Comments

Voter Participation: Something Has to Be Done

Warren Gibson Comments, Current Events, Liberty, Politics , , , , ,

In California, 70% of eligible voters are registered, and 47% of those turned out in a recent election. Thus about a third of those who could vote do so. These are dismaying numbers.

Dismaying because they are too high.

Why? First, some more dismaying numbers:

When Newsweek recently [2011] asked 1,000 U.S. citizens to take America’s official citizenship test, 29 percent couldn’t name the vice president. Seventy-three percent couldn’t correctly say why we fought the Cold War. Forty-four percent were unable to define the Bill of Rights. And 6 percent couldn’t even circle Independence Day on a calendar.

Too many ignorant fools are casting votes. People who believe that minimum wage laws create wealth, free trade destroys wealth, or clergymen should be forced to marry gay couples, to pick just a few examples. We need to bar these ignoramuses from the voting booth.

How? For starters, ditch the 26th amendment to the Constitution and the raise the voting age to at least 30. Get the 20-somethings out of the way; too many still believe in free lunches.

Second, change the 24th amendment to require poll taxes rather than forbid them. There is no justice in forcing non-voters to pay election costs.

Third, institute stiff qualification exams. Voters need know the vice president’s name, understand the Cold War, identify July 4 as Independence Day, and a whole lot more. Informed voters would be mostly immune from pandering demagoguery.

Disenfranchisement will lead to alienation and rebellion, some will say. Perhaps, and this could be alleviated by a phase-in of the changes. But then voting will become a privilege that young people can aspire to, as they might aspire to a corporate management position.

Another objection: my proposal is elitist. Of course it is! If there’s one thing we desperately need in this country, it’s a reversal of the egalitarian sentiments that have poisoned so much public discourse. We need to encourage and acknowledge the best and the brightest. Ignorant fools should not be allowed to operate dangerous machinery or pull levers in voting booths.

Prediction: Trump-Sanders 2016

Rick Weber Comments, Culture, Current Events, Liberty , ,

You heard it here first. At some point soon the two populist campaigns will join forces and take the White House with Donald Trump as the president. The odd-couple reality show residuals will foist Bernie to the top of Forbes’ “Lamest Billionaires” list before he’s even sworn in.

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By 2018 the supreme will be hearing disputed disputes over MLB umpires’ decisions. By 2024 they will be the official referees of Wrestlemania. Incidentally, Wrestlemania 42 is where Bernie Sanders will peacefully shuffle of this mortal coil. Conspiracy theorists will insist that he was killed before the event by a Russian assassin and that his aides carried his dead corpse in so that they could attend the event. After that it will only be another 5 years before the last Facebook (by then a branch of the Social Security Administration) comment using the phrase “Feel the Bern” which by then will understood to be a reference yeast infections.

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In fact, lots of good, funny, and interesting things will happen in the future! CSPAN will final get watchable. Even better news: selling the broadcast rights to the State of the Union Address will finally put a dent in the debt. And as budgets shift away from bureaucracies towards more explosive, entertaining, and big-data-y ventures, red tape will whither away. With a good dose of good luck, the world going to hell in a hand basket might be the best thing that’s ever happened to us.

From the Comments: Ayn Rand on extremism

Brandon Christensen Comments , , , , , , ,

I’m glad you highlighted the Ilya Somin/Will Wilkinson debate [here – bc], but I just found the whole thing so damn confused. I’m not a libertarian (or an Objectivist) but I ended up leaning more toward Somin than toward Wilkinson. But the real problem is that the terms “moderation” and “extremism” are left undefined throughout. Extremism in the pursuit of clarity is no vice, and moderation in the pursuit of muddle is no virtue.

In that respect, at least, I think Ayn Rand’s analysis of “extremism” makes more sense than anything that either Somin or Wilkinson are saying. As she puts it, “‘extremism’ is a term which, standing by itself, has no meaning. The concept of ‘extreme’ denotes a relation, a measurement, a degree….It is obvious that the first question one has to ask, before using that term, is: a degree–of what?…Measurements, as such, have no value-significance–and acquire it only from the nature of that which is being measured” (Rand, Capitalism, pp. 196-97). The nature of what’s being measured is the one thing that neither Somin nor Wilkinson discuss (though Somin certainly comes closer). Which is why the debate they’ve having is relatively pointless.

Wilkinson treats his youthful encounter with Ayn Rand as nothing more than that. If he took a closer look at what she said, I think he’d find that there’s more there than he remembers.

That’s from the infamous Dr Khawaja, who does his blogging at the always excellent Policy of Truth group blog. You can find a link to Rand’s Capitalism here. I think Dr Khawaja is wrong to suggest that this debate is relatively pointless, though, at least to libertarians who care about electoral politics. I do agree with him that Wilkinson should revisit his familiarity with Rand’s work, though.

From the Comments: Sovereignty, the Commons, and International Relations

Brandon Christensen Comments , , , , ,

There have been a number of excellent discussions in the ‘comments’ threads these days. Dr Khawaja adds more depth to the discussion on Iran and foreign policy. Me and Chhay Lin are in the midst of a debate on democracy and libertarianism. Michelangelo’s post on splitting up California generated a good discussion. You can see what’s hot in the threads by looking to your right, of course. I wanted to highlight this ‘comment’ by Rick in the threads of Edwin’s recent post on liberalism and sovereignty:

“[S]overeignty is a constitutional idea of the rights and duties of the governments and citizens or subjects of particular states.”

To me, a constitution is like a contract. It’s close to set in stone and it lays out these rights and duties. But the idea of sovereignty Jackson is pointing toward in that quote would be better understood as laying out a sort of meta-prize; it’s a delineation of the commons that potential groups within that area may compete over or cooperate in. To be fair, a constitution is a similar sort of commons (especially when that constitution includes the right to collect tax and lead armies). The question of how to govern the commons is *the* question on the domestic side.

On the international end of things, anarcho-capitalism calls for muddying the borders of these commons. This has obvious costs and benefits: it makes the emergence of a productive polycentric order easier, but it also opens access to what would have been relatively closed commons. I think the missing piece in the world governance question, whether from a classical liberal, minarchist, or anarchist perspective is the question of how a polycentric order would emerge and function (e.g. standards associations, norms of arbitration/dispute resolution, etc.).

More discussion is needed on this point…

Basic income: a debate where demand magically disappears!

Vincent Geloso Comments, Economics, Liberty , , , , , , , , ,

For a few months now, the case for the basic income has resurged (I thought it died with Milton Friedman in 2006, if not earlier). In the wake of this debate, I have been stunned by the level of disconnect between the pundits and what the outcome of the few experiments of basic income have been. The most egregious illustration of this disconnect is the case of the work disincentive.

To be clear, most of the studies find a minor effect on labor supply overall which in itself does not seem dramatic (see Robert Moffitt’s work here). Yet, this is a incomplete way to reflect on the equilibrium effect of a massive reform that would be a basic income.

Personally, I think that there is a good reason to believe that the labor supply reaction would be limited. At present, many tax systems have”bubbles” of increasing marginal tax rates. In some countries like Canada, the phasing out of tax credits for children actually mean that the effective marginal tax rate increases as income increases from the low 20,000$ to the mid 40,000$. As a result, a basic income would flatten the marginal tax rate for those whose labor supply curve is not likely to bend backward. In such a situation, labor supply could actually increase!

Yet, even if that point was wrong, labor supply could shift but without any changes in total labor provided. Under most basic income proposals, tax rates are dropped significantly as a result of a reduced bureaucracy and of a unified tax base (i.e. the elimination of tax credits). In such a situation, marginal tax rates are also lowered. This means greater incentives to invest (save) and acquire human capital. This will affect the demand for labor!

A paper in the Journal of Socio-Economics by  Karl Widerquist makes this crucial point. None of the experiments actually could estimate the demand-side reaction of the market. Obviously, a very inelastic labor demand would mean very little change in hours worked and the reverse if it was very elastic. But what happens if the demand curve shifts? Widerquist does not elaborate on shifts of the demand curve, but they could easily occur if a basic income consolidates all transfers (in kind and conditional monetary) allows a reduction in overall spending and thus the tax take needed to fund activities. In that case, demand for labor would shift to the right. A paper on the health effects of MINCOME in Manitoba (Canada) shows that improvement in health outcomes are cheaply attained through basic income which would entail substantial health care expenditures reduction.

I have surveyed the articles compiled by Widerquist and added those who have emerged since. None consider the possibility of a shift of the demand curve. Even libertarian scholars like Matt Zwolinski (who has been making the case forcibly for a basic income for sometime now) have not made this rebuttal point!

Yet, the case is relatively straightforward: current transfers are inefficient, basic income is more efficient at obtaining each unit of poverty reduction, basic income requires lower taxes, basic income means lower marginal tax rates, lower marginal tax rates mean more demand for investment and labor and thus more long-term growth and a counter-balance to any supply-side effect.

I hope that the Bleeding Heart Libertarians will take notice of this crucial point in favor of their argument!

From the Comments: Military intervention, democracy, and stability

Brandon Christensen Comments, Current Events, Politics , , , , , , , , , ,

Longtime reader (and excellent blogger in his own right) Tam has an interesting response to Chhay Lin’s thoughts on the Paris terrorist attacks:

It is an interesting read indeed but there are two or even more sides to every story. What we are also noting is that many of these groups that hate Western interventionist policies also hate their own people for being different in one way or the other. However, I agree that the misplaced perception of democracy as the superior form of governance overlooks the essential internal historical and socio-political factors behind the politics of the different countries that have become victims of Western ‘sanctification’ processes fronted by bombs after daring to opt not to embrace democracy. Libya and Iraq were stable before Western intervention.

Tam’s point strikes at the heart of the difference between military interventionists and non-interventionists, I think. Libya and Iraq were indeed stable, but not everybody was free. In Iraq, Shias, Kurds, liberals, and religious Sunnis were all brutally suppressed, and this oppression stood in stark contrast to the freedoms that secularists, women, union members, some socialists, and the politically apathetic enjoyed. The sociopolitical dynamics in Libya were the same, though with different local actors.

This reality is something that both sides of the interventionist debate recognize, though the interventionist side seems to place much more faith in government when it comes to “doing something.” Jacques and Edwin, for example, have both argued that bombing ambiguous factions in Iraq, Syria, and Libya would contribute to the freedoms of the oppressed factions in those countries. Looking back on the debate makes it clear that they weren’t wrong, but look at what those freedoms have produced. Those freedoms have come at the expense of the freedoms of the factions that the dictators were protecting.

What this situation shows me is that the states of the post-colonial world are unviable. Stability comes at too steep a price (dictatorship), and democracy’s unpredictability only leads to predictably violent results in the post-colonial world.

This impasse, which I cannot be the only one in the world who recognizes, has led me to take a hard glance at two specific peace processes in the Western world: The diplomatic efforts of Europeans after the Napoleonic Wars (“Concert of Europe”) and the founding of the American republic, which is, in my mind, the most successful endeavor in the history of international relations. Neither of these efforts led to the complete abolition of war, but both have helped to maintain a relatively peaceful co-existence between large numbers of factions for long periods of time.

The Concert of Europe bought time for factions in the region to solidify their legitimacy at home, culminating in both the creation of Germany and Italy in the late nineteenth century and the infamous overseas imperial  domains of France, the UK, and the Netherlands (among a few others). While this peace process brought about prosperity for Western Europe, it was not inclusive and it still adhered to the Westphalian notion of state sovereignty. What state sovereignty means is that each state, in the context of international affairs, has a right to do whatever it pleases within the confines of its own borders (such as massacre hundreds of thousands of people in the name of stability). The Concert of Europe was also the precursor to the post-1945 peace process that created the state system that we all live with today, though I would argue that there are some elements that could be republican, such as the IMF and World Bank, provided some changes in mindset.

Aside from the problems produced by the notion of state sovereignty, the states of the post-colonial world today suffer from an issue of legitimacy, both from domestic populations and from foreign ones. Domestically, all of the factions that stability-inducing dictatorships oppress do not buy in to the argument that the states purporting to govern them are legitimate. In foreign affairs, many factions do not believe that these post-colonial states are legitimate either. Hence the calls for bombing campaigns, proxy wars, or outright invasions and occupations of states like Iraq and Libya by states like the US or France (even if these invasions come at the expense of domestic and international rule of law).

This situation, where post-colonial states claim to have sovereignty within an international state system but where domestic and international factions ignore such claims, is where we’re at today. It’s the status quo, and while it worked relatively well in a small part of the world for about hundred years or so, it’s obviously failing today.

Enter the founding of the American republic. Unlike the Concert of Europe, self-determination à la breaking away from the UK was a guiding principle of the federal system, rather than state sovereignty. Like the Concert of Europe, the statesmen who crafted the American republic were concerned about invasion, hegemony, and all of the other bad stuff that happens in the international arena. So they set up an inclusive, republican system of states rather than attempt to balance power off on each other, like they did in Europe. The republican, or federal, system tied each state up into the affairs of the other states, whereas the balance of power system contributed to the formation of rival blocs within the system. This is why Europe switched from trying to maintain yet another balancing act to building an actual confederation (though one that is far too complex than it has to be) after World War II.

From a strictly war and peace view, the republican state system has led to one war so far (dating from 1789). From the end of the Napoleonic Wars, in 1815, to today, the balance of power state system has led to numerous wars.

Now, I know what you’re thinking: Woodrow Wilson’s foreign policy was based on self-determination, and his foreign policy was a disaster. This is true, though I would argue that Wilson was simply confused about what self-determination actually implied. For Wilson, recognizing the self-determination of various groups within empires would lead to state sovereignty for these groups, and that this state sovereignty would then be protected by the institutions trying to maintain a balance of power. Wilson never entertained the notion of republicanism when it came to recognizing the self-determination of peoples living in empires, he simply thought empires were undemocratic. Thus, he was actually a proponent of state sovereignty rather than self-determination.

What I am not arguing for here is a Concert of Europe-type effort for Middle Eastern actors. I think it would be a disaster, largely because regional efforts at peace-building (rather than, say, trade agreements) are useless in today’s globalized world. The Middle East needs the West, and vice-versa. Peace will only be achieved if self-determination is embraced (by not only large swathes of Mideast factions, but Western ones as well) and the new polities can be incorporated into existing republican-esque institutions. This way, more factions have a voice, and bad actors can be more easily isolated. I am not necessarily arguing that the US or EU should welcome burgeoning Mideast states into their federations, but policymakers and statesmen from these countries should at least start thinking about how to encourage and embrace the notion of a Middle East that looks a lot like our own republican world and less like the one we gave them following the destruction of the Ottoman Empire.

Stability is overrated, especially if the notion of creative destruction is taken into account.

From the Comments: Why did Cambodians trade foreign terror for domestic horror?

Brandon Christensen Comments, Culture , , , , ,

John Cyberome pitches the question to Chhay Lin on his post about the terrorist attacks in Paris. Chhay Lin’s response (which I have broken up into smaller paragraphs) deserves a closer look:

I don’t understand why Cambodians traded foreign terror for native horror. It’s something I’ve always wanted to understand. I don’t remember a time when I did not have such questions as: how can people be so cruel to each other or would they (the friends I had) be able to commit such horrendous acts to me if they would live during the Khmer Rouge period? It seems like there is a terrible part of human nature that is called upon in certain circumstances. I think the Milgram Experiment and the Stanford Prison Experiment have been examples of how peaceful people can move to extremely horrifying acts. I also think that the Khmer Rouge had good intentions. In their eyes, they were saving the nation from corruption, from immorality, from foreign invaders and from domestic traitors.

Cambodia by the way, is a country that is quite paranoid. Until this day, they still fear that the Thai or the Vietnamese will one day take over the country. Some already believe that the country only exists by name, but that it’s actually under Vietnamese rule. According to them, after the Vietnamese occupation from 1979-1989, they have installed a pro-Vietnamese ‘puppet’. This paranoia feeds nationalism – a sentiment, I believe, that can be easily manipulated into hatred towards foreign Khmer like Sino-khmer or Vietnamese-khmer.

Besides that, I also think that the poorer people were envious of the wealthy class. When the Khmer Rouge came into power and turned the social hierarchy upside down by installing the poor people into higher social positions, they may have been especially cruel to those fellow Cambodians who they believed were better off.

I also think that we can partly blame it on the Cambodian culture. The culture is very hierarchical. People of status look down on poorer people and treat them like crap. The poor don’t even dare to look the better-off in their eyes. It’s a culture that breeds envy and discontents between classes. I think these are a few reasons why the Cambodians had traded foreign terror for native horror. In all honesty, I find the culture quite backward 😛.

This is a whole lotta insight packed into one short ‘comment’.

For starters, I would be comfortable in suggesting that land is the crucial factor of production in Cambodia, rather than capital. (I am not as confident as Rick in arguing that land, labor, and capital are basically obsolete tools, in large part because there are big swathes of the world that don’t share the institutions that have created the West.) Land-based societies that I have read about all share the same general cultural characteristics as those mentioned by Chhay Lin (though none would dare call these characteristics ‘backward’!).

Trade has, in my reading of history, been the traditional arbiter of destruction for land-based interests. Does anybody have any good information on international trade and Cambodia? I’ve looked in to a few sources (World Bank, OECD, Heritage) and it looks like the volume of trade has been increasing since at least 2010, but that there are institutional problems which have yet to be addressed.

‘Creative destruction’ is such a strange concept, especially to a libertarian like me.

From the Comments: So what should the US do with Syrian refugees?

Brandon Christensen Comments, Current Events , , , , , ,

There have been a number of excellent discussions in the ‘comments’ threads recently. I have been following them all, but I’m trying to space out, for beauty’s sweet sake, what I think are especially good insights here (my fellow Notewriters are welcome to do the same).

Dr Khawaja’s answer to Dr Delacroix’s question about what he would do “with respect to the Syrian refugees coming to this country” is worth another look:

I would do exactly what the Obama Administration is doing. Let the Syrian refugees in, vet them, and accept the risks. I more or less said that in one of the links I posted [here – BC]. Here’s the vetting procedure, by the way:

http://time.com/4116619/syrian-refugees-screening-process/

I haven’t heard anyone explain what’s wrong with it. Its rigor far exceeds anything applied to student visas or tourist visas.

As for the “Zionist extremists who helped during the war of independence,” the Irgun and Lehi were by all accounts terrorist organizations. They began a campaign of terror well before the war of independence. Their doing so was instrumental to bringing about the mass exodus of Palestinians from what was to become Israel. The Irgun was led by Menachem Begin, who was later to become Prime Minister of Israel. In other words, Israel was not only founded by terrorists, but the Israelis had no compunction electing the self same terrorists to lead their country in subsequent years (Shamir and Sharon being the other two).

I don’t know where you get the idea that “the Jews that the US failed to take in before WWII were German Jews.” Why couldn’t they have been, say, Polish or Russian? And where is the difficulty in imagining militantly communist or fascist Polish or Russian Jews?

“I think it’s not difficult separating Muslims from Christians. Boko Haram does it all the time.”

Well, if we’re going to use arguments like that, why don’t I just say that it’s not difficult separating terrorists from non-terrorists. The TSA does it all the time. Now, if you’d like to propose that we start hiring members of Boko Haram for positions in the TSA, I’m skeptical, but all ears.

I should point out that in one of the posts I pasted up there, I was the one pointing out to someone at my blog that there is no eliminating the risks if we allow the Syrian refugees in. The risks are ineliminable. But I live in the New York City area. I go in to Manhattan whenever I get the chance. If there is a terrorist attack, it’s likely to take place right here. It’s not as though I’m merely imposing risks on other people and cowering somewhere else in safety.

Well? Is the vetting process as it stands good enough? Without reading the link Dr Khawaja provided, I feel confident claiming that it is. Violent criminals shouldn’t be allowed into this country (unless the crimes were committed a long, long time ago), of course. Sex offenders is too tricky a topic to deal with right now (think about getting in trouble for mooning in Russia or something like that), but if the crimes weren’t violent I’d opt for a let ’em in and wait approach. Terrorists of the Islamist variety that come from failed Arab states tend to be good boys at home. What about people with military backgrounds? What about the fact that states in the Arab world have laughable bureaucracies and that records should be taken with a big ole’ dose of salt?

Irfan hasn’t had the pleasure of knowing Jacques as long as me or Dr Terry, so his responses are bit more polite and more serious than what we tend to throw at him now. I forget sometimes just how important obstinate, bellicose ignorance can be for igniting important dialogues (Donald Trump, anyone? Bernie Sanders?).

On a slightly different note: I wonder if the uncomfortable fact that some of Israel’s founders were terrorists, coupled with the fact that Israel is the most successful state in the post-Ottoman world today, is an unacknowledged reason why Arabs have turned to the same tactics today. Why would anybody want to copy a failure, after all?

From the Comments: A libertarian solution to Daesh (ISIS/ISIL) and the civil war in Syria

Brandon Christensen Comments, Current Events , , , , , , , , , , , ,

I have 3 scenarios in mind, and multilateralism is a must for all of them. 1) I’m still a proponent of recognizing the separatist aspirations of Mideast factions and introducing new, smaller states into the international order (haphazard though it may be). This was done after WWI but in the wrong manner. There was an international element to it then (UK, France, etc. working together), but there were also representatives of various Mideast factions at the table and they were ignored (the reasons why are many and I won’t delve into them here). This time, placing those Mideast factions on an equal footing with Western players (and Russia) is a must for things to work out.

2) North America has to perform a delicate balancing act now that Ankara screwed up. NATO has to stand strong against Putin’s public condemnations and tough talk and back Turkey in all public and behind-the-scenes forums. At the same time I would use Turkey’s mistake to initiate a new state in the Kurdish region, one that is not explicitly Kurdish of course but one that encompasses most of the Kurds in Syria and Iraq. Use the UN Security Council to do it; exploit Putin’s anger and get him to renege on his policy of not recognizing separatist aspirations because of the sovereignty argument. Then get him to recognize that a new state in the Kurdish region (that doesn’t change Turkey’s current borders) is more than enough revenge for shooting down a plane.

3) North America should get out of France’s and Russia’s way in Syria for the time being (this should be done in tandem with the diplomacy I advocate above). Let them work together and let off some steam. The two of them, with Assad’s help, might be able to destroy ISIS (neither Russia nor France is as careful as the US when it comes to civilians, and in this scenario their ruthlessness might be a plus for long-term peace; the fact that the US won’t get blamed for the violence is a big plus, too). Assad would then be able to stay in power, but this is a big MAYBE and he will have lost the the Kurdish part of the state (remember Russia helps with Kurdistan becoming a reality because it angers the Turks). With hundreds of thousands of dead people from all over the world and millions of displaced people, Assad’s record of incompetency will most likely force the French and Russians to find a way to push him out of office and usher in a new strong man (only a strong man can govern a state like Syria). While Paris and Moscow search for a strong man, the West should continue its policy of recognizing regions that want out of Damascus’s orbit; keep Russia in the loop on this. By the time Paris and Moscow find a new strong man, what’s left of Syria might actually be able to hold elections and have a government that is constrained by a constitution and the strong man won’t be needed.

3b) ISIS in Iraq: Recognize ISIS’s territorial claims in Iraq (the ones that don’t overlap with Kurdistan’s, of course). That’ll force it to actually govern and will bind it to international law. We’ll see ISIS quickly collapse, and in its place will be a small country that is war-torn but with manageable problems (unlike in a large state like Iraq). This new country would be free to join up with Baghdad again or it could choose to go its own way. There would be at least three states in what is now Iraq, a big step forward in a world that is more interconnected economically and thus less in need of a big bad military to fight massive, bloody wars over territory.

(I’d be happy to argue with others about how libertarian my argument is, too.)

This is from yours truly, in response to a question from Professor Amburgey about libertarian foreign policy. Is this feasible? Absolutely. Is it likely? No, but when has that ever stopped libertarians from using logic and history to debunk statist fantasies?

Libertarians try to build off of the individual when it comes to policy, which means their policies are going to be both internationalist and skeptical of the state’s ability to accomplish an aim. I think my short answer in the threads does this in a mostly competent manner. It’s a multilateral approach which eliminates any ‘central planning’ aspect, and it acknowledges both the process of the rule of law (however haphazard it may be) and the inability of large states to govern populations competently (thus my argument for decentralization – through the legal process).

From the Comments: Money, Currency, and Bitcoins

Brandon Christensen Comments, Economics , , , , , , , ,

Dr Gibson chimes in on Chhay Lin‘s most recent post about bitcoins (I hope there will be more):

“Unspent dollars means reduced sales, and as sales decline, profits drop, layoffs increase, and the total social income decreases, making less money available for consumption. Hoarding induces more hoarding as the economy sinks into a downward spiral.” (Smith, 2009)

That’s a lot of nonsense in just two sentences. (Note this is Smith’s paraphrase of the anti-hoarding argument, which he ably disputes.)

First, there is no distinction between “spent” and “unspent” dollars. Money jumps instantly from one pocket to another whenever it is used in a transaction. All money is “idle” between jumps. This could refer to the demand to hold money which is the inverse of the velocity of money. We hold money for convenience, safety, and occasionally as a hedge against deflation.

Second, decreased velocity means price deflation, other things being equal, and if a fall in velocity happens suddenly and unexpectedly, it can be a temporary boon to buyers and a detriment to sellers. But the idea of a deflationary spiral feeding on itself is silly, if only because we all have to eat. Low prices are the cure for low prices, as bargain-hunters move in and prices stabilize.

Then there’s this “social income” phrase. Real social income is not enhanced by faster spending. It is enhanced by greater productivity which depends on private saving, which in turn depends largely on property-friendly institutions. We cannot spend our way to prosperity.

I’ll also comment on Kaminska’s claim that bitcoins “do not benefit the economy” because they do not bear interest. Along with currency and (in their time) gold and silver coins, bitcoins are what economists call “outside money” meaning they are an asset that is no one’s liability. Checking account balances are a form of “inside money” because they are at once an asset of the account holder and a liability of the bank. When outside money is deposited in a fractional-reserve bank where it becomes inside money, some is kept in reserve and some is loaned out. This apparently what is meant by “benefit to the economy” but in fact it’s a benefit to the bank which can earn profits on the new loans and to the borrower, if all goes well. It’s a detriment to the rest of us because there is an increase in the money supply which causes price inflation.

There is nothing anti-social about holding outside money. Some of us see marginal benefits in holding outside money (security, convenience) that exceed the cost in foregone interest. So what?

My own two cents on this (get it?) is merely that Dr Gibson needs to spend more time at NOL fixing the mistakes of financial journalists and keeping his fellow economists honest. (Notereaders and Notewriters, holla at me and Warren in the ‘comments’ threads if you agree!)

From the Comments: Do Mexicans make good immigrants (to the US)?

Brandon Christensen Comments , ,

Jacques (re-read his updated bio) responds to a thought by longtime reader John:

John: If I did not know better, I would think you are patronizing me. God will make you fall off your bikes if you do. Don’t say you were not warned.

The policies in existence for the past thirty years have gotten this country the worst of several immigration worlds: A large population that sinks into illegality because it or its parents committed a small misdemeanor. (A population that is illegal will quickly start competing with others in ways that cannot be resisted, among other things.) And it’s growing and it’s forbidden to have a stake in this country’s future, or in any country’s future. The current conservative alternative is to “close the border.” That’s a useless blowhard dream. Most illegals now just get a tourist visa, come by plane and stay. (It’s not a legend, I know some.) Do you really want a police state with no tourism at all? There used to be one. It was called the Soviet Union.

I am arguing that few Mexicans want to live in the US, first. Second, the few who do make good immigrant as compared to almost (almost) everyone else. Look into your heart: Is it the case that you really want to stop all immigration? That’s another discussion we could have, just not today and not until you declare yourself.

I repeat that the European Union has been operating for at least twenty years on the model I propose for Mexicans and for Americans only: Free movement, no path to citizenship. The EU suffers from many ills but , remarkably, that is not one of them. The strong anti-immigrant sentiment there that you read about is directed almost entirely at illegal immigrants and at refugees who are not natural neighbors of the EU, and against people who have no intention of going home ever.

No one in France is bitter about the English couple who came to open a pub. No one is disturbed by the so-called Polish plumbers in England who stay long enough to save for a down payment on a house in Poland.

I really hate to use the word (OMG, I do!) but many native-born Americans who are afraid of immigration seem to lack a basic form of sensitivity: Pulling up roots, leaving many relatives behind, learning a new language, being routinely patronized, is both very difficult and emotionally costly. Very few people want to endure this if they can avoid it. (The privilege of living say, in Detroit, does not always make up for it.) If you let them go back and forth, Mexicans will mostly not stay and will return to Mexico where, for one thing, they already know the language.

Fences don’t always make good neighbors. Fences are often so bad they make you lose control of what you wish to control. Bad fences are worth than no fences.

OK, John I have now chastised you much beyond what your own sins required. It’s just that you gave me an opportunity and I took it. Almost everything I hear in the US today about immigration is error-ridden, uninformed and downright childish.

This comes from Jacques’ post on Mexican immigration from a few months back, and is worth highlighting given all of the demagoguery to be found in the US presidential election (on both sides of the aisle).

PS: Michelangelo also provided this link in the thread. It’s well worth the read.

From the Comments: Asylum Seekers and the Canadian Experience

Brandon Christensen Comments , ,

Dr Amburgey takes some precious time out of his schedule to rebut Dr J:

@Brandon

I can understand your reluctance to yet again engage with Professor Pinocchio’s fact-resistant Islamophobia. However you must give him credit for actually using some real data. Granted the choice of country and time period are idiosyncratic [id est cherrypicked] but anything not pulled straight from his anus is a dramatic change. Should you feel like responding in kind, use this: Canada for the period 2004 – 2013. Top 8 countries of origin for refugees landing in Canada

Columbia – 17381
China – 15344
Sri Lanka – 12326
Pakistan – 10641
Haiti – 7872
Mexico – 6512
India – 4988
USA – 4451

Based on this data Catholicism and Hinduism far outstrip Islam as religions producing sick societies.There is currently no other view that is even modestly supported by anything but ideological intransigence.

Indeed. Only the most ideological of ideologues continue to pretend that Islam is responsible for the problem in the Middle East.

When the Austro-Hungarian empire collapsed, the Holocaust happened. One could argue that, because the state is less efficient on the post-Ottoman world, what we’re witnessing is a process similar to the one we witnessed in the Occident, only in a much more haphazard way.

From the Comments: Trying to Make Sense of Left and Right (Again)

Brandon Christensen Comments, Politics , , ,

This one is from yours truly, in a delightful back-and-forth with Dr Amburgey:

Ok. Clearly we need to be using terms that mean the same things to both of us. It’s your thread so tell me what constitutes ‘The American Right’ and what constitutes ‘The American Left’. Once we have a common understanding of terminology we can resume the discussion.

I have been working on a post about this very topic, and this conversation is helping me immensely. Thanks.

First, I think there is a distinction that has to be made between the ‘ideological’ and the ‘political’. The ideological rests atop a higher tier than does the political, like a pyramid. The ideological tier houses philosophical and moral insights, which are produced through the academy and in think tanks. The political tier houses organizations dedicated to parties (I think that factions and parties are two different components of a society, and that factions represent a tier below the ideological and above the political).

The American Right is ideological. The GOP is political. (Factions would consist of actors like bureaucracies, trade unions, industrialists, banks, medical doctors, etc., but can also be used to describe intra-party, or coalitional, differences) The American Right is currently home to three broad ideologies: neo-conservatism (elite and moderate), libertarianism (elite and radical), and traditionalism (populist and radical). I emphasize ‘currently’ because neoconservatives and libertarians were at one point Leftist factions in US history, and could easily end up there again in the near future. In many post-colonial and post-socialist societies, for example, both of these ideologies are considered to be on the Left.

The American Left is currently home to three broad ideologies: fascism, communism, and racism. Just kidding! The three ideologies are, I would argue: New Deal liberalism (elite and moderate), technocratic liberalism (elite and radical), and progressivism (populist and radical).

New Deal liberals and neo-conservatives are only moderate because they are dominated by Baby Boomers and Baby Boomers dominate the population at the moment. Libertarians and the technocrats are broadly younger and more cerebral (hence the radicalism). Traditionalism and progressivism are ideologies for the vulgar mob, of course.

Ideology, using the pyramid analogy, trickles down from the top tier into the factional and political tiers. This is just how it works in societies governed by laws rather than by men. Libertarians have been dominating the ideological discussion for the last 30 years or so, and the technocrats have been playing defense, largely because they are politically aligned – wrongly, of course – with socialism’s failure, but also because technocrats are just libertarians who don’t have the chutzpah to become non-conformists.

Successful politicians from the Democrat Party have been trying to balance their New Deal liberalism with the insights of their technocratic betters, but have been calling themselves ‘progressives’ because of the populist narrative and the fact that they need the votes of the vulgar mob to be successful.

I already don’t like this because I don’t think the Left deserves to be considered ‘liberal’ at all, and there is also the shortcoming of being strictly American in scope. We have got to think in internationalist terms when we discuss power and liberty. NOL has tried to hash this whole issue out before, by the way, and numerous times.

From the Comments: The Contribution of American Allies to Pax Americana

Brandon Christensen Comments , , , , , , , , , , ,

Dr Stocker answers my concerns about free-riding and rent seeking with this gem:

Good points Brandon. On the rent seeking, I think you are broadly correct, but I would offer two qualifications. European nations/the EU often foot a lot of the bill/take on associated civilian tasks where America has taken military action, so that the US is not subsidising the defence and security needs of Europe quite as much as it might seem. So for example, in the Yugoslav breakup led to US military operations and a comparatively passive role for Europe, but a lot of the afterwork was taken on by Europe and there is no point in military intervention without work on building civil society to create long term security and stability. Going back a bit further to the first Gulf War/expulsion of Saddam from Kuwait, Germany and Japan did pay a lot towards the cost in return for not participating. Despite [this] they got a lot of abuse in the US Congress from politicians who don’t appear to understand that their non-intervention in the Gulf owed a lot to constitutions and attitudes which the US encouraged/imposed during post-World War II occupation. Recently, though European govts have been cautious in what they say in public about the Ukraine crisis and containing Putin, there is a growth in military spending and co-operation done in fairly quiet ways largely with the aim of deterring Putin from adventurism in the Baltic states. Just one example, Germany has recently taken 100 Leopard II tanks out of retirement and work is underway for the Leopard III. Moving to the Pacific, Japan is enhancing its military and weakening constitutional restrictions on the deployment of the military (imposed by the US in the post-war Constitution) in reaction to Chinese assertiveness.

While I think it is broadly correct that the US has been paying for a military burden which should be born by Europe and Japan, the situation is not as extreme as it often assumed in the US and as far as I can see is moving in a more balanced direction. In general while it is true that the US has a very impressive military machine with some impressive technology and officers, I think some Americans are a bit over confident about this. A lot of Americans, at least amongst those who take an interest in military kit, appear very convinced that the Abrams 2 is the best tank anywhere, I would suggest that in military capacity, for cost, the Leopard II is probably better (it certainly does much better in export markets) and even in absolute terms ignoring cost, the French Leclerc (which is extremely expensive) has a good claim to be the best tank around, and the Korean K2 is another strong but very expensive candidate. The Abrams is expensive, heavy, difficult to transport and difficult to keep in sufficient fuel, though it can certainly do a very good job. A lot of Americans appear to be incapable of thinking of France as anything other than a surrender monkey joke in military terms, which is really very far from the reality, as can be seen by the very strong role that France is now taking in northwest Africa against violent Islamist fundamentalists. The US military may well be able to have the same military capacity for lower cost if it moves away from the Abrams II model of a tank that is expensive to run and transport as well as build.

So broadly a correct point Brandon, but I think the situation is a bit better than is often understood in America and is moving in the right direction as Japan and Europe are getting used to the idea of taking responsibility for dealing with new threats from China, Putinist Russia and the hydra of Islamist fundamentalists.

A very good point, and an even better angle with which to view the world.

My only quibble is that the right direction American allies are moving can easily be changed without a more fundamental shift in institutional arrangements between us. Some sort of federal or confederal arrangement would go a long way toward addressing this issue, and would further deepen the economic and cultural ties between constitutional democracies.

Or am I just looking for problems where there are none, in order for my arguments to gain ground?

From the Comments: The Troubling Philistinism of American Libertarians

Brandon Christensen Comments , , , , ,

Dr Khawaja, back from his summer escapades in the West Bank, the Pine Ridge Reservation, and Ohio, takes some time to riff off of my complaints about libertarian criticism of the arts and humanities:

I think you’re being much, much too kind to Caplan. The connection between the Morson essay and the Caplan post is actually pretty clear: Caplan is explicitly defending the sort of philistinism that Morson is worried about. I know that Caplan comes out and insists that he’s not a philistine. But he’s actually the walking paradigm of one.

“The fact that most of the books failed to minimally pique even my interest reflects poorly on them.” Uh, not really. Maybe he should walk over to the psychology section and read up on “projection” and “attribution error.” It doesn’t even occur to him to ask whether his reaction is just an idiosyncratic response to this particular library.

“Could the problem be my lack of expertise?” Gee, there’s a toughie. I looked up the Fenwick collection. Here’s one item at random from their electronic databases:

Kotobarabia Arabic eLibrary Campus Faculty, Staff and Students only Some full text available
This Arabic-only database contains a wide range of Arabic content ranging from contemporary novels to national heritage scientific treatises.
[East View Information Services]

What are the chances that Bryan Caplan could read even the first sentence of the first ten items of any search of this database? Are Tayeb Salih, Ghassan Kanafani, Neguib Mahfouz, or Abderahman Munif embarrassing? Is the secondary literature on them embarrassing (whether in Arabic, English, French, or any other langauge)? Or is Caplan’s ignorant, off-hand dismissal of the contents of his university library what’s really embarrassing?

I looked up the works of Charles Issawi, Albert Hourani, George Hourani, Clifford Geertz, Edward Said, Annemarie Schimmel, Michael Cook, Patricia Crone, Fouad Ajami, and for that matter, Mansour Ajami–all there. These are just random names I remembered off the top of my head from my undergraduate study of Near East Studies. (Mansour Ajami was my Arabic teacher. His name came up randomly because I searched for Fouad Ajami. I had no idea he’s written three books, but he has. Should I be embarrassed by that discovery?) My degrees are in Politics and Philosophy, so NES is way outside of my official areas of expertise. But you’d have to be a moron to be embarrassed by the presence of such work in a library, and it’s all there. You’d also have to be a moron to be embarrassed by the presence of more contemporary work in NES (or Geography, or Anthropology….), especially if, like Caplan, you knew nothing about it.

Just for fun, I did a search on my own last name, not because I expected anything of mine to show up, but just because that’s as random a search as you can imagine. The first hit is a guy named Mahboub Khawaja who’s written a book “Muslims and the West.” I don’t have the book here, but wouldn’t a person of average curiosity be tempted to take a look?

I did a search on my first name, too. Suroosh Irfani’s book on the Iranian revolution looked interesting.

I then clicked one of the Subject Headings underneath, “Europe-Relations-Islamic Countries.” You’d have to be brain dead not to be intrigued by half of what comes up. You could spend a lifetime reading that stuff. Oh wait. That’s kind of what scholars of the field do.

That’s just one casual set of micro-searches of one sub-field by one amateur follower of that field. Imagine multiplying searches of this kind simply for comparative politics and area studies. As you did, you’d multiply counter-examples to Caplan’s ridiculous claims. Then imagine you branched out to other fields. Same result.

Doing all that would be a waste of time, but don’t assume that because I’ve restricted my searches to one field or sub-field, my results are idiosyncratic. I probably could have done the same for Romantic poetry, the history of Reconstruction after the Civil War, Beethoven, Hannah Arendt’s views on Zionism, the luminist school of American landscape painting, American Indian law, Thomism, or literary studies of the works of the Bronte sisters–to name a totally random set of topics. My ex-wife Carrie-Ann Biondi is an indexer (actually the French language indexer) for The Philosopher’s Index. Every month or so, TPI would ship a box of philosophy journal articles to our house for her to index, and I’d spend part of an hour looking through them. Some of it was crap, but most of it was not. I NEVER had Caplan’s response to it. I was awestruck at how much good stuff was being produced. I’ve organized the Felician Ethics Conference for seven years in a row, and have probably read over 200 papers for it. I’ve mostly had the same reaction–curiosity, gratification, sometimes admiration, sometimes even awe.

The bottom line is that Caplan has no idea WTF he’s talking about. The interesting questions are not the ones he ignorantly poses, but rather: Why have libertarians so adamantly and resolutely come to valorize the all-out philistinism and ignorance of people with views like his? Why are we expected to take views like his seriously? If there is a “waste of paper” involved here, why doesn’t that phrase apply to what he’s written on this subject?

Back to prepping for class. The semester begins tomorrow.

I can only add that Irfan is right when he says I am “much, much too kind.” If only more people would come to realize this…

Also, I don’t think this philistinism is limited to Dr Caplan. There is a troubling trend within American libertarianism that is leading towards a kind of cultural chauvinism. Luckily, we live in a polycentric community here in the States and thus have lots of access to other ways of thinking about the world. I want my federal government to be much more libertarian, and I want more polities participating in my more libertarian federal government, and I want Washington to be more like my type of libertarianism. But that doesn’t mean I think those that disagree with me in matters of taste are a waste (of paper, of space, or of anything else).

If anything, those that disagree with me make my life that much more fulfilling, as I am an argumentative son of a bitch. My tolerance is not an endorsement of the status quo, either; any money going from Washington to the arts and humanities (and the sciences) should stop flowing immediately. I still think, despite Dr Khawaja’s excellent point, that libertarians like Caplan and Brennan are subtly attacking this latter notion, that government funding of the arts and sciences is not that bad. They’re just doing a bad job.

Or maybe they’re just philistines.