Fred Foldvary

Some Monday Links

Michalis Trepas Links , , , , , ,

Challenges to monetary policy: lessons from Medieval Europe (Bank Underground)

Explores some monetary issues I briefly touched here.

Sadly, appreciations all over:

Anthony Downs, RIP (Volokh Conspiracy)

János Kornai, 1928-2021 (VOXEU)

Fred Foldvary, a Joyous Friend (Econlib)

Downs: Economic Theory of Democracy and Kornai: Soft-Budget Constraint, both staples of liberal economic tradition. NOL tribute to Foldvary (shorter, but more timely), by Brandon, here.

Globalisation has ruined Hollywood (UnHerd)

I would add The Lord of the Rings (2001-2003), as a cause-and-effect-too element in the trend.

Some Monday Links

Michalis Trepas Links , , , , , , , ,

Vaccine Mandates and Personal Liberty Can Coexist (Bloomberg)

Although the sentiment may seem paradoxical, libertarians should cheer this week’s decision by a federal judge upholding Indiana University’s vaccine mandate for students.

So argues professor Stephen L. Carter in this interesting piece. In short, a mandate checks the boxes if it is instated in a decentralized and narrow fashion.

Berlin in 1946 was a cultural battlefield unlike any before (Crime Reads)

Dismal Economics (Project Syndicate).

A review of four books challenging mainstream, neoclassical economics. In The Corruption of Economics, the author Mason Gaffney (btw, he passed away just over a year ago) proposes that the 19th century’s American universities perceived Georgist ideas as a threat to their vested interest in land-owning, and actively suppressed them. His work on the Stratagem against Henry George has been referenced in a NOL piece by – the also late – Fred Foldvary.

Fred Foldvary, RIP

Brandon Christensen Current Events , , ,

I have been offline for awhile now. Michelangelo shot me an email the other day alerting me to the fact that Fred Foldvary passed away earlier this month.

Fred was one of the original Notewriters here at NOL. He supported this project from the beginning. Here’s his first ever post for NOL, and here is his last one.

I first met Fred in person at an undergraduate summer seminar hosted by the Independent Institute in Oakland, and I had no idea what he was talking about (he was lecturing on interest rates). His writing over the years has convinced me of the soundness of a land tax, so much so that I call myself a geolibertarian if push comes to shove, and his selflessness with his time will never be forgotten.

Fred was an important voice for liberty once the Ron Paul moment got libertarianism out of its doldrums. The brutalists, led by Jeffrey Tucker, were pushing liberty in a decidedly non-liberal direction and many Ron Paul fans got discouraged by what they found. Fred was one of the people laboring hard to stress liberty’s humane-ness.

Without his encouragement, NOL would have never gotten off the ground.

Fred’s death coincides with the death of another prominent libertarian: Steve Horwitz, who was also instrumental in making libertarianism humane at a time when liberty was being pimped as a creed for conservatives with no hearts.

May they rest in peace.

New issues of Econ Journal Watch, Reason Papers out

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

Many of you already know that two of NOL‘s Senior Editors are associated with Econ Journal Watch, thus making its publication a family affair. Fred is on the editorial board and Warren is its math reader. Here are some of the highlights I found worth noting in the latest issue:

Eli Heckscher’s Ideological Migration Toward Market Liberalism: Benny Carlson explores the intellectual evolution of a great Swedish economist.

Symposium:
Classical Liberalism in Econ, by Country: Authors from around the world tell us about their country’s culture of political economy, in particular the vitality of liberalism in the original political sense, historically and currently, with special attention to professional economics as practiced in academia, think tanks, and intellectual networks.

New contributions:

Young Back Choi and Yong Yoon: Liberalism in Korea

Pavel Kuchař: Liberalism in Mexican Economic Thought, Past and Present

(All of the papers from this symposium, which has carried across multiple issues of EJW, are collected at this page.)

You can download the whole issue here (pdf).

Dr Khawaja, an Editor-at-Large for Reason Papers, reports (2/2/16) on the latest issue over at Policy of Truth:

The latest issue of Reason Papers, vol. 37, number 2 is now out; officially, it’s the Fall 2015 issue, but we only just managed to put it up on the website last night. This link will take you to a monster-size PDF to the whole issue (almost 250 pages). This link will take you to the journal’s Archive page, where you can access individual articles for this or any past issue (you have to scroll down a bit). Finally, this link will take you to three (time sensitive) Calls for Papers issued by the journal’s editors: one on “the philosophy of play” (March 1, 2016); one a fifteen-year retrospective on 9/11 (July 1, 2016); and one an Authors-Meet-Critics symposium on Douglas Den Uyl and Douglas Rasmussen’s forthcoming book The Perfectionist Turn: From Meta-Norms to Meta-Ethics (February 1, 2017).

My own small contribution to Reason Papers can be found here (pdf).

New issue of Econ Journal Watch is out

Brandon Christensen Links , , , , , ,

For those of you just tuning in to NOL, Fred is an editor for the journal, and Warren is its math reader.

Evolution, moral sentiments, and the welfare state: Many now maintain that multilevel selection created a sympathetic species with yearnings for social solidarity. Several evolutionary authors on the political left suggest that collectivist politics is an appropriate way to meet that yearning. Harrison Searles agrees on evolution and human nature, but faults them for neglecting Hayek’s charge of atavism: The modern polity and the ancestral band are worlds apart, rendering collectivist politics inappropriate and misguided. David Sloan Wilson, Robert Kadar, and Steve Roth respond, suggesting that new evolutionary paradigms promise to transcend old ideological categories.

Evidence of no problem, or a problem of no evidence? In 2009, Laura Langbein and Mark Yost published an empirical study of the relationship between same-sex marriage and social outcomes. Here Douglas Allen and Joseph Price replicate their investigation, insisting that conceptual problems and a lack of empirical power undermine any claim of evidence on outcomes. Langbein and Yost reply.

The progress of replication in economics: Maren Duvendack, Richard W. Palmer-Jones, and W. Robert Reed investigate all Web of Science-indexed economics journals with regard to matters concerning replication of research, including provision of the data and code necessary to make articles replicable and editorial openness to publishing replication studies. They explain the value of replication as well as the challenges, describe its history in economics, and report the results of their investigation, which included corresponding with journal editors.

A Beginner’s Guide to Esoteric Reading: Arthur Melzer describes techniques and devices used in esoteric writing.

Symposium:
Classical Liberalism in Econ, by Country (Part I): Authors from around the world tell us about their country’s culture of political economy, in particular the vitality of liberalism in the original political sense, historically and currently, with special attention to professional economics as practiced in academia, think tanks, and intellectual networks.

Chris Berg: Classical Liberalism in Australian Economics

Fernando Hernández Fradejas: Liberal Economics in Spain

Mateusz Machaj: Liberal Economics in Poland

Patrick Mardini: The Endangered Classical Liberal Tradition in Lebanon: A General Description and Survey Results

Miroslav Prokopijević and Slaviša Tasić: Classical Liberal Economics in the Ex-Yugoslav Nations

Josef Šíma and Tomáš Nikodým: Classical Liberalism in the Czech Republic

All the links are pdfs. The website is here.

Contra Argumentation Ethics

Fred Foldvary Philosophy , , , , , , , , , ,

The proposition in argumentation ethics is that “arguing for any political position other than libertarian anarchism is logically inconsistent” (wiki).  This proposition was set forth in 1988 by Professor Hans-Hermann Hoppe of the University of Nevada at Las Vegas. The basic idea is that the non-aggression principle is a premise implied in every argument, and so it cannot be logically denied in any doctrine. The concept of argumentation or discourse ethics had been developed by several German philosophers, such as Jürgen Habermas.

The non-aggression principle is that aggression – the initiation of force or fraud against a person –  is morally evil. The argumentation proposition is that non-aggression is a presupposition of every argument, and so the concept cannot be logically denied within an argument. If a person argues that slavery is justified, the contradiction is that by engaging in argument with another person, he is implying that they are both seeking to arrive at truth by persuasion as equal independent non-slave parties. Since the person who argues for slavery is not using force to make the other person a slave, that implies that he is thereby rejecting slavery. It is then logically and performatively inconsistent for him to argue that enslaving any other person would be justified.

The prevailing argument for a libertarian ethic, based on natural moral law, is based on human nature applied to human action, rather than argumentation. The two premises set forth by John Locke in his Second Treatise of Government are human independence and equality.

Independence is the biological statement that persons think and feel as independent beings. Equality means that human beings have an equal moral worth, which is the basis of Jefferson’s statement that we are created equal, and is the basis of equality before the law. The equality premise is based on the observation that there is no inherent master-slave relation among human beings, and so equality is more consistent with human biology than any inherent moral superiority of any race, sex, or culture.

Hoppe states that concept of human nature is too diffuse to provide a determinate set of premises for natural law. Locke’s premises of independence and equality indeed have fuzzy edges, such as for beings not yet born, but they seem to be clear enough for practical purposes. Libertarians have no consensus on issues such as abortion, capital punishment, land value subsidies, the use of the military, and the justification of imposed government, but argumentation does not resolve such issues either. One needs additional premises to solve issues such as personhood, e.g. under which conditions is a human organism a person with rights. After all, one cannot have discourse with a newly born baby.

The concept of argumentation ethics has been rejected by several libertarian scholars, for example the article in The Journal of Libertarian Studies (Spring 2006) by Robert Murphy and Gene Callahan. They point out that at most, argumention establishes self-ownership only to one’s mind and mouth, and only during the argument. A slave owner can argue with a slave while the slave is in chains, and then murder the slave. The superiority of the slave owner is not refuted by the owner’s asking the slave whether he prefers to be strangled or shot with a bullet.

As pointed out by Murphy and Callahan, a statist may believe that under particular conditions, the initiation of force is justified, even though when this is discussed, the parties are equally in their ability to argue.

Another refutation was made by Jason Brennan in “Hoppe’s Argumentation Ethics Argument Refuted in Under 60 Seconds.” Brennan first presents two definitions. “A liberty right is something that grants me permission to do something. A claim right is something that entails others have obligations, responsibilities, or duties toward me.”

He then writes:

“all I need to avoid a performative contradiction here is for me to have a liberty right to say, ‘I propose such and such.’ I need not presuppose I have a claim right to say ‘I propose such and such.’ Instead, at most, I presuppose that it’s permissible for me to say, ‘I propose such and such’. I also at most presuppose that you have a liberty right to believe what I say. I do not need to presuppose that you have a claim right to believe what I say. However, libertarian self-ownership theory consists of claim rights… Hoppe’s argument illicitly conflates a liberty right with a claim right, and so fails.”

Yet another refutation of argumentation is made in “Justopia” by Justin:

“That flaw is revealed by showing that intent matters. This flaw eliminates the performative contradiction aspect because one cannot, without further information, determine whether many of the statements that Hoppe would claim are performative contradictions actually are performative contradictions.”

The Lockean foundation for natural moral law does not suffer from such flaws. Based on its premises from human nature, the universal ethic has three basic rules:

  1. Acts which are welcomed benefits are good.
  2. All acts, and only those acts, which coercively harm others are evil.
  3. All other acts are neutral.

It is curious why some natural-law libertarians have not accepted Locke’s libertarian ethic and have instead turned to German discourse philosophy. Perhaps the answer involves psychology and sociology rather than pure philosophy. At any rate, argumentation ethics is not the answer.

(This article also appears in http://www.progress.org )

New Issue of Econ Journal Watch: Economists on the Welfare State and the Regulatory State: Why Don’t Any Argue in Favor of One and Against the Other?

Brandon Christensen Economics, Politics , , , , , , , , ,

For those of you who don’t know Fred is an Editor for the Journal and Warren is its math reader, so this occasion is very much a family affair. Here is the low-down:

Economists on the Welfare State and the Regulatory State: Why Don’t Any Argue in Favor of One and Against the Other?

The symposium Prologue suggests that among economists in the United States, on matters of the welfare state and the regulatory state, virtually none favors one while opposing the other. Such pattern is a common and intuitive impression, and is supported by scatterplots of survey data. But what explains the pattern? Why don’t some economists favor one and oppose the other?

Contributors address those questions:

Dean Baker: Do Welfare State Liberals Also Love Regulation?

Andreas Bergh: Yes, There Are Hayekian Welfare States (At Least in Theory)

Marjorie Griffin Cohen: The Strange Career of Regulation in the Welfare State

Robert Higgs: Two Ideological Ships Passing in the Night

Arnold Kling: Differences in Opinion Among Economists About Government and Market Efficiency

Anthony Randazzo and Jonathan Haidt: The Moral Narratives of Economists

Scott Sumner: Moral Differences in Economics: Why Is the Left-Right Divide Widening?

Cass Sunstein: Unhelpful Abstractions and the Standard View

There is a lot more here. You can find Econ Journal Watch‘s home page here, on our ‘Recommendations’ page.

From the Comments: Has the deontological puzzle been solved?

Brandon Christensen Law, Liberty, Philosophy , , , , , ,

Dr Fred Foldvary (yes, THE Fred Foldvary, the one who predicted the 2008 crash in 1998) writes:

It is not clear what the policy consequences are regarding those who lose out due to competition. If we are free to choose our friends, there will be losers who lose someone’s friendship. Should we be forced to stay friends with those we no longer like? If not, then such a loss has no policy implication. Such incidental injuries have less damaging consequences than a law that prohibits ending a friendship. Thus the deontological and consequential effects are complements: Likewise, the consequences of prohibiting economic competition are worse than the losses due to competition. And entrepreneurs should know that the system is a profit and loss system, and anyone in business is vulnerable to losses. The losses due to competition are not torts and they are not coercive harms. They are injuries not deliberately inflicted but incidental to individuals and firms pursuing their happiness.

This is in response to my short post on the ethical divide within libertarianism between deontologists and consequentialists. I don’t think there is too much that we disagree on here; Indeed, it seems as if we are complimenting each other quite nicely (if I do say so myself!).

My one quibble is more of a question than a quibble: Although we cannot predict who will lose out to competition in markets, shouldn’t we be able to make some solid inferences? For example, if the US and Europe were to abolish subsidies to farmers and open up their markets to foreign competition, it stands safe to reason that Western farmers will lose out, at least in the short-run.

The logic behind Dr Foldvary’s comment is relatively clear: abolish protectionist subsidies (which are aggressive legislative acts perpetrated against Western consumers and foreign farmers) and this paves the way for non-aggression. Not only is this logic clear, it is irrefutable. It also shows how deontology and consequentialism are complimentary. However, logic and facts are not very useful when it comes to persuading the public. Philosophically this argument makes perfect sense, and politically and rhetorically Dr Foldvary makes it work, but in the general public sphere (especially the internet) the appeal to deontology has earmarked liberalization for disaster.

I suppose, if we follow Jacob Huebert’s line of reasoning, that the politics and the rhetoric of our ideas should not matter, but on the other hand we live in a world where even in the West libertarians have become a minority. The world will continue to liberalize as long as libertarians continue to be as lucid as Dr Foldvary, but I fear that men of his caliber are in very short supply today.

From the Comments: An embarrassment of riches, a stable full of straw

Brandon Christensen Comments, Liberty, Philosophy , , ,

Below are some more thoughts on “total liberty” and bad faith.

My argument in the threads with Marvin has intended to be one that displays two points of view, rather than to be one of persuasion. Due to his responses to Dr Foldvary’s argument, I realized that he was uninterested in having an honest debate. I also realized that persuading him would be futile. So I instead have tried to illustrate – to readers and curious passersby – how Marvin’s arguments are fallacious (dishonest) and what to do about them by exploiting Marvin’s position. In order to do this I have kept it simple and tried to argue on Marvin’s terms (“speaking past one another”). Rick has an insightful, must-read summary of our arguments, and he also furthers our understanding of freedom in the process.

I am not quite done, though. I am still unsure if I have accomplished my task of exposing Marvin’s arguments as fallacious. I want to be sure that readers don’t take him seriously in the future should he decide to continue trolling the ‘comments’ section. Marvin states matter-of-factly that:

The problem is that I have a better handle on the truth than you do.

Now, in the interest of honest debate, I hope that everyone can see how Marvin’s assertion shows how he is being dishonest. I have pointed out his straw man fallacies for a while now, and I want to get the point across that Marvin’s characterizations of libertarian ethics are based upon the above-quoted viewpoint.

Given that Marvin believes he has a better handle on truth than I, how can I (or you as a reader) expect to get an even-handed argument from him? If you believe that I have mischaracterized Marvin’s arguments (as he has done to mine and Dr Foldvary’s and soon-to-be [?] Dr Weber’s), please point out where in the ‘comments’ thread.

Again, my task is much more simple than Rick’s. I wish to merely show how Marvin’s argument is based on falsehoods. I think his comments elsewhere suggest my hunch is right. (Rick, by the way, has been much more generous to Marvin than I, a position for which he has been rewarded by being called a homosexual with an unhealthy obsession for Marvin (“My name can’t stay off of Rick’s lips,” according to Marvin the Truthspeaker).)

Marvin’s main error in reasoning, in my judgement, is that he creates positions that nobody has made and then draws conclusions from those created positions. Sometimes he restates arguments that nobody has contested as if they were contested and then proceeds to explain why libertarians should not (or do) contest such an argument. This is sophistry at its most vulgar.

Does everybody follow? Dr Amburgey?

His last response to me in the ‘comments’ is a good example of what I mean. Marvin writes:

Brandon [quoting me]: “Society A (the one with no rules prohibiting murder) does not have total liberty because its members do not have freedom from unwarranted aggression.”

[Marvin:] If a society has a consensus that murder should be punished then it effectively has a rule prohibiting murder whether the rule is explicitly written down or not.

Yes, and what exactly does this have to do with my argument? With Fred’s? With Rick’s? With Hank’s? Marvin continues:

If a society has no agreement that murder is wrong then its sense of justice either presumes any murder is justified or is indifferent to it until it affects them personally.

Again, this may be true, but what exactly does this have to do with my argument that “Society A (the one with no rules prohibiting murder) does not have total liberty because its members do not have freedom from unwarranted aggression”? Where does it follow from this statement that rules prohibit total liberty? It’s almost as if Marvin is talking to himself rather than to a group of people. There is nothing wrong with thinking out loud, but it seems to me – based on this response and on past responses – that Marvin thinks he is replying to an argument somebody else has made rather than thinking out loud.

Marvin continues to pummel me:

(b) The meaning of “liberty” is “freedom to”, not “freedom from”. “Freedom to” means you can pursue your happiness with minimal restrictions (“total freedom” would imply no restrictions at all, a liberty to do what you please without fear of punishment).

Marvin goes on and on (and on) from there. However, this is simply wrong. The Stanford Encyclopedia of Philosophy has a good summary of the ‘freedom to’ versus ‘freedom from’ distinction. Basically, the ‘freedom from’ folks look at external factors (such as government) that inhibit liberty, whereas the ‘freedom to’ folks look at factors that are internal to individuals (such as class). I don’t want to get into the details here, but suffice it to say this is not Marvin’s understanding of the distinction. Normally I wouldn’t have a problem explaining this misunderstanding, but given Marvin’s track record I’m going to skip out on doing so (unless somebody wants me to).

I’ve got one more example I’d like to use to hammer home my point that Marvin is not interested in having an honest debate. He writes:

Brandon [quoting me]: “Your attempt at distinguishing “private punishments” within Society A from “punishments of society” is also fallacious. Is society composed of numerous factions – most of them private – or is it a monolithic, dissent-free, homogeneous unit.”

[Marvin:] A consensus is not monolithic. If everyone had to agree to everything then nothing would be possible. To make cooperation possible, we created a democratically elected government with many checks and balances. And we agreed to respect the authority of the laws it creates, even laws we may disagree with, because we would expect others to respect the laws that we do agree with that they don’t. And the democratic process may correct or remove an unsuccessful law in the future. I may win the case today and you may win the case tomorrow.

My argument is that Marvin’s assumption about society is monolithic, not society itself. If you read my argument with an eye for understanding it you can easily see that. If you read my argument from a position of Truthspeaker it may be harder to do so.

One last point I’d like to mention is that Marvin also has a habit of changing definitions to suit his argument. Often he simply provides his own. This, of course, helps him to have that “better handle on truth” that nobody else at NOL seems to have.

Has this cleared anything up? Muddled it further? Am I coming off as an ideologue or somebody who is trying to weed out falsehoods?

There are plenty of rules in a libertarian society. The fact that there are rules does not mean that ‘total liberty’ is lost because of it. Such a characterization is the epitome of a straw man. Rick takes the idea of total freedom to the next level (so read up!), so all I’m trying to do here is make sure that everybody understands Marvin’s sophistry. I think understanding sophistry is important because it tends to mellow people out: If you can understand the falsehoods in an argument you can craft up a cooler response.

From the Comments: Fallacies in the Threads

Brandon Christensen Comments, Liberty , , , , ,

We don’t get as many trolls here as we used to, but every once in a while somebody will throw their garbage out the window as they drive by our humble consortium. Marvin’s comments in Dr Foldvary’s recent post on myths about libertarianism is a case in point. Attempting to take me to task for committing a logical fallacy, he  writes:

Brandon [quoting me]: “Dr Foldvary quit arguing with you because he has seen your fallacies over and over again throughout a long and distinguished career as an academic economist.”

Again, appealing to authority is not making a reasoned argument. You seem to be taking offense that anyone who would dare to disagree with or question anything he or you have said. Taking offense where none has been given is also rhetoric, not reason.

Just two things:

  1. An appeal to authority would have to involve me stating that Dr Foldvary is correct because he is an economist. I obviously made no such argument. I was merely trying to point out Marvin’s boorish manners and Fred’s subsequent, predictable reaction.
  2. I don’t see where I have “taken offense” in this thread. Marvin falsely charges me with doing so, and then goes on to suggest that I am angry because he disagrees with me. Now, Marvin would have a decent point if it were true that I was angry with his argument, but as it stands he is simply invoking his imagination in order to make his argument look better.

There is a reason Marvin has done this (I doubt it was a conscious one). He writes:

Brandon [again, quoting me]: “What exactly are you trying to refute, and which aspect of your argument refutes Dr Foldvary’s?”

First, it’s not Dr. Foldvary that I am having difficulty with. It is rather the unsubstantiated myths promoted by Libertarians generally that are the problem. For example, “In my judgment, when most people recognize natural moral law as the proper basis for governance, we will be able to have a truly free society.”

It is nothing but a rhetorical claim to say that my personal collection of moral laws are “natural”, “God given”, or “inherent”. Jefferson was speaking rhetorically (to sway emotional support) when he said “endowed by their Creator”. But when he said, “to secure these rights, governments are instituted” he was speaking of practical rights.

Can you spot the fallacy? I ask for an example of what Marvin is arguing against and he replies by changing the subject (from Fred’s argument to “Libertarians generally”). This particular fallacy is known as a red herring fallacy. In it, Marvin goes from ignoring Fred’s original argument to knocking down a “general” argument that he attributes to libertarians. How convenient!

Now, that’s two separate fallacies in one reply. Is it worth my time to respond? A fallacy is defined as being either a false or mistaken idea, or  as possessing a deceptive appearance. Marvin’s fallacies are a mixture of both, I think, and it would seem, based on his reasoning and on his dogmatic beliefs, that he is, in the words of alcoholics everywhere, fundamentally incapable of being honest with himself.

Nevertheless, I’d like to think that Marvin’s fallacies are based more on a false idea than on deception (I think the deception is largely for himself, anyway). So I’ll humor him one last time:

Brandon [quoting me]: “Being prohibited from killing another human being is not a restriction on freedom (same goes for stealing) because killing restricts the freedom of others.”

Actually, being prohibited from doing anything is a restriction upon the freedom of the person who wants to do that thing. The OD says, for example, freedom is “the power or right to act, speak, or think as one wants”. Obviously if someone wants to steal and is prohibited from stealing, then his freedom is restricted.

You seem to have adopted a different definition, in which a rule against stealing is not really a restriction on freedom because it promotes the optimal freedom for everyone. I don’t think you’ll find that in the OD.

On the other hand, I do agree that all rules are intended to improve the total good and reduce the total harm for everyone. But to achieve that benefit, the rule diminishes the total liberty of everyone.

This is a much more sophisticated fallacy, but it is a fallacy nonetheless. Marvin is trying to discredit libertarianism by arguing that total freedom allows for individuals to steal and kill as they please. This is utterly false, and I’ll get to why in just a minute, but first I think it is important to highlight Marvin’s underlying logic behind this fallacy so that in the future we can all do a better job of rooting out dishonesty from our debates on liberty.

Marvin argues that total freedom must allow for killing and stealing, and only restrictions upon killing and stealing are able to prevent such occurrences from happening regularly. By framing the debate in this way, it then follows that restrictions upon other freedoms (ones that may come to be deemed harmful to society by some) are a logical and beneficial response to social problems. Do you follow? If not, you know where the ‘comments’ section is.

Marvin’s fallacious reasoning in this regard is on full display throughout the thread (please read it yourself).

Yet killing and stealing are not actions that can be found in total freedom (“the power or right to act, speak, or think as one wants”). Killing and stealing are actions that can be found throughout the animal kingdom. Does this make animals free?

Of course not, and this is because freedom is a distinctly human notion. Rules and agreements do not diminish total liberty. There is the possibility that total liberty can be diminished by rules. Nobody disputes this. To suggest that (capital-L) “Libertarians generally” do dispute this is disingenuous. It’s also convenient for Marvin’s fallacy.

Total freedom will not be achieved in our lifetimes. It will not be achieved in our grandchildren’s lifetimes. This doesn’t mean it should not be held up as an ideal to aspire to. Ignoring or ceding the ideal of total freedom means that the Marvins of the world will continue to get their Social Security checks in the mail.

New issue of Econ Journal Watch is out

Brandon Christensen Current Events, Economics, Links , ,

You can find it here, and here is the summary:

One Swallow Doesn’t Make a Summer: In a 2014 AER article, Zacharias Maniadis, Fabio Tufano, and John List grapple with the problem of the credibility of empirical results by presenting a framework for statistical inference. Here Mitesh Kataria discusses some of the assumptions and restrictions of their framework and simulation, suggesting that their results do not, in fact, allow for general recommendations about which inference approach is most appropriate. Maniadis, Tufano, and List reply to Kataria.

Should the modernization hypothesis survive the research of Daron Acemoglu, Simon Johnson, James Robinson, and Pierre Yared? New evidence and analysis is provided by Hugo Faria, Hugo Montesinos-Yufa, and Daniel Morales, supporting the hypothesis that there is a long-run positive relation between socio-economic development and political democracy.

Ill-Conceived, Even If Competently Administered: In a 2013 JEP article, Stuart Graham and Saurabh Vishnubhakat argue that the Patent and Trademark Office (PTO) is doing a good job of interpreting patent law, and suggest that the “smart phone wars” and related disputes are not evidence that the patent system is broken. Here Shawn Miller and Alexander Tabarrok argue that the main problem is not with the PTO but with patent law as it has been applied, particularly to software, resulting in patents that are overly broad and ambiguous, and hence vexing and stifling.

Ragnar Frisch and Norway: Arild Sæther and Ib Eriksen contend that for several decades bad policy derived in part from the climate of opinion among the country’s eminent economists.

The ideological evolution of Milton Friedman: Lanny Ebenstein explores developments in Friedman’s thinking, particularly after the mid-1950s.

EJW Audio: Lanny Ebenstein on Milton Friedman’s Ideological Evolution

I might add that notewriter Fred Foldvary is an Editor for the journal, and notewriter Warren Gibson is its math reader, so give the newest issue some family love!

From the Comments: Populism, Big Banks and the Tyranny of Ambiguity

Brandon Christensen Comments, Current Events, Law, Politics , , , , , , , , , , , , , , ,

Andrew takes time to elaborate upon his support for Senator Elizabeth Warren, a Native American law professor from Harvard who often pines for the “little guy” in public forums. I loathe populism/fascism precisely because it is short on specifics and very, very long on generalities and emotional appeal. This ambiguity is precisely why fascist/populist movements lead societies down the road to cultural, economic and political stagnation. Andrew begins his defense of populism/fascism with this:

For example, I still have more trust in Warren than in almost anyone else in Congress to hold banks accountable to the rule of law.

Banks have been following the rule of law. This is the problem libertarians have been trying to point out for hundreds of years. See Dr Gibson on bank regulations and Dr Gibson again, along with Dr Foldvary, on alternatives. This is why you see so few bankers in jail. Libertarians point to institutional barriers that are put in place by legislators at the behest of a myriad of lobbying groups. Populists/fascists decry the results of the legislation and seek a faction to blame.

If you wanted to be thought of as an open-minded, fairly intelligent individual, which framework would you present to those who you wished to impress: the institutional one that libertarians identify as the culprit for the 2008 financial crisis or the ambiguous one that the populists wield?

And populism=fascism=nationalism is a daft oversimplification. I’ll grant that there’s often overlap between the three, but it’s far from total or inevitable overlap. Populists target their own countries’ elites all the time.

Sometimes oversimplification is a good thing, especially if it helps to clarify something (see, for example, Dr Delacroix’s work on free trade and the Law of Comparative Advantage). One of the hallmarks of fascism is its anti-elitism. Fascists tend to target elites in their own countries because they are a) easy and highly visible targets, b) usually employed in professions that require a great amount of technical know-how or traditional education and c) very open to foreign cultures and as such are often perceived as being connected to elites of foreign societies.

The anti-elitism of fascists/populists is something that libertarians don’t think about enough. Anti-elitism is by its very nature anti-individualistic, anti-education and anti-cooperative. You can tell it is all of these “antis” not because of the historical results that populism/fascism has bred, but because of its ambiguous arguments. Ambiguity, of course, is a populist’s greatest weapon. There is never any substance to be found in the arguments of the populist. No details. No clarity. Only easily identifiable problems (at best) or ad hominem attacks (at worst). Senator Warren is telling in this regard. She is known for her very public attacks on banks and the rich, but when pressed for details she never elaborates. And why should she? To do so would expose her public attacks to argument. It would create a spectacle out of the sacred. For example, Andrew writes:

Still, I’d rather have people like Warren establish a fuzzy and imperfect starting point for reform than let courtiers to the wealthy and affluent dictate policy because there’s no remotely viable counterpoint to their stances […] These doctrinaire free-market orthodoxies are where the libertarian movement loses me. There are just too many untrustworthy characters attached to that ship for me to jump on board.

Ambiguity is a better alternative than plainly stated and publicly published goals simply because there are “untrustworthy characters” associated with the latter? Why not seek plainly stated and publicly published alternatives rather than “fuzzy and imperfect starting points for reform”?

Andrew quotes a man in the street that happens to be made entirely of straw:

“Social Security has gone into the red, but instead of increasing the contribution ceiling and thoughtfully trimming benefits, let’s privatize the whole thing and encourage people to invest in my company’s private retirement accounts.”

Does the libertarian really argue that phasing out a government program implemented in the 1930s is good because it would force people to invest in his company’s private retirement accounts? I’ve never heard of such an example, but I may just be reading all the wrong stuff. Andrew could prove me wrong with a lead or two. There is more:

This ilk of concern trolls (think Megan McArdle: somewhat different emphasis, same general worldview) is one that I find thoroughly disgusting and untrustworthy and that I want absolutely no part in engaging in civil debate. Their positions are just too corrupt and outlandish to dignify with direct responses; I consider it better to marginalize them and instead engage adversaries who aren’t pushing the Overton Window to extremes that I consider bizarre and self-serving. They’re often operating from premises that a supermajority of Americans would find absurd or unconscionable, so I see no point to inviting shills and nutters into a debate […].

Megan McArdle is so “disgusting and untrustworthy” that her arguments are not even worth discussing? Her name is worth bringing up, of course, but her arguments are not? Ambiguity is the weapon of the majority’s tyranny, and our readers deserve better. They are not idiots (our readership is still too small!), and I think they deserve an explanation for why McArdle is not worthy of their time (aside from being a shill for the rich, of course).

I think populism/fascism is often attractive to dissatisfied and otherwise intelligent individuals largely because its ambiguous nature seems to provide people with answers to tough questions that they cannot (or will not) answer themselves. Elizabeth Warren’s own tough questions, on the Senate Banking Committee, revolve around pestering banks for supposedly (supposedly) laundering money to drug lords and terrorists:

“What does it take, how many billions of dollars do you have to launder from drug lords and how many economic sanctions do you have to violate before someone will consider shutting down a financial institution?” Warren asked at a Banking Committee hearing on money laundering.

Notice how the populist/fascist simply takes the laws in place for granted (so long as they serve her desires)? The libertarian would ask not if the banks were doing something illegally, but why there are laws in place that prohibit individuals and organizations from making monetary transactions in the first place.

Senator Warren’s assumptions highlight well the difference between the ideologies of populism/fascism and libertarianism: One ideology thinks bludgeoning unpopular factions is perfectly acceptable. The other would defend an unpopular faction as if it were its own; indeed, as if its own freedom were tied up to the freedom of the faction under attack.

From the Comments: Federalism, Local and Global

Brandon Christensen Comments , , , , , ,

From a post of mine on Native American sovereignty, and prompted by the thoughts of readers, I muse a little more:

Hank,

Thanks for the great link. My few thoughts, I am not so sure that Native Americans would choose sovereignty over membership into the federation currently in place. I lived near a reservation in northern California (and I’m sure you have the same sort of deal in Montana) and have some fairly extensive contact with Navajo Indians as well (they prefer the term ‘Indian’ to ‘Native American’, so long as they know you). These are people whose ancestors have fought for the US in all of its major wars over the past century. They are intensely patriotic.

What I think would emerge from working with the Indian tribes is a system where all of the major reservations were turned into regular states (like Montana and California) and the minor ones would just disappear. Indians would then be full-fledged American citizens but could still do what they liked culturally with their heritage, much as everybody else does.

Again, this is what I think would happen. If they wanted full-fledged sovereignty we should grant it (and include generous reparations for stolen property), but I think everybody would opt in for a spot in the federal system we have (despite its shortcomings, it’s still a very, very good system).

This leads to me to an odd-but-perhaps-pertinent musing: I am not so sure that the majority of Europeans, South Koreans and Japanese would want our troops to leave their states. Hear me out on this. Our military essentially provides for the defense of these states, and as a result their these societies are able to use resources that would otherwise go to military expenditures for welfare programs. As Americans, we can see why this is a bad thing, but the states we occupy militarily don’t necessarily think that it is such a bad thing.

As a result, I would be open to our continued occupation of these states under one condition: that traveling, working, starting a business, living, moving, etc., etc. between the US and the states whom we subsidize militarily is as easy to do as it is here in the US. So, for example, moving/etc. from Connecticut to Hesse or Nankaido would be as easy as moving/etc. from Texas to South Dakota. If this were to happen, then I could accept a continued US presence in these regions. What do you think?

Update (6/11): I was inspired to bring this up because of an old post on this subject by Dr Foldvary in the Progress Report. Do be sure to check it out.

Is Liberalism Dead?

Brandon Christensen History ,

Co-editor Fred Foldvary kicks off the discussion:

The word “Liberal” comes from the same root as “liberty.” Liberalism is the ideology of equal individual freedom, the natural right of all persons to do anything that is peaceful and honest. It is implemented by a constitutional law that prohibits coercive harm to others and avoids restricting or imposing a cost on all other human action.

In the modern era, liberal philosophy blossomed after the publication of John Locke’s Two Treatises of Government […]

Internationally, liberalism became a global ideology with the recognition of universal human rights by the United Nations. But during the early 1800s, liberalism already started losing its way. While it marched forward for civil rights, such as the equal right to vote, liberalism became confused in the economic front.

Classical liberalism called for freedom on all fronts, including the economic, where it opposed state-imposed monopolies as well as restrictions on trade. Pure liberalism implies a truly free economy […] Liberalism also includes the spirit of tolerant generosity, the acceptance of diverse viewpoints. Tolerance is the heart of liberalism. Economic liberalism died with the Great Depression of the 1930s, and now we are witnessing the death of liberal tolerance.

Do read the whole thing, as he has much to say about anti-Semitism in Europe and the demise of libertarian strains of thought.

New Issue of Econ Journal Watch is Out

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

For those of you who don’t know, co-editor Fred Foldvary is an editor for the Journal, and Warren Gibson is the math reader. From the website:

James Tooley on Abhijit Banerjee and Esther Duflo’s Poor Economics: Banerjee and Duflo propose to bypass the “big questions” of economic development and focus instead on “small steps” to improvement. But, says Tooley, they proceed to make big judgments about education in developing countries, judgments not supported by their own evidence.

Why the Denial? Pauline Dixon asks why writers at UNESCO, Oxfam, and elsewhere have denied or discounted the success and potentiality of private schooling in developing countries.

Neither necessary nor sufficient, but… Thomas Mayer critically appraises Stephen Ziliak and Deirdre McCloskey’s influential writings, particularly The Cult of Statistical Significance. McCloskey and Ziliak reply.

Was Occupational Licensing Good for Minorities? Daniel Klein, Benjamin Powell, and Evgeny Vorotnikov take issue with a JLE article by Marc Law and Mindy Marks. Law and Marks reply.

Mankiw vs. DeLong and Krugman on the CEA’s Real GDP Forecasts in Early 2009: David Cushman shows how a careful econometrician might have adjudicated the debate among these leading economists over the likelihood of a macroeconomic rebound.

Rating Government Bonds: Can We Raise Our Grade? Marc Joffe, a former Senior Director at Moody’s Analytics, discusses limitations of the methods employed at the credit rating agencies and problems in trying to infer default risks from market prices, suggesting another approach.

Also, if you’re unsatisfied with the status quo in terms of political parties, including the Libertarian party, Dr. Foldvary has established the Free Earth Party for you to look at. Be sure to check it out!