SMP: The War on Cash: What Do You Have to Hide?

The war on cash we see starting to take place in recent times has a dangerous component. Besides the technical arguments in favor (and against) the efficiency gains of a cash-less economy, politicians are putting forward the argument that only those who have something to hide would oppose to a cash-less economy.

The problem is that this rhetoric implies that any individual is guilty of something until proven innocent. The presumption of innocence, one of the most basic principles of a free society, is being dangerously inverted.

Some economists, including Harvard’s Ken Rogoff, want to minimize the circulation of cash. Such proposals are usually justified on the grounds that they would (1) reduce criminal activity and tax evasion while also (2) helping central banks execute monetary policy when interest rates are at the zero lower bound. Both arguments have been challenged on this blog (here, here, and here).

Continue reading at SMP.

Worth a gander

  1. the Reformation’s controversies are as relevant as ever
  2. who stole Burma’s royal rubies?
  3. the Madras Observatory: from Jesuit cooperation to British rule
  4. “There are few better illustrations of how a whole host of people can manage to understand absolutely nothing, act in an impulsive and idiotic way, and still drastically change the course of history.“
  5. MacLean’s new book is bad news for the political Left
  6. fascism explained via 90-year-old sci-fi film (are you using hyphens correctly?)
  7. bawdry in the bloodstream (Bohemian nonsense)

Sound Money Project Relaunch

The Sound Money Project has relaunched this November at the American Institute for Economic Research (AIER) under the direction of William J. Luther.

Other than Luther and myself, you’ll see regular posts by Scott Burns, James Caton, Alexander W. Salter, and Brian C. Albrecht.

Libertarian sighted at the Daily Beast

Ooops, I mean cited, not sighted:

Nor was it the case that there was a direct correlation between Protestant countries and prosperity. In a paper published in the journal Social Forces Jacques Delacroix and Francois Nielsen conclude that “there is little empirical support” for the common interpretation of Weber’s Protestant Work Ethic. This idea probably comes “from selected anecdotal evidence fortified… by the perceived well-being of contemporary Protestant countries.” In other words, Protestantism does not make people rich even if, in some cases, Protestants think that it does.

Rest the rest. h/t Uncle Terry

Oh, and Mark has an essay up on institutions over at Aeon that ties in well with the Daily Beast piece.

Don’t forget about the back-and-forth between Mark and Bruno on the Protestant Reformation here at NOL: Part one (Bruno), part two (Mark), and part three (Bruno).

A long read

According to Instapaper this article at Wait But Why is a “139 minute read.” And it was time well spent.

It’s about a new Elon Musk venture, Neuralink, but there’s plenty non-Musk stuff in there of interest. I’m agnostic on whether Elon Musk is or isn’t the next coming of the (anti-) Christ. What’s really interesting is the background material this article gives, building up a highly entertaining natural history of knowledge. The section below really captures the main thrust of that story, but it’s worth reading anyways.

minimal tribal knowledge growth before language

And this:

That leads into a discussion of how brains work, that “soft pudding you could scoop with a spoon.” Here are some excerpts:

I’m pretty sure that gaining control over your limbic system is both the definition of maturity and the core human struggle. It’s not that we would be better off without our limbic systems—limbic systems are half of what makes us distinctly human, and most of the fun of life is related to emotions and/or fulfilling your animal needs—it’s just that your limbic system doesn’t get that you live in a civilization, and if you let it run your life too much, it’ll quickly ruin your life.

And…

Which leads us to the creepiest diagram of this post: the homunculus.

The homunculus, created by pioneer neurosurgeon Wilder Penfield, visually displays how the motor and somatosensory cortices are mapped. The larger the body part in the diagram, the more of the cortex is dedicated to its movement or sense of touch. A couple interesting things about this:

First, it’s amazing that more of your brain is dedicated to the movement and feeling of your face and hands than to the rest of your body combined. This makes sense though—you need to make incredibly nuanced facial expressions and your hands need to be unbelievably dexterous, while the rest of your body—your shoulder, your knee, your back—can move and feel things much more crudely. This is why people can play the piano with their fingers but not with their toes.

Second, it’s interesting how the two cortices are basically dedicated to the same body parts, in the same proportions. I never really thought about the fact that the same parts of your body you need to have a lot of movement control over tend to also be the most sensitive to touch.

Finally, I came across this shit and I’ve been living with it ever since—so now you have to too. A 3-dimensional homunculus man.17

This is too far outside my area of specialization to say, but it’s certainly an entertaining read that seems to fit with what I know about these topics (although the section on neurology could be made up as far as I know).

From there it builds up to the moon shot idea Musk apparently has in mind: building the core technology for a high bandwidth mind-computer interface. This would be the ultimate logical extreme of a trend towards better interfaces that’s been going on since before punch cards. If you think over the natural history of knowledge, it becomes clear that this idea is ultimately just a few dozen steps further down a path we’ve been on for billions of years.

And the implications of taking it that far are profound. The pros and cons of that power are huge. Consider how much more powerful your brain is with paper and pencil than without. Or a computer. Or a computer with a GUI and a copy of Excel. Once you can plug into your computer Matrix-style, all those awesome hot keys that let you zip through your computer like a pro will be like roller skates next to a rocket sled. And the two-way link would mean we could genuinely exercise some self control… for example,  by running a computer program that zaps you when you eat too much chocolate cake.

Readers of this blog will hear Hayek warning you! Such a device gives you a lot of power to manipulate a complicated thing in ways we may never be able to understand.

But this type of personal power might be a necessary bulwark against government or corporate power. Network externalities have already locked us in to Google and Facebook. A Byzantine government has created rent-seeking opportunities that puts enormous power in the hands of the politically connected. The NSA is terrifying. And machine learning will continue to get better, giving those entrenched players even more ability to understand and manipulate large numbers of people. (I’m not endorsing this forecast, just listing it as a possibility.)

In any case, even if Neuralink is just an April Fool’s joke I missed out on till now, this article provides a theory of knowledge that’s well worth reading.

In the near future I’ll argue why you need such a theory of knowledge. Stay tuned.

Lunchtime Links

  1. oil and Kurdistan
  2. after Raqqa, Iraq’s army turns on Kurdistan
  3. “There has been a common and unfortunate tendency among many analysts and policy makers to underestimate the strength of Iraqi nationalism”
  4. separatist movements in Europe don’t actually want independence
  5. GREAT topic, but poor methodology, poor theory, poor use of data, and bad faith
  6. meh (try this book review instead)
  7. Law without the State [pdf]

Lunchtime Links

  1. Interview with a secessionist
  2. Ducking questions about capitalism
  3. The perverse seductiveness of Fernando Pessoa
  4. “Yet in this simple task, a doffer in the USA doffed 6 times as much per hour as an adult Indian doffer.”
  5. Conflicted thoughts on women in medicine
  6. The Devil You Know vs The Market For Lemons (car problems)

Worth a gander

  1. good piece of American sociology by Jeffrey Friedman (h/t Alberto Mingardi)
  2. Daniel Larison on the devastation in Puerto Rico
  3. Don Boudreaux has the best take I’ve read or heard on the Trump-pro athlete fiasco, and remember when conservatives blasted Obama for sticking his nose where it didn’t belong when cops killed a black kid in Baltimore?
  4. Chris Dillow explains Leftist confusion about Brexit
  5. smart Leftists talking about smart things (penguins, of course!)

BC’s weekend reads

  1. Barry has a book review of Nietzsche’s political thought in the Los Angeles Review of Books!
  2. (check out Barry’s 2014 NOL post on Nietzsche’s contributions to the liberty canon)
  3. a good analysis on the Arab cold war between 2 sets of American allies
  4. a great analysis on the Kurds, the Yazidis, and Turkey
  5. the Zanzibar-North Sea swap
  6. walruses, the Arctic, and science

Lunchtime Links

  1. Trophy-taking and dismemberment as warfare strategies [pdf]
  2. optimally vague contracts and the law [pdf]
  3. Germanic and Carthaginian republicanism
  4. traditional resurgence in tropical Africa [pdf]
  5. crisis bureaucracy: homeland security and the political design of legal mandates [pdf]

Worth a gander

  1. good update on the mayhem in the Middle East
  2. as good as that update is, though: Iraq, Saudi Arabia to reopen border crossings after 27 years
  3. great read on Russia’s Far East and Russia’s travel writing genre
  4. in Russia, Lutheranism (Protestantism) is considered a “traditional” religion (h/t NEO)
  5. how social is reason?

Lunchtime Links

  1. violence among foragers [pdf]
  2. building legal order in ancient Athens [pdf]
  3. why Congo persists [pdf]
  4. toward an old new paradigm in American international relations [pdf]

Worth a gander

  1. Zero hour for Generation X
  2. Confederate flags and Nazi swastikas together? That’s new.
  3. America at the end of all hypotheticals
  4. What’s left of libertarianism?
  5. Factual free market fairness
  6. Thinking about costs and benefits of immigration

BC’s weekend reads

  1. the Kurdish bourgeoisie is against separatism (kinda, sorta)
  2. Qatar waives visas for 80 nationalities amid Gulf boycott
  3. doesn’t Pakistan already suck? Isn’t that why this is happening in the first place?
  4. “Similar moves are open to someone living in Pakistan. But those are different contexts than France or the US.“
  5. I read this twice, very carefully, but am unconvinced (the use of stats is amateurish)
  6. “The music was acid house, the drug: Ecstasy.“
  7. The Plastic Pink Flamingo, in America [pdf]

Lunchtime Links

  1. My country, your colony | why the Holocaust in Europe?
  2. compliance and defiance to national integration in Africa [pdf] | on doing economic history
  3. ethnonationalism and nation-building in Siberia [pdf] | cosmopolitanism and nationalism
  4. political centralization and government accountability [pdf] | decentralization in military command
  5. unified China and divided Europe [pdf] | unilateralism is not isolationism