Liberty

Legal Immigration Into the United States: The H-1B Visas Confusion and Controversy (Part 2 of 6)

Jacques Delacroix Liberty, Politics , , , , , , , , ,

This is the right place for a painful digression. It’s painful because it’s about a program related to immigration that is both confusing and calculated, as if by design, to become controversial. Yet, as I argue below, toward the end of this essay, it’s a program with promise.

Many middle-class foreigners with college degrees are in the US on temporary working visas. By numbers, the main category of working visas is the H-1B visa. (This is confusing, but there is currently no such thing as an H-1A visa.) Holders of the H-1B visa must meet specific educational qualifications. They are sponsored by American employers – but also by employers who look much like labor contractors based abroad. They may stay in the US for a period of three years, renewable for an additional three years. That’s except if they work for a university or for a research institute, in which case their visa is pretty much eternal. Although the number of visas allotted each year is capped, by accumulation, the program involves significant numbers of people, about 350,000 in 2016. Some or most H-1B visas are allocated by lottery on an annual basis. (It’s completely separate from the diversity lottery described above [in Part 1], as I said.)

The rationale behind the H-1B visa is to supply workers in specialties that industrial and other organizations cannot find domestically. The program is controversial for two reasons. Continue reading →

Legal Immigration Into the United States: Introduction (Part 1 of 6)

Jacques Delacroix Liberty, Politics , , , , , , ,

This an essay about legal immigration. It includes a theoretical framework, essential facts, and subjective opinions. In this old-fashioned piece, there is no pretense of scholarly detachment. It’s a personal endeavor that I hope will be useful to others. I don’t have a hidden agenda but topical preferences I think I make clear. Footnote 1 describes my qualifications to discuss immigration. You might surmise that I have a more pro-immigration bias than most small-government conservatives but not than most libertarians (but who knows about them?). I deal with American immigration, specifically. I present rough figures only, trying to add some orders of magnitudes to the current complicated media narrative, and to establish distinctions that don’t always occur naturally. I don’t aim at precision. If mistakes of fact slip into my story, I hope readers will draw attention to them and thus, perhaps, start a conversation here. My few policy recommendations are all tentative but I hope they are logically linked both to orders of magnitudes and to conceptual distinctions.

I choose to address legal immigration specifically for two categories of reasons. First, there are reasonably good, trustworthy figures regarding legal immigration, while numbers for illegal immigration are largely estimated from data gathered for other purposes and often according to wobbly rules. Second, the relationship between legal immigration and illegal immigration is complicated enough to justify an essay all of its own. Here is a sample: Many illegal immigrants, especially many Mexicans, argue that there would be less illegal immigration into the US if there were more doors open through legal immigration. Yet, as I show below, to a considerable extent legal immigration facilitates illegal immigration and thus increases the numbers of illegal immigrants. So the numerical relationship between the two appears both negative and positive. In a co-authored article (referenced in Footnote 2) I examined the complex links between legal and illegal immigration in the special and numerically important case of Mexicans. Though that article dates back to 2009, it remains remarkably current in some respect. In the present essay I only refer tangentially to illegal immigration and only insofar as it serves my main object. Continue reading →

Sine qua non: No shortcuts

Mary Lucia Darst Culture, Liberty , , , , , , ,

This past summer at language school a young man invited me to a party, which I had to refuse since there was a major exam coming up. In response he said, “But you’re smart, why do you have to study?” He was genuinely astonished at the idea that intelligent people have to study; for him, intelligence meant that one was spared the bother of having to work to master a skill or a subject. His bewildered reaction made me start thinking about the nature of the work surrounding achievement and how it is perceived.

Bluntly put, achievement is very hard work and requires tremendous sacrifice. Last weekend, Oxford had its matriculation ceremony, after which the individual colleges arranged group photoshoots. While waiting for one shoot, I overheard two young women discussing a celebratory evening party. One said that she couldn’t go because she had to finish the reading for the next day, but the other said that she had risen at five o’clock that morning in order to finish her reading so that she could attend the party. Neither one was bothered by the choices she had to make, and they were united in their agreement that study came first. Missing a party or missing sleep were simply prices for achievement.

There is an ancient Egyptian legend about a couple who stole the Book of Thoth, which contained all the wisdom of the natural and supernatural worlds, copied it down on a stone writing tablet, washed the stone, and then drank the runoff water; in doing so they acquired all that knowledge without having to read the book. (For those who are interested, the story doesn’t end well, mostly because Thoth is annoyed that his book is gone, but also because, having not genuinely learned the material, the couple can’t control their new-found powers.) In the Folger Museum in Washington DC, there is a medieval manuscript (MS V.b.26 (1)) that contains a spell to compel the spirits to do your writing for you, though as a friend of mine drily pointed out, there’s nothing promised about the quality of writing delivered. What is interesting about myths and spells concerning shortcuts to knowledge and accomplishment is that they are all focused on bypassing the sacrificial process, while still being crowned with the laurels.

The ancient/medieval view was that the spiritual sphere, being responsible in the first place, could help create a world where everyone could achieve without the bother of the foundational work. Now, in a post-Frankfurt School, Utilitarianist world, society speaks in terms of “talent,” as if it is a supernatural thing that requires no cultivation, existing fully formed in a vacuum. We have come from Thomas Jefferson arguing that every person should be free to pursue his own interests according to his endowments to John Rawls’ yowling about the “injustice” of modern society and a world where smart, talented people appear to “have it all.” In order for the Rawlsian vision of the world to work out in completely equitable justice, the work put in by achievers in pursuit of their goals must be negated.

On a personal note, I remember one chillingly funny episode when, during a seminar, a classmate informed a group of us that our coming in prepared, having done the readings and written up commentary, was an act of oppression against her. Her basic argument was that we were too smart, and it wouldn’t cost us anything to show up unprepared once in a while in order to let her shine. We finished on time; I ran into her three days before all MA theses were due for submission and she hadn’t started writing yet. I’m willing to bet, though, that in her movie she’s a victim and we’re all oppressors.

In a way, the romaticization and mythicization of people of genius has been very unhelpful to society, especially since the popular conception of these people appears to support Rawls and Co.’s complaints. Let us take the example of Wolfgang Amadeus Mozart, partially because his myth is a perfect example and partially because this is a topic I would be happy to discuss for days on end. The popular myth is fairly well established: genius infant who miraculously taught himself everything and created beautiful music as a three-year-old, before dying tragically young, in keeping with the romantic tradition of great geniuses.

The reality, while hardly prosaic, is much less romantic. W.A. Mozart’s parents, Leopold and Anna Maria, were superbly well-educated for the standards of their time. Their familial letters, written in a mix of German, French, Italian, Latin, some English, and mathematical substitution ciphers are a jumble of thoughts and observations on literature, music, art, history, political events, social commentary, and professional talk, along with some infantile humor. Musicologist Nicholas Till wrote a wonderful book, Mozart and the Enlightenment: Truth, Beauty and Virtue in Mozart’s Operas, that covers exactly how having an Enlightenment-era (possessing an unbound belief in the benefits of education and faith in the individual), Renaissance man (good at everything) for a father affected Mozart and his sister.

Due to the extensive concertizing tours undertaken throughout Wolfgang and Marianne Mozart’s childhood,[1]music history tends to treat their father as the epitome of a deranged stage parent. But one of Leopold’s primary reasons for the tours was to procure music lessons for his son with the best musicians in the world. On the infamous “Grand Tour,” where the Mozart family travelled across Europe, from 1763 to 1766, the family spent over a year in England, on stretched financial means, so Wolfgang could study composition with Johann Christian Bach, one of Johann Sebastian Bach’s surviving sons and a much-sought after composer and teacher. Leopold was absolutely determined that his son would study with a Bach and the family had first spent time in the Netherlands in an unsuccessful effort to contact Carl Philipp Emmanuel Bach, J.C.’s brother. Mozart senior also applied the same strategy to obtaining private instrumental and voice lessons for Wolfgang. So much for the spontaneous aspect of the child genius story; during his boyhood, the composer had lessons with masters for whom he had to prepare work and have it judged. Genius might exist, but it had to be formed and cultivated, a process that the Mozart myth has completely and deceptively lost.

Losing sight of the work, sacrifice, and constructive elements of achievement has, I believe, provided valuable fuel to the social resentment industry. It is easier to envy the accomplishments and standing of others if one believes that they are unearned endowments because the person holding them is “gifted.” In my own path and work that I do, I’ve seen many people of envious or resentful inclination become devastated emotionally and psychologically when they come into close contact with high-achievers and see the amount of work, time, investment, and sacrifice that being one requires.

In my experience, these people either develop personal persecution narratives, such as the girl from my class, or flounce out proclaiming that they “have a life.” My personal experience has made me doubt the efficacy of Charles Murray’s solution, proposed at the end of Coming Apart: The State of White America, 1960 – 2010, that the best cure for the culture of resentment and anger is for the top twenty percent, representative of the high-achieving, to become visible to the bottom eighty and in doing so to allow the bottom sectors to see how hard the top actually works. Historically, the argument is probably justified; returning to the example of the Mozart family, their close association with the aristocracy, both hereditary and professional, certainly provided impetus for the children to set themselves new challenges as part of winning respect and recognition. But that family had an openness to self-improvement, a belief in the possibility of it that as a larger cultural force was, as Nicholas Till repeatedly pointed out, unique to the Enlightenment.

The people of contemporary society not only lack such a belief, they are closed even to the possibility that there is room for improvement. This is not new; Nietzsche observed and decried the culture of ressentiment– defined by the OED as “a psychological state resulting from suppressed feelings of envy and hatred that cannot be satisfied.” Only now there is no suppression. Achievement through self-improvement is replaced with cries for equality of outcome. People are no longer willing to work for achievement, instead they want is for what they have done, no matter how small, no matter how inadequate, to be recognized as achievements, citing that they did invest time, energy, and money it their banalities. Since the investment aspect is very important, I’ll close here and we’ll look at it next.

[1]Marianne Mozart was, according to the entire family, the better musician and performer of the two siblings. By the time of her early teens, she had surpassed her father and brother as a violinist and pianist to such an extent that her brother gradually ceased playing seriously himself in order to concentrate on composing for her. However, her parents had her retire from the stage once she turned seventeen in order to leave her open for an aristocratic marriage, which she eventually made. After she was widowed, she became a very successful teacher and was able to support single-handedly her children, step-children, and nephews and leave behind a massive fortune.

Economic Liberalism and (Re)Building Europe after WWII.

Barry Stocker Current Events, Economics, Liberty, Politics , , , , , , , , , , , ,

It is important to understand that economic recovery and growth in Europe after World War II is not as tied to Keynesianism, unfunded welfarism, and corporatism as is sometimes assumed.

The Glorious Thirty Years of European recovery from world war and subsequent growth were not due to ‘Keynesianism’ etc. The Thirty Years ended because the influence of liberal policies had weakened and the costs of other policies had accumulated to create an obviously dysfunctional system. Left-wingers (and communitarian-corporatist conservatives) who think ‘market fundamentalists’ overthrew a well functioning social and economic settlement which was behind all the economic growth and associated institution building (post-war national recovery and European Union construction) are in error. It is a major error to ignore the influence of Austrian School liberals (see the discussion by a leading current practitioner of Austrian economics, Peter Boettke) and the related Ordoliberalismus of the Freiburg School.

My remarks on what the major terms and schools in this paragraph refer to have become uncontrollably long, so they are relegated to the bottom of the post. I hope readers will have the patience to reach them.

The key points are that the German post-war Economic Miracle came from Ordo-liberal policies, while economic growth in France after Charles de Gaulle came to power for the second time in 1958 comes from the policies of Jacques Rueff, a civil servant, judge, and economist who participated in the 1938 Walter Lippmann Colloquium in Paris, a decisive event in the revival of liberal economic thinking attended by Hayek and many other notable liberal thinkers.

Such ideas have had a lot more influence in France than lazy propagators of clichés about statist France and liberal America understand. Of course, if we look at the French and American economies we can see notable ways in which the US economy is more liberal, but that should not obscure the reality that France has had good economic times and that these have come about because liberal economic policies were applied, even where, as under de Gaulle, the political narrative of the government was not liberal. The France of 1958 and after was able to stabilise institutionally after a real danger of the collapse of constitutional democracy and have a good economic period because of neoliberal economic ideas.

Some on the left think the relative revival of market liberalism in the 1970s can be rooted in the Chilean Coup of September 1973, after which economic policy was to some degree influenced by Chilean economists with doctorates from the University of Chicago. This revival of market liberalism is known as neoliberalism, a potentially useful term which came out of the Lippmann Colloquium (see below) that has unfortunately collapsed into an empty term of abuse for any kind of market thinking in government policy, wherein even the most modest accommodation of economic rationality is labelled ‘neoliberal’ and therefore extreme, authoritarian, and based on the narrow greed of the rich. It is sometimes accompanied by attempts to read enlightenment liberals as somehow ‘really’ left-liberal, social democratic, or even socialist.

The reality is that neoliberal ideas were first obviously influential on Continue reading →

Liberalism, Democracy, and Polarization

Edwin van de Haar Current Events, Liberty, Politics , , , , , , , , ,

Is polarization a threat to democracy and what is the liberal position on this?

As I pointed out in Degrees of Freedom, most liberals have a preference for democracy. Modern-day democracy – with universal suffrage, a representative parliament, and elected officials – has been developed over the course of the twentieth century. The idea has its roots in antiquity, the Italian city states of the Renaissance, and several forms for shared political decision-making in Scandinavia, Switzerland, the Netherlands, and England. Democracy is not a liberal “invention,” but the term ‘liberal democracy’ has taken firm root. This is true because modern democracy is based on liberal ideas, such as the principle of “one man, one vote,” protection of the classical rights of man, peaceful change of political leadership, and other rules that characterize the constitutional state.

Remarkably, the majority of liberals embraced the idea of democracy only late in the nineteenth century. They also saw dangers of majority decision making to individual liberty, as Alexis de Tocqueville famously pointed out in Democracy in America. Still, to liberals democracy is better than alternatives, such as autocracy or absolute monarchy. This is not unlike Sir Winston Churchill’s quip “it has been said that democracy is the worst form of government, except all the others that have been tried.” Yet there is a bit more to it for liberals. It is has proven to be a method that provides a decent, if imperfect, guarantee for the protection of individual freedom and the peaceful change of government.

Of course there is ample room for discussion inside and beyond academia about numerous different issues, such as the proper rules of democracy, different forms of democracy, the role of constitutions in democracy, whether referenda are a threat or a useful addition to representative democratic government, the roles of parties, party systems, and political leaders, et cetera. These are not the topic here.

In the context of the election of President Trump, but also before that, both inside and outside the US, there is a wide debate on the alleged polarization in society. By this is meant the hardening of standpoints of (often) two large opposing groups in society, who do not want to cooperate to solve the issues of the day, but instead do everything they can to oppose the other side. Consensus seeking is a swear word for those polarized groups, and a sign of weakness.

There appears less consensus on a number of issues now than in the past. Yet this is a questionable assumption. In the US it has been going on for a long time now, certainly in the ethical and immaterial area, think about abortion, the role of the church in society, or freedom of speech of radical groups. Yet most (Western) societies have been polarized in the past along other lines, like the socialist-liberal divide, the liberalization of societies in the 1960s and 1970s, or more recent debates about Islam and integration. Current commentators claim something radically different is going on today. But I doubt it, it seems just a lack of historical awareness on their side. I can’t wait for some decent academic research into this, including historical comparisons.

As a side note: a different but far more problematic example of polarization is gerrymandering (changing the borders of legislative districts to favour a certain party). This has been going on for decades and can be seen as using legal procedures to rob people not of their actual voting rights, but of their meaningful voting rights. Curiously, this does not figure prominently in the current debates…

The (classical) liberal position on polarization is simple. Fighting for, or opposing a certain viewpoint, is just a matter of individual right to free speech. This also includes using law and legislation, existing procedures, et cetera. The most important thing is that in the act of polarizing there cannot be a threat to another person’s individual liberty, including the classical rights to life, free speech, and free association, among others. Of course, not all is black and white, but on the whole, if these rules are respected I fail to see how polarization is threat to democracy, or why polarization cannot be aligned with liberalism.

Ottomanism, Nationalism, Republicanism IX

Barry Stocker History, Liberty, Politics , , , , , , , , , , , , ,

After a break dealing with proofs and indexes of two forthcoming books, a process that overlapped with getting a new university semester started, I can return to this series, which I last added to here. I set the scene of the late 1960s in Turkey, so I will turn to the next big upheaval, the Coup by Memorandum on March 12th 1971.

The Coup by Memorandum followed an attempted coup by far left/third worldist revolutionaries amongst the officer corps. Any unity created by the Kemalist project (secularist national-republican tradition of Turkey’s founder, Kemal Atatürk) was effectively ended, though this decomposition could be said about the whole period from the 1940s to 1971, especially after the adoption of multi-partyism by Atatürk’s successor, İsmet İnönü.

The 1971 coup forced the resignation of the conservative Prime Minister Süyleman Demirel and the implementation of a program to crush the far left, while also implementing some of the more left-wing ideas associated with the 1960 coup (particularly land reform and trade union rights). National View, the first Islamist party in Turkey, founded by Necmettin Erbakan, was closed down along with leftist groups so that an appearance of balance could be maintained in opposing the extremes on both sides. The reality, though, is that the level of state repression, including violence, and further including illegal violence (torture of the arbitrarily detained) directed against the far left, including Kurdish autonomists, drastically exceeded that directed against the far right.

The level of oppression that affected the mainstream right (in that the Justice Party was temporarily removed from government) and religious right was enough to create the idea that the right in Turkey was in some way the liberal part of Turkish politics. This not only influenced liberals, but even some people with very left wing views. It is part of how the AKP could come to power and hollow out state institutions, while subordinating civil society from 2002 onwards. The right continued with a militant anti-communist discourse, in all parts, while in part posing as the liberal friends of leftist rights, along with the rights of the Kurdish autonomists. This was pioneered by Turgut Özal in the 80s and taken further by the AKP. Presumably, Turkish liberals and leftists of the most anti-Kemalist sort have now learned a lesson, but possibly too late to benefit from it for at least a generation.

The military establishment’s implicit tolerance of the religious right, along with the ultranationalist grey wolves, in comparison to the secularist leftists tells an important story about the reality of ‘Kemalist domination’ of Turkey. It had evolved into a Turkish-Islamic synthesis, a compromise with the more conservative parts of the Kemalist establishment, in which the Turkish-Islamic synthesis became more prominent and the ‘Kemalism’ became more and more gestural, including a pointless obsession with preventing young women with covered hair from entering the university, at the same time as the rights of non-Muslim minorities.

The picture is more complicated in that the anti-leftist post-memorandum government in 1971 closed the Greek Orthodox seminary in the Princes Islands off the Marmara Sea coast of Istanbul, as part of a general closure or nationalisation of private (largely foreign) institutions of higher education. This was a policy in accordance with the demands of the far left, including campus radicals. So a measure to deny rights to a Christian minority coincided with the demands of the far left and was undertaken by a notionally secularist government, in reality more concerned with crushing the far left and extending a conservative form of statism.

The above, in any case, did not resolve the real problems of political violence to which the 1971 coup responded. The period between the end of the very temporary government appointed in 1971 and the coup of 12th September 1983 was one of increasing political violence and extremism, with a lack of stable governments as the Justice Party lost majority support (though it remained in government most of the time). Neither it nor the Republican People’s Party were able to form stable coalitions or parliamentary agreements, while the economy suffered and political violence increased between far left and far right groups. Unexplained massacres of demonstrators and political assassinations accompanied barricades that violent groups put up to signify control of urban areas.

The National Assembly failed to elect a President of the Republic in 1980, despite 115 rounds of voting during increasing political and economic disruptions. When the army seized power again on the 12th September, there was widespread public support, but this was the most brutal of the military governments. Its attempt to create a more ‘stable’, i.e. authoritarian, democracy gave Turkey a constitution and system which enabled the AKP to come to power with 35% of the vote in 2002 and then erode the weak restraints on executive powers when held in conjunction with a one party majority in the National Assembly.

More on this in the next post.

Eye Candy: Gay marriage in Europe (2018)

Brandon Christensen Current Events, Liberty , , , , , , ,
NOL gay marriage Europe
Click here to zoom

Opponents of gay marriage might have trouble explaining this one, at least in the free world.

Too many shadows whispering voices. Faces on posters too many choices. If when why what how much have you got…

Opportunities for blockchain-based social media in developing countries

Chhay Lin Lim Liberty , , , , , , ,

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On September 22nd, I presented my Serey project – a blockchain based social media platform in Cambodia – at BitFest 2018 in Amsterdam. It was organized by the BitShares Foundation and mainly attended by enthusiasts of BitShares and Graphene technology. Being part of the Bitshares/Graphene family, I was invited to speak at the conference.

We shared the stage with other graphene projects as BitSpark, DasCoin, PayGer, BitCrab, RuDEX and many others. I look forward to work together with anyone that seeks to decentralize our future, that has a vision in which every human being is free, and where blockchain technology provides the tools to secure our rights to life, liberty, and property.

Stan Larimer was there as well, and he had something interesting to say about how BitShares will import EOS technology through a middle-layer. This will greatly benefit the whole BitShares/Graphene community, including Serey.

Regarding my own presentation, I have made the case that Blockchain is not only a technological revolution, but essentially a social, political and economic revolution. I believe it’s a tool that will move us into a more decentralized world that was envisioned by the earliest internet adopters. As more internet applications were built, it became clear that it would not become as decentralized as these adopters hoped. These applications suffered from a centralized system in which data was stored and controlled on a single or a small number of servers. Those who controlled these servers, the men-in-the-middle, dictated the rules of the platform. They could look into your data, modify your data, prevent you from accessing your data etc.

Blockchain eliminates these so-called “men-in-the-middle”. Its censorship-resistant property provides many great opportunities for developing countries where the rule of law are often weak or underdeveloped. One opportunity that I have been trying to seize in Cambodia is the creation of a social media platform that could not be controlled or censored by a single party. As Cambodians are becoming more tech savvy, and more connected to the outside world through internet access, it’s a great time to roll out a Blockchain-based social media platform where people can express themselves freely. The advantage of a social media is that it’s easier to build the network effect that can reach critical mass in a relatively short period of time. Once we gain enough momentum, I would like to tokenize the national currency, the Riel, develop a Serey Wallet, and provide anyone who has access to the internet the opportunity to open a wallet (bank account) for free and use our tokenized Riel for e-commerce, remittances, savings, loans etc. Although Cambodia has experienced tremendous economic growth in the past two decades and the World Bank has moved Cambodia’s status from a lower-income bracket to a lower-middle-income bracket, 83% of Cambodians still remain unbanked.

Doing so, I hope we will promote freedom of expression and an intellectual society in Cambodia, as well as help banking the unbanked.

Below, you can find my slides for the presentation.

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INDIA: A case study in the demise of representative democracy

Shree Agnihotri History, Law, Liberty , , , , , , , , ,

India of 1947 had battled decades of colonialism to embrace self-rule. Whatever divisions seeped through party ranks, coalesced – and how beautifully – to fight for the right the people to a democracy. Having a common enemy helped. Compounded by the ability of the political leaders of that time to weave magic through words, connecting the plights of the millions to the queen-ship of one propelled movements across the breadth of the Indian subcontinent. While much has been said of the academic prowess as well as the oratory skills of the Founders, it was their ability to connect across barriers of identity that ultimately pushed the wheel. How dearly they protected their freedom of speech, expression and press is perhaps telling of the importance they assigned to being connected with those they had chosen to represent. How is it then that a deeply flawed election system and disjointed lines of public communication yielded one of the biggest civil disobedience movements the world had ever seen?

In terms of representation and reach, India 2018 is better abled than India 1947. And yet, it fell upon the unelected shoulders of four men and one woman to correct a deeply violent, colonial and bigoted law. The right to sexual identity was granted by five cis heterosexual individuals; the ones in need of representation reduced to being mere petitioners. India celebrated breaking off one more shackle, the Judiciary reveled in being the harbinger of liberal values to the Indian legal system yet one more time and the Parliament, as always, stayed mum. It is not that either of the institutions have embraced staunch anti/pro liberal positions. The Indian judiciary has its share of misogynists much like the Parliament. Misogyny is not illegal. But what is illegal is the Parliament’s distance from her electorate. Even if one were to contend that a majority of India does not support homosexuality, the increasing momentum of the movement should have propelled an informed debate within and without the Parliament. Instead, the government chose to not object to the petitions filed in favor of decriminalizing homosexuality as if that is the extent of the responsibility they owe to the LGBTQ community of the country. The distance between a judicial decriminalization of homosexuality and one done through a legislative device is the distance between a populist democracy and a representative one. The counter-majoritarian difficulty seems almost trivial when democratic institutions lose their representative character.

The biggest reason behind the rising legitimacy of an essentially non-democratic institution as the Judiciary is not a power grab by the Supreme Court judges. Howsoever activist they might get, the requirement of giving a reasoned decision tempers their emotions. The Indian Parliament, on the other hand, has come to rely on this increasing politicization of the judiciary to avoid political battles that might require concessions from their mostly unreasoned manifestos. The result is a lack of deliberation that is disturbingly dismal for a democracy as huge as India. The requirements of representation have come to be restricted to a periodical holding of elections. Members of Parliament are neither Burkean agents nor Pateman’s representatives. They are a political class unto themselves working towards a steady demise of the largest democracy in the world.

The Incomplete Counterfactual Fallacy

Rick Weber Economics, Liberty, Politics , , , ,

Mariana Mazzucato has some interesting ideas, but her basic thesis (which I’m guessing based only on her recent Freakonomics interview) forgets a simple fact: had the government not made GPS, not only would we not have GPS, resources would have been allocated somewhere else.

In other words, she’s right that without government involvement we’d miss all sorts of valuable things like the basic research it turns out government has financed, physical infrastructure (no matter how neglected), GPS, the specific form the Internet we got, etc., etc.

But that’s only half the story. What happens if DARPA closes shop just before starting on GPS? Those engineers end up somewhere else, the money for the project goes somewhere else, the steel and titanium for the satellites they would have built end up in some other shop.

If we could know that nothing else would have happened at that point, then GPS is a free lunch–some bold committee scooped up a handful of clay, handed it to brilliant engineers, and created something from nothing.

More likely some of those engineers would have made dozens of other projects a little bit better, and one or two of them might even have, through some series of unpredictable events, ended up creating some totally different innovation that would have put us on to an entirely different path.

Which is the better path? There’s no way to know. The people on that other path exist in a completely different paradigm from our own. It’s comparing meta-apples with meta-oranges. We are where we are and we ought to appreciate all the costs and benefits of the system we’ve inherited. I think Mazzucato is right that many of us have underrated the government. (Certainly 23-year-old-Rick was guilty of the over-complete counterfactual fallacy.)

She makes a compelling argument that Solyndra doesn’t look like such a boondoggle when you take the wider view we would expect of the smallest venture capital investor. But if it’s true that pointing at government failures is invalid, then so is pointing at government success.

What’s important is improving the future performance of our current institutional mess. To do that, I think we’re better off backing away from her broad claims and focusing on her more sensible (and jarring) arguments about how the current system encourages destructive rent seeking through intellectual property protection of basic research that might be better left in the public domain.

Are Swedish University Tuitions Fees Really Free?

Joakim Book Liberty, Politics , , , , , ,

University tuition fees are always popular talking points in politics, media, and over family dinner tables: higher education is some kind of right; it’s life-changing for the individual and super-beneficial for society, thus governments ought to pay for them on economic as well as equity grounds (please read with sarcasm). In general, the arguments for entirely government-funded universities is popular way beyond the Bernie Sanders wing of American politics. It’s a heated debate in the UK and Australia, whose universities typically charge students tuition fees, and a no-brainer in most Scandinavian countries, whose universities have long had up-front tuition fees of zero.

Many people in the English-speaking world idolize Scandinavia, always selectively and always for the wrong reasons. One example is the university-aged cohort enviously drooling over Sweden’s generous support for students in higher education and, naturally, its tradition of not charging tuition fees even for top universities. These people are seldom as well informed about what it actually means – or that costs of attending university is probably lower in both England and Australia. Let me show you some vital differences between these three countries, and thereby shedding some much-needed light on the shallow debate over tution fees:

The entire idea with university education is that it pays off – not just socially, but economically – from the individual’s point of view: better jobs, higher lifetime earnings or lower risks of unemployment (there’s some dispute here, and insofar as it ever existed, the wage premium from a university degree has definitely shrunk over the last decades). The bottom line remains: if a university education increases your lifetime earnings and thus acts as an investment that yield individual benefits down the line, then individuals can appropriately and equitably finance that investment with debt. As an individual you have the financial means to pay back your loan with interest; as a lender, you have a market to earn money – neither of which is much different from, say, a small business borrowing money to invest and build-up his business. This is not controversial, and indeed naturally follows from the very common sense principle that those who enjoy the benefits ought to at least contribute towards its costs.

Another general reason for why we wouldn’t want to artificially price a service such as university education at zero is strictly economical; it bumps up demand above what is economically-warranted. University educations are scarce economic goods with all the properties we’re normally concerned about (has an opportunity cost in its use of rivalrous resources, with benefits accruing primarily to the individuals involved in the transaction), the use and distribution of which needs to be subject to the same market-test as every other good. Prices serve a socially-beneficial purpose, and that mechanism applies even in sectors people mistakenly believe to be public or social, access to which forms some kind of special “human right.”

From a political or social-justice point of view, such arguments tend to carry very little weight, which is why the funding-side matters so much. Because of debt-aversion or cultural reasons, lower socioeconomic stratas of societies tend not to go to university as much as progressives want them to – scrapping tuition fees thus seems like a benefit to those sectors of society. When the financing of those fees come out of general taxation however, they can easily turn regressive in their correct economic meaning, disproportionately benefiting those well off rather than the poor and under-privileged they intended to help:

The idea that graduates should make no contribution towards the tertiary education they will significantly benefit from it, while expecting the minimum wage hairdresser in Hull, or waiter in Wokingham to pick up the bill by paying higher taxes (or that their unborn children and grandchildren should have to pay them due to higher borrowing) is highly regressive.

Although not nearly enough people say it, university is not for everyone. The price tag confronts students, who perhaps would go to university to fulfill an expectation rather than for any wider economic or societal benefit, with a cost as well as a benefit of attending university.

Having said that, I suggest that attending university is probably more expensive in your utopian Sweden than in England or Australia. The two models these three countries have set up look very different at first: in Sweden the government pays the tuition and subsidies your studies; in England and Australia you have to take out debt in order to cover tuition fees. A cost is always bigger than no cost – how can I claim the reverse?

With the following provision: Australian and English students don’t have to pay back their debts until they earn above a certain income level (UK: £18,330; Australia: $55,874). That is, those students whose yearly earnings never reach these levels will have their university degree paid for by the government regardless. That means that the Scandinavian and Anglophone models are almost identical: no or low costs accrue for students today, in exchange for higher costs in the future provided you earn enough income. Clearly, paying additional income taxes when earning high incomes but not on low incomes (Sweden) or paying back my student debt to the government only if I earn high incomes rather than low (England, Australia) amounts to the same thing. Changing the label of a financial transfer from the individual to the government from “debt-repayment” to “tax” has very little meaning in reality.

In one way, the Aussie-English system is somewhat more efficient since it internalises costs to only those who benefited from the service rather than blanket taxing everyone above a certain income threshold: it allows high-income earners who did not reach such financial success from going to university to avoid paying the general penalty-tax on high-incomes that Swedish high-earners do.

Let me show the more technical aspect: In England, earning above £18,330 places you at a position in the 54th percentile, higher than the majority of income-earners. Similarly, in Australia, $55,874 places you above 52% of Aussie income-earners. For Sweden, with the highest marginal income taxes in the world, a similar statistics is trickier to estimate since there is no official cut-off point above which you need to repay it. Instead, I have to estimate the line at which you “start paying” the relevant tax. What line is then the correct one? Sweden has something like 14 different steps in its effective marginal tax schedule, ranging from 0% for monthly incomes below 18,900 SEK (~$2,070) to 69.8% for incomes above 660,000 SEK (~$72,350) or even 75% in estimations that include sales taxes of top-marginal taxes:


If we would place the income levels at which Australian and English students start paying back the cost of their university education, they’d both find themselves in the middle range facing a 45.8% effective marginal tax – suggesting that they would have greatly exceeded the income level at which Swedish students pay back their tuition fees. Moreover, the Australian threshold would exchange into 367,092 SEK as of today, for a position in the 81st percentile – that is higher than 81% of Swedish income-earners. The U.K., having a somewhat lower threshold, converts to 217,577 SEK and would place them in the 48th percentile, earning more than 48% of Swedish income-earners – we’re clearly not talking about very poor people here.

The fact that income-earners in Sweden face a much-elevated marginal tax schedule as well as the simplified calculations above do indicate that despite its level of tuition fees at zero, it is more expensive to attend university in Sweden than it is in England or Australia. Since Australia’s pay-back threshold is so high relative to the income distribution of Sweden (81%), it’s conceivably much cheaper for Australian students to attend university than for it is for Swedish students, even though the tuition list prices may differ (the American debate is much exaggerated precisely because so few people pay the universities’ official list prices).

Letting governments via general taxation completely fund universities is a regressive measure that probably hurts the poor more than it helps the rich. The solution to this is not some quota-scholarships-encourage-certain-groups-version but rather to a) increase and reinstate tuition fees where applicable or b) cut government funding to universities, or ideally get government out of the sector entirely.

That’s a progressive policy in respect to universities. Accepting that, however, would be anathema for most people in politics, left and right.

We have seen the algorithm and it is us.

Rick Weber Culture, Economics, Liberty, Politics , , , ,

The core assumption of economics is that people tend to do the thing that makes sense from their own perspective. Whatever utility function people are maximizing, it’s reasonable to assume (absent compelling arguments to the contrary) that a) they’re trying to get what they want, and b) they’re trying their best given what they know.

Which is to say: what people do is a function of their preferences and priors.

Politicians (and other marketers) know this; the political battle for hearts and minds is older than history. Where it gets timely is the role algorithms play in the Facebookification of politics.

The engineering decisions made by Facebook, Google, et al. shape the digital bubbles we form for ourselves. We’ve got access to infinite content online and it has to be sorted somehow. What we’ve been learning is that these decisions aren’t neutral because they implicitly decide how our priors will be updated.

This is a problem, but it’s not the root problem. Even worse, there’s no solution.

Consider one option: put you and me in charge of regulating social media algorithms. What will be the result? First we’ll have to find a way to avoid being corrupted by this power. Then we’ll have to figure out just what it is we’re doing. Then we’ll have to stay on top of all the people trying to game the system.

If we could perfectly regulate these algorithms we might do some genuine good. But we still won’t have eliminated the fundamental issue: free will.

Let’s think of this through an evolutionary lens. The algorithms that survive are those that are most consistent with users’ preferences (out of acceptable alternatives). Clickbait will (by definition) always have an edge. Confirmation bias isn’t going away any time soon. Thinking is hard and people don’t like it.

People will continue to chose news options they find compelling and trustworthy. Their preferences and priors are not the same as ours and they never will be. Highly educated people have been trying to make everyone else highly educated for generations and they haven’t succeeded yet.

A better approach is to quit this “Rock the Vote” nonsense and encourage more people to opt for benign neglect. Our problem isn’t that the algorithms make people into political hooligans, it’s that we keep trying to get them involved under the faulty assumption that people are unnaturally Vulcan-like. Yes, regular people ought to be sensible and civically engaged, but ought does not imply can.

Eye Candy: garbage versus trash (American dialects)

Brandon Christensen Liberty , , , , ,

NOL garbage versus trash USA

I’ve always said “garbage,” but down here in Texas they use the word “trash.” I have no idea where I found this, and I can’t verify the source, but it looks right to me.

Any contrary arguments about this map?

A Millennial’s New Perspective on Home Ownership

Rick Weber Culture, Economics, Liberty , , , , , , , , ,

The last few years I’ve loudly protested that home ownership is overrated; it’s a bad investment plus lots of responsibility. And yet, this summer my fiance and I bought a 100 year old house on the south shore of Long Island.

Yes, I have lost my mind.

I basically stand by my earlier position, but with greater nuance. Owning a home is a complicated undertaking. But it’s given me a greater appreciation for the nuance involved in managing real estate.

Home ownership is a great big Gordian knot of inter-dependencies. It’s massive set of knowledge problems wrapped in externality problems.There’s a massive role for local knowledge which means policy makers’ attention should be less focused on things like home ownership rates, and more on guiding the right people into the right places to take advantage of that local knowledge.

With local knowledge comes local politics. I don’t know anything about local politics, but expect more posts about what’s going on in my town hall over the next few decades.

So what have I learned in this first month of home ownership?

  • There’s something to be said about pride in ownership

It’s still a real trip to turn on my lights in my kitchen so I can do my laundry in my laundry machines. I didn’t think I’d enjoy it this much. The endowment effect is real. One effect has been to increase my interest in contributing to local public goods via civic engagement and other routes.

I haven’t been to a town hall meeting yet, but I plan on going to one tomorrow. I suspect it will be awful. But I’m walking distance, so I’ll be a little bit drunk.

  • The real estate market has some serious frictions

This might be obvious, but it’s interesting. There are artificial and natural obstacles to the efficient use of real estate. Transaction costs are significant and property rights issues are hairy.

Buying a house is a complicated transaction and going through the process has really made clear to me how difficult it is to commodify land. Each piece of land has a unique location and history. Information asymmetries are substantial. The neighborhood you’re buying into is utterly out of your control. Put simply: Amazon won’t be selling real estate any time soon.

Part of the reason I’m happy with buying a house is that our rent had been increasing about $100/month/year. Land lords absolutely take advantage of real estate frictions to charge as much as they can. The alternative (which I chose) is to lock-in to a specific property.

  • The required knowledge to operate a home is significant and difficult to evaluate.

It takes a lot of knowledge to manage a house. If I were to take a wild guess (at this non-quantifiable variable), I’d say that between 5% and 50% of a homeowner’s brain is necessary to operate a house. Even if you bring in experts to do everything, evaluating those experts is a lot of work.

There are repairs and upgrades to make, and my formal education prepared me for exactly none of those projects. On the other hand, I’ve got the Internet. Without YouTube and Reddit I’d be a half dozen unlucky mistakes away from homelessness.

On the other other hand, I’ve learned a ton of stuff I’ve got no use for. Like how to grow asparagus (which it turns out it isn’t worth doing except out of boredom).

You can’t evaluate knowledge until it’s too late. And there’s more to learn than you ever will, so you have to make mistakes. It’s true of home ownership and it’s true of life more generally.

  • Gardening is a real trip.

In History of Economic Thought professor Gonzalez shared a story about two economists meeting in Switzerland during WWII. On showing his vegetable garden to the visiting economist, the visitor said “that’s not a very efficient way to grow food,” to which the gardener said, “yes, but it’s a very efficient way to grow utility.”

I’ve wanted to garden for some time, but the market for gardens is thin. So now I’m starting with almost no useful experience. My public stance has been that lawns are boring and dumb. But figuring out how to manage a little ecosystem ain’t easy. I now get why someone would just put in a lawn and be done with it.

At my old apartment complex the entire ecosystem was made of: humans, trees, lawns, cockroaches. I suspect the cockroaches did so well because all their competition was poisoned away. As an emergent order guy, I’m not really into that. But I get it now. In the same way the king wants everyone living in neat little taxable rows my life would be easier if I could just slash and burn all the complexity out of my yard.

Tl;dr: My biggest surprise as a new home owner is just how big a cognitive load owning a house is. You hear homeowners talk about how much work it can be, but I think it’s rare to hear someone talk about how much know-how is required.

Given the capacity to generate externalities, I’m a bit surprised that there isn’t more public policy devoted to issues of home ownership* (beyond subsidizing finance and increasing barriers to entry). I supposed I’ll learn a lot more about these issues as I learn about local politics.

*That isn’t to say I think it’s a good idea to get the government involved in trying to tell people how to go about the business of daily life. I think homeowners are (basically) doing fine left to their own devices.

The State and education – Part IV: Conclusion

Mary Lucia Darst Liberty , , , , , , ,

On August 17, 2018, the BBC published an article titled “Behind the exodus from US state schools.” After taking the usual swipes at religion and political conservatism, the real reason for the haemorrhage became evident in the personal testimony collected from an example mother who withdrew her children from the public school in favour of a charter school:

I once asked our public school music teacher, “Why introduce Britney Spears when you could introduce Beethoven,” says Ms. Helmi, who vouches for the benefits to her daughters of a more classical education.

“One of my favourite scenes at the school is seeing a high-schooler playing with a younger sibling and then discussing whether a quote was from Aristotle or Socrates.”

The academic and intellectual problems with the state school system and curriculum are perfectly encapsulated in the quote. The hierarchy of values is lost, not only lost but banished. This is very important to understand in the process of trying to safeguard liberty: the progenitors of liberty are not allowed into the places that claim to incubate the supposed future guardians of that liberty.

In addition to any issues concerning academic curricula, there is the problem of investment. One of the primary problems I see today, especially as someone who is frequently asked to give advice on application components, such as résumés and cover letters/statements of purpose, is a sense of entitlement vis-à-vis institutional education and the individual; it is a sense of having a right to acceptance/admission to institutions and career fields of choice. In my view, the entitlement stems from either a lack of a sense of investment or perhaps a sense of failed investment.

On the one hand as E.S. Savas effectively argued in his book Privatization and Public-Private Partnerships, if the state insists on being involved in education and funding institutions with tax dollars, then the taxpayers have a right to expect to profit from, i.e. have a reasonable expectation that their children may be admitted to and attend, public institutions – it’s the parents’ money after all. On the other hand, the state schools are a centralized system and as such in ill-adapted to adjustment, flexibility, or personal goals. And if all taxpayers have a right to attend a state-funded institution, such places can be neither fully competitive nor meritocratic. Additionally, Savas’ argument serves as a reminder that state schooling is a manifestation of welfarism via democratic socialism and monetary redistribution through taxation.

That wise investing grants dividends is a truth most people freely recognize when discussing money; when applied to humans, people start to seek caveats. Every year, the BBC runs a series on 100- “fill-in-the-blank” people – it is very similar to Forbes’ lists of 30 under 30, top 100 self-made millionaires, richest people, etc. Featured on the BBC list for 2017 was a young woman named Camille Eddy, who at age 23 was already a robotics specialist in Silicon Valley and was working to move to NASA. Miss Eddy’s article begins with a quote: “Home-schooling helped me break the glass ceiling.” Here is what Eddy had to say about the difference between home and institutional schooling based on her own experience:

I was home-schooled from 1stgrade to high school graduation by my mum. My sister was about to start kindergarten, and she wanted to invest time in us and be around. She’s a really smart lady and felt she could do it.

Regarding curriculum choices, progress, and goals:

My mum would look at how we did that year and if we didn’t completely understand a subject she would just repeat the year. She focused on mastery rather than achievement. I was able to make that journey on my own time.

And the focus on mastery rather than achievement meant that the latter came naturally; Eddy tested into Calculus I her first year at university. Concerning socialization and community – two things the public schools pretend to offer when confronted with the fact that their intellectual product is inferior, and their graduates do not achieve as much:

Another advantage was social learning. Because we were with mum wherever she went we met a lot of people. From young to old, I was able to converse well with anyone. We had many friends in church, our home-school community groups, and even had international pen pals.

When I got to college I felt I was more apt to jump into leadership and talk in front of people because I was socially savvy.

On why she was able to “find her passion” and be an interesting, high-achieving person:

And I had a lot of time to dream of all the things I could be. I would often finish school work and be out designing or engineering gadgets and inventions. I did a lot of discovery during those home-school years, through documentaries, books, or trying new things.

In the final twist to the plot, Camille Eddy, an African-American, was raised by a single mother in what she unironically describes as a “smaller town in the US” where the “cost of living was not so high.” What Eddy’s story can be distilled to is a parent who recognized that the public institutions were not enough and directly addressed the problem. All of her success, as she freely acknowledges, came from her mother’s decision and efforts. In the interest of full honesty, I should state that I and my siblings were home-schooled from 1stgrade through high school by parents who wanted a full classical education that allowed for personal growth and investment in the individual, so I am a strong advocate for independent schooling.

There is a divide, illustrated by Eddy’s story, created by the concept of investment. When Camille Eddy described her mother as wanting “to invest time in us and be around,” she was simply reporting her mother’s attitude and motivation. However, for those who aspire to have, or for their children to attain, Eddy’s achievements and success, her words are a reproach. What these people hear instead is, “my mother cared more about me than yours cared about you,” or “my mother did more for her children than you have done for yours.” With statements like Eddy’s, the onus of responsibility for a successful outcome shifts from state institutions to the individual. The responsibility always lay with the individual, especially vis-à-vis public education since it was designed at the outset to only accommodate the lowest common denominator, but, as philosopher Allan Bloom, author of The Closing of the American Mind,witnessed, ignoring this truth became an overarching American trait.

There are other solutions that don’t involve cutting the public school out completely. For example: Dr. Ben Carson’s a single-, working-mother, who needed the public school, if only as a babysitter, threw out the TV and mandated that he and his brother go to the library and read. As a musician, I know many people who attended public school simply to obtain the requisite diploma for conservatory enrollment but maintain that their real educations occurred in their private preparation – music training, especially for the conservatory level, is inherently an individualistic, private pursuit. But all the solutions start with recognizing that the public schools are inadequate, and that most who have gone out and made a success of life in the bigger world normally had parents who broke them out of the state school mould. In the case of Dr. Carson’s mother, she did not confuse the babysitter (public school) with the educator (herself as the parent).

The casual expectation that the babysitter can also educate is part of the entitlement mentality toward education that is pervasive in American society. The mentality is rather new. Allan Bloom described watching it take hold, and he fingered the Silent Generation – those born after 1920 who fought in World War II; their primary historical distinction was their comparative lack of education due to growing up during the Great Depression and their lack of political and cultural involvement, hence the moniker “silent”[1]– as having raised their children (the Baby Boomers) to believe that high school graduation conferred knowledge and rights. As a boy Bloom had had to fight with his parents in order to be allowed to attend a preparatory school and then University of Chicago, so he later understandably found the entitlement mentality of his Boomer and Generation X students infuriating and offensive. The mental “closing” alluded to in Bloom’s title was the resolute refusal of the post-War generations either to recognize or to address the fact that their state-provided educations had left them woefully unprepared and uninformed.

To close, I have chosen a paraphrase of social historian Neil Howe regarding the Silent Generation, stagnation, and mid-life crises:

Their [Gen X’s] parents – the “Silent Generation” – originated the stereotypical midlife breakdown, and they came of age, and fell apart, in a very different world. Generally stable and solvent, they headed confidently into adult lives about the time they were handed high school diplomas, and married not long after that. You see it in Updike’s Rabbit books – they gave up their freedom early, for what they expected to be decades of stability.

Implicit to the description of the Silent Generation is the idea, expressed with the word “handed,” that they did not earn the laurels on which they built their futures. They took an entitlement, one which failed them. There is little intrinsic difference between stability and security; it is the same for freedom and liberty. History demonstrates that humans tend to sacrifice liberty for security. Branching out from education, while continuing to use it as a marker, we will look next at the erosive social effect entitlements have upon liberty and its pursuit.

[1]Apparently to be part of the “Greatest Generation,” a person had to have been born before or during World War I because, according to Howe, the Greatest Generation were the heroes – hero is one of the mental archetypes Howe developed in his Strauss-Howe generational theory – who engineered the Allied victory; the Silent Generation were just cogs in the machine and lacked the knowledge, maturity, and experience to achieve victory.