On the trade off between the rule of law and lower taxes

The recent Carrier deal has caused some controversies in liberty-oriented circles. For example, The Mises Institute published a defense of the deal, arguing (along other lines, please read the article yourself):

there is nothing inherently wrong with an administration focused on keeping jobs in America — especially if this is accomplished by relieving tax and regulatory burdens.

The point I wish to make here is a general point, so I won’t go into the specifics of the Carrier deal. Among other reasons: I don’t know the specifics of the deal (I don’t know the content and I don’t know how the deal came to pass.) What I wish to do here is to argue the general case on how to view these kinds of tax exceptions.

The point we ought to remember, I think, is that there are a trade offs between two important liberal values, although they are important in different ways. On the one hand, we have the idea of rule of law, the idea that the law is general, not specific, applies to everyone rather than some, and that it’s not designed to favor some because it should serve an open-ended order. Things that contribute to such a legal order are ipso facto prima facie good, things that take away from such a legal order are ipso facto prima facie bad.

On the other hand we have the idea that taxes are bad. Things that lower taxes are prima facie good, things that increase taxes are prima facie bad.

But neither of these things trump all other considerations. Let me give you two examples.

  • Suppose there was a law that said that the taxes on, for example, business started by family members of politicians are automatically exempted from taxes. Would this be a good law?
  • Suppose there was a law that said that everyone has to be drafted and has to serve mandatory military service overseas, except the family members of politicians. Again: would this be a good law?

In both of these questions, the answer depends on the liberty-inspired framework you use to answer the question. If you think the value of the rule of law outweighs the value of individual liberty of those family members (who are, after all, not responsible for the actions of their political family members) than you think these are bad laws. If you think the increase in individual liberty for those family members is more important than the violation of a rule of law principle, than you think these are good laws. My point is not to say how one should determine this, my point is that there are two liberty-inspired frameworks that can justify an outcome, and both of these frameworks are relevant in determining what kind of laws we ought to support.

To make the issue slightly more applicable: is the increased damage on the rule of law (created by allowing a specific exception on the general laws on taxes) larger or smaller than the benefits that allow a company to have less taxes?

Some people have tried to argue by analogy – for example, comparing it to the draft. The problem is that analogies quickly run into the problem of changing the relative values of the two important concepts. For example: is it a good thing that women are exempted from the draft? Yes, this seems like obviously a good thing. Would it be a good thing that male children of politicians would be automatically exempted from the draft? This seems like less obviously a good thing.

Would it be a good thing if white people were automatically exempted from the draconian drug laws? Maybe it would, but maybe that also lowers the chance of getting rid of the drug laws altogether. Different margins matter in these kinds of evaluations.

The wrong thing to think is that all policies are pro tanto good just because they increase liberty on some margin for some people, especially if this allows for the prolonging of bad policies by the current ruling class. Some policies can be bad on some margins and good on others and reasonable people can disagree whether the complete net effect of this is good for all.

Maybe it’s a good thing that some people are exempted from evil laws (such as taxes), but it’s not good that the political class gets to choose who does so. Because those who will be exempted will be those who are connected to the political class. So one can absolutely like lower taxes, oppose politicians’ power to choose who is exempted and oppose that, and still be happy for a company that they got a tax cut. (Unless, of course, the company itself is evil. This is certainly possible if they are partners in, for example, the wars that the USA commits.)

So tl;dr. As I posted somewhere on facebook:

Rule of law and lower taxes are two good things. A president (or important person connected to the ruling class such as the president elect) getting to pick and choose winners isn’t desirable, but a tax break is. A higher tax isn’t desirable, but a rule of law is.

Trying to argue the case based on principle seems wrong. It depends on the margins. In the case of the draft, the margin *against* rule of law seems important enough to say it’s a clear victory for liberty to not have women included.

In the case of tax breaks, this is less obvious and reasonable people can come out on different sides of this, I think.

What if fake news was merely an attempt at political entrepreneurship?

Fake news! The new plague that besets mankind! That is largely the new name given to what 19th century folks would have called “yellow journalism“.

Yellow journalism was sensationalist to the point of distorting the news in order to carry a very emotional message. Generally embedded in that message was a political narrative supporting progressive reforms (not all yellow journalists were progressive but it seems that most were).

The aim of many progressives was to design a new society, to reform the old society by getting rid of old institutions. In many cases, economic historians have documented that these reforms (like with prohibition, workers compensation, antitrust) ended up serving very narrow interest groups who either allied themselves with reforming zealots (as in bootleggers helping baptists pass Sunday sales bans), gained through the restriction of competition or gained at the expense of future workers and minorities. But it is not as if the “previous” order was paradise. The postbellum era prior to the progressive era was highly protectionist, used public funds to bailout poorly performing railways and solicited the federal army to deal with natives rather than peacefully deal with them.  Basically, both eras had their political entrepreneurs who found their way in the political process to obtain favors.

Progressives who indulged in yellow journalism merely wanted to replace one set of political entrepreneurs with another. Just like the Alt-Right, from which emanates most of the fake news. In a way, both are exactly the same. Many members of the Alt-Right are not interested in restraining government abuses, they’re in favor of redirecting government indulgences towards them (Trump did promise less immigration with paid maternity leaves and no reduction in social transfers). Some are well-meaning like the baptists of lore. But there are still bootleggers (example: Steven Mnuchin from Goldman Sachs) who co-opt the process in order to continue indulging in rent-seeking just as they did before.

Are we about to swap one bad set of institutions for another? Given that all I see is the same type of political entrepreneurs (after all, Bannon from the flagship of the fake news alt-right outlet Breitbart is now a member of the government) as those we saw during the progressive era, I am inclined to respond “yes”.

Socialism is just a new form of slavery

When Fidel Castro died he was totally alone. It doesn’t matter if relatives or friends were standing beside him: in the end, we are all alone. We experience the world through our sense of perception. Of the things themselves we have no experience. On the other hand, all humans have perception of themselves. We just know that we are. This self awareness is a fundamental aspect of what it is to be human. Castro’s death already received a lot of attention, but I believe it is a moment really worthy of reflection. Under his half-century regime millions died or suffered, and it’s always important to remember that we are talking about a little country, an island in the Caribbean. Cuba was one of the most prosperous nations in the Americas, and today it is one of the most miserable.

It is really sad to see that most of my colleagues are unable to call evil by its name. In the mid-nineteenth century Karl Marx predicted that capitalism was going to collapse because of its internal contradictions. He was not saying that he wanted capitalism to collapse. He was saying that this was a scientific fact, as sure as the next eclipse predicted by an astronomer. Capitalism, of course, didn’t collapse. Marx’s economic theory was simply nonsensical, and was contradicted by logic and facts. But Marxists couldn’t admit it. Instead they replaced economics with culture, and the working class with Others as the oppressed. Blacks, women, Native Americans, underdeveloped countries and many others became the new oppressed class. Fidel Castro fit beautifully in the Marxism of the New Left. He was the charismatic dictator of the charming island nation of Cuba. The US, ruled by leftists in the 1960s and 1970s, was unable to give a consistent answer to it. Latin America, ruled by dictatorships that the left called “right” (no one wants to take their dictators home), was also not in place to contrast the evils of the Castro regime. A perfect storm.

Castro, for all we know, died with no regrets for the evils he committed in life. Political commentators say that history will judge him. But this is a lie. History can’t judge anyone. Only people can judge people. And it is fundamental that political commentators today judge Castro for all the evil he has done. Castro didn’t kill people in Cuba only. He supported, in one way or another, brutal regimes all over the world, mostly in Latin America. To this day he is partly responsible for the evils of Foro de São Paulo. But many political commentators insist in the lie that in Cuba there’s true freedom: they have enough to eat, universal healthcare and universal education. Why would they want freedom?

Freedom is the fundamental state of human beings. We are, in the end, all alone. Of what goes in our hearts, only we are aware of. Sometimes not even us. All of us make choices based on knowledge that’s unique. Circumstances of time and space shape the choices that we make. And life is made of choices. Marxism, socialism, and all forms of statism go against these fundamental truths.

People in Cuba are not free. They are all slaves to the Castro family. Some people want to have life in a cage, as long as they receive food every day. Of course this is a lie. In order to live in a cage you need to have someone outside the cage bringing the food. Someone has to be free. This person becomes your slave as well, and this constitutes a fundamental contradiction of socialism: Alexis de Tocqueville mentioned that socialism is just a new form of slavery. In slavery someone is forced to work for somebody else under the threat of physical violence. Under socialism everybody is forced to work for everybody else. Let’s hope that Castro’s death may help put socialism in the past, where slavery is, and that Latin America may finally see the light of freedom.

Identity Politics, the Alt-Right, and Empathy in Cultural Discourse

“Identity politics” have been an intensely large obsession of the American left or the past forty or so years. Academic leftists have devoted their entire careers and even the organizations of their departments to studying notions of identity and the specific history and interests of certain identity groups—such as women’s studies, African-American studies, and other similar programs. The Democratic Party has put special emphasis on mobilizing various minority groups based on identity, focusing on “Women’s issues” such as abortion or “the needs of the African-American community” such as police reform or “gay rights” to get a certain of segment of voters to turn out in elections.

Yet, with the election of Trump, many moderate leftists are questioning the utility of identity politics. Mark Lilla had a prominent recent piece in The New York Times declaring the “end of identity liberalism.” Lilla’s main criticisms of identity politics focus on it as a “strategic mistake” in electoral politics and how it has made liberals and progressives “narcissistically unaware of conditions outside of their self-identified groups,” particularly white, middle class, working men in the Midwest. Matt Yglesias, meanwhile, responded by sounding off that all politics is identity politics, people always organize themselves in interest groups, writing that “any plausible account of political behavior by actual human beings needs to concede that politics has always been practiced largely by mobilizing people around salient aspects of group identity rather than detailed policy proposals.” The left, he says, can’t abandon identity politics because “[t]here is no other way to do politics than to do identity politics.”

Those on what is traditionally considered the “right” end of the political spectrum (ignoring the specific phenomena of Trump voters and alt-righters, that is) tend to be dismissive of the whole project of identity politics. This approach is embodied by Robby Soave’s recent article in Reason claiming that identity politics is just a form of tribalism that seeks to subvert individual rights and overall social welfare to  the tribalist demands of some salient group people self-identify with. Soave also sees the rise of Trumpism as itself a form of identity politics for white men, a claim which I’ll address at length in a moment.

What is one to make, then, of identity politics in the Trump era? First, it seems there is considerable confusion about what identity politics even is in the first place. Lilla, for an example, seems to imply that the left’s obsession with appealing to minority political coalitions is merely a strategy for winning elections. Soave thinks it’s pure tribalist and collectivist ideology, and Yglesias defines it so broadly that any political mobilization at all is considered identity politics. How are we to understand what operative definition of what is commonly called “identity politics” is most useful, or at least is closest to how its commonly used in political discourse?

Lilla and Yglesias understanding, it seems, misses the point about why so many leftists are so passionate about identity politics. People who are interested in cultural dramas and issues related to group identity are not just Democratic strategists in campaign war-rooms, but, as I mentioned earlier, academics, and “true believer” bleeding-heart progressive activists. It seems to me that identity politics—at least at first (and still is in the minds of the true believers post-1960s progressivism)—is not about an election strategy. It’s certainly become that for Democratic strategists, but it originally was motivated by the old liberal concern with ending the misery for stigmatized groups. Identity politics is not merely a political strategy, but a strategy the left used for getting rid of racism, homophobia, and otherization of outgroups in society at large.

The idea is like this: try to get, for example, white people to sympathize with black people by getting whites to recognize that black people have their own meaningful web of cultural associations which is just as valid as those of the dominant culture. Its roots are in cultural studies academia, such as the writings of Judith Butler and Nancy Fraser. Essentially, identity politics is rooted in philosophical attempts to end prejudice through emphasizing “cultural recognition” of despised groups. As Richard Rorty wrote in describing this strategy:

It helps, when trying to recognise a common humanity in a person of another gender, class, or ethnicity, to think of them as having as rich an inner life as one does oneself. To picture such an inner life, it helps to know something about the web of memories and associations which make it up. So one way to help eliminate prejudice and erase stigma is to point out that, for example, women have a history, that homosexuals take pride in belonging to the same stigmatised group as Proust, and that African-Americans have detailed memories of the battles which make up what Russell Banks calls “the three hundred year War Between The Races in America” – the sort of memories whites are currently learning about from Toni Morrison’s novels. It helps to realise that all such groups wrap a comforting blanket of memories and traditions, customs and institutions, around themselves, just as do classical scholars, old Etonians, or members of the Benevolent and Protective Order of Elks.

Thus treating identity politics just as a way to get electoral coalitions out to vote, and also (as Soave does) as simply tribalism ideology when it was started as a strategy to mitigate tribalism, misses the point about why the left is so passionate about these cultural issues. It isn’t simple collectivism nor Machiavellian political strategy, but (hopefully) genuine concern for stigmatize groups that mobilizes this obsession.

Of course, as Rorty well-recognized, this way of ending prejudice is not the only way nor is it the most effective. First, it does make the left appear as this overly sensitive “politically correct” group of elitists who care little for the concerns of working class whites. As Rorty wrote that the left’s preoccupation with cultural identity politics would mean “the straight white male working class in America may find it tempting to think that the leftist academy is uninterested in its problems.” Indeed, most of why Lilla is concerned that identity politics has failed so spectacularly as an electoral strategy is that it has isolated progressives from middle America.

More importantly, however, is that emphasizing cultural difference has failed spectacularly at its initial aim of ending prejudice. The whole point of Soave’s Reason column is that leftist identity politics has become its own form of tribalism and have given rise to the right-wing identity politics of Trump. Not only have leftists often gotten so caught up in the identity politics language game that they call their own (such as Bernie Sanders) white supremacists for not playing along, it has created its own prejudice backlash. If your way of getting straight white males to recognize non-straight white males as worthy of equal treatment is to say “Those who are unlike you have different cultural values that are worth being celebrated and protected,” the response of straight white males is to say “Do not I also have a different culture worthy of being celebrated and protected?”

Indeed, this type of rhetoric is at the heart of the rise of the alt-right. It isn’t mere hatred of others that is animating this new populist, fascist movement (though that is certainly a concerningly large part of it), it is that they are making this hatred seem legitimate by couching it in terms of advancing “white interests” in a very similar rhetorical manner that the left has pushed the interests of minority groups. Richard Spencer’s “mantra” for the alt-right is “race is the foundation of identity” (emphasis mine) and calls himself an “identarian.” Even outside the small niche of the alt-right, average Trump voters often say they want a way to express and defend their identity—whether it is in the form of white nationalism or in forms of defending Christian “religious liberties” as its own identity coalition against gay rights.

Soave is correct that left-wing identity politics has given us this right-wing identity politics, and it is something Rorty himself saw as a potential consequence of this approach. In his 1998 book Achieving our Country, he explicitly predicted that the white working class would become disconnected from the academic left, and would “start looking around for a strongman to vote for—someone willing to assure them that, once he is elected, the smug bureaucrats, tricky lawyers, overpaid bond salesmen, and postmodernist professors will no longer be calling the shots[.]” He also predicted that when this strongman assumes office, “gains made over the past forty years by black and brown Americans, and by homosexuals, will be wiped out.” It is no coincidence that this sounds quite a bit like Trump.

It’s not surprising that emphasizing differences between the majority and a scapegoated group would mean that the majority group would start taking “pride” in its difference from the scapegoated. Of course, anyone who understands systemic power structures or how sociological hierarchy works understands why this response is not the same. There is a difference between cherishing the cultural differences of a scapegoated minority and using institutional power to coercively protect the cultural interests of the majority group at the expense of the minority. But you can’t expect a white adolescent basement-dwelling troll on 4-Chan or even a working class white voter from central Michigan to understand and fully internalize that difference, and they are likely to be very reluctant or overtly hostile to acknowledging it. All the alt-right has done is take identity politics and turn it against its original aim to advance the exact tribalism leftists have been trying to use identity politics to end.

A better strategy the left could have used was the strategy the old left used through classical feminism, abolitionism, the sixties Civil Rights movement, or some new progressives through the more pop-culture current of the gay rights movement. Rorty describes it beautifully:

Another way is to get the prejudiced to see the stigmatised as having the same tendency to bleed when pricked as they themselves: they too worry about their children and parents; they are possessed by the same self-doubts, and lose self-confidence when humiliated; their difficulties in moving from one stage of life to another are much like everyone else’s, despite the fact that their life-chances may be minimal. These ways of emphasising commonality rather than difference have little to do with “cultural recognition.” They have to do with experiences shared by members of all cultures and all historical epochs, and which remain pretty much the same despite cultural change.

There’s no real way for bigots to co-opt this approach to advance their bigotry. In fact, it explicitly avoids framing the discussion not as some necessary “culture war” between an oppressive majority and an oppressed minority as current identity politics rhetoric implies and alt-right identitarians have assumed as their rallying cry. Instead, it emphasizes the need to end culture wars in the first place by progressing people’s sentiments to stand in solidarity with an ever-growing chunk of humanity—it seeks to replace simple identity with empathy.

Is this approach still in the vein of “identity politics” as we currently understand it? If we take Yglesias’ understanding, sure it still “concede[s] that politics has always been practiced largely by mobilizing people around salient aspects of group identity,” but it seeks to make salient aspects of group identity as banal as possible, to make people stand in solidarity based off empathy for everyone’s common human shortcomings rather than based off who they happen to be culturally similar to, to make one’s ingroup as inclusive as impossible. It certainly isn’t tribalist or collectivist as Soave is concerned. Though it still recognizes diversity as important, Rorty still explicitly says that we should see this diversity “as a diversity of self-creating individuals, rather than a diversity of cultures[.]” This liberal (and classical liberal as I see it as drawing off of Hume, Smith, and Mill more than anything) vision is one that is both pluralistic and individualistic.

Is this, however, a winning electoral strategy, as Lilla is concerned? I’m not sure. Tribalist urges of racism are certainly very powerfully woven into how humans have psychologically evolved, and perhaps in our current broken discourse of race relations it isn’t the best electoral strategy. There is, however, some reason for optimism; popular support for gay rights is at an all-time high, after all, and this was probably more a function of the victory of emphasizing the similarity of love between gays to that of straights then getting straight allies to march in gay pride parades. Regardless of electoral outcomes, shouldn’t the goal of civil discourse not be to win elections, but to ensure the most just, peaceful, and prosperous civil society—the zero-sum game of coercive politics be damned? Leftists should try to change the current broken discourse, rather than try to work within it to gain political power.

Adios a Fidel

It was so romantic when those truckfuls of young men with beards took over the cesspool of Havana on New Year’s Eve (a scene immortalized in The Godfather Two). They were bringing freedom and relief from poverty to the beleaguered people of Cuba who had suffered under American imperialism for more than sixty years.

When his main acolyte was through shooting a few hundred political opponents – which took weeks – the business of revolutionary construction began in earnest. Soon, the Revolution had to face an invasion from disgruntled sons of the exiled Cuban upper-class. The invasion was roundly betrayed by the fabled Pres. John F. Kennedy. After that, the Revolution found extravagant financial support from the Soviet Union, a poor country itself but a large one.

Later, the leader of the Cuban Revolution tried to get the US nuked by his big Russian brother. That cool leader must have had his reasons, I am sure.

The stubbornness of opponents (“worms”) was so great that the Revolution was forced to jail a few thousand of them, including poets (along with thousands of men whose crime was homosexuality). Other obdurate traitors to the Revolution left Cuba on balsa rafts and on rafts made with old barrels. Many drowned at sea. Their choice! After a while, one Cuban in five was living abroad, away from the workers’ paradise.

The Revolution triumphed in the fields of education and public health. Nowadays, Cubans’ level of literacy is a high as that of other Latin American countries. Although it’s not really free, the Cuban public health service is pretty good, what with its separate public-public sector and its sector for Communist Party members only, the two equal to each other, of course.

When the first leader became too old, somehow, the best revolutionary found to succeed him was his little brother, as happened in other people’s democracies such as North Korea.

In the meantime, there had been several military adventures, all in tropical countries where even ordinary Cuban privates could afford bananas for once. That they did not win anywhere was not their fault. One prominent general even had to be shot by the leadership because he was dealing drugs. His trial lasted a whole week.

Today, after fifty years, progress is so great that ordinary Cubans easily earn forty or fifty dollars a month. Many earn three times more by renting their bedroom to foreign visitors. Take university professors and medical doctors. They can always make much more than fifty a month by driving a taxi. And meat is now available six days a month instead of the customary four. You can’t argue with this!

As Westerners, we must be especially grateful that the Cuban Revolution has made the island into one of the best destinations for sex tourism in the world.

Yes, Fidel was really, really cool and we will all miss him. He was our youth. He embarked on a great experiment in human happiness. That it failed is not his fault at all. Nobody is perfect. At least, his long life of power and influence has had the great merit of showing what happens to Communist take-overs in the long run, when no external factor puts a precocious end to them.

PS To this day, many Cubans and an embarrassing number of western leftists believe that the Cubans’ poverty is mainly due to the US BLOCKADE of the island. Well folks, there was a blockade, in the early sixties. It lasted two weeks (fourteen or fifteen days). Since then, there has been an American economic embargo on Cuba. It means that Americans cannot buy from or sell most items to Cuban economic actors. Cubans could always buy anything from and sell anything to anyone else in the whole wide world, including our Canadian cousins who have everything we have. We are talking here of a fifty year-old grand lie. You had to be cool, like Fidel and his little brother to pull it off!

When are safe places okay?

I am against the idea of safe places (see my previous post on the issue), especially in academia. I believe that if an idea is worthwhile it should be able to survive critic from all sides and safe places, regardless of their intent, hamper that process. How can you critic something if you aren’t supposed to even acknowledge its existence?

I also believe that, if our pluralistic society is to continue, we need to be able to empathize with those who are our intellectual opponents. I’m not saying we should become Marxists and rename the site The People’s Notes. Nor should we become Trumpistas. However we should be able to break bread with non-liberals and hear their side of the story out. We can continue to disagree with them, but we need to be careful to not de-humanize someone because of their ideological leanings. Safe places make this hard to do. If X group isn’t politically correct to talk about, much less with, how can we learn about them?

Safe places are, in more than one way, harmful to a free society.

-But they may still have a place in a free society.

Why the change of heart? It is this whole Trump fiasco. If you haven’t read them yet, several NoL bloggers have written about it here, here, here, etc.

I have seen several extreme reactions to the election of Trump, including quite a bit of anger and sadness. I cried for a good six hours myself when I saw the election results; as I’ve mentioned before I’m an illegal alien and so there is a very real chance I’ll be deported and torn away from the country I’ve loved since childhood. After drying up my eyes though I put that aside and went back to work. How I see it, as liberals we are constantly fighting against anti-liberal forces.

Am I sad that Trump won? Yes, but Hillary wasn’t an angel either. Before Trumpistas we had to fight Communists, Fascists, and every other type of ‘ists’ imaginable. After the Trumpistas are defeated we will have new enemies pop up. I am optimistic that in the grand scheme of things the future is better than the past, but I don’t think we will ever be rid of anti-liberal thought. Equilibrium is an illusion.

But I digress. I went back to work after my crying session, but many others around me didn’t. They couldn’t. And we shouldn’t try to force them to.

I still think safe places are a bad idea in so far that we are concerned about promoting free discussion and would never want to go into one. However maybe I can tolerate one or two of them if they help others improve their mental health. Maybe I can use ‘undocumented’ instead of ‘illegal’ if people are really that emotionally disturbed by it. Maybe I can use someone’s preferred pronoun if ‘he’ really hurts them that much. Maybe I can keep my mouth shut and just listen to someone who is in pain.

I think that in the long run we need to be able to stand up to our critics. If you’re gay, you’ll eventually find someone who goes out of their way to tell you your leading a sinful life. If you’re a woman and feel that the patriarchy is why you’re paid less, an economist will eventually lecture you on why that’s wrong. Infantilizing people doesn’t help them. The world is tough, and you need to be rough to survive it. 

However if someone needs a bit more time before they go out and face that world, is it wrong to provide a safe place for them until they feel ready? If I want to make a controversial remark, maybe I shouldn’t do so in the middle of the class. Maybe I should just blog it on NoL.

As always thoughts and comments are always appreciated.

So, something that makes me smile for a change.

It’s a fact that I feel pain in several parts of my body, including in parts I did not know I had. One of the sources of pain is permanent shingles. I only mention this in the hope that it will trigger some of you to get vaccinated or to get their aging parents vaccinated.

So, anyway, recently, someone who ought to know (if you know what I mean) convinced me to try cannabis for my pains. So, I went to the specialized doctor (at least, I think he is a doctor). I gave him $100 and I came out with a medical marijuana card.

I went straight to the dispensary and purchased some cookies, of the kind my adviser had previously let me taste. The effect on my pain was almost miraculous. I felt none from about five pm until I went to bed around 10 pm.

Several things sill trouble me. First, I can’t find a dose small enough to avoid getting a little high, which I would like to avoid. Second, it makes me hungry (surprise!). Third, what if frequent use re-ignites my passions, what then? Fourth, I am really, really pissed off about the $100 because it looks like Californians just passed a recreational cannabis law.

My sage adviser is an excellent auto mechanic in his spare time. You write me, I will give you his name. That would be for mechanical services, of course.

Fight for your economic right to party

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Two months ago, London’s iconic Fabric nightclub was shut-down by Islington Council on the dubious grounds that it had failed to adequately search club-goers for drugs. Fabric, a sprawling multi-level concrete venue, is dear to the heart of many Londoners. Its dramatic closure came as a shock. David Nutt blamed our hypocritical drug laws, while others spied conspiracies to turn the venue over to housing developers. In response to the public outcry, this month, London Mayor Sadiq Khan has appointed Amy Lamé as ‘night tzar’ (some use the even grander title Night Mayor) with the task of reviving London’s nightlife and especially trying to save venues like Fabric.

Tzars sound great in theory but tend to fail in practice. They are meant to break-up bureaucratic silos and join-up policymaking so that it conforms to a grand plan in a particular policy area. Rather than following rules regardless of outcomes, they have an outcome that the executive asks them to pursue remorselessly. However, I argue that this is precisely the opposite of what you want if your goal is a sustainable, thriving night-life culture. London night-life has suffered because of its politicization, not from a lack of it. The answer is strong rights for entrepreneurs to provide entertainment to willing consumers. This means reforming of government powers to license venues and prohibit development on arbitrary grounds. While ending drug prohibition is of deep importance, here the drug-use excuse was the face of a more pernicious power that local governments have to shut down successful businesses on arbitrary grounds.

In the United Kingdom, land development and property-use decisions have essentially been nationalized since 1947. While building still takes place, it only happens following detailed, expensive consultation with local planning authorities with significant input from local residents. As a result, the supply of building amenities has become unmoored from demand. The most noticeable impact has been rising house prices and rents in areas where the economy is growing. This is a boon to landlords lucky enough to own property in areas of high demand. But it causes those without property to suffer significantly higher living costs. It has led to bizarre developments such as it being easier to open a new golf course in the South-East than to start a new housing development.

While the majority of people feel the strain primarily through higher rents, less visible is the impact on businesses who are equally constrained by planning laws. They struggle to find suitable buildings for their commercial activities. Competitors and local residents can use the planning process to block new construction or changes to lawful uses for particular venues. Businesses lack legitimate expectations about where they will be allowed to expand. Those that do succeed need to invest heavily in lobbying and legal support. The result is that people end up travelling further to get to shops and to their places of work.

Club venues face a number of additional biases in this process. Local officials are more likely to be blamed for noise and crime associated with clubs but not praised for their fun and economic benefits. This fosters risk-aversion amongst local policymakers. At the same time, club-goers may outnumber local residents but most are not able to vote in local council elections. Residents might well have originally moved into a central London location precisely to experience fun, exciting nightlife. But once there, perhaps especially as they get a little older, their priorities change. They realize that they may want to live in an exciting city, but just so long as their particular neighborhood is a little less exciting. Rather than move to a quieter area, they express their preferences through the political process and demand that venues that have been around a lot longer than they have be closed.

Unfortunately, if too many residents in the city come to the same conclusion, you end up shutting down historic clubs on the slightest pretext. When it comes to hosting unlawful activities, businesses can be presumed guilty, with no secure way of ever proving their innocence.

In this context, having a tzar is an understandable response as a counter-balance to the call of the NIMBYs. But it doesn’t solve the core problem which is a system that cannot adequately represent revelers but augments complaints. The tzar can champion venues but will be silenced once these entrenched interests turn up the noise. Instead, we need a system that recognizes the presumptive right of businesses to market entertainment to willing consumers. Only provable nuisance should be cause to fine or eventually close venues. Once established, entertainment venues should not have to regularly prove their social worth to a licensing committee (the fact that they have willing customers is sufficient warrant for that).

Most importantly, complaints from recent arrivals against historic venues that have always hosted loud parties should be discounted. This works in a fashion in Tokyo, where mixed development is widely permitted (no one stops people from taking up residence in an otherwise commercial district) but without any assumption that those residents can then alter the make-up of their community through the political process.

Trump Will Probably Win the Election

What’s that you say? The election is over? In fact, the presidential election will be held on December 19, at which time each state’s chosen electors will meet in their respective state capitals to cast their votes. The results are due in Washington about a week later.

Did you really think you voted for President? In California, you voted for a slate of 55 electors who were appointed by your favorite party. You can find their names online.

The number 55 comes from the number of senators plus representatives. In Maine and one or two other states, each congressional district picks its own elector, and two more are selected at large. Maine’s delegation is split 3/1 for Clinton. That seems like a fair way to go. California, like most other states, is a winner-take-all state. Boo!

Does all this make any difference? I say it ain’t over till it’s over. There have been a few scattered instances of electors jumping ship, most recently Roger McBride, a Republican elector who changed his vote from Republican to Libertarian in 1972. Trump now has 290 electoral votes plus 16 more likely for a total of 306. If 37 of those people could be persuaded to change their votes, Trump would fall below the 270 needed to win. If that put Clinton over 270, she would win. If some of the votes went to Johnson or Sanders or Donald Duck, the election would be thrown into the House where each state would get one vote. Then the fireworks would start!

Why would they change their votes? I wouldn’t put it past the Clintonistas to resort to bribes or threats. A long shot to be sure, but stay tuned!

Lifehacks: How to use Facebook better

Despite disagreeing with many (most?) of my friends on political issues I don’t think I’ve lost any Facebook friends this election. Let me share my secrets.

Step 1: Empathize. Life is hard, and few of us are trained for political life.

Step 2: Listen. We all have the same goal… getting other people to agree with us. You’re not going to be successful by telling people their stupid. You’ll get lots of Internet points… but only from people who already agree with you. You’re actually making things worse because fewer people will listen to people who are apparently incapable of treating them like a decent human being (and most people outside the Beltway are, in fact, decent and human).

Step 3: Filter. (This is the big one.) You’re not going to convince everyone. For good or ill, morality isn’t about rationality for most people. So click that little “V” in the top right of your idiot friend’s post and tell Facebook to hide it.
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Step 4: Relax. This stuff works by osmosis. You’re not going to change anyone’s mind over night (certainly not anyone over the age of 25). Be like the Colorado river. You don’t get a Grand Canyon of tolerance by refusing to trickle over land that doesn’t already agree with you.

Step 5: Step back. The government is about 20% of the economy. Try not to let it be more than 20% of your life. Your attention is scarce. Political life matters, but don’t let it get out of proportion. The Internet isn’t just for getting angry, it’s also for adorable gifs and pictures of pigs wearing boots.

Meta-intolerance doesn’t work. Take the worst case scenario: you’re Facebook friends with actual Hitler. You’ve got three options: A) Argue with him constantly. B) Unfriend him. C) Ignore his hateful posts and like his posts about his art. Which will do the most good for the world? Alright, potential employers and friends would probably prefer to avoid Hitler’s friends. But they’ll be more tolerant of your crazy uncle Rudy and you’ll do more good by being an occasional voice of reason in his feed than by stepping out of his Internet bubble entirely.

Most people are basically good even if they’ve got silly opinions about how to be good. And communication is hard. We speak different languages when we talk about politics and few of us have the tools to properly express ourselves. When people support politicians or policies you dislike, it might just be that they think that’s the lesser of two evils. (I’ve got opinions on why it’s sad that people think they’re “wasting” their vote by voting with their conscience, but I can hardly be mad at them for learning the fallacious reasoning that’s been foisted on them since high school civics. Let me add that if Vermonters had voted Stein and New Hampshirtonians had voted Johnson, then maybe next cycle we’ll get better options and we might push out of this two party system so many people dislike.)

I promised you Facebook lifehacks. They all boil down to this: tend your Internet bubble. You can do this with three easy steps:

  1. Like more non-controversial stuff than controversial stuff.
  2. Ignore and hide infuriating posts from people you’d rather respect (and imagine that you live in a world of respectable but flawed people instead of a world of evil charlatans).
  3. excellent

Does academia have a diversity problem?

As those of you who have me on Facebook may know, I’ve spent the past few months running around in a Trump costume at various comic conventions. I did so for the simple reason that I found it humorous for a Mexican to be running around as Trump. To my surprise the experience was surprisingly enlightening.

When dressed in Trump I got a range of reactions from people wanting a comedic photo with/of me, being attacked by a pair of Hispanics dressed as ‘cholo’ Mario and Lugio, and Bernie supporters saying they hated my guts until I explained I didn’t support Trump.

Yesterday though, when dressed as Trump for Halloween, I got the strangest reaction when walking around my university campus. A meek boy came up to me and asked me if I identified as a Republican, I responded that I did but that I had actually supported Jeb in the primaries*, and his eyes light up. He began to shake my hand and talk about how great it was to find someone else after looking for so long.

The incident really hit home for me since I recall my own undergraduate years of feeling politically isolated from my peers. I had resigned myself to biting my tongue whenever politics were discussed. This didn’t work though since I was often in social sciences and my leanings quickly showed when we had freedom to elect subjects for our assignments. So I just kept shut and tried to produce as bland as possible papers so that I wouldn’t be singled out.

This didn’t change until I discovered there were a few conservative/libertarian professors sprinkled across the university. I didn’t become a chatter box in their classes, but I felt an immense weight off my shoulders knowing that I could voice an opinion outside the mainstream Democratic party line and not have to defend myself from claims of being a racist one-percenter.

Unfortunately, as Landberg et al.’s recent paper shows, there just aren’t many non-Democratic professors in academia. Does academia have a diversity problem? Yes it has an intellectual diversity problem, but its not clear what can be done about it.

Thoughts? Have others had similar experiences?

*This is of course relative to my disdain for the Democratic Party.

The right to lose

After a year of being shocked by Trump’s behavior, people are now finally out of meaningful things to be upset about. We’re down to “Trump isn’t going to accept the results if he loses?!” The tone on the FiveThirtyEight elections podcast (mostly from Clare Malone) was “How dare he?! He must accept the outcome of the election!”

He’s not going to storm the White House, he’s just going to be a sore loser. Why, at this point, should we expect him to lose gracefully? What benefit would that give anyone? He’s not weakening institutions, just being a big baby. We shouldn’t be surprised!

I’m not saying that Trump gets an out because he’s exceptional. I’ve got two related points: 1) Good deeds lose their meaning if they weren’t done by choice. We don’t have to celebrate him being a sore loser, but we shouldn’t try to stop him (whatever that might mean) either. 2) If you aren’t free to be wrong, you aren’t free. Yes, democracy isn’t actually about freedom, but we are still trying to be a free country.

Porque privatizar (ou desestatizar) o ensino é uma das melhores reformas que se pode fazer

Talvez seja somente uma percepção subjetiva sem maior relevância objetiva, mas a impressão que tenho é que a privatização do ensino é um dos maiores tabus da sociedade brasileira. Até onde eu sei nenhum partido, figura política ou figura pública de destaque está defendendo a privatização total do ensino no Brasil. Segundo as notícias que chegam até mim, o recente anúncio de corte de gastos na educação causa uma de duas reações: indignação ou pesar. Alguns reagem com indignação, e não aceitam que qualquer corte seja feito; outros reagem com pesar, mas consideram que os cortes são necessários. Ditas estas coisas, penso que cabe a mim agir como Walter Block e “defender o indefensável”: o governo (ou o estado – use o vocabulário que lhe convir) não deveria ter qualquer papel na educação. Para isso irei expor brevemente o que é economia, como ela funciona, e o que isso tem a ver com governo, indivíduos e educação. É uma exposição breve, e pode deixar alguns pontos pouco desenvolvidos. Para uma exposição mais profunda deste tema, recomendo o livro Educação: Livre e Obrigatória, de Murray Rothbard.

Economia é a gestão de recursos necessariamente escassos que possuímos. Os recursos são necessariamente escassos porque somos seres humanos finitos, e não deuses. Alguns paradigmas econômicos (notoriamente o marxismo) partem de um pressuposto de abundancia de recursos, mas isto é falso e até mesmo perigoso: até mesmo o homem mais rico do mundo tem somente 24 horas no seu dia. Tem somente um corpo, e não pode estar em dois lugares ao mesmo tempo. Tem energia limitada, e fica cansado. Todos nós possuímos recursos limitados (ainda que alguns possuam mais recursos à sua disposição do que outros). A economia é a arte de melhor gerir estes recursos.

A gestão dos recursos limitados que possuímos é feita através de escolhas. O nome que os economistas dão a isso é “custo de oportunidade”: a não ser que você detenha infinitos recursos, gastar em uma coisa significa não gastar na segunda melhor alternativa. Exemplos: comprar o carro A significa não comprar o carro B; morar na cidade X significa não morar na cidade Y; casar com Z significa não casar com W; e escolher a carreira α significa não escolher a carreira λ. Como disse um antigo professor meu, “a vida é feita de escolhas”.

Considerando que possuímos recursos finitos e precisamos fazer escolhas, qual é mecanismo mais eficiente para tomar decisões? Certamente muitas pessoas gostariam de tomar decisões com base nos seus gostos pessoais. Gostariam de escolher aquilo de que mais gostam. Porém, aquilo de que mais gosto nem sempre está ao meu alcance. Exemplos: ainda que eu goste mais de uma Ferrari do que de um fusquinha, talvez eu precise me contentar com a segunda opção. Ou ainda que eu queira viajar, talvez eu tenha que me contentar em pagar o tratamento para um problema de saúde que acabei de descobrir que tenho. É por coisas assim que a economia ficou conhecida como “ciência triste”. Muitas vezes ela está aí para lembrar que nem sempre podemos ter o que queremos. Dito isto, a melhor forma de tomar decisões é pelos preços: os preços nos dizem se aquilo que desejamos é compatível com os recursos disponíveis.

Os preços são geralmente definidos em termos de dinheiro. Dinheiro é melhor definido por aquilo que faz do que por aquilo que é. Muitas coisas podem ser dinheiro: papel, metais preciosos, cigarros, balas ou dígitos num computador. Mas o que dinheiro faz é servir como uma linguagem: o dinheiro transmite de uma pessoa para outra o valor dos recursos envolvidos numa mercadoria ou num serviço. E valor é algo subjetivo. Contrariando a teoria do valor trabalho, é impossível saber de forma objetiva qual é o preço de uma determinada mercadoria ou serviço: é necessário que este valor seja definido por relações de oferta e procura. E é de incontáveis relações de oferta e procura que os preços são feitos. Em outras palavras, os preços nos transmitem de forma simples algo que jamais poderia ser calculado por uma pessoa: uma infinidade de relações de oferta e procura, escolhas e preferências, dentro da economia. Como disse Friedrich Hayek, “a economia somos nós”.

E assim chegamos à educação. Como eu disse acima, escolher a carreira α significa não escolher a carreira λ. Como essa decisão é feita? Certamente que muitas pessoas escolhem sua carreira com base em aptidões que percebem em si mesmas, ou em considerações sobre o que poderá ser uma atividade profissional mais prazerosa. Porém, este é um luxo que não está disponível para todos: muitas pessoas precisam escolher uma carreira com base no que pode dar mais retorno financeiro com menor investimento e menor risco. Posso escolher uma carreira que promete um grande retorno financeiro, mas com grande risco de não conseguir emprego num mercado de trabalho altamente competitivo, ou com um investimento de recursos (em tempo em dinheiro) que não posso arcar. A vida é feita de escolhas, e essas escolhas muitas vezes envolvem riscos. Escolher uma carreira é dizer não (ao menos temporariamente) para todas as outras. Algumas pessoas tem a chance de arriscar mais. Outras não têm o mesmo luxo. Considerações como relação candidato/vaga, salário médio, nível de empregabilidade e outras são semelhantes aos preços, e podem ser bons parâmetros ao se decidir por uma carreira. Mas com o governo criando vagas em universidades, determinando regras de acesso ao mercado de trabalho e adotando outras medidas, os preços não refletem a real relação de oferta e procura. Em outras palavras, a linguagem é distorcida, e as decisões não são as melhores, nem para os indivíduos, e nem para a sociedade.

Compreendo que pensar assim possa soar extremamente cínico, e pode ser um banho de água fria, especialmente para os mais jovens ou mais sonhadores. Muitas pessoas preferem tomar decisões considerando seus gostos pessoais, sua vocação, seu desejo de ajudar o próximo ou outras considerações. Não estou desmerecendo nenhuma destas considerações. Estou apenas dizendo que somos seres humanos limitados que vivem num mundo de recursos limitados. Precisamos fazer o melhor uso possível destes recursos. Embora os recursos sejam limitados, nossa criatividade para aproveitá-los não demonstra um limite óbvio. O uso criativo e sustentável dos recursos necessita de uma bússola, um guia. O sistema de preços é o melhor guia que possuímos. Sem propriedade privada não há formação de preços, e sem formação de preços o cálculo econômico é impossível. Por esta razão os gastos com educação não param de aumentar e a qualidade dos resultados não para de cair: o melhor juiz para determinar como os recursos serão empregados é o individuo fazendo uso de seus próprios recursos. A interferência do governo prejudica ou até desfaz este julgamento.

Em tempo: estou defendendo que o governo precisa sair da educação e deixá-la para a iniciativa individual (até mesmo porque somente indivíduos podem ter iniciativa). Não estou defendendo que educação precisa ser necessariamente paga pelos alunos. Como disse Milton Friedman, “não existe almoço grátis” (mais uma dessas frases que tornam os economistas – especialmente os liberais clássicos e libertários – pessoas pouco populares). Mas quando uma pessoa tem fome e não pode pagar pelo almoço, outra pode fazer isso. O nome disso é caridade, e quero incentivá-la o máximo possível. Caso você se preocupe com os pobres, sugiro que pare de mandar dinheiro para Brasília na forma de impostos, que serão necessariamente mal empregados (segundo tudo que discuti aqui), e procure pessoas que precisam. Com certeza você não terá dificuldade de encontrá-las.

A “don’t rock the boat” theory of political change

You’d think that as long as we’ve known Trump and Clinton it would be more obvious which is better (okay, least bad). But here we are. That said, I largely agree with Brandon’s thoughts: Hilary is the better of the two. If we’re thinking about the trajectory of freedom in this country, it’s like we had been climbing an upward path till 9/11 gave military-industrial complex a new project. Clinton is offering to keep leading us down a gentle incline and Trump is saying “let’s go through that thicket of poison oak!”

I stand by my old advice that a vote for the big two parties is a wasted vote.  People will argue that in swing states it might be close and you might regret your vote. Those people are really arguing that you might regret the vote of hundreds-thousands of strangers. Your vote still is not decisive. Even if you convince a thousand strangers in a swing state to vote your way, you’re still highly unlikely to affect the outcome.

I think, in terms of voting, you do much more good by sending a Johnson signal than you do by slightly increasing the margin by which Clinton wins (or slightly decreasing the margin by which she loses depending on your state).

But my advice is given in the context of a world where Johnson is expected to get 6% of the vote. That affects my cost-benefit calculus. What would it mean for the long-run success of liberty if Johnson were to actually win?

To build on Brandon’s third point (“Clinton is a lawyer and she knows how our government is supposed to work”), this isn’t just a competition to get into the white house. It’s a sales pitch that requires buy in from the electorate. If Johnson won the election, he’d be in the position of some newfangled gadget America bought on a whim. He could catch on, like the microwave, or sink like the Segway.

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Onward, to freedom!

Truthfully, I’m not sure that scenario would be that good for freedom–I think Johnson is a pretty good voice for liberty, and a great third party candidate. But if he actually won, I think he might be too different from the environment he’d have to operate in. It could turn people off of libertarianism for another generation.

But then, the point of your vote isn’t to pick the winner, it’s to express your political beliefs. You’ll do a much better job of voting by voting your conscience than by trying to vote strategically. So vote for Johnson, but root for Hillary… this time.

Words and Actions of Trump the Horrible

I spent yesterday listening in horrified fascination to the mass media creating a crude amalgam of Trump’s sins in the so-called video, yes, that old video.

Nearly all the media, including, I am afraid, the Wall Street Journal, put together or often mix in the same sentence two elements of Trump’s objectionable aspects: words and possible actions. The two deserve completely different treatments. There is no excuse for confusing them except a desire to win at all costs.

Words first: Trump referred to women in obscene terms. This is not in dispute. Calling women “pussies” may tell you something about his present character. (Although that happened fifteen years ago, when he was a registered Democrat.) I don’t see what it tells you that’s new. The man is crude. He is crude in precisely the same way that millions of American men are. I am completely innocent of that particular sin myself (because I was raised overseas) but I have several friends who qualify. It’s interesting that they are, by and large, the same male friends I would describe as “pussy-whipped.” (This is another topic, an interesting one I can’t deal with here: Married American men are exceptionally submissive.) I think the brouhaha about Trump’s obscene words is completely hypocritical and massively promoted by media that lost their intellectual self-respect some time ago. Public discourse also stopped being sensitive a long time ago irrespective of what the current neo-Victorians would have you believe: A young woman I have never met except on-line a couple of days ago, a Clinton supporter, recently invited me on Facebook to “suck my dick!” (She meant her own non-existent appendage.)

Then, there are Trump actions as revealed on the video. Fact is, the video reveals no, zero, objectionable acts. Instead, it reveals Mr Trump bragging about engaging in sexually assaultive behavior. The report is not a fact. Fake confessions are legion, especially within a bragging context. Donald Trump may have never, not once, done the things he says in the video he does, not even the slightest crotch grab. Now, if he is guilty of this kind of boasting, characteristic of teenage boys everywhere, you may decide he is too immature for the job but he is not (NOT) an unpunished criminal.

A stupid braggart and a rapist are different creatures. If you think they are more or less the same, you are full of shit and we need someone like Trump to clean house, because of you, precisely. You are poison while he, Trump, is only moronic.

Let’s focus on various forms of sexual assault. Trump committed some, at least one, or (OR) he did not. There is nothing in between. The function of the amalgam I heard all day yesterday is to spread the credibility of the reports of obscene talk onto the supposition of sexual assault: It’s true that he referred to women in a sexually crude manner, therefore, (THEREFORE), he must have assaulted women sexually. This kind of verbal ploy sometimes actually works. It works with fools and with fanatics.

Now I imagine I might be on a jury regarding Mr Trump’s sexual assault(s) (one or several). I would not have the option to find him a “little bit guilty,” or “sort of guilty,” or “mostly guilty,” or “not actually guilty but he might have done it; look how he refers to women.” The only options available are guilty/not guilty. That’s it. For once, judicial conventions correspond well with logic: He did it (any “it”), or (OR) he did not. There are almost an infinity of offenses a person can be charged with so, there is no reason to come up with unclear verdicts. The prosecutor can charge with attempted sexual battery, sexual battery, aggravated sexual battery, different kinds of rape, etc., exactly so a clean verdict is possible without violating factual evidence. Those who do not know this to be true don’t understand either the US Constitution nor basic fairness. They are temperamentally fascists. (There are other forms of fascism on the Clinton side, following Mr Obama.)

What we see right now is a massive and concerted display of hypocrisy on the part of the bulk of the kind-of-educated class, beginning with the media. It’s so obvious that I think that if Jesus were around today, He would be for Trump. Fact is, there is no record of his speaking up against obscenity while he repeatedly and vehemently attacked hypocrisy.

PS I am wavering in my support of Trump. It’s not because Clinton has become less than a total horror but because he falls too easily into her traps. It bothers me.