political thought

The Theory of the Non-Working Class

Fred Foldvary Economics , , , , , , , ,

In the USA, people of age 16 and above are considered of working age. Of those of that age range, those who are working, seeking work, or hired but not yet working, are designated to be in the labor force. The labor force participation rate is the number of people in the labor force divided by the number of those of working age.

From 1950 to 2000, the labor force participation rate in the USA rose from 59 percent to 67 percent. Much of that increase came from the doubling of the participation rate of women, from 30 percent in 1950 to 60 percent in 2000. But total labor participation has declined since 2000 to 63 percent.

While the portion of women in the US labor force rose, the portion of men has been declining. The prime working years are considered to be from age 25 to 54, and one sixth of the men of that age range are not working. In 1950, only four percent of men of that range were not employed.

Many of those not working are not seeking work, and are therefore not counted in the labor force. They are also not counted as unemployed, because by definition, the unemployed are those actively seeking work plus those who have been hired but not yet started to work for wages. Two thirds of working age men are not seeking work, although some who sought work but stopped because they were discouraged, would take a job if offered.

About 40 percent of the men seeking work have been unemployed for six months or more. The chronically unemployed are less likely to become employed, so the long-term unemployment feeds on itself.

The real wage of lower-skilled workers has been falling since 1970. For workers who did not finish high school, the real wage (adjusted for inflation) has fallen 25 percent. That fall in wages is offset somewhat by the availability of new products such as cell phones and by the fall in the relative prices of electronics and other goods, but the cost of housing, medical care, taxes, and college tuition have risen to offset some of that productivity gain.

There are several reasons why male labor participation has fallen. First, more men are attending college. Second, due to the expansion of the war on drugs, the portion of men in prison has risen. Third, as more women work for wages, some male partners choose home production, doing house work and child care at home, which is real labor but not counted in the output data. Fourth, more people are obtaining government’s disability income. Very few on disability go back to work. Fifth, many in the first of the baby-boom generation, born during 1946-1950, are retiring.

The downward trend of labor participation will continue. The Congressional Budget Office estimates that the participation rate will fall to 61% by 2024. CBO calculates that the Affordable Care Act reduce the labor force by more than 2 million jobs. Workers will be able to quit their jobs without losing medical coverage, and the expansion of Medicaid will induce many more adults to obtain medical care without having a job.

One of the problems with a lower labor participation rate is that it reduces the ratio of workers to non-workers. Social Security and Medicare are supported by transferring income from workers to non-workers. A smaller labor participation rate will use up the trust funds and create a deficit for these programs sooner. Also, fewer workers results in lower economic growth, which implies that more of those in poverty will stay that way.

Much of the labor participation decline is not voluntary, but caused by tax and subsidy policies. Without taxes on wages and enterprise profits, both wages and employment would be higher. If the funds now going into Social Security instead went into tax-free private retirement accounts, those who retire would rely on their own past savings rather than transfers from those working. Without the income-tax distortion caused by tax-free medical insurance and taxed money wages, workers would be able to choose the insurance plan that fits them best rather than having to accept the limited plans offered by employers and the government.

The best alternative to taxing wages is to tax land rent or land value. But even without such a fundamental shift in policy, the labor force participation rate can be made more voluntary with employee and self-employment incentives for those long out of work, such as tax offsets and exemptions from restrictions (e.g. licensing, union rules, and city zoning) that prevents working at home, and exemptions from litigation risks. Immigration reform – legalizing those already in the country and allowing more of those with labor skills into the country, would also substantially increase the labor population.

The basic problem with labor world-wide are restrictions on hiring and firing labor, and the heavy costs imposed by taxes, regulations, and mandates on employers. If an employer, including a self-employer, could simply hire a worker without having to deal with forms and regulations, and with no taxes on the employer and the employee, we would have full employment at wages that would provide a decent standard of living. The labor problems we have are iatrogenic, a disease caused by the doctor, in this case, the economic malady caused by government policy. The government people look to for solving economic problems has caused them in the first place.

Italy overturns ‘absurd’ drug law equating marijuana and hard drugs

Adam Magoon Current Events, Liberty, Philosophy , , , , , , , ,

Italy overturns ‘absurd’ drug law equating marijuana and hard drugs

The title really gives all of the details. Libertarians are usually quick to celebrate these kinds of liberalizations of government authority but I always take these times to reiterate and oft forgotten fact.  Italy has not “given more rights to drug users”.  I hear this so often and strangely enough almost universally from more “left” policies such as gay marriage “Massachusetts has given the right to marry to homosexuals.”  This is a blatant misrepresentation of the truth.  The right of self-ownership is universal and each and every person already has the right to consume any drugs they please or to marry whomever they choose.  Government action has taken away those rights and them removing that restriction is not the same as giving away rights.  Rights cannot be granted, they are innate and inalienable.  Rights can only be removed by force.  Two forces in this world deny rights to others.  Criminals and the Government.  Most libertarians do not make a distinction between the two.

California’s Neighborhood Legislature Initiative

Fred Foldvary Current Events, Politics , , , , , , , ,

In California, the voters are able to put proposed laws on the ballot if they gather enough signatures. This process is called an “initiative.” The legislature may also place propositions on the ballot, a process called a “referendum”.

One of the ballot propositions for 2014 is “The Neighborhood Legislature Reform Act,” which would decentralize the election of representatives in order to reduce the political power of special interests such as corporations, labor unions, and trial lawyers. This reform would shift political power to the people of California. (For the text of the initiative, see this.)

Like the US Congress, the California legislature has two houses, a Senate with 40 members and an Assembly with 80 members. The population of California is 38 million. The districts for the California Senate now have 950,000 persons, a greater number than for Congressional districts, while about 475,000 people live in each assembly district. It now takes a million dollars to win a California Senate seat.

The Neighborhood initiative would instead create Senate districts of 10,000 persons and Assembly districts of 5000. These neighborhood districts would form a greater association of 100 neighborhood districts within the current districts. The association council would elect a representative to the state legislature, thus keeping the same number of representatives in the state legislature. However, the final approval of a law would require a vote by all the neighborhood district representatives. That vote could be done on an Internet web site, as corporations now do for their elections of board members and propositions.

The Neighborhood Legislature proposition was initiated by John H. Cox, who has been a lawyer, real-estate management executive, and local office holder. The aim is to have the measure on the November 2014 ballot. That will require over 800,000 valid signatures, 8 percent of the votes cast for governor in the last election, by May 19. That is a high hurtle, which usually requires several million dollars to pay for signature gatherers. This initiative has already made a splash, with articles in the Wall Street Journal, Washington Post, The Los Angeles Times, and other media.

I have been writing for years on reforming democracy with tiny voting districts in a bottom-up structure. Back in 2007, I wrote an article, “Democracy Needs Reforming”, proposing that the political body be divided into cells of 1000 persons, each with a neighborhood council. A group of these would then elect a broader-area council, and so on up to the national congress or parliament. The state legislature would then only need one house, rather than a bicameral legislature that mimics the US Congress and British parliament. This “cellular democracy” would eliminate the inherent demand for campaign funds of mass democracy.

The Neighborhood Legislature Reform Act would not be quite as thorough a reform as a cellular democracy based on tiny districts, but it has the same basic concepts: smaller voting groups, and bottom-up multi-level representation. This initiative would indeed greatly reduce the demand for campaign funds that are needed in today’s huge California electoral districts.

It will be a great challenge to obtain the needed signatures. It could happen if the media provide editorial support and coverage. At any rate, the fact that this initiative is taking place will go a long ways to publicizing the gross corruption of democracy that is taking place, and the only effective remedy to the inherent dysfunction of mass democracy. Many reforms are needed in today’s governments, reforms in taxation, pensions, environmental protection, transit, criminal law, and economic deprivation. The main reason that useful reforms are not taking place is the subsidy-seeking and reform-blocking induced by mass democracy. The initiative process in California and other states is a way to circumvent the corrupt legislature, but in a large state like California, that process itself requires big money.

It will be interesting to watch the progress of the Neighborhood Legislature initiative, and to watch the special interests jump in with misleading negative ads. If this goes on the ballot and wins, it will be a victory for the people and a defeat for the moneyed special interests.

(Note: this article first appeared in The Progress Report)

Pesos, medidas e as instituições

Claudio Shikida Books, Economics , , , , , , , , , , ,

Douglas Allen, em seu ótimo, The Institutional Revolution, defende a tese de que uma revolução institucional teria precedido a famosa revolução industrial. Texto importante, é que, para mim, já é candidato a livro-texto básico de qualquer bom curso de História Econômica.

Como sempre, senti falta de alguma coisa mais, digamos, tropical, no livro. Bom, mas como é que vou cobrar isto de um livro que não se propõe a contar a história das instituições em Portugal? Não posso. Isto é mais uma deixa para os pesquisadores brasileiros. Dica de amigo, quem sabe, para alguém que deseje fazer uma dissertação de mestrado sobre o tema.

Mas eu sou uma pessoa perigosamente curiosa. Fiquei intrigado com a questão dos pesos e medidas. No argumento do autor, a questão dos pesos e medidas, ou melhor, a questão da padronização de pesos e medidas, está diretamente relacionada com a mensuração de produtos, o que gera uma importante alteração nos custos de se trocar mercadorias (ou seja, nos custos de transação). Afinal, nada mais óbvio do que achar mais interessante comprar um quilo de abacate sem levar para casa meio quilo do mesmo.

No caso do Brasil colonial, então, pensei, deveria ser como em Portugal. Para checar isto, consultei este documento. Vejamos alguns trechos:

No que se refere às unidades de medidas adotadas ao longo do período colonial, o quadro não difere, como é natural, daquele oferecido por Portugal. A vara, a canada e o almude constituíam as medidas de uso mais comum, ainda que seu valor pudesse variar de região para região. Os produtos importados traziam consigo suas próprias medidas e, quanto mais geograficamente restrita uma atividade econômica, mais específico era o sistema de medidas utilizado. (…)

Vale dizer: nada muito diferente do restante da Europa.

Assim, a primeira menção expressa à atividade metrológica, em documentos coloniais, refere-se precisamente à fiscalização do funcionamento de mercados locais. Como em Portugal, o funcionário colonial mais diretamente envolvido com a fiscalização de pesos e medidas era o almotacé, mencionado pelas Ordenações Manuelinas e Filipinas e previsto pela organização do município de São Vicente, em 1532. Em número de dois, eleitos mensalmente pela Câmara Municipal, os almotacés tinham como atribuição básica manter o bom funcionamento dos mercados e do abastecimento de gêneros, além de fiscalizar obras e manter a limpeza da cidade. Como parte de suas responsabilidades, deveriam verificar mensalmente, com o escrivão da almotaçaria, os pesos e as medidas. Tal disposição estimulava, dada a dispersão e a diversidade dos municípios, a multiplicação dos padrões de medidas.

Veja só a importância do ofício. Alguém imaginaria que carregar uma régua ou uma fita métrica, hoje em dia, seria uma profissão digna de tanta importância? Bem, numa época em que o governo descobre que medir ajuda a maximizar sua receita, nada mais natural, não? Até eleição para o cargo havia.

No caso dos gêneros estancados ou submetidos a controles mais rígidos, a Coroa cuidava da melhor organização das atividades metrológicas. O estabelecimento do monopólio do tabaco, por exemplo, levou à criação, em 1702, do Juiz da Balança do Tabaco, nas alfândegas de Salvador e Recife. No caso das minas, o regimento do Intendente do Ouro, de 26 de setembro de 1735, mencionava expressamente sua obrigação de manter as balanças e marcos da Intendência aferidos, pesando o ouro corretamente, sem prejuízo das partes nem da Fazenda Real, atribuição expressamente mantida no regimento de 1751.

Como se percebe, a questão institucional é indissociável da questão econômica. Veja aí o depoimento do próprio autor: tem monopólio? Quem é o “dono” do monopólio? A Coroa. Reza o dito popular – e a teoria econômica – que “o olho do dono engorda o cavalo” – e não é diferente neste caso.

Pois bem, falta-nos – alô, colegas de História Econômica! – um estudo mais detalhado do papel dos almotacés (ou me falta mais pesquisa e leitura, vai saber…), não falta? Vou procurar meu exemplar de Fiscais e Meirinhos para rejuvenescer, digamos assim, meu interesse pelo tema.

Novamente, percebemos que a História Econômica não precisa nos dar sono.

From the Comments: Secession and Nationalism in the Middle East

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

My dear, brave friend Siamak took the time to craft a very insightful rebuttal to my argument on supporting decentralization in the Middle East. He writes:

Brandon,

First of all thanks a lot for your attention to my comment…

You know that I have problems in English and maybe that’s the cause of some mis-understandings…

Look my friend. I did understand what you mean but the problem is sth else… As a libertarian I’m not completely against decentralization in the method you mentioned (I mean dealing with new nations)… USSR was a great example for this… My problem is that you can’t compare today’s med-east with USSR. Soviet Union was a country formed by some “nations”. Nation has a unique meaning. I think the best meaning for that is a set of people with close culture and common history which “want” to stay together as a nation. A country like Iran is formed of many ethnics including: Fars, Azeri (I’m Azeri), Kurd, Mazani, Gilani, Turkemen, Balooch, Sistani, Arab, etc. If you come and visit the whole part of this country you can see that all of them believe that they are Iranian. I don’t know that much about Arabian countries but I think that’s the same. Even all of them are Arabs and speak the same language but there are big cultural differences between for example Egypt and Saudi Arabia!

My reaction to your post has got a reason. 8 years of Ahmadinejad presidency, not only killed the economy, culture and any kind of freedom, But made us a weak country in mid-east. What I see today is that some little groups created and supported by Azerbaijan, Turkey, Qatar and Emirates are working so hard to make Arabian and Azeri groups to separate from Iran. They even do terrors for their aims. What I see is decentralization in mid-east not only doesn’t solve any problem but makes new problems! Makes new never-ending ethical wars.

You mentioned about US Imperialism. (I hate this word, Because when the leader speaks from three words he speaks two is “Enemy” and one is “Imperialism”! :D ) One of the biggest problems in mid-east is Al-Qaida, which everybody knows that without the support of the united states they couldn’t be this big. You in your post didn’t say that you think US should start the decentralization of mid-east, But you believe decentralization and Schism is good for the peace of mid-east. My objection is to this belief. Arabs are very nationalist. Iranians and Afghans are nationalists too. Changing the current map of mid-east will bring new problems. A big problem of mid-eastern countries is their governments. But Governments are not the only problem… The problem is not “just democracy”, It’s not even “Just modernism”! In some parts the problem is “Savagery”! The people are a big problem. If anybody wants peace for mid-east they should economic relationships more and more… We libertarians know the power of free business. Don’t be afraid of central powerful governments. Even sometimes their power is useful. We are in a Transient status between “Savagery & Civilization”, “Tradition & Modernism” and “Dictatorship (Even Totalitarianism) & Democracy”.

If the western countries want to help Democracy, Modernism, Civilization and peace they should make economical relations. Sanctions just gives the right to Islamic Radical groups and makes them stronger… As you mentioned Imperialism just gives them credit. Any decentralization makes new problems. The Communist Soviet Union was a block of different nations that their only common point was Communism. New Nations that are formed on the basis of ethnics just makes new dictator governments and new enemies. Mid-east is different from Soviet Union. I hope that this time I have less grammar mistakes! :)

Siamak, by the way, is a citizen of Iran and ethnically an Azeri. I always prize the views and arguments of foreigners in matters of philosophy, culture and policy. All individuals bring diversity to my world, but when the voice speaks with an accent and carries experience that I know nothing about, it – well – it makes my world and my life that much richer.

With that being said, I don’t buy Siamak’s argument. largely because I don’t see much of a difference between the Soviet Union and Iran ethnically-speaking. That is to say, I think Siamak’s argument falls flat because both the Soviet Union and Iran have numerous nations within their borders, so the distinction between the two states doesn’t quite add up.

I think the rest of Siamak’s argument stands up pretty well.

Blind Faith

Adam Magoon Current Events, Liberty, Politics , , , , , , , , , , ,

By Adam Magoon

On November, 26th Eric Liu, founder of “Citizen University”, a pro-government think-tank, wrote a telling article about having faith in government on the CNN opinion page. He begins the piece with a story about leaving his suitcase in a New York City cab saying:

“I had an experience recently that reinvigorated my faith in humanity — and bureaucracy.”

Keep that equivalency in your mind for a few minutes. Humanity and bureaucracy.

He goes on to explain that he did not even realize he left the suitcase in the cab for twenty minutes and only then began calling people for help. He explains this process in detail, emphasis mine:

“For almost three hours, various people tried to help me — two folks at my bank, whose credit card held the only record of the cab ride; three people at two yellow cab companies based in Long Island City; a service rep at the New York City Taxicab & Limousine Commission; people in my office back in Seattle.”

So Eric was helped by no less than eight individuals (counting the cab driver) in his successful search for his luggage. Eight people helped improve Eric’s business trip. He then claims this experience taught him three lessons.

First:

“Always, always get a receipt.”

This, as he says, is obvious.

Second:

“Another is that New Yorkers, contrary to popular belief and their own callous pose, are essentially nice.”

As someone born in New York I would like to think this is true, but I adhere to the maxim that terms such as “New Yorker” can only describe places where someone lives or is born. Saying “all New Yorkers are nice” is equivalent to saying “all Scots are drunks” or “all Scandinavians are attractive”. Essentially it is a non-statement that is easily refuted. There are just as many people who would have taken anything of value from his case and threw it into the nearest dumpster.

That is just the appetizer though, here is the main course.

His final lesson, and where the train totally leaves the rails, is this:

“But the third, even more deeply contrary to popular belief, is that government is not the enemy.”

Wait, what?! What kind of logic is Mr. Liu using? Of the eight people who helped him only one (the service representative at the New York City Taxicab & Limousine Commission named Valerie) even worked for a governmental organization and “she insisted she was just doing her job”. How did Mr. Liu get to “government is not the enemy” from that series of events? He goes on to claim that:

“Government is not inherently inept. It’s simply us — and as defective or capable of goodness as we are”.

Mr. Liu tries to rationalize his faith in government with a single good experience with a few select people. What he ignores though, is that many people are not “essentially nice”. If that were the case crime, corruption, and violence simply wouldn’t exist. There are people in the world who only seek to exploit and profit from the work of others and to quote the great classical liberal theorist Frédéric Bastiat:

“As long as it is admitted that the law may be diverted from its true purpose — that it may violate property instead of protecting it — then everyone will want to participate in making the law, either to protect himself against plunder or to use it for plunder”

Even if we were to assume that most people in the world are “essentially nice” the very nature of government attracts precisely the opposite type; the corrupt, the malevolent and the lazy. His agenda finally becomes clear nearly two-thirds of the way through the article when Mr. Liu unabashedly asks us to not wonder what our country can do for us, but rather what we can do for our country in response to the failed Obamacare launch.

Individuals are expected to bail the government out when it fails at intruding into our lives? How can we expect the government to run healthcare without kickbacks and corruption when they cannot even get someone to build the website without it being a disaster?

Mr. Liu fails to offer any helpful advice on how to improve things but he does offer one revealing suggestion. He says that citizens should not expect the “state…to serve us perfectly” and that individuals should not “forget how to serve”.

The argument often goes that taxes pay for services provided by the government but Mr. Liu suggests we shouldn’t expect too much from those services. That we shouldn’t get upset when we pay a third of our labor to the government and it spends that money on things we do not want; in fact he implies we should fix for free the broken things they have already spent our money on.

If Mr. Liu goes out to dinner and his silverware is dirty when he sits at the table does he go back to the sink and wash them? Or does he expect more from the things he spends his money on? At least in that situation Mr. Liu could choose to spend his money elsewhere. With the government spending our money for us we aren’t even afforded that meager victory.

Keynes on Free Trade

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

I found this great quote from John Maynard Keynes earlier today:

In a regime of Free Trade and free economic intercourse it would be of little consequence that iron lay on one side of a political frontier, and labor, coal, and blast furnaces on the other. But as it is, men have devised ways to impoverish themselves and one another; and prefer collective animosities to individual happiness.

I found this in a journal article (pdf) on political decentralization and economic integration. The quote is from 1920 (the article is a couple of years old).

John Maynard Keynes’s system is collapsing in front of our eyes. It is doing so slowly, but it is collapsing nonetheless. What is interesting to note is that Keynesians share much of their ideology with libertarians. We are all liberals of one stripe or another, but the Keynesians won the public policy battles of the post-war period.

I’m not entirely certain I know what these policy battles were all about. Again, it seems like there is very little that we disagree with the technocratic Left about ideologically. Yet since the Keynesian system is collapsing it seems like now would be a good idea to go over how they got to technocratic planning from what is essentially the same starting point as the libertarian one. I think we would do well to exercise a great deal of our thoughts to thinking about this divergence.

From the Comments: The four broad pillars of the market-based economy

Brandon Christensen Comments , , , , , , , , , , , ,

NEO’s response to my musings on decentralization in Africa is worth highlighting:

It strikes me , Brandon, that one of the impediments here, there may be others, I’m no expert, is that the nascent US was composed mostly of literate folks with a (at least somewhat) common outlook that specified above all honesty and a “government of laws, not men”. I would also state that this is a good bit of our problem now.

This is a great observation. An anthropologist by the name of Maya Mikdashi recently wrote an article on the effects of market-based reforms in the Middle East. She essentially argued that the market-based reforms assume that only a certain type of individual can successfully participate in the market economy (stay with me here): the rational, autonomous, freedom-seeking, and legally-protected-as-an-individual type. Over the past two decades, as more states have moved towards a market-based economy, we have seen the institutional and cultural rewards being reaped from this process. Instead of people who have known only poverty and want, the market-based economy has pushed individuals to seek to become more rational, autonomous, freedom-seeking, and legally protected as an individual.

Now, stay with me. The market-based economy, capitalism, has four broad institutional pillars that it needs to thrive: private property, individualism, the rule of law, and an internationalist spirit. From these pillars come the fountains of progress that the West has come to enjoy over the past 300 years. While I doubt she realizes it, Mikdashi is simply echoing the writings of the great classical liberal theorists of the past three centuries: institutions matter, and they matter a lot. A big point both Dr. Ayittey and myself have been trying to make is that the institutions necessary for progress and capitalism are already in place in the post-colonial world; when I was in Ghana doing research one of the things I always asked farmers is where they got their property titles and they answered “the chief.” I asked them why they didn’t go through more official routes to obtain their property titles (i.e. through the state), and I’m sure you can finish the Ghanaian farmer’s answer for him.

The fact that most, if not all, citizens of the new republic desired the rule of law is one that cannot be stressed enough, and it is definitely one of the reasons why we have grown so prosperous, and answers why we are in trouble today. However: Africans don’t desire the rule of law?

Does the New York Times read NOL?

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

Parag Khanna definitely reads Notes On Liberty. From his latest op-ed in the New York Times:

Devolution is even happening in China. Cities have been given a long leash to develop innovative economic models, and Beijing depends on their growth. One of the most popular adages among China watchers today is: “The hills are high, and the emperor is far away.” Our maps show a world of about 200 countries, but the number of effective authorities is hundreds more. [check out “Federalism, Chinese Style” by Gabriella Montinola, Yingyi Qian, and Barry R. Weingast for a fascinating look at the ongoing devolutionary trends in China – BC]

The broader consequence of these phenomena is that we should think beyond clearly defined nations and “nation building” toward integrating a rapidly urbanizing world population directly into regional and international markets. That, rather than going through the mediating level of central governments, is the surest path to improving access to basic goods and services, reducing poverty, stimulating growth and raising the overall quality of life.

Connected societies are better off than isolated ones. As the incidence of international conflict diminishes, ever more countries are building roads, railways, pipelines, bridges and Internet cables across borders, forging networks of urban centers that depend on one another for trade, investment and job creation.

I’ve been making this same argument here at NOL for quite some time now, but Dan Drezner disagrees. He has three bones to pick with my argument (as augmented by Dr Khanna in the NYT):

  1. People were writing about devolution all the way back in 1995, so Khanna’s insights aren’t particularly new or exciting. This is true; if you’ll remember my recent post on federalism as an alternative to imperialism you’ll recall that Adam Smith was making the same argument as Khanna in 1776.
  2. Contra Khanna, states have always been in competition with other forms of governance (not government). Khanna needs hard empirical evidence to prove that the devolution he writes about is as prominent and fast-moving as he claims it is.
  3. Other academics, mostly economists, have been claiming precisely the opposite of what Khanna is arguing; namely that states have been increasing in size and scope over the past few decades. Drezner hesitantly errs on the side of the economists, who at least bring data to the table, but claims that there is probably a middle ground between Khanna and the economists.

As far as throwing out ideas to back up the devolutionist argument, it might be a good idea to look at the nation-state’s loss of monetary sovereignty to supranational (or quasi-national) organizations in the West. Or the separatist tendencies of regions within supranational organizations like the EU that threaten to break up nation-states. Or the fragility of African and Islamic states, as evidenced by the dictatorships and wars often found in these regions. Or the multilateral trade agreements that are becoming more and more inclusive, and more and more complicated. There are probably many more, and if you can think of any feel free to leave them in the ‘comments’ section.

With all of this said, Drezner has a point. The state has found a number of ways to counteract the various effects of globalization, and proving that the state is in decline is, for the moment, extremely hard to do. Yet Drezner’s point says nothing about Khanna’s overall argument, which is merely that devolution is a good thing and ought to be embraced by more progressively-inclined people.

The interesting question here is not the current situation of the state itself, but rather if a consensus can be forged, among thinking people, around the idea that political decentralization and economic integration leads to freer societies. Until a consensus built around this idea can be reached among intellectuals, I fear despotism will reign in most parts of the world at most times.

Misunderstanding freedom of the press

Tibor Machan Current Events, Law, Liberty , , , , ,

Katherine Rushton of The Daily Telegraph wrote a column trying to embarrass those in America, like Republican lawmaker Kieran Michael Lalor, who oppose bringing in Al Jazeera television on to the American television news market. Ms. Rushton feels such opposition is a kind of ethnic prejudice, not sound journalism. Dubbing Al Jazeera “Al Jihad,” such efforts may well be over the top but not necessarily.

Suppose Americans had opposed making room for Pravda and Izvestia in America or some Nazi or fascist broadcasters in the past. Would this prove them to be prejudiced, unfair, biased? I personally object to NPR (National Public Radio) and PBS (Public Broadcasting Service), not at all because I am prejudiced but precisely because I consider it dangerous to treat government funded and supported “journalism” and “entertainment” as if it were just like some private outfit such as HBO, The New York Times or Time magazine.

When governments fund news outfits, they go astray in several ways. They take money by force from citizens to support what those citizens may well not want supported! They enjoy a competitive advantage as against those who do not use taxpayers’ resources. And when it comes to Al Jazeera, there is no other government-owned – it is owned by the Qatari government(!) – service pretending to be journalists instead of propagandists. (Not everything on Al Jazeera has to be tainted by government bias for one to be justified in being suspicious of the content of its broadcasts.)

Frankly, even the venerable BBC is a misguided institution and its reputation rests mainly on its traditional commitment to straight newscasting, not on its official restraint. Ms. Rushton complained that “Meritocracy is all well and good for certain ethnic minorities.” But evidently not for those with Middle Eastern or Islamic ties.

Maybe not so. Maybe what bothered Kieran Michael Lalor has nothing to do with ethnic ties but with evident enough efforts by Al Jazeera to cast jihadists in a favorable light. I don’t know this for sure but if so, that would certainly justify skepticism about Al Jazeera’s credentials and a bona fide news-broadcasting organization. Whenever I check out Al Jazeera, I sense that jihad is treated with kid gloves.

Genuine freedom of the press has no government involvement of any kind. Competition among newspapers, broadcasters, magazines, etc. arises from the initiative of entrepreneurs! Otherwise we are back to Pravda and the like, which should not be treated as agents of a free market of newscasting.

A Glimpse into Ottoman Syria

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

One must not lose sight of the fact that, historically speaking, and contrary to prevalent belief, the Alawites wanted no part of the “Unitary Syria” that emerged out of Franco-British bickering in the Levant of the interwar period. Indeed, when the French inherited the Ottoman Vilayets (governorates) of Beirut, Damascus, Aleppo, and Alexandretta in 1918, they opted to turn them into six autonomous entities reflecting previous Ottoman administrative realities. Ergo, in 1920, those entities became the State of Greater Lebanon (which in 1926 gave birth to the Republic of Lebanon), the State of Damascus, the State of Aleppo, the State of the Druze Mountain, the State of the Alawite Mountain (corresponding roughly to what the Alawites are reconstituting today), and the Sanjak of Alexandretta (ceded to Turkey in 1938 to become the Province of Hatay.)

But when Arab nationalists began pressuring the British on the question of “Arab unity,” urging them to make good on pledges made to the Sharif of Mecca during the Great War, the Alawites demured. In fact, Bashar al-Assad’s own grandfather, Ali Sulayman al-Assad, was among leading Alawite notables who, until 1944, continued to lobby French Mandatory authorities to resist British and Arab designs aimed at stitching together the States of Aleppo, Damascus, Druze, and Alawite Mountains into a new republic to be christened Syria.

From this long-winded (but useful) article by Franck Salameh in the National Interest. What would be interesting to research is how long it took the Ottomans to figure out how to best govern such a diverse set of peoples. God forbid anybody let them govern themselves. Also interesting to note is the “Arab unity” canard that ultimately created the state of Syria. From what I recall, Arab nationalism was largely pushed by a hodgepodge of urban liberals with connections to British and French businesses and rural aristocrats hailing from the Gulf and promised land and power by the British for turning on the Turks.

What a mess. The liberals, by the way, are long gone. They were swept away by the military dictatorships of the 1960s and 1970s. The Islamists are largely a reaction to the military dictatorships. Islamism as we know it today only came into being in the late 1950s, when the leaders of the Middle East were all puppets that had been installed by the last vestiges of European colonialism. Arab nationalism was still strong in the late 1950s, so the Islamists lost out in popularity to the military dictatorships (which operated under the guise of “Arab socialism”). Twenty years of Arab socialism – guided by Generals and Colonels – paved the way for the Islamists and their internationalist rhetoric to become the voice of the Arab street.

I, for one, wouldn’t mind seeing Syria dissolve back into six independent states. If the international community could get them to bind their economies together in a free trade zone of sorts, the region would heal quickly and set an important precedent: political decentralization and economic integration work well no matter where they’re applied.

Update: the Economist has more on the ethnic angle in Syria’s civil war.

Secession Within the US?

Brandon Christensen Law , , , , ,

“Yeah, why not?” would be my answer to this question.

Apparently, it’s a question being asked more and more lately in some states. I wouldn’t mind seeing a federal republic with twice or even three times as many states as we have now.

Conceptually, this would be no different from secession within the EU or any other federal or confederal arrangement.

Can anybody answer my answer (which is actually a question)? That is to say: what are some objections you can think of to more decentralization of power within the US?

From the Comments: The New Internationalism

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

My dear, brave friend from Iran, Siamak, takes issue with my recent musings on the state of affairs in the Middle East:

I’m completely against this. Any changes in mid-east borders could start a Religious-Ethnic Oil war that brings years of savagery and massacre. The problem of middle-east can be solved with tolerance through diplomatic acts. I can’t believe that some libertarian agoras are supporting breakaways in mid-east. As a libertarian person living in mid-east, I’m telling that this political view is so dangerous and can demolish little advances for peace in mid-east completely. Instead of trying to make a new geopolitical order in mid-east (as neo-cons) tried to do, Isn’t it better to try to recognize the mid-eastern countries and try to deal with them? You think new states will bring new nations?! No! Nowadays discussions about creating new countries in mid-east are states predicated on Ethnic differences. Some Kurds want their states! Some Azeris, Some Ashouris, Some Arabs, Some Jews, etc… I’m pretty sure that any changes in the geopolitical order of mid-east will start a big and long long war.

I thought I’d pick this apart for a couple of reasons, but the main reason would be because so many people read the words ‘decentralization’ or ‘secession’ and simply go into autopilot. Rick Searle shares his eloquent thoughts here. Moussa Cidibe shares his pertinent critiques here. Wbwise shares his criticisms here (some of Dr Delacroix’s well-informed thoughts are here, and in the same thread). Dr George Ayittey dedicated quite a bit of energy to tackling my argument (that’s two academics in a row, in case you lost count). Neenergyobserver is skeptical as well.

Each of the objections listed above look very similar to the objections raised by Siamak. I figure now is as good a time as any to go through my argument again, and I’m going to break down Siamak’s pertinent protestations to do it. First up is a concern about changing borders in the Middle East:

Any changes in mid-east borders could start a Religious-Ethnic Oil war that brings years of savagery and massacre.

This may have some merit to it, especially if one looks at the Balkans in Europe or the wars in the Horn of Africa. Yet one can also point to the velvet divorce in Czechoslovakia (and under the umbrage of the EU) or the dissolution of the Soviet Union as peaceful separatist movements. One thing that we can all agree on, I would hope, is that today the world is already witnessing years of savagery and massacre in the Middle East. Additionally, this savagery and massacre have only been dampened by American imperialism in the region, thus bringing my taxes into the picture.

If this last statement seems rather bold, think about the various balancing acts that occur in the Middle East (Iran v Iraq; Saudi Arabia v Iran; Israel v Egypt; etc., etc.) and how much more brutal these conflicts would be if the US were not pulling the strings behind them.

This observation should not be taken to imply that I support US imperialism. I do not. In fact I oppose it vigorously. Yet it goes without saying that the US arrived in the Middle East when the current borders were intact as they are, and that these current borders (created by Europeans) were recognized by some but by no means all. This struggle for legitimacy, in turn, is the major cause of political, economic and social strife in the region.

To reiterate: the Middle East is already a mess, and looking at alternatives is neither a crime nor a dangerous precedent (especially on a blog as humble as our own). I think some of these reactions to my argument for more decentralization can stem from a misreading of what has actually been written. For example, when Siamak writes:

Instead of trying to make a new geopolitical order in mid-east (as neo-cons) tried to do, Isn’t it better to try to recognize the mid-eastern countries and try to deal with them? You think new states will bring new nations?! No!

He is not grasping my argument. At all. Most of the criticisms of my argument have fallen into this camp, so Siamak the individual is not to be faulted. I think it goes back to those keywords identified earlier in this piece (decentralization and secession). Here is what I actually wrote:

the West should emphatically not go around breaking up the states of the Middle East into smaller ones, but it should recognize breakaway regions as soon as they, uh, break away. This’ll give these states a little bit of breathing room on the international scene and deter older states from trying to reclaim their old territory.

Can everybody see how this argument is very different from the one Siamak (and others) have attributed towards me? The article that I originally riffed off of argues no such thing, either. This is not to say that Siamak’s fears are unfounded. In fact, the original article argues that the Middle East needs to embrace decentralization as a way to protect itself from the West’s own plans to break up the states in the region in order to better play them off on each other. Both imperialists in the West and the anti-imperialist factions are now at a point where they recognize the states as they are in the Middle East need to be smaller to be effective.

I understand that when states break up there can be turmoil. This is why I believe it is best that states break up within free trade zones (like the Czech Republic and Slovakia in the EU, or – potentially – Scotland, Catalonia or even California doing the same). However, even without free trade zones in place, recognizing the independence of breakaway regions (away from Russia’s and China’s peripheries, of course) saves lives. Think of the amount of violence that Sudan and South Sudan have contributed to since the latter’s independence, and then think of the violence that occurred before South Sudan’s independence.

Siamak is right when he states that “the problems of Middle East can be solved with tolerance through diplomatic acts,” but is it not also true that secession and the creation of many smaller states out of a few large ones can be achieved through these very acts as well?

From the Comments: American Politics without the Romance

Brandon Christensen Comments, Politics , , , , ,

Longtime reader (and prolific blogger in his own right) –Rick riffs off of the Obama administration’s latest attempt to flaunt the rule of law:

Many of the tactics being used by Democrats and President Obama, today, derive from past tactics approved by Republican majorities and Republican Presidents who sought to avoid the difficult role of governing properly by seeking work around exceptions to the Constitution by reassigning or allowing the usurpation of powers between branches or though Constitutional amendments on requirements that stood as roadblocks.

So, neither party is better or more moral than the other in this regard.

Read the whole thing. Upon second thought, I probably should have titled this post “politics without romance” and just omitted the “American” part of it. In fact, you can pretty much use –Rick’s comment to explain every social conflict imaginable if you just make sure that the words ‘Democrat’ and ‘Republican’ are replaceable by any faction and the word ‘Constitution’ is interchangeable with the word ‘power.’

I got the phrase “politics without romance,” by the way, from Nobel laureate James Buchanan.

The Arab Crack-Up: Are New States on the Way?

Brandon Christensen Current Events , , , , , ,

Let us hope so, but I won’t hold my breath. Sharmine Narwani thinks otherwise. She argues that both Western states and “the locals” are now looking at more decentralization in the Middle East as a viable option:

The Mideast will one day need to make region-wide border corrections, but to be successful, it must do so entirely within an indigenously determined process. The battles heating up in Syria, Iraq, Lebanon, Yemen, Bahrain and elsewhere are a manifestation of a larger fight between two “blocs” that seek entirely different regional outcomes – one of these being the borders of a new Middle East.

The rest of the article is fairly atrocious, but it goes without saying that she should read (ha ha) my musings on how to go about decentralizing in a cool, calm and collected manner. Here is the shorter version of my argument: the West should emphatically not go around breaking up the states of the Middle East into smaller ones, but it should recognize breakaway regions as soon as they, uh, break away. This’ll give these states a little bit of breathing room on the international scene and deter older states from trying to reclaim their old territory.