Latest thoughts on Brexit: Its Decay, Italy (and Ireland), Cars, and Giving up British Citizenship

The slow decay of Brexit: a Rule-Taking Country

I don’t mean that the UK will stay in the EU. I fully expect it to formally depart next year. If the poor performance of the UK economy compared with the Eurozone continues, I also expect the UK to rejoin in a few decades, when the growth divergence is not just in figures, but felt in everyday life, such as when people find it too expensive to travel in Europe or buy goods from Europe; if they do travel they notice that everything seems expensive and there are more nice things abroad than at home, while European tourists will seem to have huge amounts of money to throw around.

It might or might not work out like that, but the point here is that the UK, behind headlines about soft versus hard Brexit, is moving towards an ‘alignment’ with the single market and the customs union: not formal membership but keeping nearly all the rules. The short term losses in trade from leaving both the single market and the customs union, along with the Republic of Ireland/Northern Ireland border question, have combined to make de facto membership of the single market and the customs union inevitable. Hardening the border at all between the two parts of the island of Ireland is economically disruptive and very threatening to a Northern Ireland peace settlement, in which the Irish nationalist-republican side in NI can live with being part of the UK as long as the North and the Republic are unified via the EU and associated commercial agreements.

This is what I get from following Eurosceptic sources when they get round to proper conversation and analysis, rather than fighting the remain-leave battle. Brexit outbursts of premature triumphalism over Italy, or demands to abolish the upper House of Parliament because the Lords uses its constitutional rights to pass amendments they don’t agree with back to the Commons for the final decision, are a distraction from the collapse of full Brexit.

The idea of a ‘no deal’ walk-away from the EU has been abandoned and inevitably the UK will accept single market/customs union rules while the government makes a show of leaving everything. Because the UK very probably will not be a formal member of the single market (though there is a possibility of joining the EEA which would mean formally staying in the single market), it will be able to reduce migration from the EU (not a great thing to my mind), which will bring joy to a large part of the population (particularly the Brexit-voting part). No doubt the reality of moving to what Jacob Rees-Mogg (a well known, hard-Brexit Conservative MP) calls ‘vassal state’ status will be covered over with that issue, but the reality is the UK will accept rules for customs and economic regulation made by the EU indefinitely.

‘Indefinitely’ means ‘permanent’ though this is being covered up by talk of ‘transitional periods’. Alternatives to this have collapsed with the failure of ‘no deal’. The New Hard Brexit is to accept aligned rules on goods, but not on services, with the UK’s exceptional role in financial services in mind. However, there is no indication that the EU will give this kind of deal, despite the Brexiteer posturing about the UK being too powerful to push around, which has clearly been shown as empty by negotiations so far.

Over-excited Brexiteers getting Italy wrong (and Ireland)

So a new government formed without anti-Euro currency finance minister. 5 Star and the League (the coalition partners) are not impeaching President Sergio Mattarella. The idea they would is a bit of a joke anyway, as it would require the agreement of the Supreme Court and a vote of both chambers of the Italian parliament to achieve an impeachment. The issue behind the non-impeachment was that Mattarella had vetoed an anti-Euro candidate for finance minister: Paolo Savona (who now has another post in the government).

Some relevant facts here. 1. Italian presidents have the constitutional right to veto ministerial nominations and have frequently done so before 2. Recent Italian opinion polls show support for the Euro at over 60% 3. Neither coalition party ran on an anti-Euro manifesto.

Claims that Mattarella is some pathetic weak instrument of the European institutions who ordered him to keep Savona out are themselves absurd. 1. There is a shared preference of Mattarella, the Italian public, and European institutions for staying in the Euro 2. Mattarella is from a political family in Sicily, which went anti-mafia and Sergio Materall’s brother, Piersanti, who was head of the regional government, was assassinated by the mafia as a result. I think we can say Sergio is a character of substance to stay in politics after that.

Regarding constitutions and democracy, constitutions establish limits on the power of temporary majorities through rules and institutions designed to embed basic rules about rights and the use of power. This is why democracy of a kind worth having is referred to as ‘constitutional liberal democracy’. You cannot both be in favour of constitutional democracy and complain when constitutional constraints express themselves in the action that Mattarella took, which is well within his formal powers and previous precedent.

Many of the triumphalist Brexiteers in the UK, who were shouting about Mattarella as an enemy of democracy who was about to be punished, are admirers of the US ‘constitutional conservatism’ which, on the face of it, advocates very strict restraints on the actions of elected bodies according to the supposed original meaning of the constitution. You can’t have it both ways. And even if you think democracy means the unrestrained right of a majority, there is no majority support for leaving the Euro in Italy and no manifesto mandate for the coalition to leave the Euro.

You could argue that Mattarella made a mistake about perceptions and had been outplayed, that had some plausibility for a few days but does not look so correct now. Mattarella has got what he wanted and will not be impeached. It’s true that the League has strongly increased its support since the election in opinion polls, but that mostly precedes the ministerial crisis. Brexiteers are still clinging to an attempted triumphalism over Italy. The Italians are standing up to Brussels, which supposedly is a lesson to Britain to be tougher in Brexit negotiations. Well it is a bit soon to say whether the Coalition in Italy represents Eurosceptic triumph and hard to see what this has to do with Brexit negotiations.

What loud mouthed Brexiteers in the UK say about Italy is in some ways not very important, but what is important is the presumption to know more than they do and circulate false assumptions about European politics in the UK, which in turn distorts our debates and assumptions, and which can then pop up amongst Proper centre-right journalists and commentators Who Should Know Better.

Something similar has emerged with Brexiteer attitudes towards Ireland’s attempts to keep an open border with Northern Ireland. Manipulated by the EU institutions with naive and incompetent leaders (rather reminiscent of old prejudices about the Irish being stupid) has been standard opinion, and then there was the claim by a senior Conservative politician, Iain Duncan-Smith, that the Irish position is to do with a forthcoming presidential election. 1. The Irish president has no political powers whatsoever 2. There may not be an election, since no one has announced a wish to run against the incumbent so far and it may suit the major parties in Ireland to leave it like that. Funnily enough all those stupid naive Irish leaders manipulated by the EU have given Ireland much greater economic growth than the UK. What an economic miracle there would be in Ireland if they were as clever as Brexiteers!

It’s difficult to stop Brexiteers from 1. using simplistic rhetoric about majorities and Will of the People to suit their immediate anti-EU goals without concern for consistency and the values of liberal democracy 2. Living in an imagined world where European politicians they disagree with are stupid and/or slaves of the European Commission, conspiring against democracy. These views should be challenged and left with the true believers, away from informed debate.

Brexiteers and German car companies

UK enthusiasts for leaving the EU have a strange obsession with German car makers. They export so many cars to the UK, they will MAKE the German government which will MAKE the European Commission give us the exit deal we want. This has been going on from all kinds of people ever since the Leave Referendum (maybe during the campaign as well, but I missed that). It is an expectation that has obviously been falsified by the course of negotiations in which the EU has got 10s of billions of Euros from the UK to even start negotiations (though the UK tries to pretend otherwise) and has refused the kind of market access the Brexiteer enthusiasts assumed they would get automatically thanks to Volkswagen, BMW, and Mercedes (!).

Even today, listening to the Telegraph Brexit podcast, I heard Christopher Hope (the highly affable and mostly reasonable chair) keep on about how German carmakers were going to make Brussels gives the UK what it wants. The guests, pro-Brexit people from the Telegraph, were clearly bemused as they had been explaining how the UK was going to remain ‘aligned’ with the single market. Clearly if the UK is already de facto accepting the ‘indefinite’ (i.e. permanent) application of single market rules, German car makers have no incentive to MAKE Merkel give the UK another deal preferable to hardcore Brexiteers.

Of course the saddest expression of this muddled thinking came from Boris Johnson (the notoriously attention seeking and inconsistent foreign minister) when he claimed Italian prosecco wine manufacturers would make Rome/Brussels give the UK a Brexiteer-friendly trade deal. It turns out demand for prosecco in Italy is greater than supply and the makers can easily live with reduced demand in the UK.

The German car industry is of course much larger and not dependent on the supply of a particular kind of grape. Still, just one seventh of German cars are sold in the UK. Now obviously it would be very bad news to lose one seventh of the market, but there are no circumstances in which German manufacturers would sell no cars in the UK, the drop would never be as great as one seventh. Sales of German cars are already declining in the UK and given weak UK economic performance compared with Germany, the decline is likely to continue. Anyway, it should now just be really bloody obvious that German car manufacturers have not united to force Berlin/Brussels to accept a hardcore Brexit agenda! There is clearly a very big stream of reality distorting national self-obsession amongst Brexiteers who believe this kind of thing. Well it has now been shown to be thoroughly incorrect, let go now!

Brexit Bureaucracy and Renouncing UK Citizenship

UK nationals living outside the UK in the EU are applying for citizenship abroad to retain rights they lose after Brexit. Some of these countries forbid dual citizenship so UK citizens are renouncing UK citizenship. The Home Office takes the opportunity to raise fees for renouncing citizenship, though evidently its revenue is already increasing because of charges for renouncing citizenship. Didn’t Brexiteers tell us Brexit would reduce state bureaucracy?

Nightcap

  1. How Alan Shepard Became First American in Space Rick Brownell, Historiat
  2. Public Debt: a global perspective Livio di Matteo, Worthwhile Canadian Initiative
  3. Italian voters head for euro showdown Alberto Mingardi, Politico EU
  4. What good is religion? Manini Sheker, Aeon

Eye Candy: medieval trade networks

NOL map medieval trade networks
Click here to zoom

‘Nuff said, and don’t forget to zoom in!

Nightcap

  1. Are the “educated elite” even educated, or elite? David French, National Review
  2. Fired anti-Trump employee might have a First Amendment case Ken White, Popehat
  3. Just enough tears for Jean-Michel Basquiat Stuart Klawans, the Nation
  4. Indifferently Spacefaring Civilizations Nick Nielsen, Centauri Dreams

Nightcap

  1. Neo- and other liberalisms David Glasner, Uneasy Money
  2. How neoliberalism seeks to limit the power of democracies Patrick Iber, New Republic
  3. The Unacknowledged Success of Neoliberalism Scott Sumner, Econlib
  4. From oligarchy to republic: Lessons from the American South James H. Read, Law & Liberty

Nightcap

  1. Notes on Frantz Fanon Branko Milanovic, globalinequality
  2. Why some countries come together and others fall apart Andreas Wimmer, Aeon
  3. Ethiopia is already “the China of Africa” Tyler Cowen, Bloomberg View
  4. Israel and the parable of Samson the Weakling Michael Koplow, Ottomans and Zionists

On “strawmanning” some people and inequality

For some years now, I have been interested in the topic of inequality. One of the angles that I have pursued is a purely empirical one in which I attempt to improvement measurements. This angle has yielded two papers (one of which is still in progress while the other is still in want of a home) that reconsider the shape of the U-curve of income inequality in the United States since circa 1900.

The other angle that I have pursued is more theoretical and is a spawn of the work of Gordon Tullock on income redistribution. That line of research makes a simple point: there are some inequalities that are, in normative terms, worrisome while others are not. The income inequality stemming from the career choices of a benedictine monk and a hedge fund banker are not worrisome. The income inequality stemming from being a prisoner of one’s birth or from rent-seekers shaping rules in their favor is worrisome.  Moreover, some interventions meant to remedy inequalities might actually make things worse in the long-run (some articles even find that taxing income for the sake of redistribution may increase inequality if certain conditions are present – see here).  I have two articles on this (one forthcoming, the other already published) and a paper still in progress (with Rosolino Candela), but they are merely an extension of the aforementioned Gordon Tullock and some other economists like Randall Holcombe, William Watson and Vito Tanzi. After all, the point that a “first, do no harm” policy to inequality might be more productive is not novel (all that it needs is a deep exploration and a robust exposition).

Notice that there is an implicit assumption in this line of research: inequality is a topic worth studying. This is why I am annoyed by statements like those that Gabriel Zucman made to ProMarket. When asked if he was getting pushback for his research on inequality (which is novel and very important), Zucman answers the following:

Of course, yes. I get pushback, let’s say not as much on the substance oftentimes as on the approach. Some people in economics feel that economics should be only about efficiency, and that talking about distributional issues and inequality is not what economists should be doing, that it’s something that politicians should be doing.

This is “strawmanning“. There is no economist who thinks inequality is not a worthwhile topic. Literally none. True, economists may have waned in their interest towards the topic for some years but it never became a secondary topic. Major articles were published in major journals throughout the 1990s (which is often identified as a low point in the literature) – most of them groundbreaking enough to propel the topic forward a mere decade later. This should not be surprising given the heavy ideological and normative ramifications of studying inequality. The topic is so important to all social sciences that no one disregards it. As such, who are these “some people” that Zucman alludes too?

I assume that “some people” are strawmen substitutes for those who, while agreeing that inequality is an important topic, disagree with the policy prescriptions and the normative implications that Zucman draws from his work. The group most “hostile” to the arguments of Zucman (and others such as Piketty, Saez, Atkinson and Stiglitz) is the one that stems from the public choice tradition. Yet, economists in the public-choice tradition probably give distributional issues a more central role in their research than Zucman does. They care about institutional arrangements and the rules of the game in determining outcomes. The very concept of rent-seeking, so essential to public choice theory, relates to how distributional coalitions can emerge to shape the rules of the game in a way that redistribute wealth from X to Y in ways that are socially counterproductive. As such, rent-seeking is essentially a concept that relates to distributional issues in a way that is intimately related to efficiency.

The argument by Zucman to bolster his own claim is one of the reason why I am cynical towards the times we live in. It denotes a certain tribalism that demonizes the “other side” in order to avoid engaging in them. That tribalism, I believe (but I may be wrong), is more prevalent than in the not-so-distant past. Strawmanning only makes the problem worse.

On Household Size and Economic Convergence

A few days ago, one of my papers was accepted for publication at the Scottish Journal of Political Economy (working paper version here). Co-authored with Vadim Kufenko and Klaus Prettner, this paper makes a simple point which I think should be heeded by economists: household size matter. To be fair, economists are aware of this when they study inequality or poverty. After all, the point is pretty straightforward: larger households command economies of scale so that each dollar goes further than in smaller households. As such, adjustments are necessary to make households comparable.

Yet, economists seem to forget it when times come to consider paths of economic growth and convergence across countries. In the paper, we try to remedy this flaw. We do so because there was a wide heterogeneity of household size throughout history – even within more homogeneous clubs such as the countries composing the OECD.  If we admit, as the economists who study poverty and inequality do, that income per person adjusted for household size is preferable to income per person, then we must recognize that our figures of income per capita will misstate the actual differences between countries. In addition, if households grew homogeneously smaller over a long period of time, figures of income per capita will overstate the actual improvements in living standards. As such, we argue there is value in modifying the figures to reflect changing household sizes.

For OECD countries, we find that the adjusted income figures increased a third less than the unadjusted per capita figures (see table below). This suggests a more modest growth trend. In addition, we also find that up to the structural break in variations between countries (NDLR: divergence between OECD countries increased to around 1950) there was more divergence with the adjusted figures than with the unadjusted figures (see figure below). We also find that since the break point, there has been less convergence than previously estimated.

While the paper is presented as a note, the point is simple and suggests that those who study convergence between regions or countries should consider the role of demography more carefully in their work.

GrowthHouseholdSize

ConvergenceHouseholdSize.png

Nightcap

  1. The world’s first political risk consultants John Hulsman, Aeon
  2. Why We Should Say Yes to Drugs Andrew Sullivan, Daily Intelligencer
  3. A primer on fentanyl(s) Mark Kleiman, Reality-Based Community
  4. Moral responsibility Scott Sumner, EconLog

Fogel on economics and ideology

Many, upon reading the conclusions of economists, believe that economics has an ideological bent. I often respond that this is not the case. True, the “window” of political opinions in economics is narrower but that is largely because the adhesion of economists to methodological individualism precludes certain ideological views that rest on holistic approaches or concepts. However, when you consider more complex situations than “party affiliation”, you will find economists all over the place. They will often cross ideological lines or even have a foot in two antagonistic camps.

Recently, I was reading Robert Fogel’s lectures on the “Slavery debates” which retells the intellectual history of American slavery from U.B. Phillips to … well … Fogel himself. One must remember that Fogel was, and remained from what I can tell, a quite strongly left-leaning economist for most of his life (see here). As such, it is hard to consider Fogel as an ideologue preaching for free market economics. Yet, in the lectures, Fogel (p.19) makes a point that supports the contention that I often make regarding economists and ideology that I believe must be shared:

The ability to view Phillips (NDLR: the dominant interpretation of slavery pre-1960) in a new light was facilitated by the sudden intrusion of a large corps of economists into the slavery debates during the 1960s. This intrusion was welcomed by neither the defenders of the Phillips tradition nor the neoabolitionist school led by Stampp (NDLR: Kenneth Stampp, author of The Peculiar Institution). The cliometricians, as they were called, refused to be bound by the established rules of engagement, and they blithely crossed ideological wires in a manner that perplexed and exasperated traditional historians on both sides of the ideological divide.

Given that the source of this quotation is Fogel, I admit that I am particularly fond of this passage. Maybe the distrust towards economists is because economists can be both friend and foes to established interlocutors in a given discussion.

The State in education – Part II: Social Warfare

In the article The State in education – Part I: A History, we examined Friedrich Nietzsche’s opinion of the Prussian public school system and his concern when it became the model framework for public schools, both in Germany and in the world. To summarize quickly, the philosopher held that state-funded schooling was an act of social warfare – students, taught to aspire beyond their capabilities, would become resentful and angry, making them susceptible to propaganda and manipulation. Although Nietzsche did not use the term “welfare state” in the educational context, his predicated his denouncement of public education on the idea that it was a form of welfarism and increased state control.

For historical placement, it is important to understand what resources existed for parents pre-public schools. More importantly, it is also important to understand the difference in curricula and their final goals. Before the late 18thcentury, Jean Jacques Rousseau, and the advent of educational “experts,” there were only privately funded schools – many of which were free to those in need – which provided a classical education.

There are two definitions, both equally correct, of “classical education.” The first literally signifies an education based on Latin and Ancient Greek and all the literature in those languages; associated with this definition are skills in music, art, drama, declamation, oratory, and debate, all of which the Romans considered essential to a well-rounded education and which they included as formal subjects in their schools. By the early 19thcentury, this education also carried the expectation that the student could easily acquire most modern European languages since to varying degrees they were all based on the classical languages.

The second definition of “classical education” focuses on the acquisition of a mental toolkit with the goal of enabling the student to think deeply and carefully throughout his life. This system is divided into the trivium and the quadrivium, roughly corresponding to the primary and secondary school levels of the modern system.

As Dr. Peter Lynch of University of Dublin explained,

The organisation of the quadrivium was formalised by Boethius, and this structure endured for more than a millennium. It was the mainstay of the medieval monastic system of education, which had a structure of seven subjects – the seven liberal arts – comprising the quadrivium and the trivium. The trivium was centered on three arts of language: grammar, for ensuring proper structure of language; logic, for arriving at the truth; and rhetoric, for the beautiful use of language. Thus the aim of the trivium was goodness, truth, and beauty.

Dorothy L. Sayers (1893 – 1957), an Oxonian classicist and author, explained in her 1947 essay “The Lost Tools of Learning” that the trivium is the more crucial of the two since it provides all the skills needed to be an independent thinker and learner. In her essay, she also detailed a scheme whereby the modern institutional schools could implement the trivium in place of contemporary curricula. She recognized, though, the unfortunate tendency of 20thcentury society to prefer for “education” to have a concrete banality, with parents focusing on what their children could “do” with a subject.

The quadrivium, though elucidated by Boethius (480 – 524 AD), was based on the writings of the philosopher Proclus (412 – 484 BC), whom the Renaissance men and women relied upon when they incorporated the quadrivium into formal education.  The subjects of the quadrivium are: arithmetic, music, geometry, and cosmology (sometimes listed as astronomy). As Dr. Lynch noted, mathematician Morris Klein described these subjects as “pure,” studying as they do, the abstract and the relationship between the concrete and the metaphysical. In philosophical terms, the trivium is aristotelian and the quadrivium is platonic.

Before turning to the subject of Nietzsche’s Cassandra-like predictions and the loss of classical learning in America, we must briefly look at the history of institutional education since it is the primary component of the American version. As Dr. Lynch remarked, the classical education remained alive in the European Catholic monasteries and convents, which acted as an early form of boarding school.

The schools associated with religious houses were open to all, regardless of rank or income, and did not necessitate a commitment to religious life at the end. That said, it was primarily the nobility who took advantage of the monastic and convent schools, more, in all honesty, because the principle of religious sanctuary meant that the children were secure from predation in times of unrest than from any love of learning. Although there was no prestige associated with this type of education, under these conditions, it became a noble prerogative but not necessarily ennobling in itself. Despite aristocratic mamas and papas seeing education as much less important than sanctuary, the result of this symbiotic relationship was that the upper classes really were better educated than the middle and lower ones, laying the foundation for the educational class war that Nietzsche identified in the 1800s.

Let us fast forward past the Renaissance, the Reformation, and the Enlightenment, all of which had profound effects on education, though always within the classical framework, and look at the roots of American public education. The concept of publicly funded education occupied Thomas Jefferson, who initially supported it unilaterally, then opposed it, then compromised (Hegel would be proud) by suggesting that grammar schools might be locally funded and universal but anything beyond that had to be either private or competitive entry, if publicly funded. In general, the Founding Fathers took a laissez-faire view on education, focusing on the aspects of freedom and personal choice. This truly enlightened attitude did not last.

By the 1830s, progressives, including Horace Mann, fell under the spell of the Prussian system. In the 1840s, Mann used his position as Secretary of the (Massachusetts) Board of Education to introduce public schooling. Post-Civil War, in the 1860s, he used his position as a US Congressman to make public schooling compulsory, while homeschooling his own children in a stunning display of “for thee but not for me” hypocrisy. In 1848, as Secretary of the nascent Board of Education, Mann opened his report with these words:

According to the European theory, men are divided into classes, – some to toil, others to seize and enjoy. According to the Massachusetts theory, all are to have an equal chance for earning, and equal security in the enjoyment of what they earn. The latter tends to equality of condition; the former, to the grossest of inequalities. Tried by any Christian standard of morals, or even by any of the better sort of heathen standards, can any one hesitate, for a moment in declaring which of the two will produce the greater amount of human welfare, and which, therefore, is more conformable to the divine will? The European theory is blind to what constitutes the highest glory as well as the highest duty of a State …

The truth is that Mann openly declared that the public school’s purpose is to render control to the state. The awful truth is neatly dressed in a virtue signaling garb that makes reference to religion and God (I challenge anyone to find a single passage in the Bible where God says “go build a public school.”). Buried in this paragraph is one of the major fallacies that afflicts contemporary American society: linking formal education to earning power and social worth. This particular problem we will address in a subsequent article, but it is important to know that promoting this fallacy was a crucial part of the mandate of state-run education.

At the same time as Mann was advocating mass education and social equalization on one side of the Atlantic, on the other side, Nietzsche exposed its flaws:

Let me tell you what I think characterizes the vital and pressing educational and pedagogical questions of today. It seems to me that we need to distinguish between two dominant tendencies in our educational institutions, apparently opposed but equally ruinous in effect and eventually converging in their end results. The first is the drive for the greatest possible expansionand disseminationof education; the other is the drive for the narrowingand weakening of education. For various reasons, education is supposed to reach the widest possible circle – such is the demand of the first tendency. But then the second tendency expects education to give up its own highest, noblest, loftiest claims and content itself with serving some other form of life, for instance, the state (Anti-Education, Lecture I).

The conflation that most concerned Nietzsche was that mass literacy did not equal mass education since the connection between reading and thinking was lost. For him, nothing epitomized this more than newspapers and journalism – “Journalism fulfills its task according to its nature and as its name suggests: as day labour.” Everyone learning to pretend to the laurels of the literate, through simply being able to decipher words on a page, created a societal need for professional intellectual caulkers:

It is in journalism that the two tendencies converge: education’s expansion and its narrowing. The daily newspaper has effectively replaced education, and anyone who still lays claim to culture or education, even a scholar, typically relies on a sticky layer of journalism – a substance as sturdy and permanent as the paper it’s printed on – to grout the gaps between every form of life, every social position, every art, every science, every field. The newspaper epitomizes the goal of today’s education, just as the journalist, servant of the present moment, has taken the place of genius, our salvation from the moment and leader for the ages.

Systemic education was the death of the Renaissance man. It created a strange world where everyone could read but no one was learned. This intellectual world is the United States today.

After Mann forced compulsory education on the American people, the literacy rate, previously rising, declined, an event which occurred in Europe as well when Great Britain and France followed Germany’s lead. When angry parents, appalled at the poor quality of the new “free” education, withdrew their children to place them in private schools, Mann launched a media war against them, branding them un-American elitists and/or social malingerers and starting a social shouting match that continues to the present. Discovering that parents, naturally, disregarded name-calling when their children’s future was at stake, the progressives brought the state apparatus in the form of taxation to bear.

Today, the United States ranks in the middle percentiles in education internationally. The nation is behind all of east Asia, even very poor countries like Vietnam, and most of Europe, including poor Eastern European countries. According to the report, over 40% of American high school seniors rate “below basic” for science and mathematics, which by extension indicates an inability to read and reason adequately (both subjects are more tests of those two skills than anything else at that level). Yet the nation houses the greatest number of elite universities and institutions of higher education in the world. The American people have known since the early 20thcentury that public school graduates could not enter these institutions and thrive – Sinclair Lewis’ book Babbitt describes beautifully the dichotomy existing between 1920s middle-America and the push for an elite education – yet only now has the public decided that this is a problem, but only on superficial grounds. No one is interested in discussing the foundational flaws that result in American students lagging behind their European and Asian counterparts.

We are aware through personal experience that the skills of the seven liberal arts of the trivium and quadrivium are gone. We can cry in vain after the American reading public, which, before the advent of public schools and their version of literacy, created one of the first best seller phenomena with James Fenimore Cooper and later devoured the works of Edgar Allen Poe – during his life writing high literature was lucrative. Just as extinct is the British public that devoured Jane Austen with such an insatiable hunger that she could not keep up. The people whose appetite induced Charles Dickens to exploit it with publishing deals that paid him by the word are gone; for that matter, the ability of the reading public to recognize and delight in Dickens’ colorful language and skillful use of words is moribund – alas the trivium! The rage for reading and, by extension, autodidacticism in Britain reached such a pitch that, in the words of a Mises Institute commentator,“England eventually passed a paper tax [raising the cost of books] to quell a public the leaders felt was too smart.” A public too interested in books is not a contemporary problem.

In his inaugural speech, President Donald Trump described the public school system as having “failed so many of our beautiful young people.” In context, the sentence implied that the public school is supposed to turn out competitive, educated smart people. There is a question to this statement, though: Is it really a failure if a system cannot accomplish that which it was never designed to do? On the contrary, if one takes Mann’s opening report as a plan of action, the American public school has succeeded fantastically. Now everyone is equal in mediocrity and lack of knowledge. One of its missions has not been achieved: forcible creation of a classless society. We will examine the causes of this failure next since it relates to Nietzsche’s predictions of unhappiness for those who believed in state-mandated educational equality.

Serey: a Cambodian blockchain-based social media platform inspired by Friedrich Hayek’s theory of dispersed knowledge

www.serey.io

Serey is a new Social Media platform that specifically targets the Cambodian market. The country that saw nearly a quarter of the population decimated during the civil war of the 60’s and 70’s, the Khmer rouge regime, and the subsequent famine, has gone through rapid economic developments in the past two decades due to its friendliness to free markets. Accompanying this development is the adoption of new information technologies. One such technology is blockchain.

The team behind Serey has now created a blockchain-based social media platform called Serey. It rewards content creators, such as writers, for their creativity. The platform now has 400-500 users who all contribute by writing content ranging from short fictional stories to history, philosophy, and technology. Users can post any content they want. There is no central authority that can censor the posts in any way. The system is based on a democratic voting system in which every user can vote on articles. Dependent on the votes, the content creators are rewarded with the platform’s native cryptocurrency called Serey coin (SRY).

What does Serey stand for? 

The name of the platform, Serey (សេរី in Khmer), is derived from the Khmer word seripheap (សេរីភាព) which stands for liberty or freedom. The platform is built on the philosophy of liberty and is inspired by Friedrich Hayek’s theory of dispersed knowledge. Realizing that every individual knows just a fraction of what is collectively known and that our collective knowledge is therefore decentralized, Serey is looking to encourage the sharing of the unique information that individuals possess through the Serey platform. It wants to create an open platform where everyone is free to enter, to exercise their creativity without fear of being coerced into silence or conformity, and to engage in thoughtful, civilized discussions.

There was no such online platform in Cambodia yet. Cambodia, at this moment, also doesn’t have a culture of reading and writing. Serey is aiming to transform this so there is also an educational component to it.

We need to learn to dance with our feet, with ideas, with words, and, need I add that one must also be able to dance with the pen?

The mission statement of Serey is as follows:

“Rewarding self-expression and creativity.”

Why is Serey run on a blockchain?

The Serey blockchain allows the storage of content – actually only the actual text of the article and no pictures or videos to keep block sizes minimal – in a distributed manner. Anything written on Serey is stored on a blockchain that is shared among many other servers, called witnesses, that run an exact copy of the blockchain. This makes all content tamper-proof and censorship nearly impossible. This is in line with Serey’s belief that everyone should have the right to free expression.

In addition, a blockchain serves the people’s right to keep the fruits of their labour. Serey cannot take away any of its users Serey coins. All earnings are rightfully theirs and they can spend it in any way they want.

What are the features of Serey?

Serey is principally a fork of Steemit – another social media platform on the blockchain – and therefore essentially makes use of the Graphene technology that also powers Steemit and Bitshares. However, whereas Steemit is trying to create a one-size-fit-all approach with their platform, Serey is entirely dedicated to the people of Cambodia. They believe that regional differences require different user interfaces and functionalities that match the people’s cultural makeup and level of sophistication with blockchain technology.

Compared to Steemit, Serey has a different layout, a market place section, a Khmer language option, an free advertisement section, and a simplified reward system.

The Serey Decentralized Exchange is currently under development and will offer an English and Khmer language option.

In addition, the Serey Decentralized Exchange is currently being built in cooperation with developers close to Steemit and Bitshares. It will be a full-fledged decentralized exchange that is accessible by anyone, anywhere in the world. Users will then be able to trade Serey coins (SRY) among 15-20 other cryptocurrencies such as Bitcoin, Ethereum, Dash, Bitshares etc.

Other features that Serey users can look forward to in the next six months are an online betting system, improvements of the market place section, an integrated chat feature similar to that of Messenger, and a mobile app.

If you are interested in Serey, please feel free to visit the website and to register for free. Most articles are written in Khmer, but English articles are welcome as well.

Nightcap

  1. Thoughts on Strauss and Machiavelli Jerry Weinberger, Law & Liberty
  2. Rationalism, rationality & reasonableness Chris Dillow, Stumbling and Mumbling
  3. Dialogue with the Public and Academic Snobbery Carole McGranahan, Savage Minds
  4. 1983: the year the world nearly ended Julie McDowall, Spectator

ICE as Education Planners

Yale recently reclassified economics as a STEM (science, technology, engineering, and math), and other schools may follow suit. It’s a public-spirited regulatory arbitrage–by reclassifying to “Econometric and Quantitative Economics” they make it easier for international students to continue working in the U.S. after graduation. But by capitulating to regulatory nonsense, they’re sacrificing the long-run vitality of the field.

Here’s how this whole classification thing works: Immigration and Customs Enforcement (ICE) has a “STEM Designated Degree Program List” that specifies which programs on the Department of Education’s list of degree programs qualify as STEM. Students with degrees in these fields get special status as far as immigration. ICE’s list includes (among others) several psychology programs and three social science programs: Archaeology; Cyber/Computer Forensics and Counterterrorism; and Econometrics and Quantitative Economics.

What can we infer from this? That the feds are defining STEM narrowly, with a greater emphasis on engineering than science. STEM is about training people to do science-y work with practical applications. Basic research gets lip service, but only really matters so far as it’s likely to have clear applications in the future.

Economics has some parts that fit into such a view of STEM. Even I’ll admit (controversially for Austrians and Anarcho-Capitalists) that positive-sum social engineering a) is possible (in modest increments), and b) has something to learn from economics. But to include all of econ in STEM would require using a broader definition of STEM.

So what’s the upshot? High profile departments will focus more on a narrower part of economics pushing much of the field to the periphery. This is a retreat into more isolated academic silos. “Economics, general” leaves a vague space around a department, but taking a more specific designation means they can be held to more specific expectations. It might have little impact on the day-to-day life of a department, but in the long run they’re hamstringing themselves.

The problem these departments are trying to address is that ICE has too much power. But by playing this game they’re letting ICE play central planner in the education industry!

More on the Turkish Elections

This is a sequel to my recent post Turkish Elections: Some Hope, so is best read after reading its predecessor.

In the last post, I covered the National Assembly elections on the 24th June. The first round of the presidential elections will take place on the same day and there will be a run-off between the two main candidates on the 8th July, if no candidate gets more than 50% on the first round.

As by far the strongest personality in Turkish politics over the last 15 years, Recep Tayyıp Erdoğan was no doubt expecting to win in the first round easily. He did so in 2014 when he was first elected to the presidency at a time when the president’s powers were much smaller. The two largest opposition parties of the time (CHP and MHP) put up a joint presidential candidate little known to the public and who did become much better known during the campaign. The campaign was in fact a surrender to Erdoğan who went on to ignore the constitutional limits on the presidency and push through plans for a presidential republic with little of the checks and balances known in other presidential republics, at least those in established democracies.

This presidential campaign has been an unpleasant surprise for Erdoğan. He has turned the MHP into a satellite party which supports him for the presidency. The cost of that, however, is that he has tied himself to a declining party in an attempt to compensate for a weakening of AKP (Erdoğan’s party) support since the days when it got 50% and over of the electorate.

The opposition has now found an energy unprecedented during the Erdoğan-AKP years (since 2002). It has turned the first round of the presidential election into a run-off to decide who will face Erdoğan in the second round, maximising opposition strength as its candidates enthuse different sectors of Turkish society against the current regime. It now looks impossible for Erdoğan to win the first round (without the help of rigging which is a real danger).

Some thought the opposition had already failed the presidential election when Abdullah Gül, who was President before Erdoğan, declined to run as a candidate of the small opposition religious conservative party SP. The idea around was that the two main opposition parties would accept him as a joint candidate. It is not clear this would have ever happened, and anyway Gül declined to run. He had been a founder of the AKP, but has not re-joined since leaving the office of President in 2014. At that time the President was required to resign from any political party. Gül has made indirect criticisms of the AKP under Erdoğan, but is a non-confrontational politician who has not put himself in clear opposition to Erdoğan and few expected he ever would. Some had the attitude that Gül was the only chance of the opposition winning the presidential election. I was never convinced myself. Adopting an AKP politician central to the AKP’s colonisation of the state and parts of civil society, particularly the main media companies, would have been a defeatist gesture, particularly given Gül’s own lack of energy in very stark contrast with Erdoğan.

The four largest opposition parties will all run presidential candidates, though three of these parties have formed a joint list for the National Assembly elections. Two of these candidates have a real chance to win. That is Meral Akşener and Muharrem İnce. Akşener is the leader of the second opposition party, İYİ, which broke away from the MHP. It has overtaken the MHP as the largest nationalist party. Though it has a clearly nationalist orientation, mixing Atatürk republicanism with nostalgia for the Ottomans and pre-Ottoman Turkish leaders, it has a a milder version of this than the MHP. İnce is a centre-left secularist CHP politician who previously tried to replace Kemal Kılıçdaroğlu as leader of the CHP.

Kılıçdaroğlu is not a strong public personality and has often been dismissed even by CHP sympathisers. However, he did a good job of keeping the CHP relevant in the period after the coup attempt of July 2016, when Erdoğan seemed to be achieving even more complete domination of Turkish public life. Kılıçdaroglu most famously led a Justice March from Ankara to Istanbul last summer, usefully turning his anti-charisma reputation into an image of quiet decency and endurance, marching for many days under a hot Turkish sun, though he is in his late 60s and there were constant fears of state promoted violence against the march.

Kılıçdaroğlu was again dismissed as too passive at the time Gül declined to run, and Kılicdaroğlu ruled himself out of the Presidential contest. It has turned out that he has maximised his strengths and weaknesses, by showing the inner self-confidence to allow his rival İnce to run for the most powerful office in Turkey. İnce has been a great campaigner so far and is doing better than I expected.

I thought Akşener would easily be the strongest opposition candidate, and she is doing well, but is very close to İnce, both for getting through to the second round and defeating Erdoğan. The latest opinion polls suggest Erdoğan would beat both but by a very small margin, meaning that a strong campaign by İnce or Akşener could win in the end, particularly if supporters of rival parties turn out in a spirit of unity for change.

The general thinking in Turkey now is that the opposition is likely to win the National Assembly but not the Presidency. Nevertheless the presidential contest is going far better than expected for the opposition and Erdoğan could look very diminished running in the second round after the AKP-MHP electoral list loses the National Assembly (where it currently has a two-thirds majority). İnce represents the most leftist and most nationalist element of the CHP. This combination is not unusual in Turkey, though left-nationalists prefer to identify themselves through the Turkish word for patriot rather than nationalist. I thought this would be a problem for İnce, in that he might be a negative both for Kurdish and centrist voters, but he has shown a capacity to reach out and make gestures to these sectors. Since the CHP National Assembly list has reduced the number of left-nationalists, his presidency would not be the unconstrained triumph of that particular point of view.