English and Math

These thoughts by David Henderson over at EconLog have stuck with me since the day I read them (in 2012):

At the end, one of two hosts [of a radio program he was being interviewed at] asked me, “If you were giving a 12-year-old American kid advice on what languages to learn, what advice would you give?” I think he was expecting me to say “English and Chinese.” I answered, “Two languages: English and math.”

I think of this insight often when I read, mostly because they confirm my own anecdotal experiences travelling abroad. Everybody in Ghana spoke English, and only rural Iberians and Slovenians had trouble with English in Europe. Non-Native French speakers seem only to be in parts of France’s old empire, where old customs – learning the language of the conqueror to get ahead in the rat race – still prevail. English is learned because it’s necessary to communicate these days.

Check out this excerpt from a piece on Swiss language borders in the BBC:

There are four official Swiss languages: German, French, Italian and Romansh, an indigenous language with limited status that’s similar to Latin and spoken today by only a handful of Swiss. A fifth language, English, is increasingly used to bridge the linguistic divide. In a recent survey by Pro Linguis, three quarters of those queried said they use English at least three times per week.

Read the rest. That’s a lot of English used in a country that’s sandwiched between Germany, France, and Italy. I think the power of English, at least in Europe, has to do with the fact that it’s a mish-mash of Germanic and Latin; it’s a “bastard tongue,” in the words of John McWhorter, a linguist at Columbia. Let’s hear it for the bastards of the world!

On Monopsony and Legal Surroundings

A few days ago, in reply to this December NBER study, David Henderson at EconLog questioned the idea that labor market monopsonies matter to explain sluggish wage growth and rising wage inequality. Like David, I am skeptical of this argument. However, I am skeptical for different reasons.

First, let’s point out that the reasoning behind this story is well established (see notably the work of Alan Manning). Firms with market power over a more or less homogeneous labor force which must assume a disproportionate amount of search costs have every incentive to depress wages. This can lead to reductions in growth as, notably, it discourages human capital formation (see these two papers here and here as examples). As such, I am not as skeptical of “monopsony” as an argument.

However, I am skeptical of “monopsony” as an argument. Well, what I mean is that I am skeptical of considering monopsony without any qualifications regarding institutions. The key condition to an effective monopsony is the existence of barriers (natural and/or legal to mobility). As soon as it is relatively easy to leave a small city for another city, then even a city with a single-employer will have little ability to exert his “market power” (Note: I really hate that word). If you think about it simply through these lenses, then all that matters is the ability to move. All you need to care about are the barriers (legal and/or natural) to mobility (i.e. the chance to defect).

And here’s the thing. I don’t think that natural barriers are a big deal. For example, Price Fishback found that the “company towns” im the 19th century were hardly monopsonies (see here, here, here and here). If natural barriers were not a big deal, they are certainly not a big deal today. As such, I think the action is largely legal. My favorite example is the set of laws adopted following the Emancipation of slaves in the United States which limited the mobility (by limiting the chances of Northerners hiring agents to come who would act as headhunters in the South). That is a legal barrier (see here and here). I am also making that argument regarding the institution of seigneurial tenure in Canada in a working paper that I am reorganizing (see here).

What about today? The best example are housing restrictions? Well, housing construction and zoning regulations basically make the supply of housing quite inelastic. The areas where these regulations are the most severe are also, incidentally, high productivity areas. This has two effects on mobility. The first is that low-productivity workers in low-productivity areas cannot easily afford to move to the high-productivity area. As such, you are reducing their options of defection and increasing the likelihood that they will not look. You are also reducing the pool of places to apply which means that, in order to find a more remunerative job, they must search longer and harder (i.e. you are increasing their search costs). The second effect is that you are also tying workers to the areas they are in. True, they gain because the productivity becomes capitalized in the potential rent from selling any property they own. However, they are in essence tied to the place. As such, they can be more easily mistreated by employers.

These are only examples. I am sure I could extend the list to reach the size of the fiscal code (well, maybe not that much). The point is that “monopsony” (to the extent that it exists) is merely a symptom of other policies that either increase search costs for workers or reduce the number of options for defections. And I do not care much for analyzing symptoms.

BC’s weekend reads

  1. Our own Edwin van de Haar being interviewed about Degrees of Freedom (audio interview)
  2. Does Gun Control Work? Ben Carson Says Yes. ADL Says No but Yes
  3. The Vanishing Europe of Jürgen Habermas
  4. Leviathan (movie review)
  5. Thinking Anew | What, precisely, changed in the 18th century? (book review)
  6. This Is What Russia REALLY Fears in Syria

Kling and Henderson on intervention and blowback

David Henderson, an economist at the Naval Postgraduate School’s GSBPP and also the Hoover Institution, alerted me to a remark made by another economist, Arnold Kling, about libertarian foreign policy. Both posts are worth reading, of course, but in the ‘comments’ thread of Henderson’s post, Dr Kling elicited a terse response from Dr Henderson for arguing the following:

David, the U.S. has intervened in Asia, Europe, Latin America, and the Middle East. We have not experienced terrorism except from the Middle East, and there the role of blowback is not clear–there are plenty of other causes, and Middle Eastern terrorists seem perfectly happy to operate in countries that have not invaded Iraq.

I think you have proved my point. Your preferred policy is non-intervention, and so blowback is your desired cause for terrorism. But you only look for evidence that confirms this. Go through the thought experiment of believing that terrorism is not caused by blowback, and then look for evidence from that perspective. That is what I ask for when someone has a “desired cause.”

You can read Dr Henderson’s response here, but I thought I’d go in a different direction with this. First, though, I’d like to thank Dr Kling for broaching this subject. Few libertarians do so (our own Drs Delacroix and van de Haar being two stubborn exceptions).

What I’d like to do is take Dr Kling’s second paragraph to heart and try to pin down some relevant facts I think are missing from his first paragraph, which I’ll break down, for the sake of dialogue, piece-by-piece.

the U.S. has intervened in Asia, Europe, Latin America, and the Middle East.

Kling left off Africa from his list of places the US government has intervened in. This is a huge omission because there has been plenty of terrorist attacks (successful or otherwise) aimed at US targets on the African continent, from Nigeria in the west to Kenya all the way in the east (a span, via each state’s respective most populous city, of 5,328 km; Los Angeles to New York City is about 4,500 km).

We have not experienced terrorism except from the Middle East, and there the role of blowback is not clear

Again, the US has been the target of terrorism in places other than the Middle East. Aside from Africa (the 1998 embassy bombings being perhaps the prominent examples, though there are more), the US has been the target of terrorism in Asia, Latin America, and Europe. I think much of Dr Kling’s confusion regarding blowback in due to his poor geographic knowledge. The Middle East (or Near East), for example, is also a part of Asia. Pakistan and Afghanistan, where many terrorist attacks against US targets have been undertaken, are not considered to be a part of the Middle East by specialists. Below is a partial list of terrorist attacks against US targets in the past:

  • In 1927, the US embassy (along with other foreign embassies) in Nanking, China came under sustained gunfire from both state and non-state actors, and at least one American died (“the Nanking Incident”);
  • In the 1920s and 1930s, many American institutions – public and private (or ostensibly private) – were bombed by left-anarchists upset over the unjust executions of two prominent Italian anarchists in Boston (“Sacco and Vanzetti”);
  • In 1964 the US embassy in Gabon was bombed twice in the same month;
  • In 1965 a car bomb exploded outside of the US embassy in Saigon, South Vietnam, and Leftist factions claimed responsibility;
  • In 1984 a car bomb exploded outside of the US embassy in Bogota, Colombia, but no faction came forward to claim responsibility (it is largely attributed to one of the drug cartels in operation there);
  • In 1985 a Left-wing terrorist organization attacked the Soviet, Chinese, and American embassies in Peru;
  • In the mid-1980s a Leftist terrorist organization attacked US embassies in Indonesia and Italy.

Again, this is just a partial list. In the spirit of Kling’s argument, what I suggest we do here is divide up terrorist bombings into two segments: 1) the period of 1945-1991 (the Cold War), and 2) everything else. I think this is a fair move because during the Cold War the line between state and non-state actors became especially blurred.

Even if we decide to ignore my suggestion of dividing terrorist attacks into two segments, one picture that becomes much clearer is that all of the attacks are political, and terrorism against US targets does not come solely from the Middle East (or even states with large Muslim populations). I hope these two issues are conclusions that we can all agree upon. If this does not nudge the evidence in favor of the intervention-causes-blowback thesis, I don’t know what does. I think Kling’s next line of reasoning will help us elaborate on this a bit more:

there are plenty of other causes [of terrorism], and Middle Eastern terrorists seem perfectly happy to operate in countries that have not invaded Iraq.

I think this statement actually breaks the back of the hawks’ argument. First, though, when did we move from a discussion about intervention causing terrorism to a discussion about invading and occupying Iraq causing terrorism? Is Kling guilty of the bait-and-switch fallacy here? I am forced to conclude that he is, although in fairness his point was raised in a ‘comments’ thread rather than in a post of its own.

His bait-and-switch aside, Kling’s point about “plenty of other causes” of terrorism is one worth thinking through a bit more. There are four lines of thought that I’d like to explore here: 1) Now would be a good time to draw up a distinction between intervention and occupation. Up until now, we have been discussing foreign policy colloquially and ostensibly in terms of intervention, but the difference between the two concepts I just highlighted is huge and needs a bit of clarification. Some of the fuzziness surrounding the two concepts has to do with Kling’s charge of normative libertarian foreign policy. Dr Henderson, for example, cites the scholarly work of Robert Pape and Ivan Eland (as well as the observations of Paul Wolfowitz) to bolster his claim that intervention leads to blowback, but those guys are referring to the explicit occupation of territory, not intervention. This does not mean Dr Henderson or libertarians more broadly are wrong, of course, but only that dialogue on this topic suffers from a lack of detail. The Cold War-era bombings I listed above can be attributed to intervention. The terrorist attacks pre- and post-Cold War can be attributed to intervention as well, but also to occupation. Does this make sense?

2) While Kling is lazy in his assertion about “Middle Eastern terrorists” being “perfectly happy” with attacking states that did not invade Iraq, he has a really good point, albeit one made unintentionally: terrorism is an international phenomenon, and not something that can be attributed to a specific region (or religion). If we take a step back and look at terrorism more broadly (i.e. not just in a US context, which I think highlights well the consequences of intervention and occupation), what do we see? I don’t know about you, but I see terrorism in Russia, China, India, Pakistan, the US, Europe, all of Africa, Latin America, and, just for good measure, the rest of Asia, too. This leads me to train of thought Number 3: terrorism is political, as even death cults like Aum Shinrikyo in Japan or lone wolves like the Unabomber or the white nationalist shooter in Charleston are overtly political. I know I’ve harped on this already, but Dr Kling’s point helps make this much easier to understand.

Much of the terrorism, if not all of it (I hope readers will provide counter-examples), not directed at the US and its allies (which do intervene and do occupy) is done in the name of separatist movements within a state. While states claim sovereignty over their territories, and use IGOs such as the United Nations to bolster these claims, the separatist movements believe themselves to be occupied by a foreign power. Pape makes this crystal clear in his work on the (nominally Buddhist but militantly Left-wing) Tamil Tigers of Sri Lanka.

If terrorism is political, but it is not aimed at foreign intervention or occupation/separatism, what would terrorists hope to accomplish by murdering people? Given the calculated political nature of terrorism highlighted above, I fail to see how terrorism could be carried out randomly, except in works of fiction like Batman comics or old James Bond movies. The fictional nature of random acts of terrorism leads me in to my fourth and last train of thought, namely that I think Kling is introducing a red herring when he states that “there are plenty of other causes” of terrorism. This is simply not true. Since Dr Kling didn’t provide any examples, and since I don’t want to attempt to read his mind, I can only hope he reads this post and provides me with some examples that I can proceed to debunk.

While I think Dr Kling raises an excellent topic that needs to be discussed way more often, he, like Dr Delacroix, simply does not have his facts straight when it comes to foreign affairs. Ideology and dialogue are important components of the free and open society, but without a good grasp of the relevant facts of a matter those tools for improving our livelihoods become worthless, at best.

Around the Web

  1. An Israeli (grad student) and an Iranian (grad student) on the way forward
  2. An Anarchist’s Proposal for Limited Constitutional Government
  3. Red White: Why a Founding Father of Postwar  Capitalism (Keynesianism) Spied for the Soviets
  4. Is Fascism Returning to Europe?
  5. Freedom of Speech: True and False (Duck Dynasty edition)

Leaving the Left: Three Dangerous Features I Left Behind

The blatant hypocrisy, the obstinate ignorance and the penchant for authoritarianism within the American Left today are the three reasons why I left the Left in the first place. Riffing off of my recent post on Leftist thought and its major deficiencies, I thought I’d point out a few more recent examples.

Remember, Leftists by and large don’t realize that what they are doing is a) hypocritical, b) ignorant, and c) authoritarian. It is, as Brian Gothberg pointed out, more of a cognitive block than anything. However, there is really no excuse for this cognitive dissonance once it has been explained. Perhaps I need to work on doing a better job of this, but I suspect, as does Dr. Delacroix, that most of it is simply obstinate ignorance and a failure by Leftists to actually read what their opponents are writing.

Writing over at EconLog, David Henderson points out the blatant hypocrisy of the Left in regards to freedom of speech. He draws readers to the attention of calls for solidarity by Leftist academics blogging at Crooked Timber (it’s to the right, on our blog roll, and has been for quite some time) for one of their own after he was targeted by Right-wing groups for his vile thoughts on the NRA’s CEO (a Mr. Wayne LaPierre). Henderson writes: Continue reading

Gas Prices Are Too Damn High

Co-editor Fred Foldvary explains why gas prices are so high at the moment.

David Henderson keeps his eye on the ball when it comes to higher gas prices.

Co-blogger Jacques Delacroix has his suspicions as well.