Secession, Small States, and Decentralization: A Rejoinder to Dr. Ayittey

Brandon Christensen Current Events, History , , , , , , , , ,

Dr Ayittey has kindly responded to my rebuttal.

You can’t mix secession with decentralization of power; oranges and apples. Your statements that “Smaller states would be much better for Africa than the large ones in place” and “The more “Little Djiboutis” there are, the better” are ridiculous. At a time when small countries are coming together to form larger economic blocs – EU, AU, ASEAN, Mercosur, etc. – you recommend going in the other direction: The creation of more little states that are not economically viable. Would you recommend the break-up of the US into 50 little states? Check your own history.

The original US Constitution was inspired by the Iroquois Confederacy. Under that Constitution, the South elected to secede, which led to the Civil War (1861-1865). Why didn’t the US allow the South to secede? It would have led to GREATER decentralization of power.

Now, I want to let everybody know that this exchange is happening over Twitter, so be sure to take Dr. Ayittey’s response in stride and in context.

First up are his first and last statements: Continue reading →

Scotland, the Sudan, and Federalism Done Right

Brandon Christensen Current Events , , , , , ,

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I have been blogging a lot lately on political decentralization and secession as tool for furthering this process.  I am one of those people who thinks that Karl Marx had a lot of stuff right, even though he got some other important stuff very, very wrong.  His prediction of the withering away of the state is something that I think will eventually come true, and I hope it does, too.

Anyway, I don’t mean to suggest, when I advocate secession as a way to further political decentralization, that every time secession does happen that it will turn out great.  Just look at the US Civil War.  Or we can look at what is going on in parts of the world today.  Here is an excerpt from an Economist report on the latest developments between Sudan and South Sudan (what an incredibly dull name for a new country, by the way…): Continue reading →

Pure Racism and Chinese Dining

Jacques Delacroix Liberty , , , , ,

There are several kinds of racism. The roots and the dynamics of racism are among the most interesting sociological issues. Here is a small but important fragment of the whole matter. The most common kind of racism involves three separate mental operations: 1 Assign an individual to a group; 2 Assign certain undesirable features of character or culture to the same group; 3 Assign these same undesirable characteristics to the individual because he belongs to the group.

The most pure form of common racism I know used to make me laugh. Of late, it has begun to annoy me. Here is a relevant story.

I pick up my wife at the airport after a short trip. We go out to celebrate our reunion. My wife wants to eat Chinese food. There is a Chinese restaurant near the airport where I have had excellent dinners in the past. It’s a large and old establishment with many Chinese customers. In fact, every time I have been there, I was with Chinese friends.

We sit down a little early. I don’t like the early bird menu, of course; I don’t like the regular menu either; the “specials” menu is not much more attractive. None of these menus corresponds well with my golden memory of the several original meals I have had there. I ask the waitress if there is a Chinese menu with different dishes than are on the English-language menu. “No,” she says. My wife and I order the less boring dishes from the main menu. Continue reading →

African Political Structures: A Debate

Brandon Christensen Current Events, Liberty , , , , , , , , , ,

I just hooked a big fish on the end of my line when I tweeted about my support for secession of Azawad to Dr. George Ayittey, an economist at American University and one of Africa’s leading lights of classical liberalism.  I have a talent for ribbing people in just the right place at just the right time, and the following response I got from Dr. Ayittey confirms my magnificent talent (some may disagree with the label ‘talent’, but I digress).

In response to my support for Azawad, Dr. Ayittey tweeted the following: Continue reading →

From the Comments: A Note on the Upcoming French Elections

Brandon Christensen Comments, Current Events, Economics , , , , , ,

Jacques Delacroix has belatedly responded (he’s retired!) to an inquiry about the upcoming French elections. Happening History posed the following question to Dr. Delacroix:

I found your post very interesting. One thing I found particularly interesting was your remarks on the French left. Since the presidential election is coming up soon, what do you think would happen to how the financial mess in Europe is being handled if the Socialist candidate were elected considering the major role France plays? How likely do you think it is that Hollande could win?

Dr J’s response deserves to be read by all: Continue reading →

Chicago, Vienna and San Francisco

Brandon Christensen Economics, Links , , , , , , ,

Co-editor Fred Foldvary has a great essay up on three schools of economic thought that deserves to be read by all.  An excerpt:

The Vienna school emphasizes the dynamics of the economy, while the Chicago method is to apply self-interest and economizing in an equilibrium analysis.  The San Francisco school uses both equilibrium and dynamics.  The dynamic approach of change over time is used to show the advance of rent and lowering of wages as the margin of production moves to less productive land and as land speculation moves the margin out even further.  Equilibrium shows that since market rent is based on the fixed supply of land and the demand to rent space, the tax on land not affecting the rent.

The San Francisco school agrees with the Vienna school that the spontaneous order of the free market best allocates goods to human desires.  But the San Francisco school points out that if the ground rent is not tapped for public revenue, when taxes on other things finance civic works, then there is in effect a subsidy to land owners, which distorts the market.

The San Francisco school has a theory of the business cycle based on land values, which rise during a boom, when speculation carries land prices so high that investment gets choked off, resulting in a recession.  But San Francisco has lacked a consensus on the role of central banking and money.

Check out the rest here.

I tend to pay attention whenever Dr. Foldvary writes, because he is the guy who wrote a book in 2007 accurately predicting the economic collapse of 2008.  You can access the book for free here.

Coyotes: How Government Bureaucrats Think

Jacques Delacroix Current Events, Liberty, Politics , ,

In my area of central California coyotes recently attacked two small dogs that were romping around. Both dogs survived. The attack took part in a public park of some sort. The reaction of the rangers (How I hate this semi-heroic designation for cops in green uniforms!) :

We are going to enforce leash laws more strictly. The attack would not have happened if the dogs had been on leash.

Why not regulate coyote behavior while you are it? You might add to the list of forbidden things on the signs posted everywhere:

Coyote attacks on dogs not allowed.

Somewhere in the depths of the bloated California bureaucracy there might even be a subsidized artist to design a cute symbol signifying the same thing, for coyotes who can’t read. While we are at it, why not a sign in Spanish also?

There is another approach to all this: Dogs like to run around. In fact, most of them need to run around to be healthy. Dogs who run are happier than dogs who don’t.

Coyotes will eat anything, small dogs when they get a chance. It makes them happy. Dog owners know this. They are morally responsible for their dogs. They are the ones to decide what’s the greatest risk for their pet: unhappiness and a constricted life vs the risk of a very rare wild animal attack. Continue reading →

Let’s Celebrate Loopholes

Warren Gibson Economics, Politics , , ,

I’ve just finished my income tax return. (Have you finished yours?) Silly me, I do it myself using TurboTax – all 59 pages of my federal return plus 80 for California. I’ve got investment income, including partnerships and foreign stock dividends, two small businesses, social security and a pittance of wage income from San Jose State University. And a bunch of deductions and credits.

The whole process puts me in a foul mood, and my wife and even the cats know to steer clear till it’s done. One reason is obvious: the mind-numbing complexity, even with TurboTax. Even more galling is the humiliation and gross indecency of dropping my pants financially. This is the land of the free?

The New York Times had an interesting article in last Sunday’s Magazine, “What’s the Easiest Way to Cheat on Your Taxes?.” The article led off with the assertion: “If economists ran the tax system, there would be virtually no exemptions or loopholes.” To which I say, just a cotton-pickin’ minute! If I ran the tax system, and assuming I couldn’t set the rate at zero, exemptions and loopholes would stay and maybe even multiply.

How can I say this after belly-aching about the complexity of my return? Simple – the complexities provide me enough tax-cutting opportunities to outweigh the damage to myself, my wife and the cats. I’ll leave the details out just in case the gentle folk at the IRS read this humble blog.

Why do I do it myself? Partly because I don’t want to spend hundreds or maybe thousands on a professional preparer, but also because his interests would not align exactly with mine. His primary goal would be to cover his rear, especially with the IRS cracking down on professional preparers. My goal is to achieve the right mix of boldness and caution in claiming deductions and credits.

A good bit of ink has been spilled (and electrons) about “fair taxes” lately. It’s unfair, says the Community Organizer in the White House, that Warren Buffett’s average tax rate (or was it his marginal rate?) is lower than his secretary’s. Conveniently overlooked is the fact that his dividend income has already been taxed at the corporate level. As Gene Epstein showed recently in Barron’s, when you add in that corporate tax you get a much different story. The rich pay a substantially higher percentage of their income than most of us on this basis.

So what is a fair tax anyway? The same percentage for everyone? No exemptions, no deductions? Why is that any fairer than a head tax – a levy of so much per person? How about a regressive head tax, since poor people tend to use more government services than rich people?

What of two people earning the exact same income? Surely fairness demands that they pay the same tax – equality before the law and all that. But suppose Mr. A is a struggling young man with lots of debt, trying to start a family while Mr. B has inherited millions. Both earn the same income but is it fair that they pay the same tax? I leave it to you.

When you get right down to it, there just isn’t any such thing as a fair tax, simply because taxes are coercive exactions – theft, if you will.

Still why wouldn’t a flat tax with no deductions be at least a small improvement, as Steve Forbes and other conservatives advocate? The late Murray Rothbard demolished that idea in The Case Against the Flat Tax. Here’s his comment:

“The closing of ‘loopholes’ under a flat tax will mean a merciless and continuing search-and-destroy mission by which the government will root out and obliterate every little hideyhole in which many of us have been able to squirrel away a bit of our own earnings and are own property, and keep them safe from the ever-expanding maw of the federal government.”

I concur. Let’s celebrate all the loopholes, not just those that protect some of our own income, but any break for anybody at all.

A Good Society: The Coffee Proof

Jacques Delacroix Philosophy , , ,

We still live in a good society. I keep forgetting this and life keeps reminding me.

I have a younger friend who graduated with honors and with a major in Philosophy. I liked him just for that. It sure beats a major in”Psychology,” or one in “Management.” Incidentally, I know that some of my readers know that I used to teach from a “Management Department.” My excuse is that I tried very hard never to teach whatever you think is “management” and that I pretty much succeeded overall. (This story will have digressions. It’s one of those days. Go with the flow.)

Anyway, my friend takes care of several coffee shops. He has become the owner’s right hand by din of being hard working and just plain reliable. Two things happened to him as a result. The first is political. My friend went to the University of California at Santa Cruz, where Stalinists communists are considered conservative. So, of course, he used to be kind of a left-winger. (That would be the honest kind, the kind that does not knowingly make false statements.) Nowadays, though, the closer the he gets to the books, to the actual accounting of the coffee shops, the more he moves to the political center. Who ever said philosophy is “useless?”

The other thing that happened to my friend through his work is that he became a coffee connoisseur. One day that he inquired about a present for me, I said, “ Surprise me with coffee.” He did. He brought me a small quantity of a variety I had never heard about. “How did you like it? “ he asked two days latter.

Well, I stopped lying – except in emergencies – at about the time I stopped lying to women. And, incidentally, there was never much reason to believe that I ever, ever deceived a single woman. Mostly, they listened to my lies smilingly because they liked the poetry of them.

At any rate, I replied to my friend that his gift coffee did not paint my particular town red. He had this superb response I have not been able to get out of my head for days now; he said that that particular coffee was “divisive.” I am so lucky! I live in a society so peaceful, so prosperous, so fulfilling that here, expensive coffee can be considered divisive!

A Few Good Debates

Brandon Christensen Comments, Current Events, Economics, Links , , , , , , , ,

I have often thought that debating other people is just as good (if not better) for learning about other how other people think (and imagine things) as reading a book on a subject.  In this spirit, I thought it’d be cool to point out some of the great debates I’ve had a pleasure of being a part of either though participation or simply as an observer.

Cato Unbound is by far the best place to go if you want to get a good, scholarly, but still colloquial, debate on a topic.  This month’s lead essay is on ‘Bleeding Heart Libertarianism’ and features responses from a number of prominent academics.  I highly recommend taking some time to read through the whole symposium.

Over at the blog Coordination Problem, economist Steve Horwitz takes a grad student (Daniel Kuehn) out for a beating in the proverbial woodshed in the ‘comments’ section.

Again in the ‘comments’ section, I take Jacques Delacroix to school on matters of foreign policy and the law.

And at MarginalRevolution, co-bloggers Tyler Cowen and Alex Tabarrok go at it on banking institutions.  Here is Part 1 (by TC), Part 2 (AT), Part 3 (TC), and Part 4 (AT).

All of these are tough reads with lots of top scholars debating big ideas (save for me, though Jacques is a world-renowned scholar on international trade and development), so you might want to come back to this post and click around a little bit at a time.  All of the debates are highly, highly recommended.

Oh, and the Mises Institute has their new blog up and running (it’s very good): The Circle Bastiat

Ethnography of Liberalism: I

Jacques Delacroix Politics , , , , ,

There used to be an academic discipline called “Ethnography.” It was an inherently humble endeavor, the description of others, of usually exotic, far away, little-known groups. I mean head-hunters of Borneo, and Pygmies from central Africa. Ethnography had little pretension to “explain” as does modern Anthropology for example. I am engaged in a continuous study of the Left. I am doing daily, indefatigable ethnography of that quaint but interesting tribe.

In spite of my public identity as a conservative, I am proud to say I have good entries into the liberal world of my small ultra-liberal and “progressive” town. I don’t know the liberal establishment and I think it does not know me, or it ignores me. I am in daily touch with the rank-and-file though. (I will not blow my cover by telling you how. You will have to take my word for it.) Because of my previous life in academia, I also know liberals. and even progressives, outside of my immediate area. I am talking of people with whom I have personal contacts at will, not National Public Radio.

Old-fashioned ethnographers used to exploit “native informants.” Those were local indigenous people who were willing to talk, trustworthy and who, the ethnographer had reasons to believe, were well-informed. Lately, I have been having short and long-distance conversations with a younger man, a very moderate liberal, a liberal-leaning centrist, you might say. I have known the man for a long time. He is intelligent, very hard-working and resourceful. He has even demonstrated an entrepreneurial bent. More importantly, I know him well enough to be sure that he prizes his personal credibility. My liberal friend is a valid native informant. I am not building a straw-man to burn later in triumph. Continue reading →

Native American Sovereignty

Brandon Christensen Liberty, Links , , , , , , , , , ,

I have been a proponent of abolishing, outright, the Bureau of Indian Affairs for a long time. In its place, I would either grant the Indian tribes full-fledged sovereignty with reparations for stolen property, or would grant the reservations statehood into the union of the United States federal republic.

If you’ll notice, this proposal goes hand-in-hand with my other writings on decentralizing political power in other various parts of the world, and I think that the issue of sovereignty for Native Americans goes along nicely with this theme.  Tyler Cowen recently directed me to a piece in the Economist that writes about just this topic, so I am not nearly as idealistic and young as some of you might think.

I think this decentralized process is happening for a reason, and that the reason is overwhelmingly good: the world’s markets are becoming increasingly integrated, and as a result, political power is becoming increasingly irrelevant except on a largely local or regional scale.

If we want to avoid the mistakes of the past, including slavery and horrific, large-scale wars, then we would do well to realize and affirm that decentralized governance and integrated markets are extremely beneficial to mankind. In affirming this, we would likewise do well to recognize that when people want more autonomy in governance we should grant it to them, especially in cases where post-colonial states exist. States themselves are largely illegitimate, and the post-colonial ones are the most guilty of this crime. There is no reason to pretend that we have to respect the sovereignty of post-colonial states ruled by dictators, and every reason to respect the wishes of large swathes of the people in these post-colonial states for more political autonomy. Continue reading →

How ’bout Communism?

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

Note: Most of my adult life and all of my childhood were dominated by the threat of Communism. People of my generation who wanted to know understood well the horrors of Communist societies. We knew of the slave-labor camps, of the mass executions, of the constant spying on ordinary citizens by the secret police, of the betrayals of friend by friend that were everyday life in Communist countries. We were well aware also of the grinding poverty in those countries.

I am concerned that thinking individuals who are in their twenties and even in their thirties now might know little about the reality of Communism as it was practiced. It seems to me that no one asked them to study the matter. A Russian friend of mine is going back to Russia this summer for a couple of months. If a few readers ask, I will request of my friend that he contribute to this blog from there, drawing on the memories of older friends and relatives who survived the Soviet period.

There was once a “Communist” movement whose followers were often motivated by generous impulses and by economic ignorance, in more or less equal parts. There has never been a Communist state, whatever that would be. Historically several Communist parties did achieve political power. None did so through democratic means, although the Czechoslovak Communists may have come close, in 1948. We will never know because the presence of a large contingent of the Soviet Red Army in the country forever mars the analysis. Continue reading →

Mali: Let It Collapse, Duh! Part 2

Brandon Christensen Current Events, Liberty, Links, Politics , , , , , , , , , , , , , , ,

I just came across an article in the New York Times via Bill Easterly, and it is very discouraging. The article is, of course, about the aspirations of Azawad, the breakaway region of Mali that just declared its independence. The article outlines the slim-to-none chances Azawad has of breaking free from the shackles of colonial legacy and African despotism:

“[…] there is little likelihood that anyone will defeat the Tuaregs on the battlefield anytime soon.

Still, they face slim odds of establishing a nation. Just ask Ahmed Abdi Habsade, a government minister in Africa’s other unrecognized state, Somaliland. ‘We have many problems,’ Mr. Habsade said in a telephone interview from Somaliland’s capital, Hargeysa. ‘The country cannot get donations from the U.N. or other governments. We are not having a budget to develop our country.’

Somaliland, which sits in the northwestern corner of Somalia, has been a de-facto independent nation for the better part of two decades, and an oasis of calm in the chaos that has swept up Somalia. Its claims to independence date from the colonial era, when it was a British protectorate while Somalia was controlled by Italy. The two states merged after independence, but the Somalilanders had almost immediate regrets, and have been trying to break free ever since.

Somaliland has had successes, including holding peaceful elections, yet it has struggled without an international stamp of Continue reading →

Mali: Let It Collapse, Duh!

Brandon Christensen Current Events , , , , , , , , , ,

Mali is a landlocked state created by imperialist France in the late 19th century. Due to the Western intervention in Libya, in which NATO bombed the brutal dictator Moammar Ghaddafi out of power, a large wave of unrest has reached the Saharan states of Mali, Chad, and Niger.

Recently, a coup overthrew the democratically elected head of the Malian state, and an insurgency in the north just declared its independence from Bamako. This is a good thing, and I will get to why this event is a good thing, but first I want to lament the way in which the West is handling this secession. The West seems intent on keeping its creation alive and propped up, regardless of the incessant pulls away from these structures that post-colonial states often face. I have criticized this aspect of Western foreign policy before, in regards to Somalia, Nigeria, and Libya, but it appears that the West is much more open to the idea of its creations falling apart than it used to be. Indeed, the Daily Star, a Lebanese daily newspaper, reports: Continue reading →