Nightcap

  1. The economics of bubbles Goldfarb & Kirsch, Aeon
  2. Blind faith in government Scott Sumner, EconLog
  3. “Racist” is a tough little word John McWhorter, Atlantic
  4. The story of Plessy v. Ferguson Sean Scott, Law & Liberty

Nightcap

  1. Axialization and institutionalization Nick Nielsen, The View from Oregon
  2. Google’s political problems are getting worse Shirin Ghaffary, Recode
  3. Who wrote Ron Paul’s racist newsletters? (Lew Rockwell and Jeffrey Tucker) The Economist
  4. Trump is not coming for Jews, but somebody is Michael Koplow, Ottomans and Zionists

The long-run risks of Trump’s racism

hayekvstrump

This week, the United States and much of the world has been reeling from Trump’s xenophobic statements aimed at four of his Democratic opponents in Congress. But the U.S. economy continues to perform remarkably well for the time being and despite his protectionist spasms, Trump is widely considered a pro-growth, pro-business President.

This has led some classical liberals to consider Trump’s populist rhetoric and flirtations with the far right to be a price worth paying for what they see as the safest path to keeping the administrative state at bay. Many classical liberals believe the greater risk to liberty in the U.S. is inevitably on the left with its commitment to expanding welfare-state entitlements in ways that will shrink the economy and politicize commercial businesses.

In ‘Hayek vs Trump: The Radical Right’s Road to Serfdom’, Aris Trantidis and I dispute this complacency about authoritarianism on the right. In the article, now forthcoming in Polity, we re-interpret Hayek’s famous The Road to Serfdom in light of his later work on coercion in The Constitution of Liberty.

We find that only certain forms of state intervention, those that diminish the rule of law and allow for arbitrary and discriminatory administrative oversight and sanction, pose a credible risk of turning a democratic polity authoritarian. A bigger state, without more discretionary power, does not threaten political liberty. Although leftwing radicals have in the past shown disdain for the rule of law, today in the U.S. and Europe it is the ideology of economic nationalism (not socialism) that presently ignores democratic norms. While growth continues, this ideology may appear to be compatible with support for business. But whenever the music stops, the logic of the rhetoric will lead to a search for scapegoats with individual businesses in the firing line.

Several countries in Europe are much further down the 21st road to serfdom than the U.S., and America still has an expansive civil society and federal structures that we expect to resist the authoritarian trend. Nevertheless, as it stands, the greatest threat to the free society right now does not carry a red flag but wears a red cap.

Here is an extract from the penultimate section:

The economic agenda of the Radical Right is an extension of political nationalism in the sphere of economic policy. While most Radical Right parties rhetorically acknowledge what can be broadly described as a “neoliberal” ethos – supporting fiscal stability, currency stability, and a reduction of government regulation – they put forward a prominent agenda for economic protectionism. This is again justified as a question of serving the “national interest” which takes precedence over any other set of values and considerations that may equally drive economic policy in other political parties, such as individual freedom, social justice, gender equality, class solidarity, or environmental protection. Rather than a principled stance on government intervention along the traditional left-right spectrum, the Radical Right’s economic agenda can be described as mixing nativist, populist and authoritarian features. It seemingly respects property and professes a commitment to economic liberty, but it subordinates economic policy to the ideal of national sovereignty.

In the United States, President Trump has emerged to lead a radical faction from inside the traditional right-wing Republican Party on a strident platform opposing immigration, global institutions, and current international trade arrangements that he portrayed as antagonistic to American economic interests. Is economic nationalism likely to include the type of command-and-control economic policies that we fear as coercive? Economic nationalism can be applied through a series of policies such as tariffs and import quotas, as well as immigration quotas with an appeal to the “national interest.”

This approach to economic management allows authorities to treat property as an object of administration in a way similar to the directions of private activity which Hayek feared can take place in the pursuit of “social justice.” It can take the form of discriminatory decisions and commands with a coercive capacity even though their authorization may come from generally worded rules. Protectionism can be effectuated by expedient decisions and flexible discretion in the selection of beneficiaries and the exclusion of others (and thereby entails strong potential for discrimination). The government will enjoy wide discretion in identifying the sectors of the economy or even particular companies that enjoy such a protection, often national champions that need to be strengthened and weaker industries that need to be protected. The Radical Right can exploit protectionism’s highest capacity for partial discriminatory applications.

The Radical Right has employed tactics of attacking, scapegoating, and ostracizing opponents as unpatriotic. This attitude suggests that its policy preference for economic nationalism and protectionism can have a higher propensity to be arbitrary, ad hoc and applied to manipulate economic and political behavior. This is perhaps most tragically demonstrated in the case of immigration restrictions and deportation practices. These may appear to coerce exclusively foreign residents but ultimately harm citizens who are unable to prove their status, and citizens who choose to associate with foreign nationals.

Nightcap

  1. If the United States leaves NATO: a thought experiment Economist
  2. The cries of populism have always been hollow Bryan Caplan, EconLog
  3. A new two-party system in the democratic West John Quiggin, Crooked Timber
  4. The student takeover at Cornell, 50 years on Tony Fels, Quillette

Nightcap

  1. The decline and fall of Western civilization, 1992 Dan Nadel, New York Review of Books
  2. The Hitlers in our own country Clive Webb, History Today
  3. A history of Singapore, from 1299 to the present Frank Beyer, Asian Review of Books
  4. A specter is haunting Xi’s China: ‘Mr. Democracy’ Ian Johnson, ChinaFile

The 2020 Dems

The two Democratic presidential debates were performed against a broad background of consecrated untruths and the debates gave them new life. Mostly, I don’t use the word “lies” because pseudo-facts eventually become facts in the mind of those who hear them repeated many times. And, to lie, you have to know that what you are saying isn’t true. Also, it seems to me that most of the candidates are more like my B- undergraduates than like A students. They lack the criticality to separate the superficially plausible from the true. Or, they don’t care.

So, it’s hard to tell who really believes the untruths below and who just let’s them pass for a variety of reasons, none of which speaks well of their intellectual integrity. There are also some down-and-out lies that none of the candidates has denounced, even ever so softly. Here is a medley of untruths.

Untruths and lies

I begin with a theme that’s not obviously an untruth, just very questionable. Economic inequality is rising in America or, (alt.) it has reached a new high point. I could easily use official data to demonstrate either. I could also – I am confident – use official figures to show that it’s shrinking or at a new low. Why do we care anyway? There may be good reasons. The Dems should give them. Otherwise, it’s the same old politics of envy. Boring!

Women need equal pay for equal work finally. But it’s been the law of the land for about forty years. Any company that does not obey that particular law is asking for a vast class action suit. Where are the class action suits?

What do you call a “half-truth” that’s only 10% true? Continue reading

Nightcap

  1. Clarence Thomas and abortion Corey Robin, Crooked Timber
  2. NYC’s war on Asian children Dennis Saffran, City Journal
  3. Race, racism, and the law in America Jacques Delacroix, NOL
  4. How often has the U.S. Supreme Court struck down a federal law? Keith Wittington, Volokh Conspiracy