- Arms in the Several States. This is a great post by a law professor at Fordham (Nicholas Johnson) on the legal history behind the struggle of black Americans to arm themselves in the face of State oppression.
- World War I and Australia
- Held up in customs: Life in China gave Brittany Griner more than she bargained for. This is an excellent piece on the life of a female (former) college basketball star living in China.
- Putin’s Cold New World. This is a piece in Dissent magazine by a Polish Left-wing sociologist who deplores what he thinks of as inadequate protection from the United States. Interesting to read in tandem with the knowledge of factions and rent-seeking that is often addressed here at NOL.
- The House sues Obama: Political theatre, political pain. A penetrating insight from Will Wilkinson into the House’s decision to sue the Obama administration. The best account I’ve read of the drama so far.
China
The Chinese Get Richer, I Become Poorer. Right? Dreaded Percentages!
Elections season is on us again. On the talk shows, I hear more and more callers, and often hosts, grossly misusing percentages in the service of fallacious claims. Politicians won’t be far behind. Here we go again, I am thinking; I have been here before. Got to explain again.
This time, I am taking names. And there will be a quiz, and it will count toward the final grade.
Pay attention; slow down.
It’s 2000, I, JD, earn $60 as a machinist. My wife K earns $40 keeping accounts for others with the help of some sophisticate software. I am earning what percentage of our joint income?
60/60+40 = 60%
It’s 2010, I, JD, now earn $90 as a machinist, My wife K’s business has taken flight. She uses more sophisticated software. She has more customers than she can handle. She earns $120.
My share of our new joint income is now:
90/90+120 = 42%
The percentage of our joint income that I produce has declined. It has declined a lot; it has declined by almost 1/3.
Has the value of my production declined? Slow down!
The answer is clearly “no.” The value of my production has increased by half (from 60 to 90). That’s not bad at all. At any rate, it ‘s obviously an increase.
Think it through. Do the arithmetic yourself. There is no trick. It’s the simple math you did not learn in third grade because you hated the teacher.
In the simple example above, my income represents the value of American manufacturing. My wife’s income represents the value of the mysterious and illogical category “services.”
The percentage of the value of manufacturing relative to the total GDP of this country has been going down steadily because the value of US services has gone up even faster.
The absolute value of American manufacturing has only gone up and up, and going up. America has not become “de-industrialized,” contrary to a common but false perception.
The misperception has two main sources:
- Many media commentators and perhaps even more politicians don’t understand simple percentages. See above.
- The number of manufacturing jobs has declined even as the value of that which they manufacture has gone up.
Here is a solution to the drying up of manufacturing jobs: Take away machine tools from one metal worker in three; give him a hammer instead. You want even more manufacturing jobs, lots of them? Remove the software from textile weaving plants. Program their machines by hand as they did in 1910.
You don’t like the idea? Time for a serious discussion.
Now let’s go back up a little.
The quite good rise in the value of manufactures and the even greater rise in the value of whatever services produce, these two things are related. Better and better, more and more efficient manufacturing provides the resources for more services. We can afford more waiters, more surgeons, more teachers, more acupuncturists, more therapists, more life coaches, more “color advisers” (I live in Santa Cruz, California) because, collectively, we produce more hard necessities much more cheaply than our close ancestors did. Hard necessities include cars, soap, oatmeal, shovels, bricks and nails. Why, nails used to be forged by hand! I own some hand-forged nails from making repairs on my 1906 house.
When you hear, for example, that manufacturing now contributes only 30% of US GDP, it does not mean that there is less manufacturing being done in this country. To figure out the reality, you have to get out of percentages completely. Period!
If my income used to be $60 and it’s now $50 then, yes, it has declined. If it’s now $65, my income has risen. Period! That’s true irrespective of percentage contribution to anything.
Tech note: Don’t get tripped by the separate issue of the changing value of money. There are inflation/deflation calculators on the Internet that do a good enough job of dealing with this issue. I recommend that you consider one train of thought at a time.
Nearly everyone is overestimating himself. That’s the problem.
Speaking of GDP (Gross Domestic Product), a National Public Radio chickie announced breathlessly a couple of weeks ago that China would soon pass the US in GDP. I could hear fearful emotion in her voice, as if some bastard had threatened to cut up her credit card.
Here is the truth: We may soon see the day when 1,400 million Chinese produce as much together as…..314 million Americans.
Personally, I can’t wait for the Chinese to do better, to make their percentage of global joint production much higher.
Question: When the Chinese GDP reaches 60% of world joint GDP, will I be poorer?
Kidnapped Girls: a Victory for Twitters and for Ms Obama!
The Twitters campaign and Mrs Michele Obama won a huge victory in the matter of the 300 Nigerian girls kidnapped by Islamist terrorists that the Obama administration does not want to call “Islamist” or “terrorists.”
No, none of the school girls has been returned to her family. In fact, it looks today like some or many of the girls will never be returned to their Kaffir (infidel) families because they have converted to Islam. There is an impious part of me that thinks that it would not take two weeks to convert me to anything if I had a gun pointed at my head. I would even convert to global warmism.
Some other girls, Christian girls, will be “married” by force to good Muslims. That’s rape, in my book. I keep asking Muslims and people who are better informed than I to contradict me and to affirm that the rape of non-Muslims girls is haram under Islam. Still waiting.
The Twitter campaign and the First Lady’s speech have succeeded in enlarging beyond their wildest dreams the reputation of the religious Nazis that is Boko Haram. Its leaders are now in a good position to negotiate anything they want with a Nigerian government softened by an indignant world public opinion. They will ask for the release of their fellow criminals and for money to buy even more and better weapons to kidnap even more school girls, to massacre even more civilians.
“We can’t be the policemen of the world” is a favorite of cliché today. I hear it from all sides. Nobody is stepping in to replace the US as sheriff yet. Perhaps Putin’s Russia or the People ‘s Republic of China will make a move soon. In the meantime, looking forward to that day, terrorism is spreading.
I keep wondering where are Reverend Jesse Jackson and President Carter, our normal hostage negotiators. Are they secretly afraid that Boko Haram would cut off their heads at the earliest opportunity if they meddled ? I wonder why.
Changing the subject, here is a quiz:
There is a largish country where more than thirty people are currently either on death row or serving a life sentence for blasphemy. The country is:
a Pakistan;
b Brazil;
c Russia;
d South Africa.
(The correct answer is in the Wall Street Journal 5/9/14 but don’t cheat.)
Ukraine, Russia, the West and a Coasean Bargain?
Economist Tyler Cowen worries about the events in Ukraine:
For Russia, matters in Ukraine are close to an existential crisis, as Ukraine is intimately tied up with Russia’s sense of itself as presiding over a mini-empire of sorts. Nor could an autocratic Russia tolerate a free and prosperous Ukraine, developing along the lines of Poland. America cares about Ukraine less, and cares more about Syria and Iran, or at least cares about saving face in those latter venues. Therefore there is a Coasean deal to be had between America and Russia, where Russia gets to partition part of Ukraine, create a buffer against Europeanization and democratization, keep the larger Ukraine unit weak, and also keep its Black Sea fleet. In turn Russia would do something less than totally sabotage all American plans for Syria and Iran. (Of course that is Coasean for the leaders, and not necessarily for the citizenries.)
The thing is…China. What kind of signal would such a Coasean deal of partition send to China?
That is what I worry about.
I argee that there is a Coasean bargain to be had between the US and Russia in this case, but it’s not the one Dr Cowen sees. Let’s assume that the US does have more interest in the Middle East than it does in Russia’s backyard, but even with this assumption I don’t think it follows that the West will give up Ukraine for Syria and Iran.
The West has been down in the doldrums lately, it’s true, but there is still plenty of fight left in it and plenty of resources with which to do the fighting.
Really quickly: I know I’ve mentioned this before, but making two states out of one (“partitioning Ukraine”) will be a good deal for almost everybody involved (the minorities in Russian Ukraine will not fare so well). As it stands today, Ukraine is simply too big to be governed effectively. This is a problem with many, if not most, post-colonial states in Asia, Africa and Europe.
International recognition is something that would be observed by almost all sides (minorities in Russian Ukraine will not like it), which is one of the requirements I’ve pointed out that needs to be completed before secession (or partition) is undertaken in post–colonial states.
The other major requirement is that the new states are part of regional or international trading unions of some sort. The more the better, but any is a start. Russian Ukraine will be good to go, as it would be in Russia’s orbit, and the West could easily ensure that the Ukrainian Ukraine gets more attention than it now currently has. This is where the West should dig in its heels and fight: After partition. Ukrainian Ukraine will need to be drawn into the West’s economic orbit rather than offered up as a sacrificial lamb, and this definitely doable. This is the Coasean bargain, not Ukraine for Iran and Syria.
The China angle Dr Cowen brings up is also an interesting one. Beijing is authoritarian not stupid. Here is what conservative military leaders in Beijing probably see:
Ukraine might get no love from the EU or the US, but it is much weaker than Japan or South Korea or even Taiwan. So China could not take any of these states militarily without high costs, while Russia could conceivably take all of Ukraine without significant military losses (the political damage would be too much for Moscow, so it won’t happen; but it is a possible scenario).
Is China running out of cash?
China Halts Bank Cash Transfers
“The People’s Bank of China, the central bank, has just ordered commercial banks to halt cash transfers.”
Could we be seeing the start of total economic collapse? The answer, ceteris paribus, is yes and the Austrian Business Cycle Theory (ABCT) explains why.
To quote Ludwig Von Mises’ explanation of the final act of the ABCT:
“Ludwig von Mises stated that the “crisis” (or “credit crunch“) arrives when the consumers come to reestablish their desired allocation of saving and consumption at prevailing interest rates.[12][“
This means that when consumers finally realize that the money they have invested has actually been malinvested in the economy they then seek to acquire as much of their money as possibly from said investments. Most of which take the form of bank deposits.
The linked article reminds us that this is the numerous such time that China has adopted this policy saying:
“So what’s really going on? This crunch follows similar incidents in June and December of last year. In June, for instance, the central bank used the excuseof a “system upgrade” to allow banks to shut down their ATMs and online banking platforms. As a result, they conserved cash and thereby avoided a nationwide meltdown.”
Other instances, such as this one in England where “[s]ome HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it,” show that this problem may not be contained to China and may be spreading to the international market.
What does Murray Rothbard say will happen when this “credit crunch” inevitably occurs?
Wasteful projects, as we have said, must either be abandoned or used as best they can be. Inefficient firms, buoyed up by the artificial boom, must be liquidated or have their debts scaled down or be turned over to their creditors. Prices of producers’ goods must fall, particularly in the higher orders of production—this includes capital goods, lands, and wage rates […]
this means a fall in the prices of the higher-order goods relative to prices in the consumer goods industries. Not only prices of particular machines must fall, but also the prices of whole aggregates of capital, e.g., stock market and real estate values. In fact, these values must fall more than the earnings from the assets, through reflecting the general rise in the rate of interest return […]
“Since factors must shift from the higher to the lower orders of production, there is inevitable “frictional” unemployment in a depression, but it need not be greater than unemployment attending any other large shift in production. In practice, unemployment will be aggravated by the numerous bankruptcies, and the large errors revealed, but it still need only be temporary […]
Another common secondary feature of depressions is an increase in the demand for money. This “scramble for liquidity” is the result of several factors: (1) people expect falling prices, due to the depression and deflation, and will therefore hold more money and spend less on goods, awaiting the price fall; (2) borrowers will try to pay off their debts, now being called by banks and by business creditors, by liquidating other assets in exchange for money; (3) the rash of business losses and bankruptcies makes businessmen cautious about investing until the liquidation process is over.
With the supply of money falling, and the demand for money increasing, generally falling prices are a consequent feature of most depressions. A general price fall, however, is caused by the secondary, rather than by the inherent, features of depressions.
So is the massive failure of all economies imminent? Well not necessarily because the government can take some steps to prevent the immediate failure.
“Continually expanding bank credit can keep the borrowers one step ahead of consumer retribution (with the help of successively lower interest rates from the central bank). In the theory, this postpones the “day of reckoning” and defers the collapse of unsustainably inflated asset prices.[12][14] It can also be temporarily put off by price deflation or exogenous events such as the “cheap” or free acquisition of marketable resources by market participants and the banks funding the borrowing (such as the acquisition of land from local governments, or in extreme cases, the acquisition of foreign land through the waging of war).[15]
The “false” monetary boom ends when bank credit expansion finally stops – when no further investments can be found which provide adequate returns for speculative borrowers at prevailing interest rates”
These steps only “kick the can down the road” and delay the inevitable since “the longer the “false” monetary boom goes on, the bigger and more speculative the borrowing, the more wasteful the errors committed and the longer and more severe will be the necessary bankruptcies, foreclosures and depression readjustment.”
We may be seeing the beginning of the next great depression here but only time will tell. One thing is certain though, a massive economic readjustment is coming and the central banks of the world have only been aggravating the problem. When it will hit is anyone’s guess but in this author’s opinion we are either looking at a repeat of the early 30’s or a repeat of the early 40’s and I can only hope we can avoid going through both.
The Iranian Nuclear Deal: An Agreement for All
[Editor’s note: the following is a short essay by Payam Ghorbanian. Payam was born in Tehran, Iran. He got his bachelor of science in Engineering from Zanjan University in Zanjan, Iran. He has been participating in liberal political activities and he was involved with some think tanks in Iran. He is doing research in the field of international relations and Iran’s foreign policy as an independent activist. He is now living in San Jose, California.
I cannot endorse this essay, but I am excited to post it because of its potential as a conduit for intercultural dialogue and exchange. I have left his essay largely intact, but did break up some of his longer paragraphs for clarity’s sake. Thanks to Payam for taking the time to write this.]
On November 24, Iran and the P5+1 group have reached to a historical deal on Tehran’s nuclear program at talks in Geneva, Switzerland. We might have difficulty to understand this process, the process which turns out the agreement to be real, so we must particularly take a look around to the real position of this group of countries plus Iran. It’s one of the Iranian’s attitude and way of thinking to say what they wanted to get and what they really ended up to.
In Iran, Hassan Rouhani was elected as a president on Jun 15, 2013. He is also known as one of the three people who talked to McFarlane in the Iran-Contra affair in 1985 about buying weapons during war between Iran & Iraq. During campaign for presidency, he said an extremely hopeful statement about nuclear program. He said: “It is good for nuclear centrifuges to operate, but it is also important that the country operates as well and the wheels of industry are turning.”
After he got elected, he put his faith in the right person and chose Mr. Mohammad Javad Zarif to be the minister of foreign affairs with the complete authority in action. Mr. Zarif was the permanent representative of Iran to the United Nations from 2002 to 2007. He is really familiar with the international policy regulations and the United States’ policy. Therefore, he was chosen to precede Iran’s nuclear negotiations and it was decided that the entire process would be carried out solely within his team.
It was one of the toughest situations for Iranian policy even though the middle class, especially the people who are living in the large cities, are incredibly united and hopeful for solving this nuclear issue; however, the extremists criticized any approach to any kind of agreement. For several years people of Iran have been feeling how sanctions can really cripple their destiny, economy, and their society structure. As a result of these effects, the rates of unemployment, bankruptcy, addiction, divorce, and prostitution have increased without any official and governmental justification. Therefore, we can consider the November 24th, 2013 as a distinguished and remarkable day in Iran’s modern history.
With the above introduction, let’s go through the text of the agreement for some details. It has been said:
“ … from the existing uranium enriched to 20%, retain half as working stock of 20% oxide for fabrication of fuel for the TRR. Dilute the remaining 20% UF6 to no more than 5%. No reconversion line…Iran announces that it will not enrich uranium over 5% for the duration of the 6 months.”
Although Mr. Zarif announced that according to the agreement, enriching uranium under the 5% is now acceptable and claimed it as a big win for Iran, the majority of the people in Iran really do not care about this subject. They expect the removal of all sanctions and this was the reason that they were following the negotiations and they remained awake up until the agreement came out, which at that time was really late at local time in Iran.
After all these trials and tribulations, now you can find out how hope for the future can make our nation more united. The people clearly understand that it is not the end of the negotiations and it is just the start of long way and they are looking forward to the next 6 month. For the people, it is not just about nuclear program; it is more about their life and their children’s future. President Rouhani is now in the right place and with the supports of Iranians. We hope his social policy would be more flexible as well and we can see more freedom in the society.
We are not going to discuss here the Europe United’s policy during this long term negotiation with Iran. They always want to reserve the important positions for themselves; however, they usually get to every negotiation which others have already accepted. For the people of Iran, the Europeans are best known as those trying to prolong every issue.
On the other hand The Europeans always push the solution to the curb and then try to get back to the first step and ultimately get to the agreement and to take one step further. With flopping back and forth, the conclusion usually would never come out. People of Iran had been disappointed of this kind of policy. From Iranian’s point of view, France should be responsible for the last unsuccessful talks on November 9th. Unfortunately they are unreliable partner for this region.
After all these, it is now time to shift our focus to the president Obama’s foreign policy about Middle East during the last year. Not that far ago, Syria used chemical weapons and crossed the red line, which was mentioned by president Obama before. Moreover, United Nation confirmed that there was no doubt of such use of chemical weapon from Syrians regime. However, instead of taking military action, president Obama decided to follow Russians in this crisis and he still tries to solve this issue through the UN. As a fact, it is clear that in order to go through the UN path to solve this crisis, United States has to deal with Russians and Chinese, since they have the authority to block international actions through the Security Council.
It is a fact that the Syrian’s people have been killed during the last three years. However, it seems that this fact is going to be ignored and denied. On the other side, Obama’s policy in this case would let the conservative countries like Qatar or Saudi Arabia to take part in this eternal disaster. They can easily get rid of their extremist religious groups by allowing them to attend in this catastrophic war in Syria. Also due to the fact of this important unsolved problem in Syria, the pressure of human rights activities and other internal problems in their countries would be neglected. With this aspect of Syria’s crisis and also the failing of Arab spring, having an agreement with Iran is essential for Obama’s policy to get through these consecutive unsuccessful affairs. However, Israel’s prime minister tries to call this agreement as a historical mistake.
Great Britain has recently announced that they are concerned about total failure in Iran because of sanctions. After Great Britain evacuated all embassy staff from Iran in November 2011, now it seems that they are going to open relations with Iran following the election of President Rouhani. Undoubtedly they know the Middle East region much better than anyone else. They know this failure can affect Afghanistan, Iraq and the entire Middle East region. As a result, Britain has consecutively tried to help Iran and U.S. to approach to the final steps of negotiations.
On the other side, China is known as fatal mistake in economic partnership for Iranians during the last 10 years. Chinese took advantage of unjust situation of Iran and also destroyed industries in Iran are caused by importing cheap Chinese products. They have initially accepted the UN sanctions and have blocked about 50 billion dollars of Iran’s money in their banks; however, they ultimately should be happy of this agreement which definitely will moderate oil price and open up the gate of Iran’s market for Chinese investments.
Clearly with their foreign policy being so close to Iran, it is just a pose for Chinese in order to help them to precede their policy in southeast Asia using Iran’s threat for pushing away Chinese threat. Couple weeks ago they extended “air defense identification zones” which it seems will be accepted by United States. There is a common trend for all nations which can be written in this way that you are not going to consider as a powerful country if you just want to please yourself.
Finally, Russia should be indeed considered as the biggest winner of this agreement as well as the Middle East situation. Moreover, with the intent of being leader of the entire world, they forced other countries to accept their decisions on Syria’s crisis and by having this virtual confidence, now they really have plans to ruin all aspects of the free world. On September 12th, President Putin decisively took an issue with president Obama. His article was about United States people and he mentioned: “It is extremely dangerous to encourage people to see themselves as exceptional.”
However, president Obama decided to ignore this article and show respect to the new Russia. I believe working with Russia about Syria’s crisis and choosing non-interventionism for Ukraine crises would be one of the Obama’s failures in the U.S. foreign policy. Now this agreement would help Russia and obviously president Putin to take the rein of power more and more. At the end if Russia and China find out that there are not any obstacles around, they will never ever conceal their ambitious points.
Around the Web
- When governments go after witches
- Borders, Ethnicity and Trade [pdf]
- A Lonely Passion. Libertarians in China
- Halloween in Germany: read this with globalization and its critics in mind
- Should Japan take the lead in mediating US-Iranian talks? Props to Obama, by the way
- Another excellent Free Speech blurb from Ken White
- Culture in a Cage
Around the Web
- A university in Malaysia has awarded an economics doctorate to North Korea’s communist dictator
- Ian Bremmer asks, in the pages of the National Interest, if China is in the middle of a big bubble
- The Diffusion of Responsibility: a short piece on government employees, the rest of us, and some implications of the drug war
- How laissez-faire made Sweden rich by Johan Norberg
- Why do banks keep going bankrupt? Kirby Cundiff answers this question in the pages of the Freeman
- Mud People and Super Farmers: Creatively adapting to the lack of land rights in Africa
Imperialism or Federalism: The Occupation of South Korea
A recent op-ed in Foreign Policy highlights South Korea’s very successful rent-seeking campaign in regard to US military services:
When it comes to taking charge of coalition forces here on the Korean Peninsula, South Korea has been a little gun shy. South Korea and the United States this week are celebrating the 60-year anniversary of an alliance forged after the Korean War; there were two parades, a big dinner, video retrospectives, and a lot of talk of katchi kapshida (“we stand together”). But after decades of confidence-building joint exercises and billions of dollars in military assistance, it’s time for the South Koreans to step up and assume what’s called “operational control” of all forces stationed here if war should break out. The problem is, the South Koreans aren’t quite ready.
This brings out two interrelated but distinct trains of thought in my mind. First, it destroys the arguments, found on the hard Left, about a brutal US imperialism in the region. Seoul has made a US military presence on its soil a top priority for sixty years now. This has been the case during the autocratic period and it is now the case for the democratic one as well. A state cannot have a brutal presence in another state’s territory if the latter state continues to make the former’s presence a top priority.
Second, this is not to say that the US is not imperialistic. Here is how Merriam-Webster online defines imperialism: “the policy, practice, or advocacy of extending the power and dominion of a nation especially by direct territorial acquisitions or by gaining indirect control over the political or economic life of other areas.” With this useful definition in mind, South Korea’s rent-seeking necessarily brings up anti-imperial arguments from the center and the Right; namely, that South Korea is taking US taxpayers for a ride (the Cato Institute has done some especially good work on this topic).
So here are the relevant circumstances: the US military is currently on the Korean peninsula, and it is fairly entrenched, and the South Koreans overwhelmingly want it there, and US citizens don’t seem to mind all that much the presence of their military along the 38th parallel. So what exactly is the problem? Why is Foreign Policy, a traditionally interventionist publication, highlighting South Korea’s rent-seeking now? The answer, I think you all know, is government gridlock. Notice first how gridlock is not necessarily a bad thing. It forces Americans to reassess their priorities and to make tough compromises.
Libertarians have long called for Washington to withdraw its troops from South Korea (and correctly so). Among their grievances are the aforementioned rent-seeking tactics of the South Koreans, the unnecessary expenses that accompany such arrangements, and the fact that a US military presence causes unnecessary problems with China and North Korea.
Given the costs and the unnecessary dangers associated with occupation, I am in full agreement with libertarians. However, given the four circumstances mentioned above, I think there is a better way to go about pursuing a more just situation: federate with each other. By federate I do not mean that Seoul should send two senators and X number of representatives. That would be extraordinarily unfair. However, if the 17 provinces in South Korea each sent two senators and X number of representatives, justice would be achieved.
The objections to such an idea are numerous. They include political, cultural and economic angles, and none of them ever hold up to scrutiny. But what exactly is wrong with the status quo? What’s wrong with a complete military withdrawal? My answer to the first question is simply that the status quo is unfair. The South Koreans are ripping the Americans off. My answer to the second question is a bit more complicated.
A complete withdrawal implies that South Korea is not paying its fair share. Indeed, that it is not paying its share at all. A complete withdrawal also implies that foreign occupation creates unnecessary dangers, and it is indeed difficult to imagine a nuclear-armed North Korea without the presence of the US military along the 38th parallel (would Beijing or Tokyo stand for that? Would there be two Koreas? Korea today, without the war, would look like Vietnam).
A withdrawal also implies that the US no longer cares about the South Korean people. Only the hard, fringe Korean Left wants the US out. It’s not the threat of China or North Korea I’m concerned about (only demagogues are concerned about that), but rather the lost opportunity to enhance liberty and equality under the law in both the US and South Korea.
A federation would go a long way toward tackling these problems. South Korean provinces would suddenly find themselves paying their fair share. Two armies would become one (that means soldiers from the province of Jeollanam would be fighting in Afghanistan and not just patrolling the 38th parallel). The propaganda about American imperialism coming from the socialist paradise of North Korea would be rendered obsolete. A new peace – based on consent and equality – would begin to arise. My inspiration for these thoughts comes from a segment of Adam Smith’s Wealth of Nations (pgs 681-682; bottom of 779-794 in the Bantam paperback edition), musings from Hayek’s The Road to Serfdom (223-236 in the definitive, paperback edition) and Mises’s fascinating argument in Liberalism (105-154 of the paperback edition from FEE; here is a pdf of the book from mises.org). I’d even go so far as to claim that it is a more libertarian position than the calls to withdraw from the region. At any rate, it would certainly address the problem of rent-seeking that the US now finds itself facing (which in turn proves that the libertarians were correct all along).
An Exemplar of Governance: The United States and Chinese Citizens
I’ve briefly pointed out the penchant of Chinese citizens to look to the US as a role model for governance before. As Dr Foldvary has argued, it’s about governance, not government. Foreign Policy‘s Passport blog takes a look at how the recent government shutdown in Washington is viewed by citizens of the Chinese state:
[…] both China’s state-run and private-but-state-supervised mainstream media outlets have thus far reacted with restraint. Meanwhile, users of the country’s bustling, often candid, often profane social web have found a silver lining in the political paralysis that would surprise many Americans […] In Chinese social media, meanwhile, the government shutdown became an opportunity to criticize the Chinese government […]
Some veiled their critiques. Xu Jilin, a professor of history at East China Normal University in Shanghai, wrote, “The government has shut down, but the country is not in disorder — now that’s what you call a good country where people can live without worry.”
The gridlock itself, decried by most commentators in the U.S., struck many Chinese as a sign of lawfulness. As one user remarked, “A government that can shut down, no matter how big the impact on everyone’s lives, is a good thing. It shows that power can be checked, and the government can’t spend money however it wants.” […] Others took more direct aim at their own government. As one user noted, “Comrades, no need to worry that the same thing will happen in our country! In any event, delegates in our National People’s Congress [China’s […] legislature] cannot cast dissenting votes, haha.” Another wrote, “I wish China’s government would shut down and let corrupt officials have a taste of it.”
I think these admittedly anecdotal reactions are simply a testament of the age-old, distinctly human problem of confusing society with state. The Chinese people themselves don’t have beef with the US or its people. The American people themselves don’t have beef with Beijing or its people. However, both governments are engaged in a power struggle, and as a result, people suffer. Perhaps the most heartening development can be found in this statement:
The growing connections between China and the United States mean that no issue is strictly domestic for either country.
While some no doubt view the growing interdependence of the two societies with unease, I cannot help but see a future of peace, prosperity and harmony. This does not mean I see an absence of conflict, but only that such conflict will be handled according to rules and procedures that have been laid down in the past and that can be altered so long as it is done so in a manner conducive to yet another round of rule-following and procedures.
Around the Web
I apologize for the dearth of posts lately. I have been reading a lot of books the old-fashioned way, chasing girls down so that I can smell their hair and generally just enjoying life post-graduation.
- Will Wilkinson blogs about the drug war’s inherent racism at Democracy in America.
- Rebecca Liao writes about Democracy in China for Dissent.
- Randy Barnett on the future of federalism after the “gay marriage” SCOTUS decision.
- Uganda versus South Korea. An interesting take on development by Andrew Mwenda.
- The Economist has a great piece on the violence in Turkey.
- Fascinating ‘comments’ thread on Hayek and Pinochet. I am going to dedicate a long piece to this thread shortly. American Leftists are just classical liberals who have come to think of themselves as superior to their neighbors. Leftists in Europe and Latin America are murderous.
Reading Hayek in Beijing
That’s the subject of a fascinating account of life in China through the eyes of a dissident in this last week’s Wall Street Journal. An excerpt:
Put another way, the conventional notion that the modern Chinese system combines political authoritarianism with economic liberalism is mistaken: A more accurate description of the recipe is dictatorship and cronyism, with the results showing up in rampant corruption, environmental degradation and wide inequalities between the politically well-connected and everyone else. “There are two major forms of hatred” in China today, Mr. Yang explains. “Hatred toward the rich; hatred toward the powerful, the officials.” As often as not they are one and the same.
There is more, too: Continue reading
What is the “Chinese Dream”?
The short answer is that it is the new slogan that new Premier Xi Jinping (who hung out in Iowa as a youth) has come up with. The longer answer is that it is basically a knock-off of the “American Dream” used here in the States, but minus the folksiness and with the added predictability of being engineered from the top down to harness a buoyant nationalism in the post-socialist state.
From Lily Kuo, writing in Quartz:
Xi used the word “dream” at least 23 times in his speech to accept the post of president. Xi spoke of the need to “build a strong, democratic, civilized, and harmonious modern socialist country and to attain the Chinese Dream of the great renaissance of the Chinese nation” […]
In Xi’s estimation, the Chinese Dream isn’t meant to be a collection of individuals’ hopes and aspirations. Instead, the dreams of Chinese citizens are to be shaped to fit the government’s vision, rather than the other way around. To that end, the Chinese government has tasked “educators” with uniting “the Chinese dream [with] the dreams of youth and students, to grow up and become useful members of society,” according to the People’s Daily […]
Elusive expressions like Jiang Zemin’s “three represents” (which refers to the three pillars of the party—military, culture and public interest) and Mao Zedong’s “destruction of the four olds” (which connotes the destruction of pre-communist Chinese values) catalogue important transitions in China and form part of each leader’s legacy […]
There is more, and it is very interesting indeed, including the “Seven Don’t Mentions”:
constitutionalism, democracy, civil society, neoliberalism and Western media bias.
Don’t ask me why there are only five! When you read it, do try to remember my short essay on the future of Chinese nationalism. I also think it is pertinent to note that even our scandal-wracked President has not, and does not, procure paternalistic slogans the way the Communist Party in China does. In fact, the American people haven’t dealt with these kinds of slogans since the fascistic Roosevelt administration and his “new deal.” This is not to say that I think Obama is anything more than a thug in a nice suit, but only that our liberal democratic foundations are stronger than we sometimes realize (thanks largely to the same free press that Obama has been trying to intimidate lately).
As an added bonus, here is a collection of our short notes about the fact that fascism and communism are just two strands of the same vile idea: paternalism.
Around the Web
- Danny Huizinga riffs off of Dr Gibson’s article on mathematical models in economics
- Longtime reader –Rick shares some eye candy of another kind
- Shang Jun and Wu Xia, advocates for free trade in China, take EU protectionists to task
- French philosopher and economist Guy Sorman asks What is the West?
- Economist Scott Sumner on Swedish liberaltarianism
Petitioning for a Redress of Grievances: Chinese Style
Has Beijing suddenly begun hearing the demands and complaints of its citizens? Not quite. From the Economist:
In recent days Chinese internet users have begun to petition the White House on other issues; for instance, asking President Obama to “remonstrate” with China over a proposed paraxylene chemical plant in the south-western city of Kunming, where thousands of people staged a protest on May 4th. Others are more frivolous, asking America to send troops to liberate Hong Kong, or that the official flavour of tofu be designated as sweet rather than salty.
The petitions obviously have no legal force, but they reflect a popular lack of faith in Chinese justice and the seductive soft power of America. China has a petitioning system of its own, but those who use it are often threatened or detained.
This is quite interesting for a few reasons:
- I think it helps lend credence to arguments that claim a functioning democracy is a byproduct of capitalism.
- I think it just goes to show you that no matter how hard Beijing tries to initiate a nationalism compatible with its aims, the reality of American prestige and liberty – despite all its many faults – is simply too high a hurdle for Chinese statebuilders.
- Let it be duly noted that many collectivists on both the Left and the Right here in the US have pointed to China as a great model for the future (unlike the reactionary federal system currently in place).
I mean, just imagine if Americans began writing to Mexico City or Ottawa rather than Washington to air out their grievances. What kind of signal would that send to others around the globe? It wouldn’t necessarily mean that the US is bad so much as it would signal that Mexico and Canada set the standard for excellence in governance (not an oxymoron, by the way; see Dr Foldvary’s piece for details).
Another fact the article takes care to point out is that authorities in Beijing have been quick to clamp down on internet usage. Check out this map of worldwide internet connected devices. It’s a little bit more honest than the maps showing China to be a giant “dark spot” of internet usage that I’ve seen displayed around the web.
Lastly, the article in question shows, once again, that the US has nothing to fear from Beijing.
Notes On Liberty 