“If you work for peace, stop paying for war”

The most omnipresent slogan of libertarianism in the digital age is the one that argues, or maybe just declares, taxation is A, theft is B, and A is B. Everyone has a gut feeling about being stolen from or coerced into losing his or her property, and so whether it’s extortion or theft anyone is apt to understand what “taxation is theft” means on a primitive level.

Even if anyone can understand what it means, it seems there’s little agreement about what it encourages — since, “the government’s up to no good again” doesn’t really have a telos behind it and pitching a preferred state of arrangements is useless without appropriate connected action.

I was thinking about this, and ran into a short essay by Gina Lunori that looks to answer the question, with the same frustration.

I heard someone praise a conscientious objector who refused
to fight in Iraq, and I asked him if he was still paying taxes. He told
me that the government hadn’t created a “conscientious objector”
category for taxpayers, so he was sorry to say he wasn’t able to
stop paying. As if you only have a conscience when the
government issues you a permit for one!

I told him I know people who’ve stopped paying their taxes
without waiting for permission, just by lowering their income and
living below the tax threshold. He told me that he wasn’t prepared
to make that kind of sacrifice. If I had a pocket calculator I could
have told you the maximum price of his conscience. If I had a
quality postal scale I probably still couldn’t discern its weight.

Like Walter Mitty these armchair peaceniks burn their draft
cards in their daydreams, meanwhile the people who serve in the
military in their place are equipped, and shipped, and paid for by Walter Mitty’s tax dollar.

The biggest obstacles to change aren’t the few who are
abusing the government, but the many who are submitting to it and
facilitating the abuse.

A government that loved liberty would be trying at every
opportunity to expand and protect that liberty. Our government
tries everything it can to evade the few protections that have
survived since its founding. Look at how shamelessly it has
whisked people off to Cuba — Cuba! — in order to sweep them out
from under the protection of the Constitution.

A person who loves liberty would not shovel coal into a
tyrant’s engine just to earn a higher salary. Why does a person in
the United States who claims to love freedom, and who is
intelligent enough to understand that the government is freedom’s
enemy, still feel that it’s worthy of respect to be a taxpayer, and the
more salary — and therefore the more taxes — the more respect?
If you love liberty, if you hate war, you should at once withdraw
your support from the government. Withdrawing your moral
support isn’t enough — it’s your practical support that the
government feeds on — it doesn’t give a damn what your opinions
are.

This is something you must do because you know the
difference between right and wrong and you know, when you look
the facts straight in the face, that when you willingly give practical
support to the government you participate in its wrongs. But this is
more than a matter of personal integrity.

Imagine the power of this statement. What if every person
who felt that the government had lost their moral support also
withdrew their practical support? What if only one in ten did? It
would be the beginning of the end. It would be that nonviolent
revolution we’re praying for.

Maybe the best tests of intellectual integrity are consistency and hypocrisy. How do the people that swear off voting as aggression feel about funneling taxed income to the government to enable its aggression? How do the people that mantra “taxation is theft” feel about surrendering their goods, each and every year, in a way they would never, ever tolerate from a burglar?

Where are our manners?

“Manners Makyth Man.” William of Wykeham said that back in a distant past when the letter “y” was at peak popularity. I thought of that quote today as I read about the shrill outrage over Karen Pence’s unremarkable job at a Christian school. There’s a great speech expounding on William of Wykeham’s quote, delivered about a century ago by Lord John Fletcher Moulton in London. He entitled his speech, “Law and Manners,” and its message could really use another go around.

Lord Moulton’s speech begins by dividing human action into three domains: the domain of positive law, the domain of absolute choice, and the domain of what he calls “manners.” This last domain is his essential topic, which he defines as “obedience to the unenforceable.”

Manners, by which he means something akin to duty or morality but encompassing more than both, are sandwiched between the worlds of positive law and absolute choice. This realm of manners is where we may act as we choose but we nonetheless face constraints that are outside the force of law. His basic premise is that the larger the middle domain, the healthier the society. He says, “The true test is the extent to which individuals composing the nation can be trusted to obey self-imposed law.” Encroachment from the realms of positive law and absolute choice pose a danger.

Lord Moulton does not suggest that the two outer domains are bad. They are vital. But if either expands too far into the middle, trouble awaits. If positive law expands too far, it stifles the freedom necessary for a flourishing society. On the other hand, if people feel completely unrestrained in their exercise of freedom, civil society begins to sag, and the danger that positive law will sweep in to pick up a perceived slack increases. As one religious leader put it, “We would not accept the yoke of Christ; so now we must tremble at the yoke of Caesar.”

Given these threats to the middle domain, Lord Moulton feared that “the worst tyranny will be found in democracies.” Minority interests will get chewed up by the voracious appetite of a positive law driven by a majority.  The representatives of the majority “think that the power and the will to legislate amount to a justification for that legislation. Such a principle would be death to liberty. No part of our life would be secure from interference from without. If I were asked to define tyranny, I would say it was yielding to the lust of governing.”

The maintenance of the middle domain depends on growth of a robust civil society sheltered from majority dominance. Religion, culture, tradition, diasporas—communities independent of the state must exist with some genuine autonomy for the middle domain to survive and thrive.

And this brings me back to Karen Pence working at a Christian school that (trigger outrage) requires students and teachers to abide by traditional Christian values. Whether or not those values are correct or not is not at all the point. Those eager to slap down a law at the first hint of a disagreement need to understand that tolerance for even genuinely illiberal viewpoints is essential to the success of liberal democracy. Organizations must have some power to define themselves apart from the prerogatives of the state to establish a framework for obedience to the unenforceable. As the Supreme Court put it, people must have space to organize communities separate from state interference that can serve as competing purveyors of norms. Such groups provide an essential “counterweight . . . to the State’s impulse to hegemony.” Thus, organizations that can establish their own norms apart form majority interference prevent the encroachment of positive law into the middle domain.

I worry that we are seeing simultaneous encroachment from both the realms of positive law and absolute choice. People outraged at Karen Pence’s new job feel convinced that the positive law should thrust its tentacles into group dynamics, thereby swallowing civil society into an all-pervading state orthodoxy. On the other hand, a sneering sense of moral relativity that frowns upon any attempt to speak up for solid norms encroaches from the other end—the perversion of tolerance that believes in no genuine moral structure outside what the law “makyth.” The letter “Y” may be a consonant and a vowel, but that doesn’t mean we can live without unenforced rules. Lord Moulton warned us about this. It’s time we mind our manners.

A humorous aside, out of context

<Scene: A wood-paneled study where a smartly-dressed person sits reading aloud from an oversized King James Bible.>
“Isaiah 9:7 – Of the increase of government … there shall be no end… .”

<Our hero pauses, turns to the camera and deadpans.>
“You got that right, brother!”

<Exeunt>

Libertarianism and the shutdown

Yesterday, Paul Krugman published a deceptive, sloppy, and self-contradictory opinion article in the New York Times entitled “Trump’s Big Libertarian Experiment.” The premise: the shutdown delivers what all libertarians want, and the shutdown (this is strongly implied) demonstrates just how silly libertarians are.

This is nonsense. First off, Trump is decidedly not a libertarian. Second, government shutdowns have occurred for decades–are all of these “libertarian” experiments? Finally, no libertarians that I’m aware of have ever favored mercurial spending freezes that sweep the rug out from under people who’ve come to rely on government programs. Principled reform is a bit different from abrupt financial lurches.

The disruption and harm caused by sudden spending jolts have no bearing on whether a libertarian society could work or not. Krugman points out that businesspeople are already enraged that the Small Business Administration has ceased issuing loans, an organization that many libertarians have claimed is unnecessary. Of course they’re angry–they expected something that suddenly has ceased. That has absolutely nothing to do with whether the SBA is necessary; it just demonstrates that people get ticked off when their expectations are suddenly dashed. The shutdown proves nothing about whether the private market could ultimately supply any benefits offered by the SBA.

He also says that work at the FDA has dwindled. Routine inspections have ceased. He has zero evidence that this has caused even an iota of harm to anyone, but the implication is clear: we’ll all be confined to the toilets soon as E. coli swamps the country. He marshals no evidence to confront whether state regulators can adequately fill this role, or whether tort law and market forces can suffice.

Libertarians envision a society in which many roles currently served by government can find contractual and common-law counterparts (or not, if it turns out no one wants the service). Libertarians certainly don’t believe in blasting holes in long-standing social structures without warning, without forethought, or without transition.

Ironically, to the extent we do confront Krugman’s silly claims, it appears that the shutdown’s impact has been minimal despite huge numbers of furloughed employees. The New York Times, aside from Krugman’s disposable rhetoric, also published a comparison of the number of furloughed employees (800,000 by their estimation) to private industries. The number of furloughed employees, for example, exceeds twice the number of people employed by Target. I don’t think this tells us what the New York Times thinks it tells us. These stats beg the question as to whether these positions are necessary at all. That said, any negative impact from the shutdown that actually does exist–aside from the furloughed workers losing money–should be attributed to social and economic disruption resulting from spending turbulence, not to the actual necessity of the government programs affected.

Why Christmas materialism is awesome

It has always struck me as odd that capitalism’s usual defenders abandon it when commercialism seems to be on its best behavior. Every year, we religionists love to rail against Christmas materialism. What a terrible curse–people in the marketplace thinking of others’ interests and needs for once.  All the efficiency of the market PLUS good will toward men–why are we complaining, again?

Yet we do. Without fail, twitter feeds and chapel lecterns ring with invectives against Christmas commercialism. The warning voice, though, never seems to strike with precision. The concern seems to be that a focus on stuff gives rise to an idolatrous dethroning of deity.  This religious criticism appears to mimic the secular and progressive criticism that commerce somehow defiles us and strips us of virtues like compassion or solidarity.

I don’t buy either of these criticisms, largely for the same reasons: commerce brings people together, builds trust, and fosters goodwill. These benefits are in addition to the efficiencies that market advocates typically emphasize. And these three aspects of commercial exchange are in special abundance during Christmas.

Perhaps the materialism complaint stumbles at the outset by focusing on the largely mythical human calculator that predominates in economic theory–the man focused only on maximization of personal utility. That portraiture does not explain the fact that so much commerce occurs on behalf of someone else–a reality underscored and amplified during holiday shopping. Thus, Christmas supports Amartya Sen’s critique of the rational-man theory: “The purely economic man is indeed close to being a social moron.” He’s the one who gives you lotion samples and leftover hotel shampoo in your stocking. But most of us don’t do that. Instead, the market provides a forum for us to express and cultivate virtue. As Deirdre McCloskey says, “In other words, it’s not the case that market capitalism requires or generates loveless people. More like the contrary. Markets and even the much-maligned corporation encourage friendships wider and deeper than the atomism of a full-blown socialist regime.” I think a simple test proves this point. If you walk about a shopping mall during the Christmas holiday (setting aside for a moment your inner misanthrope), how are people behaving? By and large, there is an overpowering sense of goodwill among people engaged in (shudder) holiday materialism. I’d say this is mostly true at any time of year, but we may as well notice this phenomenon when it stands at its apex.

Beyond just the goodwill generated by the act of commerce, the materialism critique seems to ignore the very purpose of the materialistic behavior being condemned. Shouldn’t we celebrate this key example of how commercialism can enhance friendship through gift-giving? If you’re a religious capitalist, what is there not to like here?

A friend pointed out recently that Christmas giving seems fruitless, since the value-for-value gift exchanges offset each other. He concluded we may as well just keep our money. From an efficiency standpoint, it does seem strange to engage in a transaction cost without any expectation that you’ll achieve a pareto-efficient state of affairs. Samuelsonian economics alone can’t really explain why people engage in this ritual. That’s probably because the ritual is not purely economic. It’s about connection, relationship, and opportunity to think beyond ourselves. In other words, at bottom, it really is not about materialism in the shallow, desiccated sense that these Christmas puritans rail against. Commerce can be about compassion and camaraderie–not just self-interested calculation (though there’s nothing wrong with that either).

I don’t think the Babe of Bethlehem would disagree. After all, Jesus, while no aristocrat, was not a severe ascetic by any means–somewhat of a contrast to his cousin, John the Baptist. Perhaps the most poignant example of his view toward extravagant gift-giving occurs when a woman anoints him with an extremely valuable ointment. His disciples complained of the waste, griping that the ointment should’ve been sold and the proceeds given to the poor. Jesus defended her: “Let her alone; why trouble ye her? She hath wrought a good work on me.” In other words, a materialistic act can still be a virtuous one. In fact, I’d go as far as to say that the vast majority of them are. We need, after all, an earthly vehicle by which to exercise heavenly virtue. The market is well-suited for that role. God can be in a market–he’s that good.

Of course, a post about Christmas and materialism must make obligatory mention of Ebenezer Scrooge. Dickens was no fan of capitalism, but his reformed villain ironically proves a point about Christmas materialism: it’s the lack of virtue in the individual operating in the market, not the market itself, that desiccates the soul. So perhaps I can end with a simple “Scrooge” test: is Scrooge the guy standing back and pointing the finger, or is Scrooge the person that the finger aims at–the mom who braves the crowded mall to plop her kids on Santa’s lap and wraps gifts until 3:00 AM in the morning?

Eroding norms and political transformation: A new chance for liberty?

The Hammelsprung

Usually, the debates in Germany’s highest political body – The Bundestag – right before Christmas are not that exciting for the public. Parliamentarians are exhausted from long nights and intense discussions from the past weeks. But on Friday the 14th December, the last scheduled plenary session this year, something remarkable happened in the Bundestag, symbolically standing for the erosion of political norms, which democracies experience for a few years. The topics this day were not too fascinating – they discussed how to make the country more appealing to top-level researchers and if fixed book prices should be abolished. Not trifling, but nothing too crucial either.

But around noon the right-wing party AfD decided to initiate a Hammelsprung. The Hammelsprung is a control mechanism to ensure two crucial things.

First, it can be used to achieve absolute clearness of a voting result. Since the counting of votes mostly takes place via counting hands, a Hammelsprung can help to bring about a final decision in close polls. The process is relatively old-fashioned and quite funny in my opinion: The parliamentarians have to get out of the plenary hall first and then reenter through doors labeled “Yes,” “No,” and “Abstention” while an official counts these votes loudly.

Second, it is a tool to assure that crucial decisions of the parliament are made by a majority of the parliamentarians. If a parliamentary group has doubts that more than half of the parliament’s members are present to an assembly, it can propose a Hammelsprung to determine the exact amount of parliamentarians present. If there are less than half of the parliamentarians present, the parliament does not have a quorum and thus the parliamentary session gets canceled.

How the parliament works

At this point, it is important to mention that the German parliament is a working parliament rather than a debating one (such as the British house of commons). Hence, most of the parliamentary work takes place in exclusive committees. These committees consist of members from each party and are all dedicated to certain political topics such as defense policy, health policy and so on and so forth. Parties look for alliances to back up their policy proposals within these committees. Thus, the majority ratios regarding political proposals are played out not in the big parliamentary debates, but in rather small expert working groups. So one can expect that what gets resolved within a committee, gets resolved in the parliament as well.

These committees meet simultaneously to the parliamentary debates. On top, a parliamentarian has to inform himself, manage his team, be present in his election district and many more things. So it is impossible for him to be present in every parliamentary session. So over the years the norm established, that not every member of parliament need to be physically present during the parliamentary session, but only the experts in the certain relevant subject. During their election campaign, the AfD aggressively attacked this particular norm by labeling parliamentarians of established parties as “lazy” and “self-indulgent”, referring to the many empty seats during parliamentary debates.

A battle against norms and the establishment

The AfD used the Hammelsprung on Friday the 14th December in the second meaning mentioned above: To enforce a cancellation of the parliamentary session regarding the acquisition of top-level researchers. This was not a topic related move to ensure the necessary quota, it was rather yet another milestone in the ongoing battle against existing norms. We can say this for certain because AfD didn’t even re-enter the hall: they purposely stayed outside in order to enforce a cancellation of the session. Alexander Gauland, the party whip of the AfD, explained that they wanted to show that the AfD wants to give the government a “hard time” and added: “He that will not hear must feel.” This can be seen as an act of revenge against the parliament because the AfD’s candidate for the vice presidency of the Bundestag failed to get elected a second time in a row. Contrary to their expectations, enough parliamentarians somehow made their way quickly enough into the parliament to reach the quota necessary to proceed with the debate.

How norms foster social cohesion

But the danger remains: There are several tools populist parties (right or left wing) can use to impede effective governing within a perfectly legal framework. This development is not at all a specifically German one. Steven Levitsky and Daniel Ziblatt provide an in-depth description of the erosion of norms in the American political system in their book How Democracies Die. According to their theory, functioning democracies do not only rely on a thought-out constitution and functioning political organs but also on shared norms. The most important norms for Ziblatt & Levitsky are mutual tolerance and forbearance.

Mutual tolerance describes the recognition of the political enemy as an opposed actor instead as an existential threat to the country. Contrary, forbearance means to restrain the urge of using every legal means to achieve a political end.

It is certainly not too difficult to quantify the erosion of these two norms in America, specifically when one pays closer attention to the skyrocketing amount of “filibustering” in the Congress or, as seen recently, to the increasing times of governmental shutdowns caused by a lack of agreement between Republicans and Democrats over the federal budget. We can see the effects of this abandonment of norms on a daily basis: The more hostile political environment, the lack of respect for other political opinions, the increasing difficulties for finding a compromise between parties. The political opposition is on the verge of drifting away from constructive criticism towards impeding the government in every possible way.

A liberal response?

In my opinion, there are two ways to react to this threat.

First, we could change the rules of the game and narrow the legal framework for processes which can be used to impede effective governing such as filibustering and the Hammelsprung. I do not think that this is the right way to counteract populist parties (or tendencies more generally). These processes exist for a good reason. But they hinge on the observance of forbearance. There was no extensive problem of filibustering in the Roosevelt, Truman, or Wilson administrations, although their policies were also quite controversial. The problem is not the rules themselves, but the lack of shared norms for a solid foundation to put them to good use. Furthermore, changing the rules would only foster the thought that a perfect constitution is somehow reachable. And here I see the danger, that we might jeopardize the status of the law as a neutral guardrail for society and it instead becomes an arbitrary mean to achieve political ends, as Frederic Bastiat describes in his work The Law.

The second option is to adjust our own behavior to the changing circumstances brought by the new populist players one the pitch. Therefore the established political actors need to carefully reevaluate the importance of certain norms and if necessary transform them. Of course, this is not as easy as said: It presupposes a willingness to cooperate among established actors (which is nothing to take for granted in today’s times) as well as a vigilant public, which backs up those norms. Additionally, norms do not emerge from scratch. They are rather the result of a slow change in the mutual understanding of social human interaction.

What the future will bring

The AfD already has announced that they want to continue to use every legal (and in some cases illegal) way to make it harder to govern the country, which is their way to battle the establishment. Whereas the established parties tried various strategies to cope with this right-wing populist party ranging from ignoring to direct confrontation. Still, nobody knows exactly how to deal with these new political circumstances. But what is for certain is the political landscape is further going to change; and thus also politicians and parties will need new strategies, structures, and norms.

Although this development is mostly seen as the road to a gloomy and authoritarian future, I believe (or at least I hope) that democratic parties will find new ways to counter right and left wing populist proposals. Instead of trying to engineer our legal framework to preclude populist from polls, politicians should focus on giving scope for spontaneous order and new alliances. This process is incredibly exciting to me. As Steve Davies describes it, we are currently witnessing a “great realignment” of party structures in Europe. And where old structures break up, there is room for new ones. European liberal party leaders (carried by the Axis of Linder – Rutte – Macron) are still looking for their place in this new power vacuum. Nobody can predict where this development will lead us. That is why we must proceed to fight for our liberty: inside and outside of political party structures.

Merry Liberty Christmas!

Christmas, as I hope everybody (at least in the West) still knows is Jesus’ birthday. I don’t want to spend too much time here talking about how it is very unlikely that Jesus was born on December 25, and how this date was probably just chosen at some point in the late Ancient times/Early Medieval times to Christianize European pagans. The Bible never specifies when Jesus was born (although it does offer some hints), and so, some very devout Christians over history (Puritans, for example) thought that we should not even celebrate Christmas. The gospel according to John doesn’t even talk about Jesus’ birth. In it, Jesus simply appears as a grown man. The same thing happens in Mark’s gospel. Matthew and Luke give accounts of Jesus’ birth, with Luke being more detailed. So, ½ of our gospels don’t seem to be very interested in Jesus’ life before he was about 30 years old. Someone has said (and I think somewhat appropriately) that the gospels are accounts of Jesus passion (his death and resurrection) with long introductions.

But anyways! I don’t think that celebrating Christmas is bad, not at all! I believe it is a good occasion to remember Jesus, the founder of Western civilization. May we like it or not, the West is profoundly linked to Christianity. Christianism begin as little more than a small and persecuted Jewish sect, but eventually became the main religion in Europe (and northern Africa, and the Near East), and from there to the World. Some might say (and I think that sadly they might be right) that today Europe lives in a post-Christian era, but we should not forget that someday in the past to be European and to be Christian were basically synonyms. And I also believe that we, professing Christians or not, should be thankful to Christianity in a number of ways. I am very convinced that it was thanks to Christianity, especially after the Reformation, that we have many of the things that we, as liberty-lovers, are thankful for, such as science, capitalism and lots of individual liberty.

Of course, from the human perspective, the link between Christianism and West is merely accidental. I myself, as a Brazilian, am not sure if I classify as a Westerner. Maybe I am from the far West? It is very clear that for many decades now Christianism is moving to the global south: Latin America, Africa, Asia, and I hope not to be forgetting anyone. And I think that is just beautiful! I don’t believe that there is one essential Christian culture. Instead, I believe that culture is an essential human phenomenon and that Christianism can give a new birth to cultures, just as it does to individuals, bringing forward what they have best and leaving behind the bad stuff.

Sadly, the very places where Christianism is growing the most today are usually also the places where Christians suffer more persecution. Although we tend to connect the first few centuries of Christianism with martyrdom, with people being crucified, thrown to the beasts and the like, the fact is that the 20th century had more martyrs than any other century before. It is also sad for me that most people, including Christians and liberty-lovers, tend to ignore this. In the last few weeks, I heard of at least two churches being closed in China, with all members being taken to jail. I wish that people who care about freedom paid more attention to this. I also wish that people who care about Human Rights did the same. Some people are worried about gay couples not getting wedding cakes from Christian bakers, but they don’t seem to have the same concern about Chinese Christians being thrown in jail just because they are Christians.

Speaking of which, I want to be very honest and say that Marxism (or post-Marxism, or cultural Marxism) can easily become a religion. Marx is a prophet, The Capital is a holy book, the proletariat (or any oppressed minority, for the modern left) is both Messiah and holy people, a future communist utopia is Heaven. I believe that it was a Catholic apologist who said that “the problem with not believing in God is that we start to believe in any dumb thing – including in ourselves”. The problem with Marxism as a religion is the same problem I see with every other religion apart from Biblical Christianity: it is performance driven. It is about what you do. And as so, it can create a slippery slope in your heart. You become self-righteous and judgmental (in a bad way) of people outside your faith-group or even people inside your faith-group who you consider not holy enough. Of course, Christians are not exempt from this either, but I believe we have the right medicine for this.

As much as I believe that the New Left is one of the greatest problems in the West today and that several forms of totalitarianism are one of the main problems elsewhere, I don’t believe that libertarianism or conservatism are in themselves the solution. I became a libertarian (or a conservative-libertarian) because I am first a Christian. My first question was “what the Bible has to say about politics and economics”? I believe that somewhere in the libertarian camp we have the best answer for that. I believe the Bible teaches that very small and simple governments and market freedom are the answer. However, I would say that this is just partly the answer.

The way that I see it, the conflict between the left and the right is very much a conflict between Rousseau and Locke, or a conflict between two kinds of freedom. For Rousseau, you are only free when you are your true inner self. If necessary, the community can make an intervention to force you to become who you truly are. For Locke, you are free when you can make your own choices, regardless if they look good for others. As libertarians like to say, a crime without a victim is not a crime.

I believe this is also a basic conflict between modern western culture and more tradition culture – the conflict between collectivism and individualism. My answer as a Christian (and a libertarian) is that we should not force people to be Christians. That would, at best, produce external conformity – which is actually really bad. My understanding is that, as long as they are not predictably and willfully hurting others, people should be let free to do whatever they want. And I do mean whatever. On the other hand, I don’t think that this is good – or as good as it can be. Ironically, I believe that Rousseau is onto something important: you are only truly free when you are who you are really supposed to be.

One great irony or paradox in Christianism is that you are only truly free when you are a slave to God. Understanding 1st-century slavery helps to get the analogy better. God bought us for a price. We belong to him. However, God is not satisfied with having us as slaves. Instead, he adopts us as sons. That is the (I believe) famous parable of the prodigal son: a son abandons his father and loses all his money. He comes back hoping to become a slave in his father’s house. His father takes him back as a son. So, Jesus gives us a new identity as sons of God. And I do mean sons, and not sons and daughters or children. In the 1st century daughters had no inheritance, but in Christ, we all share of it. So that is our true identity if we walk after Christ. And that is when we are truly free.

I don’t want to force anybody to be Christian. I believe that one of the greatest mistakes in Christian history was exactly that: to force people to become Christian. As I said, religion can easily create a slippery slope in the heart, and Christianism is not necessarily an exception. But while other religions are about what we do, Christianism in its essence has at least the potential to be what has been done for us. And that is truly humbling. And I believe this has important political implications: we pray for all. We hope for the best. We trust in God. We respect others.

So Merry Christmas to all! I hope that this is a time for remembering the birthday boy, and what he did, especially on the cross. And that we can all work for a world freer, where people can become Christians – if they choose so.

Where will NoL notewriters be in 2019?

With a new year comes two certainties: (1) reviewer #2 will continue to stop our articles from being published and (2) we have to attend academic conferences.

Which conferences will NoL notewriters attend this upcoming year? I plan to attend MPSA, WPSA and APSA.

Timothy C. May, crypto-anarchist hero (1951 – December 15, 2018)

Tim May
Timothy C. May

News has arrived that Timothy May, the founder of the crypto-anarchist movement has died on December 15th, 2018. He has been a hero and inspiration for many in the crypto-anarchist/anarcho-capitalist community for his ideas to spread freedom and privacy through the use of cryptography.

Once an Intel senior engineer, he has written extensively about privacy, cryptography, and internet freedom. Without a doubt, he has been a great influence on the likes of John Perry Barlow (declaration of independence for cyberspace), Nick Szabo (smart contracts and Bitgold), Wei Dai (B-money), and Satoshi Nakamoto – the inventor of Bitcoin and blockchain. He has also contributed extensively to the Cypherpunks electronic mailing list, the same list that Satoshi initially used to spread his Bitcoin whitepaper and to invite cryptographers to join further developments of Bitcoin.

In his Crypto Anarchy and Virtual Communities (1994) paper, May describes Crypto anarchy as

the cyberspatial realization of anarcho-capitalism, transcending national boundaries and freeing individuals to make the economic arrangements they wish to make consensually.

He furthermore writes that

Digital cash, untraceable and anonymous (like real cash), is also coming, though various technical and practical hurdles remain. “Swiss banks in cyberspace” will make economic transactions much more liquid and much less subject to local rules and regulations.

Acknowledging the possible negative sides of crypto anarchism, May sees the development of crypto anarchism as mostly good. He believes that criminal activity within a crypto anarchist community are mostly exceptions and not the rule. He writes,

Is this a Good Thing? Mostly yes. Crypto anarchy has some messy aspects, of this there can be little doubt. From relatively unimportant things like price-fixing and insider trading to more serious things like economic espionage, the undermining of corporate knowledge ownership, to extremely dark things like anonymous markets for killings.

But let’s not forget that nation-states have, under the guise of protecting us from others, killed more than 100 million people in this century alone. Mao, Stalin, Hitler, and Pol Pot, just to name the most extreme examples. It is hard to imagine any level of digital contract killings ever coming close to nationstate barbarism.

Few mainstream news outlets today will write about Timothy May’s death and impact on our world, but for us who aspire to uphold Bitcoin’s initial principle to make (financial) freedom and privacy absolute, he will always be remembered for his inspiring contributions to secure our rights to life, liberty, and property.

Jair Bolsonaro, Maria do Rosário, and the Champinha case

Over a decade ago, in November 2003, Liana Friedenbach, 16 years old (a minor in Brazil law), and Felipe Silva Caffé, 19 years old, were camping in an abandoned farm close to São Paulo.

While they were camping, the couple was found by a group led by Roberto Aparecido Alves Cardoso, aka “Champinha”. Initially, Champinha and his group wanted to steal from the couple. Realizing that they had little to no money, they changed their minds and decided to kidnap Liana and Felipe.

In the first day of captivity, one member of the gang raped Liana. Felipe was killed on the next day with a shot in the back of his head. Liana heard the shot, but the group lied to her saying that her boyfriend was set free. Liana was then raped by other members of the group led by Champinha.

The group never contacted the families asking for a ransom. On the third day, Liana’s family, worried about the lack of contact, called the police, which found the place where the couple was camping, with some of their belongings. Noticing that the police was closing in, Champinha killed Liana with knife strokes.

Champinha, the leader of the group who kidnapped, raped, and murdered Liana, was underage when the crimes happened, and because of that could not be sent to prison. Instead, he was interned in a correction institution.

The crime shocked Brazil. It was answering this crime that Jair Bolsonaro, at the time a congressman, was clamoring for a change in Brazilian law, allowing criminals like Champinha to be prosecuted. Maria do Rosário, a congresswoman from PT, the party of former president and today prisoner Lula da Silva, was opposing Bolsonaro. During their debate, Maria do Rosário called Bolsonaro a raper. Bolsonaro answered “I am a raper? Look, I would not rape you because you don’t deserve it”. Later Bolsonaro explained that he intended to insult Maria do Rosário by saying “even if I was a raper, as you say, I would not rape you because you are too abominable, even for that”.

So that’s it. I hope this helps non-Portuguese speakers who can read English to understand a polemic phrase attributed to Bolsonaro. And I also hope that Brazilian law is changed someday so that justice can be made and criminals like Champinha and his gang get the death penalty for their crimes.

Why Cultural Marxism is a big deal for Brazil, and also for you

I already heard the criticism that cultural Marxism is not a real thing. It’s just a scary word, like neoliberalism, that doesn’t mean anything really. Well, for those who think that way, please pay a visit to Brazil.

When I talk about cultural Marxism, here is what I have in mind: I’m not a specialist in Marx or Marxism by any means, but what I understand is that Marx gravitated towards economic theory in his life. He began his intellectual journey more like a general philosopher but ended more like an economist. A very bad economist. Marx’s economic theory in The Capital is based on the premise of the labor theory of value: things cost what they cost depending on how much work it takes to produce them. Of course, this theory does not represent reality. You take the labor theory of value, Marx’s economic theory crumbles down. That is what Mises explained on paper at the beginning of the 20th century and reality proved throughout it everywhere and every time people tried to put Marxism into practice.

Although Marx’s economic theory didn’t work, Marx’s admirers didn’t give up. In Russia Lenin tried to explain that capitalism survived because of imperialism. Many Marxists working in International Relations make a similar claim. In Italy Gramsci tried to explain that capitalism survived because capitalist elites exercise cultural hegemony. The Frankfurt Schools said the same. It is mostly Gramsci and the Frankfurt School, sometimes collectively called critical theory, that I call cultural Marxism.

Marxism arrived in Brazil mainly in the beginning of the 20th century. Very early then, a communist party was founded there. This communist country was initially very orthodox, following whatever Moscow told them to. However, after WWII and especially after the Military Coup of 1964, Brazilian Marxists started to gravitate towards Gramsci. During the Military Dictatorship, many leftists tried to fight guerrillas, but others simply chose to get into universities, newspapers, churches and other places, and try to overthrow capitalism from there.

In general, I am not a great fan of John Maynard Keynes, but there is a quote from him that I absolutely adore: ““Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist”. That’s how I see most Brazilian intellectuals. They are of a superficial brand of Marxism. It would certainly be incorrect to call them Marxist in an orthodox sense, but I understand that they are what Marxism has become: something vaguely anti-establishment, anti-capitalism, in favor of big government and very entitled.

Why is this important for you? Because Brazil is the second largest country in America in population, territory, and economy. That’s why. The economy is a win-win game. An economically free, prosperous Brazil would be good for everyone, not just for Brazilians. But that can only happen if we first defeat the mentality that capitalism is bad and that the state should be an instrument for some vague sort of social justice.

No Country for Creative Destruction

Imagine a country whose inhabitants reject every unpleasant byproduct of innovation and competition.

This country would be Frédéric Bastiat’s worst nightmare: in order to avoid the slightest maladies expected to emerge from creative destruction, all their advantages would remain unseen forever.

Nevertheless, that impossibility to acknowledge the unintended favourable consequences of competition is not conditioned by any type of censure, but by a sort of self-imposed moral blindness: the metaphysical belief that “being” is good and “becoming” is bad. A whole people inspired by W. B. Yeats, they want to be gathered into the artifice of eternity.

In this imaginary country, which would deserve a place in “The Universal History of Infamy” by J.L. Borges, people cultivate a curious strain of meritocracy, an Orwellian one: they praise stagnation for its stability and derogate growth because of the stubborn and incorruptible conviction that life in society is a zero-sum game.

Since growth is an unintended consequence of creative destruction, they reason additionally, then there must be no moral merit to be recognised in such dumb luck. On the other hand, stagnation is the unequivocal signal of the good deeds to the unlucky, who otherwise could suffer the obvious lost coming from every innovation.

In this fantastic country, Friedrich Nietzsche and his successors are well read: everybody knows that, in the Eternal Return, the whole chance is played at each throw of the dice. So, they conclude, “if John Rawls asked us to choose between growth or stagnation, we would shout at him: Stagnation!!!”

But the majority of the inhabitants of “Stagnantland” are not the only to blame for their devotion to quietness. The few and exceptional proponents of creative destruction who live in Stagnantland are mostly keen on the second term of the concept. That is why some love to say, from time to time, “we all are stagnationist” – the few contrarians are just Kalki’s devotees.

These imaginary people love to spend their vacations abroad, particularly in a legendary island named “Revolution”. Paradoxically, in Revolution Island the Revolutionary government found a way to avoid any kind of counter-revolutionary innovation. It is not necessary to mention that Revolution Island is, by far, Stagnantlanders’ favourite holiday destination.

They show their photos from their last vacation in Revolution Island and proudly stress: “Look: they left the buildings as they were back in 1950!!! Awesome!!!” If you dare to point out that the picture resembles a city in war, that the 1950 buildings lack of any maintenance or refurbishment, they will not get irritated. They will simply smile at you and reply smugly: “but they are happy!”

Actually, for Stagnantlanders, as for many others, ignorance is bliss, but their governments do not need to resort to such rudimentary devices as censure and spying to prevent people from being informed about the innovations and discoveries occurring in other countries, as Revolutionary Island rulers sadly do. Stagnantlanders simply reject any innovation as an article of faith!

Notwithstanding, they allow to themselves some guilty pleasures: they love to use smartphones brought by ant-smuggling and to watch contemporary foreign films which, despite being realistic, show a dystopian future to them.

As everything is deteriorated, progress is always a going back to an ancient and glorious time. In Stagnantland, things are not created, but restored. As with Parmenides, they do not believe in movement, but if there has to be an arrow of time, you had better point it to the past.

Moreover, Stagnantland is an imaginary country because it does not only lack of duration, but of territory as well. As the matter of fact, no man inhabits Stagnantland, but it is indeed stagnation that inhabits the hearts of Stagnantlanders. That is how, from dusk to dawn, any territory could be fully conquered by the said sympathy for the stagnation.

Nevertheless, if we scrutinise the question with due diligence, we will discover that the stagnation is not an ineluctable future, but our common past. Human beings appeared very much earlier than civilisation. So, all those generations must have been doing something before agriculture, commerce, and institutions.

Before the concept of creative destruction had been formulated by Joseph Schumpeter, it was needed a former conception about how people are conditioned by institutions: Bernard Mandeville pointed out how private vices might turn into public benefits, if politicians arranged the correct set of incentives. The main issue, thus, should be the process of discovery of such institutions.

That is why the said aversion to competition and innovation is hardly a problem of a misguided sense of justice, but mostly a matter of what we could coin as “bounded imagination”: the difficultly of reason to deal with complex phenomena. Don’t you think so, Horatio?

Peer pressure writ large

Part I

We fight for and against not men and things as they are, but for and against the caricatures we make of them.

~ Joseph A. Schumpeter

One hurdle to public discourse that is underrecognized and must be addressed is the simple fact that individuals in the broader population don’t really know what they want. There is often no clear center of self-awareness. Instead, the peer and peer-driven media substitute for personal and communal identity. On the one hand, this situation has existed throughout history without imperiling the human species. On the other hand, this is an era of mass media and peer influence. Therefore, examining role of the peer and its media, specifically social media, is important in a time of societal disruption and discontent.

In the FuturamaSimpsons crossover episode from November 2014, Homer Simpson tries to explain freemium games to the Futurama crew:

Okay, it starts free, right? Then you visit your friend’s game, and he’s got this awesome candy mansion. […] And you’re like, “99 cents?!” You bet I’d like one!” And that’s why I owe Clash of Candies $20,000.

The cartoon aptly summarizes the real-life effect the prevalence of the peer can have. Naturally, there is great comic potential in these situations, and the Simpsons creators capitalized appropriately. Though it is worth adding that the ongoing theme of Homer Simpson possessing a weak character not only made the above quote plausible, it might be a portent to the real problem.

Ruth Davidson of the Scottish Conservative Party wrote an article titled “Ctrl + Alt + Del. Conservatives must reboot capitalism,” in which she argued that the current capitalist arrangement has failed. Concerning the collapse of middle society towns and villages, in the face of growing prosperity in the metro areas she wrote:

How does a teenager living in a pit town with no pit, a steel town with no steel or a factory town where the factory closed its doors a decade ago or more, see capitalism working for them? Is the route for social advancement a degree, student debt, moving to London to spend more than half their take home pay on a room in a shared flat in Zone 6 and half of what’s left commuting to their stagnant-wage job every day; knowing there is precisely zero chance of saving enough to ever own their own front door?

Or is it staying put in a community that feels like it’s being hollowed out from the inside; schoolfriends moving away for work, library and post office closures and a high street marked by the repetitive studding of charity shop, pub, bookies and empty lot – all the while watching Rich Kids of Instagram on Channel 4 and footballers being bought and sold for more than the entire economy of a third world nation on Sky Sports News?

Not a single person familiar with this impossible choice should be surprised by the rise of the populist right and left, of Donald Trump and Jeremy Corbyn, with their simple, stick-it-to-the-broken-system narrative. This is what market failure piled upon social failure piled upon political failure looks like.

If the goal of government is to ensure that everyone has a job and paycheck, Davidson made some very good points. In fairness to her, the cultural attitude today, both in the US and the UK, does indeed tip toward the idea that it is the responsibility of government ministers, such as Davidson, to create magically a world of stable, predictable work and money. What Davidson caught but then also missed is that much of the desire of the people isn’t about money, jobs, or stability, it’s about “social advancement,” to use her own words.

Anyone who thinks that the workers of the old, idealized industrial world were spared non-material social concerns, or arriviste inclinations, is deluded about the course of social history. Nor, are such concerns a purely feminine pursuit, as the Victorians liked to think, supported in their belief by the works of authors such as Jane Austen, Elizabeth Gaskell, and George Eliot (nom de plume of Mary Ann Evans); William Faulkner, Sinclair Lewis, F. Scott Fitzgerald, and, to a lesser extent, Ernest Hemmingway all made careers out of chronicling male social climbing. There is probably something significant about the fact that the second set of authors were all between-the-Wars Americans, but that will have to be set aside for now.

As Polly Mackenzie of the UK think tank Demos wrote, weighing in on the concept of the “working class identity crisis,”

If you’re one of those people who gets a bit misty eyed about the jobs of the past, how fantastic they were, and how they’ll never be replaced, I can hear you scoffing at the notion that putting stuff in boxes [discussion centered on Amazon as the major employer for the low-skilled, under-educated] could ever be meaningful. Those who hark back to the pit villages and steel towns that gave working men a sense of pride and identity will tell me that putting stuff in boxes isn’t ‘man’s work.’

But those people are wrong about where meaning comes from in the workplace. True, some jobs are meaningful because of the direct impact they have in the world – some people save lives, educate children or create works of art. But there’s no such direct meaning in bashing coal off a rock face. Mining is grueling, physical labour, but if that were enough to create meaning then the warehouse jobs could match it, exhausted limb for exhausted limb.

To borrow the title of Gregg Easterbrook’s book, this is The Progress Paradox: everyone is better off but no one is happier. Mackenzie grasped that societal breakdown isn’t about actual jobs; as she also pointed out, none of the “disenfranchised” workers really want to go back to jobs that cost them health and limbs, and the social respect that they claim they’ve lost never truly existed – name one time in history when a coal miner held equal status to a professor or an artist.

Continuing on the confusing, conflicting perceptions of what people want, Henry Olsen of the Ethics and Public Policy Center in Washington, DC, went to Levittown, PA, and interviewed a wide range of locals in an effort to understand the skeleton of populism.

Greg [a local] put it this way: “Trump is telling them ‘it’s OK to be you.’ The rest of culture is telling them ‘it’s not OK to be you.’”

As Greg told me, whether the message is economic – “you have to go to college to succeed” – or cultural “I like to listen to AC/DC; what’s wrong with that?” – Levittowners and people like them have felt the brunt of elite disdain. In voting for Trump, these blue-collar workers were rebelling against the idea that America is no longer for people like them.

“Levittowners just want a good Christmas for their kids and to go to Jersey Shore for a couple of weeks. They want some acknowledgement that is OK,” Anthony [another local] said. Trump gives them that, and they are willing to overlook nearly everything in exchange.

In conclusion, Olsen wrote:

Rather than viewing global blue-collar discontent through an economic lens, we ought to be looking at populist-backing voters more as people like us, holding similarly cherished identities and hopes. And maybe if we did that, we might all be a bit better off.

It is important to note that according to Olsen, the majority of the local population held Bernie Sanders in equal esteem to Donald Trump. In a broad sense, Olsen’s comments and interviewees echo Davidson and Mackenzie: The good life, rather than simply money, is the fuel behind the average person. The dissonance is that “the good life” varies wildly by perception, not to mention goals.

Consider, for example, the statements uttered by Olsen’s source Greg regarding perceived attitudes on education, economics, and culture. Immediately, it is doubtful that anyone in wider society gives a hoot about any individual’s taste in rock music. In fact, it is more probable that Greg would find the noise issuing from average college dorms and frat houses to be quite recognizable. As a claim for difference and despite, popular culture is a non-starter.

On the success and career side, while the attitude Greg identified certainly exists, it is important to remember that it is the concoction of Americans by and for themselves. The “college-or-nothing” idea is a creation of the peer. The vocational and technical schools which benefited people like Greg didn’t spontaneously close in the decades after World War II; they closed because the market dried up (let’s ignore any correlation to the draft for now) as everyone, flush with post-War prosperity, raced into colleges and universities, regardless of quality or level of preparation. Even now, there are plenty of viable alternatives to obtain skills and commensurate financial independence for the less scholastically inclined. For someone to claim the college-success paradigm as a source of socio-cultural disenfranchisement suggests an ultimate conformity to the pressures of the peer through blind acceptance of a narrow definition of success. The number of fields where it is absolutely true that a person must attend college to succeed are quite few, require specific talents, and are highly specialized. It is not an organic thought for a person with average aspirations and expectations to compare himself to someone in one of these professional areas. Such a comparison only occurs through contact with and shaping of perception by a peer or group of peers.

But, one might argue, how is this possible if the Gregs of the world live their entire lives in circles of people with similar backgrounds and information levels? The answer is through images and the media of imagery. Particularly influential are television and social platforms, such as Instagram, largely because of their capacity to shape perception.

Part II

toffsandtoughs_cropped.jpg

This photo is titled “Toffs and Toughs,” taken by photographer Jimmy Sime in London in 1937, and it shows two English public (private for Americans) schoolboys waiting for their parents to come pick them up. The photo has two stories, the actual story, and the one built around it by malcontents. The day after Sime took the photo, the leftist and class-warfare fomenting News Chronicle, which later merged into the modern tabloid Daily Mail, published it underneath the headline “Every Picture Tells A Story,” but then declined to clarify the photo at all, beyond misidentifying the two boys in morning dress as Etonians attending the Eton-Harrow cricket match. Almost simultaneously, American Life magazine picked up the photo and published it with further misidentifications and lack of clarification. The message was clear: the elites ignore or turn their back on the underprivileged and working-class.

The real story of the two “elite princelings” was very different. Both boys, students at Harrow, came from solidly middle-class backgrounds; the only trait that might be interpreted as “elite” about them was that their fathers were Harrovians. The younger boy Peter Wagner (on the far left) came from a family of immigrant tradesmen who had bootstrapped their way up the ladder. By 1937, the Wagners had settled into being a family of scientists and stockbrokers, comfortable, respectable, conventional. Peter served honorably during World War II and then took over his family’s business. The older boy Timmy Dyson (center) came from a professional military family, great of name but lacking means. Born into decidedly ordinary circumstances, he spent his childhood as an army brat. His parents only afforded Harrow because he was an only child. He died suddenly a few months after Sime took the infamous photograph.

Of the three “poor” boys, their realities were also much different from the one implied by the photo. None of them was a street urchin. Since they were playing hooky from school the day of the photo, one can extrapolate that they came from families with sufficient means to keep teenage boys enrolled in school despite living in Depression-era London. The two smaller boys, flanking the tall one, both became successful businessmen, while the taller boy became a civil servant. The three never forgave the media for casting them in the role of impoverished victims, arguing that they all had much richer lives than the photograph showed. Literally richer in the case of the two small boys, who post-War reportedly lived at a level of luxury unknown to “elite” Timmy Dyson.

“Toffs and Toughs” is an interesting study of imagery and the myths and perceptions that it can create and perpetuate. It is not an accident that Ruth Davidson, when discussing the modern young person’s alienation from capitalism, wrote, “all the while watching Rich Kids of Instagram on Channel 4 and footballers being bought and sold for more than the entire economy of a third world nation on Sky Sports News.” These are highly visual media which are also highly ersatz, shaped into the appearance of a cohesive whole through skillful editing.

Sports stars (and musicians, dancers, and artists) are terrible for comparison because becoming one requires herculean efforts and hours of practice. An extension of the 10,000-hour rule is: if someone isn’t willing to put in 10,000 hours to master a skill, he has no right to engage in envious nattering. Rich Kids of Instagram is a British reality TV show that spun off of an eponymous Tumblr thread wherein the purported Instagram photos of the superrich are collected. If one examines the pictures with a critical eye, it becomes apparent that the majority are staged – anyone standing on a pier can take a selfie with a docked yacht; it doesn’t mean that he owns the boat.

In the fourth episode, “From Cradle to Grave,” of Milton Friedman’s Free to Choose, 1980 original, at 32:27, Helen Bohen O’Brian, then Secretary of Welfare for Pennsylvania, astutely observed that people estimated their quality of life based on the people around them. What visual media has done is to bring people like the exhibitionists of Rich Kids of Instagram into people’s lives and present them as if they are in some manner the viewer’s peers. It is as divisive and dishonest as claiming that “Toffs and Toughs” told a “story.” If one considers that Guardian columnist Marina Hyde outed the TV show by revealing that a “rich kid” was not particularly rich, was a former tenant of Hyde’s family, and the place portrayed as the reality starlet’s house was their own property, into which the TV crew had unknowingly broken and entered, the deception is exactly on par with the 1937 one. It is all a pitiful lie, but one which, as Davidson spotted, the vast majority of people see and envy as truth.

In closing, there is one last example to consider. Marc Stuart Dreier, currently in prison for fraud, is an ex-lawyer whose scams were eclipsed only by those of Bernie Madoff. In an interview for the BBC documentary Unraveled, Dreier explained that he wasn’t motivated by greed or desire for the “rich life,” no, he wanted to be someone who socialized with golf and football stars. At the start, he was the embodiment of the American dream – son of an immigrant goes to Yale and Harvard Law – but then he discovered that law was not his métier. He neither enjoyed it, nor was he good at it. Unable to succeed through honest means, he turned to fraud. He wanted to be successful, not for its own sake but for the peer group he hoped to join. The documentary shows repeatedly snippets of Dreier in the guise of lawyer-philanthropist glad-handing footballers and playing with famous golfers, always with cameras there to catch every move. The goal was the visuals, not the reality.

In a battle of the mythic caricatures of Joseph A. Schumpeter, the victim is going to be liberty and responsibility. Today, Schumpeter’s words are truer than ever. Everyone has caricatured everyone else. And at the same time, everyone imagines himself on stage with his peers as the audience. There is no doubt that social media and technology have exacerbated the problem of imagery and the peer – fictional Homer Simpson and his candy mansion and Rich Kids of Instagram – but it is delusional to pretend that it didn’t exist before apps and smart phones. Blaming capitalism for the discontent caused by voyeurism and false expectations is both a logical non sequitur and a very serious peril for liberty. For the sake of preserving freedom, it is important to ask, to demand even, by what metric are the disaffected judging their lives. If it is by the peer, as Bohan O’Brian argued, then it is not a valid metric and should be treated as such.

Rent isn’t a four-letter word

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Inspired by the publication this week of NYU scholar Alain Bertaud‘s critical new book Order without Design: How Markets Shape Cities (MIT press), Sandy Ikeda‘s pre-book development series Culture of Congestion over at Market Urbanism, and London YIMBY, here is a note on housing reform.

Classical liberals see the economic solution to housing as relatively simple: increase supply to better meet demand. By contrast, the political economy of housing is almost intractably complex. The reason for this is that there are endless externalities associated with new housing: access to light, picturesque landscape, open space and uncongested roads just for starters. These gripes and grievances are the bread and butter of local politics. Unlike consumer product markets, housing cannot be disentangled from these social, political and legal controversies. A successful market-based housing policy must establish institutions that not only encourage housing supply growth but navigate around these problems while doing so.

Policy reform proposals that deliberately favour increasing owner-occupied single-family homes, as tends to be the focus among market liberals in the UK (and to some extent in the US), are currently self-defeating. As justified as they were in the past to achieve a more market-friendly political settlement, they are now a barrier to achieving plentiful, affordable housing. This is because every new homeowner becomes an entrenched interest, a potential opponent to subsequent housing development in their area. They impose more political externalities than renters. I propose we cut the link between support for home ownership and housing supply policies. This would free up policymaking to focus on expanding provision by all available market-compatible means.

This should include greater encouragement of institutional landlords, especially commercial enterprises. Commercial landlords have more incentive and capability to expand supply on estates that they own, while long-term renters (unlike homeowners) have an interest in keeping rental costs low. The lack of private firms dedicated to supplying housing in England compared to much of the rest of the world is startling and yet often overlooked even by friends of free enterprise.

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What is ‘Good’? What was Arendt pursuing?

Arendt is not the most consistent or coherent philosopher. Her writings display shades of sentimental as well as stoic rationality. Some might scoff at the progression of her thoughts. But the depth of her emotion is what grants her literature the luminescence that we need in times of moral darkness. The world was left waiting for what could have been a monumental work on political judgement when Arendt passed on before getting a chance to complete the final segment of The Life of Mind. The piece entitled ‘Judgement’ was left with an epigraph:

Victrix causa deis placuit, sed victa Catoni.

Taken from Lucan’s Pharsalia, it translates to ‘the victorious cause pleased the gods, but the defeated one pleases Cato.’ It refers to the Roman philosopher and thinker Cato’s life and beliefs. He chose to commit suicide rather than give in to the faction he thought was ‘wrong’. Thus, what is ‘good’ would remain good even if it is defeated a hundred times. His stoicism and moral stubbornness is perhaps what Arendt wanted us to inculcate as a way of moral disciplining of the mind. But also of relevance is the presumption that there is, in fact, something good that is universal and not subject to fluctuations of regions, religion, class or caste. It is like music? Only humans have the capacity to perceive beats, melody, pitch and a number of other variables that combine to make music as we know it. Irrespective of how isolated or engaged our culture might have been with a globalized world, we carry within us the ability to differentiate good music from bad. What differs is our perception of what is happy from sad. A Balinese music for cremation might sound quite happy and serene to the uninitiated. Similarly, perhaps we possess the capacity to ascertain the ‘good’ pursuits from the bad. While culture, upbringing and circumstances of nature might affect the way we perceive the degree to which we are obligated to act upon the thus discovered moral, no (non-sociopathic) human can deny the existence of the goodness of the moral once confronted with it.

I remember asking my professor once about what he thought was that one universal value in constitutions around the world that need protection from majoritarian attempts at amendment. He answered, without blinking, equality. I knew there was something within the wide array of norms that we associate with equality that I know is a good that commands universality. However, there was enough in the substantive affirmations of equality that had room for reasonable disagreement such that as an unbiased spectator I would not be able to dismiss one side over the other. Perhaps the universal principle requires a Humean recognition or a Kantian deliberation. Either way, that it exists and is worth pursuing is an unquestionable precursor to an Arendtian enquiry into the state of things.

There are some hints as to what she might have thought definitely existed within the set (and let us treat it as a set of values/ideals/principles for nothing if not humility about the extent of our understanding and knowledge) of what is ‘good’. Political freedom features quite prominently into her thought. The freedom to participate in public affairs as equals seems to have a place of prominence for Arendt. Not so much the concept of equality extended to realms outside the political. We are not born equal and cannot and should not try to find a natural occurrence of equality for that would require an unjust comparison of the distinctions and characteristics that distinguish individuals. The last blog post talked about Arendt’s insistence on separating the political from social and personal realms. While identity politics is often engaged to make a case for equality, and Arendt had nothing against the ideal of equality, she believed that it is in the political realm that we needed to affirm the ideal of equality most vehemently and zealously. This is because it affects directly our participation in the political which in turn affects everything about our existence in the world.

A better way to read Arendt is to go meta-psychological on her. Perhaps one of the ‘good’  values within the set is a form of communicative rationality, the desire and pursuance of a method of thinking representatively. And perhaps, just as liberation is a necessary precursor to freedom, so is the engagement of Arendtian judgment to finding that which is ‘good’.