central bank on creating money and credit.
  2. Open up the EuroZone market to more goods from the rest of the world (especially agricultural products from developing states).

I also think it’d be a good idea to keep Brussels as limited as it is. Doing so will not only allow more room for local policies to be experimented with and tested against other policies, but it will continue to erode the nation-state as well. What we were seeing prior to the crisis in the EuroZone is more calls for autonomy from state capitals throughout the EuroZone,  and a powerlessness on the part of states to do anything about it.

So instead of France and Spain, two states, the world may have seen up to five or six states in their stead, all interacting with each other economically while retaining nominal political independence from each other.

What a shame.

More on China and Irrational Fears in Conservative Circles

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Writes Minxin Pei:

The latest news from Beijing is indicative of Chinese weakness: a persistent slowdown of economic growth, a glut of unsold goods, rising bad bank loans, a bursting real estate bubble, and a vicious power struggle at the top, coupled with unending political scandals. Many factors that have powered China’s rise, such as the demographic dividend, disregard for the environment, supercheap labor, and virtually unlimited access to external markets, are either receding or disappearing.

Yet China’s declining fortunes have not registered with U.S. elites, let alone the American public.

Do read the rest of the article. I’ve said as much on this blog before, and there is certainly no reason to fear a rising Beijing. Nor is there a good reason to spend more money on East Asian “defense” projects or stifle growth at home by throwing up isolationist tariffs. (h/t Daniel Larison)