On Liberalism & Race

Race has occupied my thoughts for the past few months. I have traditionally been against giving too much thought to race. Progressives, I think, abuse claims of racism to shut down discussions and pass questionable public policies; e.g. “We need state provided health care because the current system is racist against people of color.”. Conservatives likewise use racism (nativism really) to justify restrictive migration policies. My default position has been that liberals should seek to reduce the role of race of society. I am no longer convinced that this is a viable goal.

My earlier position was based on my childhood experience growing up in 1990s Los Angeles. I grew up in the city’s Koreatown district. The corner grocery store was owned by an Indian. We had a mosque in the block that catered to the neighborhood’s Bengali population. This being Los Angeles there was of course a mixture of Hispanics from Mexico, El Salvador, Argentina, and other nations. With so many groups clustered together in a small place you would expect frequent violence – but there wasn’t. Property crimes (petty theft mostly) were common given the general poverty in the area, but inter-group violence wasn’t common. The reason for peace was because the United States’ market oriented institutions discouraged such violence. All the groups were too busy trying to make money to have time to escalate inter-group conflict beyond making fun of one another in private. I grew up hearing plenty of jokes at the expense of Salvadoreans and Asians, but I never saw any actual violence against them. I figured that this was evidence that a liberal society would in the long run be able to make race irrelevant by making it too costly to be racist.

The events of the past few months have made me skeptical of this. Liberal society certainly makes racism costly and reduces inter-group conflict. However liberal society does not eliminate all inter-group conflict or remove the underlying differences across races.

Given that liberalism cannot eliminate racism, what should the liberal position on race be? I have no solid answer. Thoughts?

When Black Unemployment Rates Were Equal to White Unemployment Rates…

In a twitter-debate with Tariq Nasheed, I pointed out that the wages rates did converge between the 1940s and 1990s. Recently, Robert Margo of the University of Chicago extended this to per capita incomes since 1870. It is fascinating to see that there was convergence between 1870 and 1940 in spite of Jim Crow laws (it tells you how much more blacks could have achieved had the laws not existed – see notably the work of Bob Higgs on this).

income-convergece

Each time I see this evidence, I am bemused. You see, I often debate colleagues on particular features of social policy in order to assess policy reforms or the effects of past reforms. But, its always good to take a step back and look at the long-view of history. It puts things in perspective. The Margo graph does just that. It tells me the story of what could have been. And just for the sake of remembering properly (infer whatever conclusions you like), it is worth showing racial differences in unemployment rates since 1890. What strikes me is how similar the rates are until the 1950s. What happened at that point? When you ask yourself this question, you’re forced to put everything in perspective. And it becomes harder to have “generic” answers in the lazy-form of “its racism”. Why would racism explain the difference after 1950, but not before?
whites

Maybe, just maybe, people like Tariq Nasheed should stop proving that H.L. Mencken was right in saying that “for every complex problem, there is an answer that is simple, clear and plainly wrong”.

 

Alguns mitos, equívocos e objeções comuns ao capitalismo parte 2

Continuando um post antigo, seguem mais alguns mitos, equívocos e objeções comuns ao capitalismo.

Três mitos a respeito da Grande Depressão e do New Deal

Mito #1: Herbert Hoover praticava o laissez-faire, e foi sua falta de ação que levou ao colapso econômico.

Na verdade Herbert Hoover era tremendamente intervencionista na economia. Sua intervenção cooperou para o início da depressão e sua continuada intervenção evitou que a economia se recuperasse logo.

Mito #2: o New Deal trouxe fim à Grande Depressão.

Longe de ser uma série de medidas coerentes contra a depressão, o New Deal foi uma tentativa de Frank Delano Roosevelt de demonstrar que estava fazendo alguma coisa. As medidas do New Deal apenas agravaram e prolongaram a crise. Países que adotaram uma postura menos intervencionista se recuperaram da crise mais rápido do que os EUA.

Mito #3: A Segunda Guerra Mundial deu fim à Grande Depressão.

Talvez este seja o pior mito de todos: a produção industrial no contexto da Segunda Guerra gerou empregos, aumentou o PIB, e com isso acabou com a Depressão. Conforme Friedrich Hayek afirmou, “da última vez que chequei, guerras apenas destroem”. Este mito é uma aplicação da falácia da janela quebrada, observada por Frédéric Bastiat. Guerras não produzem riqueza. Na verdade elas a destroem. O exame cuidadoso dos dados históricos demonstra que a economia dos EUA só se recuperou realmente quando a Segunda Guerra Mundial já havia acabado.

Mais alguns mitos, equívocos e objeções comuns ao capitalismo:

1. Capitalismo é racista e sexista

Considerando o capitalismo economia de livre mercado, onde indivíduos são livres para escolher, nada poderia estar mais longe da verdade. O capitalismo assim definido é cego para raça ou gênero. O que importa é a troca de valores. Para ficar em apenas um exemplo, as lideranças políticas do sul dos EUA pressionavam os donos de empresas de ônibus a segregar os passageiros com base na cor da pele. Os próprios empresários de ônibus queriam ganhar dinheiro com transporte de pessoas, independente da cor da pele. Apenas uma observação: recusar serviço com base em cor de pele, gênero, orientação sexual ou qualquer outro motivo é uma prerrogativa do indivíduo dentro do capitalismo. Leve seu dinheiro para uma instituição que o receba. A instituição que recusa serviço está perdendo dinheiro, e neste sentido já recebeu a punição dentro do capitalismo.

2. Capitalismo tende a bolhas e pânico

Esta é uma observação presente tanto em Marx quanto em Keynes. Conforme observado nos mitos sobre a Grande Depressão e o New Deal, exatamente o oposto é verdade. Conforme a Escola Austríaca em geral e Friedrich Hayek de forma especial observaram, é a intervenção do governo, particularmente no setor bancário e financeiro, que produz bolhas e pânico. A tentativa do governo de estimular a economia através de juros baixos e outros artifícios apenas cria ciclos de crescimento e queda. Milton Friedman e a Escola de Chicago fizeram observações semelhantes. Deixada livre a economia é de certa forma imprevisível, mas através do sistema de preços podemos nos guiar sobre quando e no que é melhor gastar.

3. Capitalismo não investe em coisas importantes

É difícil saber o que seria um investimento importante. Somente indivíduos podem avaliar o que é importante para eles mesmos. O raciocínio aqui é que há investimentos de longo prazo, que custam muito dinheiro e não produzem resultado imediato. Capitalistas não investiriam em voos espaciais ou na cura de doenças, por exemplo. Mais uma vez observa-se a falácia da janela quebrada: investir em uma coisa significa não investir na próxima melhor opção. Exemplos recentes mostram que empresas atuando no livre mercado podem fazer mais, melhor e com menos desperdício do que governos, inclusive quando o assunto é exploração espacial.

4. Capitalismo leva a produção de coisas duvidosas

Mais uma vez este é um argumento de orientação subjetiva. Aquilo que é duvidoso para um individuo pode ser bom para outro. Há aqui a velha máxima de que “o capitalismo produz necessidades artificiais”. Conforme Voltaire respondeu a Rousseau mais de 200 anos atrás, este argumento não se sustenta. O que é uma “necessidade artificial”? Tesouras são necessidades artificiais? E sabão? E pasta de dente? Porque seres humanos viveram por séculos sem estas coisas. Conforme já foi observado por Joseph Schumpeter, a grande virtude do capitalismo é justamente trazer conforto a baixo preço não para reis e rainhas, mas para as pessoas mais simples em uma sociedade. Ainda que alguns possam considerar certos produtos de consumo duvidosos. Apenas não comprem.

Referências:

3 Myths of Capitalism (YouTube)

Top 3 Myths about the Great Depression and the New Deal (YouTube)

Common Objections to Capitalism (YouTube)

BC’s weekend reads

  1. The raccoon scrotum monster
  2. The unrecognized
  3. The Gandhi statue causing a fuss in Ghana
  4. The battle for Burundi
  5. The end of interventionism
  6. The Socratic classroom for an activist age

Sexism, Trump, and American Media

Almost everything has been said about that rather boring first presidential debate on Monday. One observation missing: It’s amazing how the progressive-liberal narrative categories have invaded even Republican understanding and vocabulary. Two examples.

During the first presidential debate, the moderator unambiguously presented as racist the “birther” preoccupation, the belief that Mr Barack Hussein Obama was not born in the US. It makes absolutely no sense why this should be considered racist. If a presidential candidate of Polish ancestry with blue eyes etc… had presented himself for years through his literary agent as born in Cracow, there would be those who would doubt aloud his constitutional qualification to be president. Those so inclined would be considered racist? If the answer is “no,” are we facing a situation where any negativity toward a black person is by definition racist? If a black-looking person steals a parking spot from me and I call him an “asshole” that makes me a racist although that’s exactly what I have called several white persons who have done the same to me in the past? Are we drowning in absurdity? Have we collectively lost the ability to recognize simple sense? In the parking case example above, a better case could be made, given my intemperate verbal habits, that not calling the black driver an asshole would be racist.

Second example. At the very end of the debate, when he placed the accent on the fact that Mrs Bill Clinton is the first female candidate nominated by a major party, the moderator qualified as sexist the Trump statement that Mrs Clinton does not have the stamina to be president. Same problem of logic. If Mr Trump had said this of any male opponent it would have been considered legitimate. Making the statement about a female candidate makes the statement automatically sexist. But the statement is sexist only because it concerns a female. It posed the question of whether there exists any negative statement about a female politician that is not sexist? I think the answer is quickly becoming “No!”

The wing of the Democratic Party now on the ascendant is deeply totalitarian. It shows in the small things, as in the two examples above. It knows no dissent that is legitimate when it comes down to it. It’s important to stop them even if we have to take the considerable risks inherent in the Trump candidacy. One sure thing about Donald Trump: He is not coherent enough to become a Mussolini.

BC’s weekend reads

  1. Racism in Brazil, and American academic imperialism
  2. A quick lesson on race and class in Brazil
  3. Unlike Their Parents, Black Millennials Aren’t A Lock For Clinton
  4. The Rise of the Libertarian Technocrats
  5. Property versus Democracy
  6. Our Friendly Visitors

Another Race Riot

Note: This is written for my overseas readers mainly. If you live in the US, you will probably find that you already know most of what I am writing about.

A couple of days ago, a police officer shot to death a black man in full daylight in Charlotte, North Carolina, very much the Old South, former home of abject slavery.

This is happening in the last months of the second administration of the first black American president, after more than seven years of his being in charge. “Being in charge” is an exaggeration of sorts though. The President of the United States exercises no constitutional authority over local police forces (or state police forces). His federal Department of Justice only has jurisdiction when a violation of civil rights is at stake and only over that specific putative violation. Homicide is not in itself a civil rights violation. It’s true that Pres. Obama cannot pick up the phone and tell the Charlotte police what to do or how. Yet, Mr Obama is responsible to some extent although indirectly for the violence, an idea I will develop below.

Cop kills black man: familiar story, right?

I forgot to give you important information. The police officer who did the shooting is black and a woman. She answers to a black police chief. He is squarely in charge of training officers and making rules for their behavior, including their use of firearms. The Chief of Police is appointed and answers to the mayor of Charlotte. The mayor is a white woman and a prominent Democrat. She is assisted by a city council of eleven, four or whom are black. As far as I can tell, there are zero, or one, or two Republican city councilors. The rest are Democrats.

The police says the victim had a gun. His family says in was sitting in his car reading a book while waiting for his child to come out of school. Disturbingly different stories, for sure.

There have been three nights or protests in Charlotte, that quickly became riots, with demonstrators throwing heavy objects at police officers and much destruction of property. One demonstrator was shot, apparently not by a police officer. And, of course, there was much looting of stores. It’s nearly always like this: One young black man dies, fifteen young black men acquire brand new mountain bikes.

Watching the riots on TV, I notice something that television channels and printed press journalist don’t comment on: Some of the most aggressive rioters are young white men who seem to me to know what they are doing and who are not distracted by broken store windows. I should use the word cautiously but they seem to me almost professional in their approach to rioting. The white young rioters are not mentioned I think because they cannot be fitted in the prevailing liberal narrative: It’s a race riot, it’s a demonstration against racial injustice by black people who have just had enough. How about the young white guys? Irrelevant, they are just lovers of justice who happen to be there. Yet, I can’t claim that I recognize any of them on TV but there are young white men just like them in every race riot I have watched in the past two years. If they are absent the first day, they are plainly present the second day and the next few days.

The show on my TV looks a bit like a movie because it’s not well connected to reality, the reality that everyone knows: On the whole, young black men don’t die because cops shoot them, they die because other young black men kill them. They also kill the occasional child and lately, even a young mother pushing her baby carriage. The percentage of violent deaths of black men at police hands that are legally unjustified, must be minuscule. No one in Chicago demonstrates against this continuing mass killing by African-Americans. I think blacks and whites alike don’t because it would contradict the main, tired old liberal narrative: Injustice and racial oppression are the source of all evils in American society.

Young black men kill one another in gang wars for turf (for possession of a piece of ground.) The turf, the ground, is an important asset in the retail sale of illegal drugs. I would be curious of what would happen if Congress decriminalized all drug sales to adults and if a rational president signed the bill into law. I would bet that young black men’s death rate would plummet by 90% in a few weeks. I have no explanation as to why this is not done. It’s not as if the 40-year old so-called “War on Drugs” were working in reducing drug use!

After seven+ years of Obama, the economic gap between whites and blacks – however you measure it – has increased. African-Americans are worse off in relative terms than they were under Pres. Bush. This is no surprise to me. It’s a Democratic administration. The worst place for a black man to live in America is in Democratic-ruled big cities. It begins with Chicago, a Democratic city for 85 years. And then, there is Detroit, a war zone with no war. All this being said, we must not forget that most African-Americans lead lives that are both normal and peaceful, in crying contradiction to the narrative of continued racial oppression. There is a large minority of young black men however who have never had a job, who don’t look for one, who may have never known a person with a job except teachers and cops.

Democratic politicians have been promising salvation in the form of “social programs” paid for by those who do work. They have done so for fifty years. They have not implemented them, or the programs have done little good, or even worse. It’s time for a revolutionary new idea, one that’s very old, in fact. When there is rapid economic growth, employers compete for labor, even for the labor of the inexperienced, even for the labor of those usually seen as unemployable. Black Americans in ghettos need the same thing that all Americans need: vigorous and fast economic growth. This may be hard to believe but the United States has few problems that could not be solved by ten years of 3.5% annual GDP growth.

There is no sign of a search for economic development in the Democratic presidential candidate’s program. Donald Trump, by contrast, promises to reduce taxes and to rid business of many regulations. Historically, it’s usually enough to produce growth. Black Americans need less abstract “justice” and more of a fair chance. The left wing of the Democratic Party hates the very idea.