Some reasons why I love capitalism

Here is a list of things I love about capitalism. Before presenting the list, it is important to say what I mean about capitalism. By capitalism, I mean free market capitalism. I don’t mean oligarchic capitalism (as it is very common in Latin America), state capitalism (communist countries) or Crony capitalism (sadly, more and more prevalent in the US). What I mean by capitalism is a system consistent with personal choice, private property, and voluntary exchange. The system Adam Smith described in Wealth of Nations. With that in mind, here is the list:

capitalism is true to human nature;

capitalism (slowly but surely) produces (immense amounts of) wealth;

capitalism is (more or less) stable;

capitalism helps the ones who need the most;

capitalism allows us to help others in need;

capitalism reduces violence;

capitalism reduces the incidence of wars;

capitalism breeds cosmopolitanism;

capitalism makes a better use of natural resources;

capitalism produces more beautiful cities;

capitalism is consistent with the Bible.

Lessons from the Stamp Act

That’s the subject of my latest over at RealClearHistory. Peep game:

The refusal of the colonies to pay for the war they initiated also led to the flare up of a simmering tension between elites on both sides of the British Atlantic: representation. The colonists wanted to send representatives to London and have them participate as full members of the body politic. The elite on the islands, however, were openly disdainful of American elites and probably did not want to disperse their power even more thinly by admitting new seats. Adam Smith was especially prescient on this matter, actually arguing that London could avoid most of its trouble by simply admitting American representatives to parliament.

Please, read the whole thing.

Underrated & overrated libertarian thinkers

Here is my take on Tyler Cowen’s views on libertarian thinkers who are either overrated or underrated in shaping the libertarian tradition. Please be aware that I think libertarianism and classical liberalism are two different strands of liberal thought, as argued in more detail in an earlier post here at NOL and in my latest book. Please also note that my judgement will be particularly informed by their views on international relations.

Overrated:

  1. Hans-Hermann Hoppe – completely esoteric ideas about international relations, especially his erroneous and ill-thought idea about private defence through private insurance companies.
  2. Deepak Lal – no complaints about his general work, but his praise for empires was deeply disturbing, even though he meant well. Liberalism and globalization do not need empires, no matter how civilized – in the Oakeshottian meaning – they are meant to be.
  3. Ron Paul – I admire Ron Paul in many ways, but his ideas for ‘a foreign Policy of freedom’ are not much better than Hoppe’s. ‘peace, commerce, and honest friendship’: nice Jeffersonian goals, bad underlying analysis, not least about human nature.

Underrated:

  1. Friedrich Hayek – a far more sophisticated thinker on international relations than he is ever given credit for.
  2. Adam Smith – nowadays erroneously equated with ‘trade leads to peace’ fairly tales. Yet any reader of the complete two volumes of the Wealth of Nations recognizes that the book is also a lot about war and foreign policy, as are his Lectures on Jurisprudence and even a bit in The Theory of Moral Sentiments. Together these make for a full and sophisticated position on international affairs.
  3. David Hume – basically the same as Smith.
  4. Robert Jackson – ok, I am taking liberties here. I do not think Jackson would consider himself a classical liberal or libertarian. But his writings on international relations are important and often have a classical liberal leaning, especially The Global Covenant.

Adam Smith on the character of the American rebels

They are very weak who flatter themselves that, in the state to which things have come, our colonies will be easily conquered by force alone. The persons who now govern the resolutions of what they call their continental congress, feel in themselves at this moment a degree of importance which, perhaps, the greatest subjects in Europe scarce feel. From shopkeepers, tradesmen, and attornies, they are become statesmen and legislators, and are employed in contriving a new form of government for an extensive empire, which, they flatter themselves, will become, and which, indeed, seems very likely to become, one of the greatest and most formidable that ever was in the world. Five hundred different people, perhaps, who in different ways act immediately under the continental congress; and five hundred thousand, perhaps, who act under those five hundred, all feel in the same manner a proportionable rise in their own importance. Almost every individual of the governing party in America fills, at present in his own fancy, a station superior, not only to what he had ever filled before, but to what he had ever expected to fill; and unless some new object of ambition is presented either to him or to his leaders, if he has the ordinary spirit of a man, he will die in defence of that station.

Found here. Today, many people, especially libertarians in the US, celebrate an act of secession from an overbearing empire, but this isn’t really the case of what happened. The colonies wanted more representation in parliament, not independence. London wouldn’t listen. Adam Smith wrote on this, too, in the same book.

Smith and, frankly, the Americans rebels were all federalists as opposed to nationalists. The American rebels wanted to remain part of the United Kingdom because they were British subjects and they were culturally British. Even the non-British subjects of the American colonies felt a loyalty towards London that they did not have for their former homelands in Europe. Smith, for his part, argued that losing the colonies would be expensive but also, I am guessing, because his Scottish background showed him that being an equal part of a larger whole was beneficial for everyone involved. But London wouldn’t listen. As a result, war happened, and London lost a huge, valuable chunk of its realm to hardheadedness.

I am currently reading a book on post-war France. It’s by an American historian at New York University. It’s very good. Paris had a large overseas empire in Africa, Asia, Oceania, and the Caribbean. France’s imperial subjects wanted to remain part of the empire, but they wanted equal representation in parliament. They wanted to send senators, representatives, and judges to Europe, and they wanted senators, representatives, and judges from Europe to govern in their territories. They wanted political equality – isonomia – to be the ideological underpinning of a new French republic. Alas, what the world got instead was “decolonization”: a nightmare of nationalism, ethnic cleansing, coups, autocracy, and poverty through protectionism. I’m still in the process of reading the book. It’s goal is to explain why this happened. I’ll keep you updated.

Small states, secession, and decentralization – three qualifications that layman libertarians (who are still much smarter than conservatives and “liberals”) argue are essential for peace and prosperity – are worthless without some major qualifications. Interconnectedness matters. Political representation matters. What’s more, interconnectedness and political representation in a larger body politic are often better for individual liberty than smallness, secession, and so-called decentralization. Equality matters, but not in the ways that we typically assume.

Here’s more on Adam Smith at NOL. Happy Fourth of July, from Texas.

Adam Smith: a historical historical detective?

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Adrian Blau at King’s College London has an on-going project of making methods in political theory more useful, transparent and instructive, especially for students interested in historical scholarship.

I found his methods lecture, that he gave to Master’s students and went onto publish as ‘History of political thought as detective work’, particularly helpful for formulating my approach to political theory. The advantage of Blau’s advice is that it avoids pairing technique with theory. You can be a Marxist, a Straussian, a contextualist, anything or nothing, and still apply Blau’s technique.

Blau suggests that we adopt the persona of a detective when trying to understand the meaning of historical texts. That is, we should acknowledge

  • uncertainty associated with our claims
  • that facts of the matter will almost certainly be under-determined by the available evidence
  • that conflicting evidence probably exists for any interesting question
  • that interpreting any piece of evidence through any exclusive theoretical lens is likely to lead us to error

To make more compelling inferences in the face of these challenges, we can use techniques of triangulation (using independent sources of evidence together). This could include arguing for an interpretation of a thinker’s argument based on a close reading of their text, while showing that other people in the thinker’s social milieu deployed language in a similar way (contextual), and also showing how helpful that argument was for achieving a political end that was salient in that time and place (motivation).

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