Lunchtime Links

  1. oil and Kurdistan
  2. after Raqqa, Iraq’s army turns on Kurdistan
  3. “There has been a common and unfortunate tendency among many analysts and policy makers to underestimate the strength of Iraqi nationalism”
  4. separatist movements in Europe don’t actually want independence
  5. GREAT topic, but poor methodology, poor theory, poor use of data, and bad faith
  6. meh (try this book review instead)
  7. Law without the State [pdf]

The Dalai Lama on Inequality

There are many people who blame “capitalism” for the world’s economic problems, such as poverty, unemployment, inequality, and environmental destruction. This common belief is based on a confusion of meaning, and a lack of analysis. It is neither surprising nor noteworthy that many people fail to apply consecutive thought to economic issues, but it is sad that the Dalai Lama, as an influential religious leader, has not fully applied his compassionate thought to examine the causes and effective remedies of social problems.

The Dalai Lama, leader of Tibetan Buddhists, has identified himself as a Marxist socialist. He blames “capitalism” for economic inequality, and sees the Marxist alternative as the alternative that would increase equality. He advocates a more “human approach,” which implies less “capitalism” and more socialism. The Dalai Lama adds that he is not a Leninist, meaning that his Marxist views do not imply a desire for a totalitarian state.

The Dalai Lama believes that Marxism is founded on moral principles, such as economic equality, while “capitalism” is founded only on the pursuit of profit. His social and economic views were published in the 1996 book Beyond Dogma: Dialogues and Discourses. He said there that Marxism is concerned with the poor and with exploited minorities. Therefore, he said, “I think of myself as half-Marxist, half-Buddhist.” The Dalai Lama had studied Marxist ideology in China during the 1950s, and became attracted to it.

The essential problem with the word “capitalism” is that it is used both as a label for current economies, which are a mixture of markets and governmental interventions, and for the concept of private enterprise and free markets. Its use as a label for mixed economies makes it meaningless to blame “capitalism” for economic problems.

This confusion is similar to blaming diets for ill health. The diet of most people is a mixture of healthy foods such as vegetables and unhealthy stuff such as excessive sugar. The proposition that “diets” cause illness may be true, but it tells us nothing about which elements of our diets are causing the problem.

Likewise, to blame “capitalism,” meaning the mixed economy, for economic inequality, is meaningless, as this does not tell us which elements of the economy are causing the problem, whether it is markets or interventions. Blaming “capitalism” is worse than useless; it fogs the mind, because the label for mixed economies gets confused with the other meaning, private enterprise, so that, in a sly tacit shift of meanings, markets get blamed for economic woes.

It is meaningless to accuse “capitalism,” as a label, as only caring about profit and ignoring the poor, because the actual “mixed economy” cannot have any thoughts or feelings. Moreover, the concept of a pure market economy does have an ethical basis. The pure market is an economy in which all activity is voluntary. The concept of voluntary human action implies the existence of a universal ethic, or natural moral law, that designates acts as good, evil, or neutral, with voluntary action being good or neutral, and involuntary action consisting in coercive harm, which is evil.

One of the premises from which natural moral law is derived is the concept of human equality, that human beings have an equal moral worth, and should therefore be equal in the application of law. Human equality does not imply that all persons should have an equal income or wealth, because moral equality implies an equal self-ownership (or ownership of one’s body) of all persons. Therefore, each person properly owns his wage and the goods and investments bought from his wage. Income, however unequal, that comes from labor, including entrepreneurship, is not an evil outcome.

The mixed economy does create poverty, but not from private entrepreneurship. The poverty comes from government’s taxing the poor and subsidizing the rich. A study by the Institute on Taxation and Economic Policy and the Pew Research Center recently concluded that the poorest fifth of households pay more than twice the state and local tax rate (11 percent) as the richest one percent. Also, although the rich pay a much higher tax rate on their income, many of the rich get their money back implicitly in the form of the higher rent and land value generated by government spending, paid for by taxes on wages, goods, and enterprise profits. The taxes on the poor are even higher than that found in the study, as there are federal excise taxes included in goods, and also, federal taxes and restrictions on labor and self-employment add to the interventionist burden of the poor.

The economist Henry George wrote that “There is in nature no reason for poverty.” Poverty and excessive inequality are caused by human institutions. If Marxism implies income redistribution or government ownership of industry, this treats, and mistreats, the symptoms, not the causes. The main causes are the stifling of labor and enterprise from taxation and imposed barriers. The ultimate remedy is a completely free market, with voluntary, contractual, decentralized governance. Given today’s states and taxes, government interventions can be minimized with a constitutional prohibition of restrictions and imposed costs on peaceful and honest enterprise, thus with taxes only on bad effects – pollution – and on the ground rent generated by government’s public goods.

If he understood the ethics and economics of liberty, then the Dalai Lama would become a much greater global leader in promoting effective reforms that would not only promote liberty but also greater prosperity and social peace.

Thoughts on Life in the Diaspora

I am currently writing in Mcleodganj, the upper part of the hill station in Himachal Pradesh, India known as Dharamshala. This place is often called “Little Lhasa,” for it is the seat of the Tibetan Government in Exile, and the home of thousands of Tibetan refugees. Their influence is unmistakable. Although Mcleodganj is nominally a part of India, the only vestige of Indian culture left here is the inability to obey traffic laws. Otherwise, the dominant culture is Tibetan: most restaurants and cafes are run by Tibetans and serve Tibetan food, all tax free as a result of their refugee status. Because refugees are not taxed, they pass on the savings to the consumer, making dining at one of their establishments cheaper than at similar places run by Indian nationals.

Tibetan influence here is pervasive, but it is indicative less of a strong Tibetan civilization than of the desperation foisted on it by circumstance. When you look on the city, it is awash in the multicolored prayer flags favored by Tibetan buddhists, the snow lion flag (the banned national flag of historical Tibet), and images of the Dalai Lama. Every hour one can hear monks pound large drums to signal the progress of time. The dominant sound of Hindi loses ground here to the less melodious, harsher tones of Tibetan. The feeling this produces is strange, and I will quote from my personal travel blog here:

“Surveying it all, though, it is hard to avoid the realization of how much they have lost. Tibet has a geographical area of 970,000 square miles, or about five times the size of France. For the history of the institution, the Dalai Lama has ruled over this area, acting as political and spiritual head of state for those under his jurisdiction. Now the king has become the courtier, as his and his people’s existence in exile depends on the continued benevolence of the Indian government. Meanwhile, China continues a concerted campaign of ethnic cleansing in historical Tibet. Pumping in thousands of Han Chinese into the major cities, the Chinese government is slowly diluting the ethnic composition of the land, and eventually there will be no Tibet, though Tibetans will remain. The result is easy to see whenever a Tibetan speaks frankly about his lived experience. Sangye, who teaches cooking classes here, told us his story. He left Tibet in 1997, and for seven years had no contact with his family. When he finally obtained their phone number, he said that his mother could not speak, because her voice was too choked with tears. Though he speaks to them frequently, he has not been able to see them, as he cannot return for fear of arrest. Even when they talk, all political or news topics are strictly forbidden; only small talk is permissible. The saddest part did not come when he talked about his past, however. When we asked him, “What do you think the future holds?” he grew quiet. “I don’t think I will ever go back,” he said. “Though I hope to.” I could feel the sense of pride mixed with fear, desperation, and resignation in his voice as he told us his story, one representative of many Tibetans. Dharamshala is a place of refuge for them, but the warmest embrace will always grow cold with the thought of home.”

Dharamshala is a cautionary tale about the limits of nonviolent resistance without broad political support. For 55 years, since the ouster of the Dalai Lama and his residency in Dharamshala, the Tibetan diaspora has been waging a war of words in the international media to raise support for Tibet. Despite widespread sympathy with them, there has been little concrete action on their behalf since the failed CIA effort to train Tibetan fighters in the mid 1950s. Indeed, the current has been moving in the opposite direction, such as when the United Kingdom changed its designation of China’s role in Tibet from suzerain to sovereign in an attempt to curry favor with the PRC. Even India has ceased to care about Tibet.

Tibetan independence is not only flagging externally, but also internally. The effect of frequent Tibetan protests has been muted with the increasing influx of Han Chinese into metropolitan areas. These imports in some cases now outnumber the indigenous Tibetans, such as in Lhasa, where most Tibetans live in the small old city, which is surrounded by a larger settlement of Han Chinese. Furthermore, the Roof of the World can only support a limited number of people, and many of them flee to India each year. Tibet hemorrhages Tibetans, and Chinese fill the gap.

Most people enjoy a triumphal narrative. They like the “good guys” to succeed and the “bad guys” to fail. But history is not a narrative except in the minds of historians. It is a chaotic, jumbled mess in reality, and in this case, the triumph will likely never materialize. Like Sangye, Tibetans will always want to return home, and just like him, they likely never will. Perhaps they will fade into just another minority group in northern India, separated from their historical land and keeping it alive only in memory. Perhaps, like the Jews, they will one day return to that land after many years. It is truly impossible to say.