University Graduation Rates are Too High

A proposal has surfaced to “punish” California state universities, including San Jose State where I teach, if they either (1) continue to raise tuition rates or (2) fail to raise their graduation rates. The punishment would take the form of reduced state support.

First of all, we taxpayers (including me; I’m a net tax payer) should rejoice at such “punishment” as it would lessen the burden on us. Taxpayers aside, how might the state universities respond to such punishment? On the fiscal side, they could recruit more out-of-state and foreign students who pay full freight. The UC campuses are already cutting admissions of in-state students in favor of out-of-state full payers – will UC eventually become UNC – University of Non-Californians? Furloughs are unlikely; they were tried once and didn’t work. They can’t cut salaries; there’s a faculty union. They’ll never cut out administrators. No, all bureaucracies, when forced to cut expenses, make cuts that are most painful to the public. Therefore, in addition to recruiting more full payers, they will cut classes.

What about graduation rates? They can’t raise admission standards because that would be “unfair” to racial minorities who are disproportionately ill-prepared for college work. They already have programs to try to coax students to study, with marginal results, and the obligatory special privileges for students with “learning disabilities.” It’s not clear what more could be done along those lines. No, I contend that the most humane policy for state universities would be to cut graduation rates. Here’s why.

It is indeed unfortunate that so many students, more than half at SJSU and other state universities, fail to graduate within six years. Those students have paid a big price in terms of money spent, debt incurred in many cases, and foregone income, with almost nothing to show for it. A bachelor’s degree from a state university, unless it’s in engineering, is worth little enough; two or three years of class work is worth nothing. Those who do make it all the way to the sheepskin gain a marginal advantage; their degree signals a certain amount of persistence. Their value to an employer remains uncertain; many, I fear, couldn’t be trusted with such simple tasks as reading with understanding, writing, doing simple calculations or, perish the thought, critical thinking.

All too many students who enter SJSU are ill-prepared and/or poorly motivated. Large numbers must take remedial math or English because they learned nothing in their public high schools. Many have little or no idea why they are there – some seem to view college as a way to delay their entry into responsible adulthood.

A good number surely have aptitudes for jobs that may require some specialized training, but not a college degree. I’m thinking of welders, hospitality workers (wait – you can get a B.A. in hospitality!), tile setters, carpenters, electricians, roofers, beauticians, nannies; the list goes on and on. What a tragedy that such students fall into the sinkhole (for them) that is a university campus.

Since admissions standards aren’t likely to be raised, the only humane thing to do is to get these students out the door as fast as possible. I expect to give a lot more D’s and F’s in my class this semester than I normally do, not because I’m pursuing any agenda but because they won’t have learned the material. Those students will be hurt, short term, but it’s the right thing for them, long term, especially if it hastens their exit from a university where they don’t belong.

The Absurdity of Security in an Age of Fledgling Liberty

I’ve been refraining from commenting on the Boston Marathon bombings because I feel like don’t yet have enough information. Dr Delacroix speculates here. Law professor and Russian immigrant Eugene Kontorovich has more on Chechens and Boston’s fall here.

I have found this piece by Clark over at Popehat to be the most illuminating yet. I can’t excerpt the good parts because the whole thing is really, really good.

Update: the Wall Street Journal has a great profile up on the Tsarnaev brothers.

Around the Web

  1. What the Arab papers are saying about Korea.
  2. Ron Paul launches the Institute for Peace and Prosperity.
  3. How did Obama  respond to his gun control defeat?
  4. Blaming Capitalism for Corporatism.

Is It Time to Reject African States?

That is essentially what a political scientist is arguing in a short piece in the New York Times:

Yet because these countries were recognized by the international community before they even really existed, because the gift of sovereignty was granted from outside rather than earned from within, it came without the benefit of popular accountability, or even a social contract between rulers and citizens.

Imperialists like Dr Delacroix and Nancy Pelosi don’t seem to care about the legitimacy of post-colonial states (largely, I suspect, because they thought they did a great job of creating the borders that they did). You never hear them make arguments like this. Instead, the imperial line is all about helping all of those poor people suffering under despotic rule by bombing their countries, just as you would expect a condescending paternalist to do.

Since tactical strikes and peacekeeping missions have utterly failed since the end of WW2, why not try a new tactic? Our political scientist elaborates:

The first and most urgent task is that the donor countries that keep these nations afloat should cease sheltering African elites from accountability. To do so, the international community must move swiftly to derecognize the worst-performing African states, forcing their rulers — for the very first time in their checkered histories — to search for support and legitimacy at home […]

African states that begin to provide their citizens with basic rights and services, that curb violence and that once again commit resources to development projects, would be rewarded with re-recognition by the international community.

Englebert (the political scientist) goes on use examples of democratization in Taiwan as an example of how delegitimizing states can lead to democratization.

Another interesting angle that Englebert brings in is that of Somaliland, a breakaway region of Somalia that has not been recognized by the international community and, perhaps as result of this brittle reception by the international community, it is flourishing economically and politically. You won’t hear imperialists point to Somaliland either. Instead, you’ll get some predictable snark about ‘anarchism‘ or African savagery from these paternalists.

Yet, it is obvious that Somaliland is neither anarchist nor savage, as there is a government in place that is actively trying to work with both Mogadishu and international actors on the one hand, and rational calculations made by all sorts of actors on the other hand. What we have in the Horn of Africa, and – I would argue – by extension elsewhere in the post-colonial world, is a crisis of legitimacy wrought by the brutal, oppressive hand of government.

Read the whole article.

Sobre genocidio, filosofía y diálogos

Pido-castigoDurante las últimas semanas, muchas de las discusiones intelectuales en Guatemala han girado en torno al juicio en contra del ex Presidente de facto, General Retirado del Ejército y ex Presidente del Congreso de Guatemala José Efraín Ríos Montt.  Ríos Montt enfrenta un juicio por los  delitos de genocidio y crímenes de lesa humanidad.  Este juicio y su resolución tendrá una relevancia de alto impacto en la lucha que realizan movimientos progresistas (conocidos también como liberales en EE.UU., liberales de izquierda, y/o como seguidores del social liberalismo) en la búsqueda por resolver conflictos históricos que armonicen el funcionamiento de un mercado regulado con una participación del Estado en la garantización de igualdad de  competencia y la corrección de desigualdades heredadas del período colonial y/o desigualdades que resultaron de la institucionalización política o social de prácticas racistas, clasistas, machistas, entre otras.

El juicio contra Ríos Montt, que podría convertirse en el “Juicio del siglo” de los intereses ideológicos progresistas latinoamericanos, tomó vuelo luego de que el 19 de marzo de 2013, una jueza guatemalteca abriese formalmente juicio contra el exdictador, acusándolo de genocidio contra miles indígenas durante su régimen de gobierno (1982-1983).  El genocidio es un delito internacional que comprende “cualquiera de los actos perpetrados con la intención de destruir, total o parcialmente, a un grupo nacional, étnico, racial o religioso como tal; estos actos comprenden la matanza de miembros del grupo, lesión grave a la integridad física o mental de los miembros del grupo, sometimiento intencional del grupo a condiciones de existencia que hayan de acarrear su destrucción física, total o parcial, medidas destinadas a impedir nacimientos en el seno del grupo, traslado por la fuerza de niños del grupo a otro grupo.” (via: Estatuto de Roma de la Corte Penal Internacional, 1998-2002 y la Convención para la Prevención y la Sanción del Delito de Genocidio de 1948).  La legislación guatemalteca incluye pena de prisión de 30 a 50 años para los culpables de estos delitos. Continue reading →

Moral Markets and Immoral “Capitalism”

The question, “Is capitalism moral?” was raised by Steven Pearlstein in a 15 March 2013 article in the Washington Post. He is a professor of public and international affairs at George Mason University and a column writer for the Washington Post.

Pearlstein writes that we in the US are engaged in a “historic debate over free-market capitalism.” Maybe so, but “free-market capitalism” is a contradiction in terms. There are two reasons why the economic system is called “capital”ism rather than “laborism” or “landism.” First is that capital dominates labor. The second reason to call the system “capitalism” is to hide the role of land, so that people focus only on the conflict between workers and capitalists. The chiefs of finance and real estate are able to dominate because of their political clout. They obtain privileges from government in subsidies, limits on competition, and periodic bail outs. In contrast, in a free market, there is no domination, with neither subsidies nor imposed costs.

Pearlstein then says that if “markets” were providing prosperity for most folks, there would be no need for governmental intervention. But we don’t have pure markets. We have a mixed economy, with intervention into markets, so one has to first analyze whether it is markets or else interventions that cause high inequality, instability, poverty, and unemployment. Since pure markets are not given an opportunity to work, how can they be responsible for economic woes?

He then asserts that for the past 30 years, the world has been moving towards a greater role for markets. That is so for China and the countries previously dominated by the USSR, and these economies have indeed experienced greater growth and prosperity.

But, contrary to Pearlstein’s assertion, the US has been moving away from a market economy. Frequent governmental crises – the fiscal cliff, budget deadlines, ever changing tax rates – threaten the stability of financial, industrial, and labor markets. The subsidies to real estate and its financial allies have never been greater. The domination of the Federal Reserve over money, banking, and interest rates has reached historic heights. The tax reforms of the 1980s have been reversed by Congress, which has made income taxes ever more complex. Costly regulations continue to pour out of Washington DC by the thousands each year. And now the government will dominate medical provision like never before.

The decline in the role of markets can be measured by an index of economic freedom. According to the Fraser Index of Economic Freedom, U.S. market freedom peaked out in the year 2000 at a rating of 8.5 out of 10, and then declined to 7.69 in 2010 as intervention grew. The US freedom ranking among countries dropped from third place in 2000 to 18th out of 144 in 2010, and most probably has continued sinking since then.

Critics of markets have asserted that stagnant household incomes and financial crises are the fault of a greater role for markets, when in fact, in the US and Europe, massive subsidies to real estate caused the recession, excessive government borrowing has caused the fiscal crises, and a governmental redistribution of wealth from workers to landowners has stagnated net wages.

I agree with Pearlstein that we should welcome the debate on economic morality. But we should use words that have real economic meaning, rather than propaganda terms. Any person who refers to “capitalism” other than with critical quotation marks contributes to the confusion. The critics of markets opportunistically use the term “free market” to refer to the mixed economy, and then use the term “capitalism” also for the concept of a pure free market. Hence they argue that “capitalism,” as the mixed economy, suffers from economic woes, and then jump to the false conclusion that “capitalism,” meaning the pure market, causes the problems.

A real debate should also unmask the role of land that hides under the label “capital”ism. Critics who speak of the “market’s” unequal distributions overlook the massive redistribution of income from workers to landowners, as taxes on wages pay for public goods that pump up rent and land values. Their call for higher taxes on the rich disregards the distinction between earned income from entrepreneurship and unearned income from governmental subsidies.

Pearlstein admits that “many of the arguments have been a bit flabby, with both sides taking refuge in easy moralizing.” That is true. An honest and robust debate should avoid the deceitful switching of meanings for “capitalism”, and indeed avoids using the flabby term altogether. Instead, use the clear and honest words “pure market,” “intervention,” and “mixed economy.” If we say that the mixed economy has economic woes, one cannot then conclude that the pure market has caused them, because the mix also includes intervention. Clear thinking about economic morality cannot begin until we have clear terms that reflect the full-spectrum of economic reality.

Around the Web

  1. Superior Mayan Engineering.
  2. Gary North: The Libertarian Taliban.
  3. How Much Does the Market Organization of Economic Life Matter?
  4. Margaret Thatcher’s Triumph.
  5. The Republic of Baseball.

Débat sur le menteur.

Mon essai “Un Menteur bien français” affiché sur ce blog le 9 Avril a aussi été affiché sur le blog-copain Notes On Liberty oùil a donné lieu à cette réponse indignée:

Je ne connais pas ce type, mais avant de taper sur les Français il conviendrait de ne pas oublier les tonnes de calomnies dégueulasses racontées par une certaine presse américaine ( un grand nombre !) contre la France après 2003 et l’Irak . Au point qu’aujourd’hui tous les Américains qui n’ont pas fait d’études les croient encore . En termes de proportions, mettre en parallèle les idoties de deux ou trois journalistes et le lynchage au rouleau compresseur lancé par Fox News et autres détritus n’est pas juste .

D’autre part les tabloïds n’existent pas en France . Tout ce que balancent le Sun et ses copains en Grande-Bretagne est bien plus énorme que ce que dit ce type de TV5 .

Alors oui la presse est un problème en France, mais c’en est un bien plus honteux chez les Anglophones .

S’il n’existait pas, il faudrait l’inventer! (Je jure que je n’ai rien fait de semblable. Pourtant, c’ était tentant.) Continue reading →

Un Menteur bien français

Les Français, les habitants de mon pays natal, ne sont pas assez soucieux de vérité. Ils ont tendance à raconter un peu n’importe quoi, à ne pas corriger les mensonges , et à occulter par omission leurs crime collectifs (tel que le massacre de manifestants Algériens pacifiques à Paris, le_____ )

Par ailleurs, il y a des Europeens pour qui l’anti-Américanisme sert de philosophie politique. Il n’est plus nécessaire de s’emmerder à étudier les difficiles textes sacrés du Marxisme comme au bon vieux temps. Le “bon vieux temps”, c’était quand il n’y avait guère que deux intellectuels français qui ne se déclaraient pas – d’une façon ou d’une autre – “Marxistes”. Aujourd’hui, il suffit de hair l’Amérique. C’est cool, même si on est obligé de l’exprimer dans la langue de l’enemi car les Russes, aussi bien que les Chinois -ainsi que les Albanais d’ailleurs – usent du même mot: “cool”. (Les Albanais sont les habitants de ce grand pays communiste qui avait déclarél’Union Soviétique, puis la Chine, “déviationistes” – pas assez Marxiste-Léniniste -dans les années soixante-dix!)

Je regarde souvent TV5. Il s’agit de la chaine internationale francophone. Il y a des informations internationales en Français cinq ou six fois par jour sur TV5. J’ignore le nom du présentateur principal des informations. C’est un homme (de visage européen) alors que la plupart de ses collègues sont des femmes. D’après sa diction et son accent, je suis 96% sur qu’il est français. Il a une quarantaine d’années ou un peu moins. Ce n’est pas un jeunot. Pourtant, il dit souvent des conneries, très souvent même. Parfois, c’est pire que des conneries parce-qu’il ne s’agit pas d’ignorance ordinaire mais de préjugés bêtes et méchants. Continue reading →

Has Foreign Affairs Been Reading NOL?

Hello all, I signed up for a pretty challenging final quarter here at school, so my postings will probably be scarce for the next two or three months. It seems Foreign Affairs, one of the more sober foreign policy journals out there, is finally starting to read us here at the consortium. I’ll get to that in a minute but first: editorial duties call!

  1. Be sure to read Dr. Delacroix’s Bush-worshiping piece for an example of how obstinate ignorance works. The very man who mocks smart, well-educated people for their acceptance of scientific consensus on global warming as ‘cultists‘ seems to believe that “there were very good reasons for any reasonable person to be misled about the existence of  [WMDs] in Iraq.” You have to admit, the man has a lot of brass!
  2. I still have to get to co-blogger Andrew Roth’s recent comment chastising conservatives and libertarians for failing to recognize the many nuances associated with Bismark’s statecraft and Roosevelt’s New Deal.
  3. We’ve got a couple new writers who will be blogging here at the consortium. One is an economics major at UC Merced and the other is a Guatemalan national doing graduate studies in Denmark, so stay tuned!

Political scientists Roland Benedikter and Lucas Kaelin have a fascinating piece in Foreign Affairs focusing on the one bright spot in Europe these days: Switzerland. Libertarians who have read the political and legal works of Friedrich Hayek, Ludwig von Mises and James Buchanan will recognize the gist of the arguments right away. To summarize: small, democratic states are the best form of government available to man, given our vast shortcomings, and these small states are, in turn, much better off operating within vast free trade zones that do not hinder the small-scale democracy at work in these states. From the piece: Continue reading →

Bush’s War

“Since March 1996, Iraq has  systematically sought to deny weapons inspectors from the United Nations Special on Iraq Commission (UNSCOM) access to key facilities and documents, has on several occasions endangered the safe operation of UNSCOM helicopters transporting UNSCOM personnel in Iraq, and has persisted in a pattern of deception and concealment  regarding the history of its weapons of mass destruction programs […]

On August 14 — the President signed Public Law 105-235, which declared that “the  Government of Iraq  is in material and unacceptable breach  of its international obligations” and urged the President to take appropriate action, in accordance with the Constitution and relevant laws of the United States, to bring Iraq into compliance with its international obligation […]

It should be he policy of the United States to support efforts to remove the regime headed by Saddam Hussein from power in Iraq and to promote the emergence of  a democratic government to replace that regime.”

The first paragraph is from the Iraq Liberation Act of ___  .

The second and third paragraphs are from  Public-Law 105-235.

The president who signed both items was ___________?

This is lifted from the Wall Street Journal of 3/19/13. The bolding is mine.

Both pieces of legislation were enacted in 1998.

The primary reason given by the Bush administration for the attack on Hussein’s Iraq was to search there for weapons of mass destruction. We now know there were no such weapons on any significant scale. I keep arguing on this blog that:

  1. There were many other reasons to destroy the Hussein regime and,
  2. There were very good reasons for any reasonable person to be misled about the existence of such weapons in Iraq.

Mostly, it was that the Hussein regime sabotaged the inspection process to which it had agreed as a condition of peace following the first Gulf War. It would be hard to understand the high risks taken to hide things by one who had in fact nothing to hide! (Read this sentence again.)

The important persons and organization who were fooled into believing in the existence of the non-existent Iraqi weapons of mass destruction were numerous and varied. They included several western intelligence services and many important politicians.

In 1998, a prominent member of one of the two main American political parties (prominent then and prominent now) said the following,

“Saddam Hussein has been engaged in the development of weapons of mass destruction technology which is a threat to countries in the region and he has made a mockery of the weapons inspection process.”

I am not faulting the politician who said this for blindness then but for irresponsible, dishonest amnesia now.

The politician in question is __________________________

(Answer below as a “Comment.”)

The quote is lifted from the Wall Street Journal editorial on 3/20/13.

Around the Web

  1. Gay Marriage and the Libertarian’s Dilemma.
  2. Why are the French Drinking less Wine?
  3. NPR reports on private efforts to bring bison population levels up in Germany. Nobody should be a stranger to the argument that private property is the best option for ecological conservation and management by now. Alas…
  4. The Libertarian Case for Affirmative Action.
  5. From Democracy to Anarcho-Capitalism.

Cyprus, the EU and Competing Currencies

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

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

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

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

More on Chinese Culture

The plight of migrant workers (and hints of Chinese nationalism):

If there’s one takeaway lesson from all the migrant worker stories in the news, it’s that they are quite often treated like crap. Nothing has hitherto expressed this more bluntly than one Wuhan toilet.

“Migrant workers prohibited from entering. Offenders fined 200 yuan,” reads the toilet’s bare concrete slab façade in bright red letters.

[…] Snoot city dwellers may love to hate on those lowly migrant workers who clean their streets, prepare their foods, and build their city, but unfortunately institutional discrimination in China does not end there. Foreigners (and dogs) are now at risk of being barred from certain establishments.

Read the rest of the blurb (from Shanghaiist). Readers may recall my most recent musing on culture and nationalism in China. There is more from our blog, on China, here.

The Revolution That Was Naught

One of the most dangerous causes that conservatives and Leftists alike have aligned themselves with over the past few decades has been that of democracy-promotion abroad. They all fail – usually out of omnipotence – to understand that representative democracy is a byproduct of  a private property rights regime, much like everything that is good in this world.

In Egypt, the newly elected Islamist president has been clamping down hard on opposition movements, an obvious barrier to the democracy that many occupiers of Tahrir Square had called for. The latest target is Egypt’s version of Jon Stewart. I made a bet with Dr. Delacroix in October of 2011 concerning the Arab Spring. I wrote:

Time will tell, of course, which one of our predictions comes true. In two years time, Tunisia, which did not get any help from the West, will be a functioning democracy with a ruling coalition of moderate Islamists in power.

The Egyptian military will be promising the public that elections are just around the corner, and Libya will be in worse shape than it is today. Two years from today, Dr. J, you will be issuing an apology to me and making a donation to the charity of my choice.

Since you are very good at avoiding the facts on the ground in the name of democratic progress, I think we should establish a measurement rubric by which to measure the progress of Libya. How about GDP (PPP) per capita as measured by the IMF?

He declined to accept my challenge. As of today, I have only been wrong about the Egyptian military, but with Morsi (a former engineering professor at Cal State-Northridge) turning the screws on non-Islamist opposition as fiercely as he has, I wonder how much longer the secular military will tolerate his already shaky rule.

Liberty is the mother of democracy, not vice-versa. Hawks like Dr. Delacroix and Nancy Pelosi would do well to remember this (but they won’t; they believe themselves to be omnipotent).