Nightcap

  1. From the pussy hat to the liberty cap Marion Coutts, 1843
  2. Sweet waters grown salty Nathan Stone, Not Even Past
  3. A case for learning to read 17th century Dutch Julie van den Hout, JHIblog
  4. A danse macabre in Kermaria (Brittany) Kenan Malik, Pandaemonium

Nightcap

  1. There’s a long history of “grievance studies” in the US Chris Calton, Mises Wire
  2. The gap in preferences between men and women Alex Tabarrok, Marginal Revolution
  3. Asians are crazy and rich, but also generous Parag Khanna, Ozy
  4. Why it’s time to end factory farming Jacy Reese, Quillette

Nightcap

  1. When houses of prayer become places of shelter Bruce Clark, Erasmus
  2. Race, or the last colonial struggle in Latin America Jason McGraw, Age of Revolutions
  3. Free Trade, Unconditional and Unilateral Don Boudreaux, Cafe Hayek
  4. Remembering Peter Schramm Ken Masugi, Law & Liberty

From the Comments: How can we not consent to government if we obey it voluntarily?

Irfan Khawaja has a good argument on Yoram Hazony’s new book on nationalism, which is being thoroughly and thoughtfully dissected by Arnold Kling:

Does anyone understand the point that Kling and/or Hazony are making about the relation between legitimacy based on voluntary acceptance, and consent? On the one hand, the claim is that in a legitimate government, we obey the law “voluntarily”; on the other hand, the claim is that we do not consent to government. How can we not consent to government if we obey it voluntarily? Coming the other way around: how can we obey it voluntarily if we don’t consent to it? Even if Hazony wants to broaden consent beyond the Lockean account, that’s still a broadening of the conditions of consent, not a nullification of the role of consent. The combination of claims that Kling attributes to Hazony does not seem coherent.

Well?

As a reminder, this is not a philosophical argument. Well, it is but it isn’t. I suspect this is about Israel and Palestine as much as it is about logical rigor. Stay tuned, and don’t be shy about having your say!

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

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

RCH: The Crimean War was the 19th century’s most important

That’s what I argue in my weekend column for RealClearHistory, anyway. Here’s a peep:

5. Russia’s alienation from Europe, culturally. Russia had long been the odd man out in European affairs. Was Russia European? Asiatic? Russian? For most Russians, the Crimean War answered this question, as Christian Europe sided with Muslim Turks against it in a war Russia lost decisively. Russian efforts at integrating culturally with Europe began under Peter the Great in the 17th and 18th centuries, largely ended officially, though, of course, informally ideas still spread throughout the empire.

Please, read the rest.

Nightcap

  1. Are China’s provincial boundaries misaligned? Pei Zhi Chia, Science Trends
  2. How costly would a no deal Brexit really be? Aarti Shankar, CapX
  3. Why a Nexit would be good for the Netherlands Chhay Lin Lim, NOL
  4. Where the West went wrong Shikha Dalmia, the Week

Brazil’s Turn to the Right

Last elections in Brazil are not yet over. Brazilians will go back to the polls before the end of this month to decide who will be the country’s next president. But few doubt that Brazil’s next president will be Jair Messias Bolsonaro.

No matter what you read in mainstream media, Bolsonaro is not homophobic. He is not racist. He is not misogynist. And certainly, he is not a fascist. If he is any of these things, he hides pretty well. His language can certainly be very crude, and he can be very direct in his speech. Maybe that is exactly why he is being elected. Brazilians are tired of politicians who don’t speak their minds. With Bolsonaro, what you see is what you get.

And what do you get? Bolsonaro is not strong on any ideology. He is a self-professed Christian (somewhere between a Roman Catholic and an Evangelical), a Patriot and a family man. Because of his patriotism, for many years he believed in protectionism and developmentalism, but it seems more and more that he left these things in the past. Bolsonaro is inclined to defend free-market policies.

Alongside Bolsonaro, a very right-wing congress has been elected. For the first time in many decades, Brazil has many representatives who are ideologically classical liberals or conservatives. This is even better than having Bolsonaro as president. Meanwhile, the leftist parties (especially the Workers Party of Lula da Silva) lost quite some terrain.

If Bolsonaro and this Congress make a mildly good govern, the left will be in serious trouble in Brazil. Brazil is still a very poor country where people, for the most part, don’t vote ideologically. They vote in those who can bring development to their lives. That’s how Lula da Silva got reelected and was able to elect a successor, even with major corruption scandals surrounding him and his party.

The wind of change in Brazil is better than anything I could expect.

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

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

Nightcap

  1. U.S. environmentalism is a success story Patrick Allitt, Liberty Forum
  2. Don’t blame Karl Marx for “Cultural Marxism” Brian Doherty, Reason
  3. Texas and the white-washing of the American Revolution Michael Oberg, Age of Revolutions
  4. How would we recognize an alien if we saw one? Samuel Levin, Aeon

Sine qua non: No shortcuts

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.

Do You have Silver?

In an episode of the Netflix medieval series The Last Kingdom, the protagonist Uthred, trying to purchase a sword from a blacksmith in a town he is just passing by, is instantly asked “Do you have silver?”.

In one scene, insignificant to the plot, the series creators neatly raised some fundamental questions in monetary economics, illustrating the relative use of credit and cash and the importance of finality.

For many centuries, the very payment system between people set severe constraints on what kinds of transactions they could – or dared – engage in. There are two main ways of providing payments (with quite a few variations within these categories): cash or credit.

Cash (sometimes referred to as ‘money transactions’) refers to payments with direct finality; the economic chain is instantly settled, and gives rise to no other economic relation. Examples here would be pure barter (where one object is traded for another) or commodity money (where an object is traded for a common media of exchange, with history providing countless fascinating examples: cattle, skin, olive oil, feathers, pearls etc).

The other category, credit, involves trading someone else’s liability or incurring a new one. Modern credit cards easily comes to mind: swiping that card settles the trade between the vendor and the customer who used the card only by creating two new (future) economic relations – a promise by the credit card company to transfer funds to the vendor, and a promise by the customer to pay the credit card company at the end of the month. The same features can be – and were – applied in many early societies; I give you some of my items, and you owe me; later I may transfer this “claim” to somebody else is the community in exchange for something I wanted, and instead of owing me, you owe them.

Some of the difficulties of monetary economics are here quickly revealed. In order for credit to work, a sufficient level of trust, repeated dealings or enforcement mechanisms must exist. If one or more parties do not trust each other, the two are unlikely to trade again or cannot socially or legally force the other into upholding his or her contract, they may refuse the deal up-front and lose the benefits of trade (the “backward induct,” in Game Theory-speak). Nevertheless going through with this transaction requires a different payment system: instant finality, such as provided with cash. Here’s the conundrum that troubles monetary economists:

The frictions that are needed to make money essential typically make credit infeasible and environments where credit is feasible are ones where money is typically not essential (Ugolini, The Evolution of Central Banking, p. 169)

If we trust each other enough (or have enough repeat dealings and a system of keeping track of everyone’s debts), there is no need for cash. If there is need for cash, that means we do not trust each other (or can’t keep track/enforce debts), indicating the presence of “frictions” that make us reluctant to use credit at all.

Let’s go back to our Last Kingdom protagonist. It is clear that the two characters are strangers (no previous dealings, no trust) and from simply passing through a village, no reason for the blacksmith to believe that there may be repeat dealings. A credit transaction is thus clearly out of question. Instead he directly asks for silver (cash), which initially seems to solve the problem. However, two further issues emerge:

  1. if all transactions were like this, the amount of cash everyone must carry around in the economy would be enormous. A common problem in medieval and even early modern societies were the lack of coins. If enough cash was simply not there and recourse to credit system unfeasible, we quickly realise how difficult transacting would be.
  2. even if the customer had enough cash, the very reason they were reluctant to use credit in the first place (no trust, no repeat dealings, no credible enforcement) harms their ability to transact in cash. Howso? Because both parties can opportunistically defect from the agreement. If the sword is paid for up front, the blacksmith can take the money and run – since they are strangers and unlikely to meet again, the cost of cheating is comparatively low. If the sword is paid for at delivery, the customer can easily renege on payment once delivery is obtained.

Is there no way out?

Uthred and the blacksmith use a method most of us are familiar with – indeed, probably even used as kids – pay half up-front, and half on delivery, with the possibility of a bonus payment (tip) at the end. Risk-minimising, yet offering payoff through the gains from trade.

Good monetary economics does precisely that: illustrating how monetary systems, including payment systems, can facilitate transactions and expand rather than limit the available gains from trade. It concerns itself with one of those spheres of (economic) life that we don’t notice until they breaks down. Try completing everyday transactions in countries with small-change shortage for a neat flashback to eighteenth century Britain or U.S., or in countries impaired by hyperinflation or sanctions. Monetary economics, in essence, is fascinating in its complexity of otherwise quite mundane things. Thanks to The Last Kingdom team for illustrating that.

Nightcap

  1. Isolated in Africa, Chinese workers get religion en masse Yuan & Huang, Global Times
  2. Explaining Hazony’s nationalism Arnold Kling, askblog
  3. A prison journalist doing work — from the inside Daniel Gross, Literary Hub
  4. Character-based voting and the policy of truth Irfan Khawaja, Policy of Truth

RCH: America and Russia use to be friends

It’s true, and it’s the subject of my latest Tuesday column over at RealClearHistory. Check it out:

The two future superpower rivals had more in common than mere future greatness, though. Both were expanding rapidly, gobbling up huge swaths of territory at the expense of isolated polities like the Khiva Khanate and the Sioux confederacy, and hapless autocracies like Mexico and the Ottoman Empire. Russia and the United States also shared common foes – France and the U.K. – due mostly to the fact that American and Russian expansion was beginning to step on French and British toes. Both empires – one democratic, the other autocratic – also had looming labor crises that overshadowed everything they did in international affairs: slavery and serfdom.

Yes, I’m writing about the widely-ignored Crimean War. Please, read the rest, and don’t forget to tune in Friday for ten cool facts about the Crimean War!

Nightcap

  1. One thousand years of labor: the evolution of work Gabriel Winant, the Nation
  2. Why didn’t ancient Rome industrialize? Mark Koyama, NOL
  3. Productions, and the threshold of industrialization Nick Nielsen, The View from Oregon
  4. Rationalization of production and changes in the nature of work Jacques Delacroix, NOL