The Tyranny of Ambiguity: “Hate Speech” laws in Japan and subtle Western imperialism

Economist Tyler Cowen linked to the following report in the Washington Post about a supposed increase in enmity between Japanese citizens and Korean expats in Tokyo’s Koreatown. Setting aside all of the hyperbole on the part of the Post concerning rising tensions, and setting aside the interesting fact that there is a Koreatown in Tokyo, and setting aside the fact that there seems to be an increase in nationalism throughout the developed world, I’d like to focus on the Post‘s advocacy of “hate speech” laws. The Post reports:

“Japan is right now at a crisis point,” said Yoshifu Arita, a [Left-wing] lawmaker who is campaigning for new laws to regulate hate speech. “A situation like this — people getting so publicly hostile — never happened in the seven decades after the war until now.” […] In 1995, Japan did accede to the United Nations’ convention to eliminate racial discrimination, including hate speech, but its parliament has not passed legislation to enforce that treaty commitment. Its reluctance, experts and politicians say, stems from a separate war-era legacy — the wholesale suppression of anti-government dissent. Japan created free-speech laws to prevent a repetition of that censorship, and many still oppose the idea of regulating speech, said Kenta Yamada, a media law professor at Senshu University. The Japanese government’s hope, Yamada said, is to reduce hate speech with education and enlightenment, not with new laws.

Now I think we can all agree that ethno-nationalism is a bad thing, and there has been a rise in ethno-nationalism throughout the world since the 2007-2008 economic crisis began. However, I hope we can all equally agree that squelching free speech in the name of an imposed tolerance would be a much, much worse outcome.

“Hate speech,” of course, is ambiguous and invites arbitrary censorship. The fact that the Leftist politician pushing for the assault on free speech is employing the language of crisis does nothing to relieve my suspicions of her intentions.

This piece brought up three more quick thoughts in my mind:

  1. The report states, in the above quoted passage, that Japan created free speech laws after the war. This is all well and good for the most part, but I’ll never tire of reminding people that the right to free speech cannot be created by government. Free speech is a natural human right, and as such it is impossible for governments to create free speech. For example, what would happen if Japan had not created free speech laws after the war? Would free speech not exist? It’s possible, but this could only be true if governments had laws in place prohibiting free speech.
  2. Is it just me, or did the reporter – a Western Leftist – come off as sounding a bit imperialistic in his subtext?
  3. Imagine what a federal incorporation with the US would do for ethnic relations between Koreans and Japanese.

College Football Blurb

Ohio State versus Florida State for the national championship? What a joke. The national championship should be played between the SEC and PAC-12 champions. These champions play the toughest schedules in the nation by virtue of their conferences, and it is ludicrous when the shot at a title is awarded to schools that are not in these two conferences. Remember last year’s “championship” game between Alabama and Notre Dame? Just imagine what would’ve happened if Alabama had to play Oregon instead. There might’ve been a game to watch.

We now return to your regularly scheduled programming.

Here’s what I knew about education when I was 18

Fresh out of 12+ years of high end public education in Canada I had learned two (and a half) things about education. These two bits of information are relevant for understanding the closely related problems of poor academic performance and school violence.

1) Education means going to a school where bundles of knowledge are presented to students who are compelled by law (and subsidy, but I figured that out later) to be there. This learning occurs while sitting quietly at desks in rows, listening patiently to a teacher (most of whom genuinely care) teaching a standardized curriculum (the best!). Smart students will get good grades without much effort, “dumb” students will pass without much effort (because they need that education to succeed it would be unfair to deny them their future).

1.5) Europe’s version of this system has higher standards and works better some how.

2) The above I learned from experience and discussion with my peers, the following from watching discovery channel and in science class: all mammals learn by play fighting. Bear cubs gnaw on each other’s faces, squirrels chase each other, and in this constant movement they learn how to survive.

This second stylized fact about education points to a deep systemic cause for gruesome violence in schools. School is not the same thing as education. By confusing the two and establishing policy to dramatically increase schooling, we are essentially bear baiting teenagers and being left with predictable results.

Around the Web

  1. Spontaneous Order and Social Justice
  2. Persuading the Scots in regards to secession from the UK
  3. The prospects of Scottish secession from the UK
  4. The waxing and waning schools of economics: Chicago, Vienna and San Francisco
  5. Cooperation Emerging: Institutional diversity and the history of the West

Blind Faith

By Adam Magoon

On November, 26th Eric Liu, founder of “Citizen University”, a pro-government think-tank, wrote a telling article about having faith in government on the CNN opinion page. He begins the piece with a story about leaving his suitcase in a New York City cab saying:

“I had an experience recently that reinvigorated my faith in humanity — and bureaucracy.”

Keep that equivalency in your mind for a few minutes. Humanity and bureaucracy.

He goes on to explain that he did not even realize he left the suitcase in the cab for twenty minutes and only then began calling people for help. He explains this process in detail, emphasis mine:

“For almost three hours, various people tried to help me — two folks at my bank, whose credit card held the only record of the cab ride; three people at two yellow cab companies based in Long Island City; a service rep at the New York City Taxicab & Limousine Commission; people in my office back in Seattle.”

So Eric was helped by no less than eight individuals (counting the cab driver) in his successful search for his luggage. Eight people helped improve Eric’s business trip. He then claims this experience taught him three lessons.

First:

“Always, always get a receipt.”

This, as he says, is obvious.

Second:

“Another is that New Yorkers, contrary to popular belief and their own callous pose, are essentially nice.”

As someone born in New York I would like to think this is true, but I adhere to the maxim that terms such as “New Yorker” can only describe places where someone lives or is born. Saying “all New Yorkers are nice” is equivalent to saying “all Scots are drunks” or “all Scandinavians are attractive”. Essentially it is a non-statement that is easily refuted. There are just as many people who would have taken anything of value from his case and threw it into the nearest dumpster.

That is just the appetizer though, here is the main course.

His final lesson, and where the train totally leaves the rails, is this:

“But the third, even more deeply contrary to popular belief, is that government is not the enemy.”

Wait, what?! What kind of logic is Mr. Liu using? Of the eight people who helped him only one (the service representative at the New York City Taxicab & Limousine Commission named Valerie) even worked for a governmental organization and “she insisted she was just doing her job”. How did Mr. Liu get to “government is not the enemy” from that series of events? He goes on to claim that:

“Government is not inherently inept. It’s simply us — and as defective or capable of goodness as we are”.

Mr. Liu tries to rationalize his faith in government with a single good experience with a few select people. What he ignores though, is that many people are not “essentially nice”. If that were the case crime, corruption, and violence simply wouldn’t exist. There are people in the world who only seek to exploit and profit from the work of others and to quote the great classical liberal theorist Frédéric Bastiat:

As long as it is admitted that the law may be diverted from its true purpose — that it may violate property instead of protecting it — then everyone will want to participate in making the law, either to protect himself against plunder or to use it for plunder”

Even if we were to assume that most people in the world are “essentially nice” the very nature of government attracts precisely the opposite type; the corrupt, the malevolent and the lazy. His agenda finally becomes clear nearly two-thirds of the way through the article when Mr. Liu unabashedly asks us to not wonder what our country can do for us, but rather what we can do for our country in response to the failed Obamacare launch.

Individuals are expected to bail the government out when it fails at intruding into our lives? How can we expect the government to run healthcare without kickbacks and corruption when they cannot even get someone to build the website without it being a disaster?

Mr. Liu fails to offer any helpful advice on how to improve things but he does offer one revealing suggestion. He says that citizens should not expect the “state…to serve us perfectly” and that individuals should not “forget how to serve”.

The argument often goes that taxes pay for services provided by the government but Mr. Liu suggests we shouldn’t expect too much from those services. That we shouldn’t get upset when we pay a third of our labor to the government and it spends that money on things we do not want; in fact he implies we should fix for free the broken things they have already spent our money on.

If Mr. Liu goes out to dinner and his silverware is dirty when he sits at the table does he go back to the sink and wash them? Or does he expect more from the things he spends his money on? At least in that situation Mr. Liu could choose to spend his money elsewhere. With the government spending our money for us we aren’t even afforded that meager victory.

A Warm Welcome

Hello readers. I’d like to welcome Adam Magoon to consortium:

Adam is an on-again, off-again student focusing on history and economics.  First introduced to libertarianism in 2009, he quickly became fascinated with libertarian history stretching from Ron Paul today to the individualists of antiquity.  His own history has been wrought by individualist personalities and due to his blue-collar heritage one of his passions is destroying the myth that capitalism is harmful to the working class.  Other pursuits include amateur astronomy, cooking, writing short stories, and exploring the beautiful scenery of upstate New York.

You can find his posts here. I look forward to reading what he comes up with.

Around the Web: US-Iranian “Peace Accords” Edition

  1. Ezra Klein in the Washington Post
  2. Ed Krayewski in Reason
  3. John Allen Gay writing in the National Interest
  4. Daniel Larison in the American Conservative
  5. Stephen Walt has a great piece in Foreign Policy
  6. Angelo Codevilla on the Liberty Law blog

My own reaction is “great!”

This is fantastic news for everybody, including the Israelis. If the Israelis were smart, they’d jump on the opportunity and start forging ties with the Iranians again. Saudi Arabia, the state Israel is nudging closer and closer to, is the real terrorist factory in the Middle East and I don’t see how Israeli long-term interests would benefit from an alliance with the most vicious regime in the Arab world.

With that being said, I don’t know too many details about the deal. I know Tehran promised not to build a bomb (yeah right), but will sanctions end? If so, how soon?

To me sanctions are the most important issue here. Tehran getting a nuclear bomb is understandable given her neighborhood, so it’s not really a big deal when it gets the bomb. However, if sanctions are still around when Iran gets the bomb then you can bet Tehran is going to be much more bellicose than it is, and the people of Iran will give the regime the legitimacy it needs to wield its newfound power.

IP Anyone?

There is a debate afoot now about whether one ever owns the likes of a novel, poem, computer game, song, arrangement or similar “intellectual” items. Some argue, to quote the skeptic, Professor Tom Bell of Chapman University’s School of Law, “Copyrights and patents function as a federal welfare program of sorts of creators,” while others, such as James V. DeLong of the Competitive Enterprise Institute, hold that “It is difficult to see why intellectual property should be regarded as fundamentally different from physical property.” I want to suggest a way to come to terms with this dispute in this brief essay and offer a possible resolution.

A major issue that faces one who wishes to reach a sensible understanding of intellectual property is just what “intellectual” serves to distinguish among what surrounds us in the world and how that contrasts with other kinds and types of possible property. What quality does “intellectual” point to about something? In my list, above, I am assuming that whatever is an invention or creation of the human mind amounts to potential IP, while others would argue that nothing intellectual in fact can constitute property, let alone private property. But this is merely to start things off, in need of clarification and analysis.

Some have proposed that the major element distinguishing intellectual from other property is that it is supposed to be intangible. So, for example, home or car or land parcels are tangible, capable of being brought into contact with our senses. However, a musical score or arrangement or a romance novel is supposed to be intangible – such a thing cannot be touched, felt or otherwise brought into contact with our sensory organs. Yet an immediate problem this attempt to distinguish intellectual property is that there are tangible aspects to inventions, and there are intangible aspects to these other items that are supposedly all tangible. A home is not just some raw stuff but a building that is the result of a combination of ideas, some of them inventions. Even land isn’t own exactly as it occurs in the wild but is configured by the more or less elaborate design work of landscapers. The same with whatever so called tangible items that function is property. A watch is not just some metal, mineral, glass and such assembled randomly but some assembly of such materials designed to show time and otherwise be appealing as well. In turn, a novel, song or computer game is also a combination of tangible and intangible stuff – the paper, typewriter or pen and the lead or ink with which the novel is written – only the author, and only for a little while, encounters the novel in intangible form after which the novel becomes an often very tangible manuscript.

The tangible/intangible distinction is not a good one for what can and cannot be owned and, thus, treated as distinctive enough to be related to owners. Indeed, the distinction seems to derive from a more fundamental one, in the realm of philosophy and its basic branch, metaphysics. In a dualist world reality would come in either a material or a spiritual rendition. Our bodies, for example, are material objects, whereas our minds or souls are spiritual or at least immaterial ones.

This goes back to Plato’s division of reality into the two realms, actual and ideal, although in Plato particular instances of poems or novels belong to the actual realm. A less sophisticated version of dualism, however, suggests the kind of division that’s hinted at through the tangible-intangible distinction. In nature we may have physical things as well as stuff that lacks any physical component, say our minds or ideas. Yet much that isn’t strictly and simply physical is intimately connected with what is, such as our minds (to our brains) and ideas (to the medium in which they are expressed).

So, the tangible versus intangible distinction does not seem to enable us to capture the distinguishing aspect of intellectual property. What other candidates might there be?

One candidate is that unless government or some other force bearing agency bans the supply of some item of intellectual property, there is never any scarcity in that supply.

There is certainly something at least initially plausible about this view. What is tangible is more subject to delimitation and capable of being controlled by an owner than something that is intangible. A car or dresser is such a tangible item of property, whereas a novel or musical composition tends to be fuzzy or less than distinct. One cannot grab a hold of a portion of a novel, such as one of its characters, as one can of a portion of a house, say a dresser.

Yet intellectual property isn’t entirely intangible, either. Consider that a musical composition, on its face, fits the bill of being intangible, yet as it appears, mainly in a performance or on a recording, it takes on tangible form. Consider, also, a design, say of a Fossil watch. It is manifest as the watch’s shape, color, and so on. Or, again, how about a poem or musical arrangement? Both usually make their appearance in tangible form, such as the marks in a book or the distinctive style of the sounds made by a band. These may be different from a rock, dresser, top soil or building but they aren’t exactly ghosts or spirits, either.

It might also appear that the theological division between the natural and supernatural mirrors the tangible-intangible division but that, too, is misleading since no one who embraces that division would classify a poem or novel as supernatural. Thus it seems that there isn’t much hope in the distinction some critics of intellectual property invoke. The tangible-intangible distinction seems to be independent of the usual types of ontological dualism and so the case against intellectual property, then, seems unfounded. If there is such a distinction, between ordinary and intellectual property, it would need to be made in terms of distinctions that occur in nature, without recourse to anything like the supernatural realm. Supposedly, then, in nature itself there are two fundamentally different types of beings, tangible and intangible ones. Is this right?

Again, it may seem at first inspection that it is. We have, say, a brick, on the one hand, and a poem, on the other. But we also have something very unlike a brick, for example, smoke or vapor or clouds. In either case it’s not a problem to identify and control the former, while the latter tend to be diffused and allusive. We also have liquids, which are not so easy to identify and control as bricks but more so than gases. Indeed, it seems that there is a continuum of kinds of beings, from the very dense ones to the more and more diffused ones, leading all the way to what appear to be pure ideas, such as poems or theater set designs.

So, when we consider the matter apart from some alleged basic distinction between tangible and intangible stuff, one that seems to rest on certain problematic philosophical theories, there does not appear to be any good reason to divide the world into tangible versus intangible things. Differentiation seems to be possible in numerous ways, on a continuum, not into two exclusive categories. Nor, again, does it seem to be the case that there is anything particularly intellectual about, say, cigarette smoke or pollutants, albeit they are very difficult to identify and control. They are, in other words, not intellectual beings, whatever those may be, yet neither are they straightforwardly tangible.

I would like to explore the possibility of a very different distinction, namely, one between what is untouched by human meaning and whatever is subject to it. For example, there would be no poems without intentions, decisions, deliberations and so forth. There would, however, be trees, rocks, fish or lakes. Is it the point of those who deny that intellectual property is possible that when people produce their intentional or deliberate objects, such as poems, novels, names, screenplays, designs, compositions, or arrangements, these things cannot be owned? But this is quite paradoxical.

The very idea of the right to private property is tied, in at least the classical liberal tradition – starting with William of Ockham, to John Locke and Ayn Rand – to human intention. It is the decision to mix one’s labor with nature that serves for Locke as the basis for just acquisition. In the case of such current champions of this basic individual right, such as James Sadowsky and Israel Kirzner, it is the first judgment made by someone to invest something with value that serves to make something an item of private property.

However all of this comes out in the end, one thing is certain: the status of something as property appears to hinge on it’s being in significant measure an intentional object. But then it would seem that so called intellectual stuff is a far better candidate for qualifying as private property than is, say, a tree or mountain. Both of the latter are only remotely related to human intentions, whereas a poem or novel cannot have their essential identity without having been intended (mentally created) by human beings.

Of course, in becoming owned, a tree and mountain does become subject to intentionality, as when someone decides to make use of such a thing for his or her purposes. And, conversely, even in the case of a poem, there are words that are as it were pre-existing and only their particular concatenation is a matter of intention.

I am not certain what the outcome should be from these and related reflections. They do suggest something that is part of both the ordinary and the so called “intellectual” property traditions, namely, that when human beings are agents of creation, when they make something on their own initiative – when they invest the world with their distinctive effort, they gain just possession of what they have produced. And if there is anything that they produce more completely than such items as poems or computer games, I do not know what it might be.

For me, then, the issue is this: When one designs and produces something novel that one has thought up, some gadget or machine or such, does one then own this design/product? And if someone else copies it, did they take something from the former against his or her will? If the answer is yes to the former, then I think the answer must be yes to the latter.

Whether the protection of one’s property occurs via this or that legal device — patent, contract, trademark, what have you — seems a secondary issue and detail. The first is ownership. Also, what one’s owning something one conceives and makes may mean for others who may be thinking up the same thing later is irrelevant, no less so than if one finds a piece of land and appropriates it and then later others, too, find it and would like to appropriate it but now may not.

Those, by the way, who complain that governments enforce patents and copyright laws, should realize that governments also enforce property rights in societies with governments. Governments in such societies are akin to body or security guards. Certainly, taxing others for this enforcement is unjust but that isn’t the essential idea behind the enforcement, not if one understands that copyright and patents could be protected without government, as well, just as other private property can be protected without government. But until it is government that protects — not establishes but protects — rights, it will also protect the right to intellectual property, if there be such a distinct thing in the first place. Taxation for such protection is irrelevant since taxation for the protection of other types of property is also beside the point.

Finally, that patents run out may be compared to the fact that ownership can cease with death, too. Of course, patents or trademarks or copyrights could all be reassigned from one to another owner, just as property in anything can be reassigned upon voluntary exchange or transfer. There is nothing necessarily odd about this, simply because the matter hasn’t developed very smoothly and consistently.

Bad News Bears: Ukraine, Russia and the West

No, I’m not talking about the Bruins choking in Pasadena earlier tonight. I’m talking about the Ukrainian government’s decision to balk at the latest Western offer for integration.

Well, at least I think it’s bad. The New York Times has all the relevant information on what happened between Kiev and the West. According to the Grey Lady, Kiev either balked at an IMF offer or had its arm twisted by Moscow. Both scenarios seem plausible, but I’d like to dig a bit deeper.

Ukrainians have been hit hard by this global recession, and last year they elected a government that is much more pro-Russia than it is pro-West. Unfortunately, I think the economy is only a small fragment of what ails the people in the post-colonial, post-socialist state of Ukraine (some people have started labeling “post-” states as “developmentalist” states; I like it but I’m not sure readers would). First of all, here are some relevant maps:

Ethno-linguistic map of Ukraine
2012 presidential election results in Ukraine
Map of per capita income in Ukraine

Notice a pattern? Yeah, me too. Basically, Ukraine is split along ethnic lines between Russians and Ukrainians and instead of recognizing this fact and focusing on property rights reforms first and foremost, the Ukrainians have decided to try their hand at democracy (on the inability of democracy to solve political problems in multi-ethnic states, see Ludwig von Mises’s Nation, State and Economy 72-84).

The conflation of democracy with property rights as freedom has been the single biggest mistake of all societies in the post-war world. From Ghana to Indonesia to Iraq to India to Ukraine, elites have focused their efforts on implementing democracy rather than property rights, and the inevitable, unfortunate results (“dictatorship and poverty”) continue to frustrate me. I’m sure the people who actually have to live under these conditions don’t like it much either.

Wouldn’t it be better if the current Ukrainian state  split into (at least) two independent states? I ask because it seems to me that having (at least) two different states will cut the number of losers in half (losers of elections in “post-” societies truly are losers; it’s nothing like having to “live under” Obama or Bush) and make the new, smaller governments more accountable and more accessible to the people.

The other aspect of Kiev’s rejection of Western integration that troubles my mind is that of the attitudes towards liberalization of Ukrainian society that many people obviously harbor.

For example:

  • Ukrainian-speaking Ukrainians overwhelmingly support more integration with the West. There are demonstrations (and I use this term loosely; riots may soon start) against the government’s decision to balk at the West going on right now.
  • And Russian-speaking Ukrainians (being Ukrainian can be either an ethnic thing or political thing [“citizenship”], which just goes to show you how stupid anything other than individualism is, but I digress) overwhelmingly support Moscow.

Yet it seems to me that both sides take the “pro-” and “anti-” stances that they do more out of spite for the other side than out of an understanding of what liberalization actually entails (I base this hunch on my watching of the recent elections here in the US). It’s also not clear to me that a pro-Western tilt would actually lead to more liberalization.

It may be easy for the Ukrainian-speaking Ukrainians to integrate and work with the West, but I think the Russian-speaking Ukrainians have good cause to look upon pro-Western deals with suspicion. After all, the Russian speakers are the richest faction in Ukraine, and freer trade with the West  would seriously undermine their political power (why do you think Russian-speaking Ukrainians have all the good jobs?).

Perhaps Evgeniy can enlighten us on the Russian perspective.

If Evgeniy doesn’t have the time you could just read Daniel Larison’s thoughts on the matter (Dr Larison is a historian with a PhD from the University of Chicago who specializes in the Slavic world).

New Mexico’s Police Breaking Badly

by Fred Foldvary

The AMC television channel recently concluded the drama “Breaking Bad.” The series was about a high-school chemistry teacher who has terminal cancer and “breaks bad” by making methamphetamine to get money for his treatments and for his family. The episodes take place in New Mexico, and some of the scenes occur in the desert.

Now the state government of New Mexico is breaking into real-life evil. Its police are stopping drivers and forcing them to submit to intrusive body searches and medical tests for drugs, including X-rays and colonoscopies. The hospitals then bill the victims for the involuntary procedures.

The State of New Mexico is establishing the principle that the state may force people to undergo medical procedures that they then must pay for. The worst aspect of governmental medical provision is that the health of individuals becomes a governmental matter, and therefore the state takes control over medical decisions. The federal and state governments may, in the future, force people to adopt preventive measures and periodic tests. The government will not only force citizens to have medical insurance, but also force people to submit to procedures such as anti-smoking treatments and colonoscopies.

One of the victims of medical coercion is suing the City of Deming in a U.S. District Court for being forced to submit to X-rays, enemas, and a colonoscopy. The police and doctors did not find any drugs in his body. As justification, the police claim that the driver was clenching his buttocks after being stopped for a traffic violation and ordered out of his car.

After that lawsuit was registered, it was reported that another man was probed for drugs in a New Mexico hospital after his car was stopped by police for failure to signal. The news media are now reporting that other drivers in New Mexico are being searched after getting stopped for alleged traffic violations. The police suspect the drivers of drug violations due to their appearance or due to dog sniffing, often with untrained dogs, and obtain warrants for the intrusive drug tests and body searches. In the case of the driver suing the state, the warrant was not even valid for the county and the time in which the colonoscopy took place.

The police in other states have been doing similar things. In Tennessee, the police took a man cited for an expired car licence to a hospital for drug tests, after a sniffing by a drug dog. A woman in Texas was strip-searched and double-probed by the police and by doctors.

The Fourth Amendment to the United States Constitution states, “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”

Unfortunately it is easy for the police to evade the Fourth Amendment because they can claim that their searches and seizures are reasonable. and some judges will routinely issue warrants if a dog, even if untrained, growls or points at the victim, or perhaps if the victim seems nervous.

Long ago, and still in some countries, highways were dangerous because robbers would halt a carriage or train and steal from the riders. Now, in the USA, the highwaymen are the police who are not content to merely issue citations, but use traffic violations as an excuse to enforce the drug laws. Driving in New Mexico is now dangerous because of the police predators.

Ecology is the relationship of living beings to one another and the environment. Evolution seems to generate predator-prey ecologies. Now that large predators such as lions and wolves have been eradicated from human habitat, ecology has generated human predators such as hijackers. Government is supposed to protect the public from such predators, but the drug laws have turned the police into yet another set of predators.

The German philosopher Nietzsche wrote that the “will to power” is the strongest human motivator. Individuals who seek the thrill of exerting power now become traffic officers, because they can stop any driver and have power over and into his body. This police predation is legalized rape.

Around the Web

  1. John Locke, President Bush and the Jesus Pushers
  2. (More) on the legality of the latest ObamaCare fix
  3. Israel is wigging out; One of the fairest assessments of Israeli foreign policy I’ve seen since my own musings!
  4. Has Barack Obama told the biggest (dumbest) lie ever?
  5. Are real rates of return negative? Is the “natural” real rate of return negative?

The French revolution

The French are rebelling in large numbers. They wear red wool hats as a signal of rebellion (elegant, this!) and to rally one another. I am told by French connections I trust much of the time that the rebellion is not along political lines, that it includes left, right and center.

There seems to be two main targets. First, on the surface, it began as a manifestation of opposition against an “ecotax,” a tax on big trucks intended to fight global warming. (Good for the French! See my many essays on this blog on the myth of global warming. More coming.)

Second, but this is an interpretation, there seems to be a widespread feeling that the French nanny state is finally coming to an inglorious end. This is an interpretation because the French media do not articulate clearly this link:

generous free social services→ high taxes→ stagnant economic life, high unemployment, poor everything, sense of doom, low fertility, etc.

Many ordinary French people are simply disgusted with the poor quality of everyday life in their country, and, especially, with low employment with no end in sight. Many envision no future for their children. Many of their children say they want to emigrate, leave France for good.

It does not mean that the French are poor, overall. They are much richer than say, Mexicans. Yet, impressionistically, subjectively, urban Mexicans are much merrier than urban French people. It seems to me that it’s because the ones, living with reasonable economic growth, have hope, while the others, living at a higher level but with no growth, despair.

You can’t fool all the people all the time. And the people can’t even fool themselves forever, not the French, not anyone!

Une culture politique du n’importe quoi.

L’autre soir, j’ai capté brièvement “On n’est pas couché”, une émission télévisée que j’aime assez bien. J’ai eu juste le temps d’entendre un des hommes les plus durables de la vie politique francaise de gauche dire à peu près ceci:

Le “big business” américain c’est arrangé pour désindustrialiser l’Amérique.

L’auteur de cette déclaration péremptoire: Jean-Pierre Chevènement, un socialiste qui n’a pas la réputation d’un extrémiste, il me semble.

Deux gros problèmes en une seule petite phrase:

1 On ne voit pas très bien comment cette abstraction; “big business américain” se serait arrangé pour effectuer quoi que ce soit de cette manière volontariste. Comment s’y prennent-ils au juste? Ils tiennent des réunions dans une arrière-salle de café en pendant un écriteau à la porte:

Big Business Only – No Admittance for Medimum-Size and Small Businesses” ? Et si ce n’est pas la cas, le big business n’aurait -il pas été surpris en flagrant délit de désindustrialisation criminelle? Les syndicats n’auraient-ils pas gueulécomme des putois; personne ne se serait plaint? Et ce projet obscène auraitéchappé à la censure des élections? (Ou bien, les élections americaines sont-elles toutes plus ou moins truquées?)

Le propos de Monsieur Chevènement ne veut litéralement rien dire. Ou plutôt si, il signifie quelquechose au second degré. C’est le genre de conte de monstres dont on se servait jadis pour forcer les enfants à rester dans leurs lits: “La-bas, plus loin, dans les collines, y’a le Grand Méchant Loup. Restez bien au chaud les petits.”

2 Ce n’est pas vrai. L’Amérique n’est pas désindustrialisée du tout. En fait, la production manufacturière américaine a atteind son niveau le plus haut l’année dernière (ou l’année d’avant, peu importe). C’est vrai qu’on fabrique ici moins de crayons et moins de pièges à rat qu’il y a quinze ans. Quel malheur! C’est un autre sujet, il vaut d’en parler. Il vaut plus qu’un phrase simpliste jettée à la sauvette.

Les Français sont soumis par leur gauche politique à un régime constant de bêtises sans liens avec la réalité, un réalité aujourd’hui pourtant facilement vérifiable grâce à l’Internet. M. Chevènement, par exemple, continue à dire n’importe quoi, comme si les faits n’étaient pas devenus beaucoup plus accessibles qu’au temps de sa jeunesse militante. Je me demande pourquoi les grandes publications francaise, à commencer par Le Monde, ne mettent que si rarement la pendule a l’heure. J’ai souvent l’impression, de loin, que les Français se soucient peu de la réalité.

A Warm Welcome

Hello dear readers (all three of you). I’ve been a bit behind in my introductions, and I apologize for that, so without further adieu I’d like to introduce Dr Claudio Shikida and Edmund Cotter to the team.

Dr Shikida received his PhD in economics from the Federal University of Rio Grande do Sul and now teaches economics at IBMEC-Minas Gerais. He has taught and performed research at numerous universities around the world, including UCLA. He also blogs at De gustibus non est disputandum.

You can find Dr Shikida’s first post here. We are honored to have him join with us in experimenting with a multilingual blog. Libertarianism is an international creed, and I think that exposing more people to more languages and more worldviews (worldviews based around the freedom of the individual, I might add) will help contribute in some small way to a better world.

Ed has a B.A. in Communications from George Mason University. He believes in the creation of a broad coalition of the Liberty Movement with greens, progressives, and technocrats. He supports the off-the-grid and sustainability movement as he believes it is the most tactical way to support libertarian causes. He is a small-scale produce farmer. The issues he considers most important are the Federal Reserve and the foreign policy in the Middle East. He is currently working on a book and several screenplays for the libertarian cause.

George Mason is, of course, is known for its free market bias among universities. I found Edmund plying his trade on the Young American for Liberty blog and thought he’d be a great addition to the team here. You can find his thoughts here.

From the Comments: Is US Economic Stagnation A Myth?

The short answer is “yes.”

In the ‘comments’ section of Dr Delacroix’s recent article on the myth of American economic stagnation, Dr Amburgey, who works at the University of Toronto’s business school, dropped three arguments at my feet. I gave him three responses and he chose to address Issue #2 first. I will await his responses to Issues #1 and #3 respectively, but I want to make sure that we are all on the same page before we get to Issues #1 and #3.

At the heart of this discussion lies Dr Delacroix’s observation:

So, the implication here is that when it comes to the unequal distribution or real economic growth you have to do two things:

A You have to slow down and make sure you understand what’s being said; it’s not always easy. Examples below.

B You have to decide whether the inequality being described is a moral problem for you or, otherwise a political issue. (I, for one, would not lose sleep over the increased poverty of the stock exchange players in my fictitious example above. As for the lady typists, I am sorry but I can’t be held responsible for people who live under a rock on purpose.)

With this in mind I think it is important to point out that because what we are discussing brings out a lot of passion, it is easy for people to look at some numbers and believe them just on principle. For example, Dr Amburgey writes:

The numbers I use come from [here]. Median household income for 1975-2012 in constant (2012) dollars. There is a picture on the wikipedia entry I gave above [found here – bc] that charts GDP per capita and median household income. Go look at it. It’s pretty much flat for median household income. In other words pretty stagnant. Numbers wise in 1975 its $45788. In 2012 it’s $51017 (less than it was in 1989 by the way). Plug the numbers into my handy dandy econometrics software and regress median household income on year and the average annual change is $232.32 per year.

I suppose ‘stagnant’ is in the eye of the beholder but I’d say that’s 38 years of economic stagnation for the American economy as a whole.

Can you see why Dr Amburgey’s statement above is untrue? I can spot two big errors in his logic (feel free to correct me or add your own in the ‘comments’ section):

  1. Median household income has, on paper, indeed stagnated. Yet this says nothing about economic decline or stagnation in the US because median household income cannot tell us what such income has been able to buy in the past 40 years. That is to say, the measurement used by Dr Amburgey, and the ensuing numbers they produced, tells us nothing about the purchasing power of the American consumer.
  2. This second error is huge in my mind. Dr Amburgey and others are plainly stating that the American economy has been economically stagnate for 40 years. This is a good example of looking superficially at some numbers and then kowtowing to proper social norms. After all, Dr Amburgey’s handy-dandy econometrics software was around in 1973, right?

None of what I am arguing denies that the US economy sucks today. I am not blaming this on the Obama administration (though it has certainly kicked us while down). Nor am I denying that there are real structural issues that need to be addressed. What I am arguing, and what I think Dr Delacroix is arguing, is that the numbers and the issues used by Leftist factions to push their beliefs through the political process are based on faulty assumptions and even faultier logic.

I am still waiting for Issues #1 and #3 to be addressed. Dr Amburgey actually has access as an author on this blog, so maybe Christmas will come early for me this year and I’ll be able to read one of his posts here at NOL.