Blind Faith

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.

Криминализация средств массовой информации

Сравнивая Россию и Европу, я в своих мыслях залез в такие заповедные дебри, что потом долго думал, зачем я вообще эту затею начал воплощать. Кое-какими своими выводами хочу поделиться с вами. Я пришел к выводу, что сравнивать две культуры и соответственно страны вообще никак нельзя, и мы никогда не придем к взаимопониманию с Америкой. Это как пытаться добиться дружбы между китом и медведем. Те, кто в Америке либералисты, – в России почти автоматически становятся врагами народа. Из любого дела пытаются раздуть политический сюжет, будь то рядовая авария на дороге с парой жертв. Ассоциативный ряд уводит комментаторов так глубоко вглубь “корня зла”, что в конечном итоге как-то забывается, что водитель был пьян и непристегнут: во всем виноват Навальный, Путин, ZOG и прочие “плохие ребята” по мнению комментаторов.

В большей степени этому причиной является повышенная криминализация средств массовой информации в России, которая оказывает на людей все большее и большее влияние. Не стоит, однако, говорить, что Россия – это криминальная страна. С давних времен у нас всячески романтизировался образ бандита (телевизионные сериалы, новости и радио, газеты), чему немало способствовала напряженная обстановка в стране в 1990-х годах. И сейчас, когда, казалось бы, лихие времена прошли, эти воспоминания якорем тянут нас назад. Новости по инерции отдают предпочтение криминальным сюжетам, за счет чего у окружающего мира формируется стойкое мнение, что Россия – это страна, где воруют и убивают. Да. У нас воруют и убивают. Если воруют – то миллиарды из бюджета. Если убивают – то массово, как в любой другой стране. Да что говорить, в Америке регулярно устраиваются бойни в школах – это явление немыслимо для России в принципе! Другой вопрос в том, какой процент из криминальных новостей освещается в зарубежных СМИ. Крупные кражи и откаты, теракты, взрывы и катастрофы – это “само собой разумеющееся”. Так и в России. Правда помимо этого у нас регулярно рассказывают как в мелких городах пьяные мужики убивают по пьяни своих жен. Зачем нам это знать? Причем рассказывают федеральные каналы! Россия – такая же страна как и другие (может, немного другая в силу менталитета и развития), и криминала у нас столько же (может немного побольше). Но из-за “особого пути развития” складывается впечатление, что газетам просто больше не о чем писать. Лучше бы о театрах и культуре рассказывали…

French Musings on Veterans’ Day

France was one of the least ill-treated countries in Nazi occupied Europe for reasons that are mostly too shameful to recall. In August 1944, in my mother’s arms, I saw one of the first, large contingents of American troops enter Paris. Their presence put an end to the slow process of starvation of most French people. You can see in side by side photographs that my parents, then in their early thirties, looked older in 1943 than they looked in 1946. Before the liberation of Paris, malnutrition was written all over their faces. Keep in mind that slowly starving people was one of the least objectionable actions of the Nazis in Europe.

American soldiers, and behind them, American might, American willingness to get involved, though late, probably saved me from starvation. Today just as it was then, just as it was during the Cold War, American military power is the main guarantee of common decency in the world. I only deplore that it’s not used as often as it should be. After many years of unrelenting leftist propaganda, many otherwise intelligent Americans are vaguely embarrassed about the same American military power.

Immigrants like me and other who have some real experience of other countries, rarely share in this prejudice, I think. And, as I always say, it’s possible to make the argument that Finland, for example, is more virtuous than the US. Alas, alas, the Finns and their neighbors in Scandinavia are nowhere near to proposing to replace the US as guarantors of humanity! On the other hand, Iran is about to volunteer (arguing that the frequency of stoning of adulterous women there a has been greatly exaggerated by Islamophobic media).

Speaking of Iran, this weekend, it seems the French alone saved the free world from a big mistake of accommodation with its cruel, expansionist, inhumane regime. Perhaps, Pres. Hollande very low ratings give him superior freedom of action. (He has little to lose.) Yet, even lower ratings are not about to help Pres. Obama grow a backbone. Fortitude is not his problem. He really thinks that there is something evil about America’s strength. And his Secretary of State often pretends to be French but he remains an unreconstructed peacenick whose sole recognized talent is in marrying rich women.

PS The media are full of references to an “epidemic” of military suicides. I suspect there is no such thing either in the active military or in t veterans of Iraq and Afghanistan. Will someone direct me to real data?

Around the Web

  1. When governments go after witches
  2. Borders, Ethnicity and Trade [pdf]
  3. A Lonely Passion. Libertarians in China
  4. Halloween in Germany: read this with globalization and its critics in mind
  5. Should Japan take the lead in mediating US-Iranian talks? Props to Obama, by the way
  6. Another excellent Free Speech blurb from Ken White
  7. Culture in a Cage

From the Comments: Liberalization is about much more than just the economy

Andrew is skeptical of NAFTA’s achievements:

NAFTA isn’t the only major factor at play, although you’re right that it has provided Mexico with some huge economic benefits. This is especially true in the factory towns along the US border, which are able to absorb a much larger absolute amount of surplus labor from poorer, less developed parts of the country today than they could a generation ago. That said, I’m still ambivalent about NAFTA on account of the severe short-term economic and social dislocation it caused, e.g. to US factory workers who were undercut by Mexican competitors and to small Mexican farmers who were undercut by major US agribusinesses. It strikes me as a hastily and abruptly implemented policy change that caused a lot of needless collateral damage in the short term. Whether this damage was worthwhile in the long term depends a lot on one’s role in the North American economy at the time. On the whole, I’d say NAFTA has been a mixed bag.

This, I think, is in response to the 2003 academic paper (published by three economists) that I cited in defense of NAFTA’s success. It is a paper that only focuses on economic indicators (such as per capita income or total factor productivity). Here is what it found: NAFTA has not had a discernible effect on the US or Mexican economies. The displacement of US factory workers and Mexican farmers that Andrew mentions had been going on long before the implementation of NAFTA. Basically, NAFTA merely reduced the amount of paperwork associated with the changes in both economies. It has not hastened the changes.

Similarly, it appears that the growth of Mexican and American purchasing power parity are simply part of a hemisphere-wide trend that has also been going on for decades. In short, economists have found the economic effects of NAFTA to be negligible. So why do they continue to overwhelmingly support it?

My answer to this question can be found, I think, in Andrew’s keen perception of the changes in Mexican society:

Over the same time that NAFTA has been in place, Mexico has also become much more Protestant and nondenominational in religious affiliation, better educated, and, as I understand it, somewhat better governed and administered. Maybe I’m mistaken, but I have no reason to suspect that the religious shift had anything in particular to do with Mexico’s improving economy or trade liberalization. “Church-planting” missionaries of the sort that have evangelized Latin America don’t look for a particular economic or policy profile in a country before imposing themselves on it, although they do generally appreciate a certain amount of poverty and dysfunction, as long as they’re reasonably reasonably safe in country, since people in economically healthy, well-governed countries are less receptive to their pitches. This is a very cynical analysis, but the cravenness in “mission field” circles can be mindblowing.

What’s happened in much of Latin America in the last decade or so is that these evangelism programs have hit critical mass. They’re now self-sustaining operations being run mainly by Latin American evangelists pestering their own countrymen, or sometimes people in nearby countries. Gringo missionaries are still working in Latin America, but they’re no longer critical to the growth of evangelical churches there. (Besides, there’s much more street cred to be had in evangelizing a recently restive Muslim village in Northern Ghana, or, as my relatives and everybody at their church called it, Africa. I bless the rains….)

Liberalization is about much, much more than economic growth. The decline of Catholicism in Mexico, for example, is an incredibly good trend. This is not because Catholics suck, but because Mexican society is becoming more diverse. Liberalization means opening a state’s political, economic and social institutions to the world.

Undertaking liberalization thus exposes a society to changes. Sometimes societies may have a tough time with changes, especially if there are deeply entrenched political structures in place. Most often, though, these changes tend towards more political liberty (see “1994 Mexican Elections: Manifestation of a Divided Society?” and “Institutionalizing Mexico’s New Democracy,” both by Joseph Klesner, and be sure to read between the lines), more social diversity and, yes, more economic growth.

Of course, with new and overall positive changes come new challenges. The differences between the old challenges and the new, however, are cavernous. Politically, gridlock supplants revolution. Socially, vice replaces desperation. And economically, policy replaces cronyism.

Now, this is a broad view, but I think it is a concrete one nonetheless. There are two major objections to liberalization that I would like to briefly discuss.

The first is my assumption that diversity is, in and of itself, a good thing. Some people simply cannot stand diversity, whether it be of the ethnic and linguistic variety or of the intellectual variety. The former form of intolerance is often to be found among conservatives; the latter in Leftist circles. However, the fact that people I don’t like disapprove of diversity is not a good excuse for being a proponent of diversity.

So what follows is my concise defense of diversity. Diversity opens individuals up to higher degrees of tolerance. It gives individuals more choices. Its very nature makes people smarter by exposing them to more points of view. Added together, these benefits are a recipe for wealth and stability and peace.

There is a tendency, however, for diverse organizations (including societies) to have more conflict. It is this conflict that conservatives and Leftists alike point to as proof that diversity is an undesirable plague. Yet, under the right framework, conflict from diversity produces immeasurable amounts of wealth (see also this paper by economists Quamrul Ashraf and Oded Galor). This framework revolves largely around well-protected property rights and the protection of a handful of other rights (free speech, free press, etc.).

It is this framework that, conveniently enough, allows me to segue into the next most common objection to liberalization: that it doesn’t work and often makes things worse for a society. The data in this regard is not much clearer than the data on NAFTA’s effects on Mexico. That is to say, there is not enough evidence to prove conclusively that trade liberalization leads to economic growth. However, data over the past 30 years or so does suggest that states which undergo liberalization efforts tend to have economies that grow steadier, polities that oppress less and societies that adapt to cultural change more easily. If you can find evidence that you think may refute my argument (“that the rough overall trend of liberalization is beneficial to mankind”), you know where the ‘comments’ section is.

The Federal Shutdown, the Debt Ceiling and an Extremist’s Morning After

The fake government “shutdown” is already over. I hardly had time to enjoy it. I was just beginning to make a list of federal services that are “non-essential” according to the federal government itself. I was kind of hoping that the EPA, for example, would bite the dust. I does not seem fair.

The debt ceiling problem is also dealt with for the time being. It’s another expression of the same underlying problem that led to the “shutdown.” (See below.)

OK, after the crisis that just ended temporarily, it feels to conservatives like Great Britain in August 1944. The Luftwaffe rules the skies. Our few remaining pilots keep getting shot down. Our central city is bombed nightly. Everyone else who is civilized has already folded. Nightly, they are opening the Champagne in Berlin. We stand alone. It does not mean that we are wrong to stand.

Still, it also feels like the morning after. Time to look into it.

The so-called crisis is suspended for about four months. Nothing is solved. The Republicans collectively took a public opinion drubbing, it’s true. Speaking for myself, I will repeat what I said earlier: I am not attached to the Republican Party. I care only about limited government conservatism. Until now, the Republican Party was a not-so-bad vehicle for that view of the world. If it does not have the backbone to carry it further, so be it. Yes, I think that even if there is no other likely large vehicle in sight. I want to avoid pointless imaginings about my meaning by saying it clearly: What I fear most is not just another electoral defeat but a meaningless and useless electoral defeat such as the Republican Party suffered in the last presidentials. What hurts the most is the large number of nominal Republicans who just stayed home. Gov. Romney’s program was not the hill you want to die for. Gov. Romney was not the kind of commander who could induce you to die for that hill.

Here is the central conservative issue in a capsule. The phony government shutdown and the reappearing debt ceiling issue are parts of the same dark cloud:

A federal government that is deeply and routinely corrupt as well as shockingly incompetent keeps borrowing mindlessly to sustain the ordinary business of government.

It’s despotic; its’ a waste of resources; most of all, it’s immoral.

The mindless, nearly automatic borrowing is the worst part.

Myself, I think that I, my children and the federal government should only borrow under two circumstances:

  1. When the loan is to be applied directly to the acquisition of a tool that will contribute to greater earnings in the proximate future. I use the word “tool” liberally. Better freeways, for example, could easily qualify.
  2. When there is a strong presumption that we will earn more tomorrow . That’s with or without the condition in 1 above. This is separate. In the case of a country, for example demographic growth may by itself create such a presumption.

The present federal government’s borrowing fulfills neither condition. It’s borrowing to meet everyday expense. It’s as if I borrowed to buy bread for my lunch sandwich. There is also no reason so far to believe that the United States economy will grow a great deal tomorrow. (This could change the day after tomorrow if we had, for example, sudden access to new cheap energy. The Obama administration is doing its best to prevent precisely this from happening – Makes you think along dark lines, doesn ‘t it?)

Routine even legal, systemic federal government corruption: The widow of (wealthy) Senator Lautenberg received $174,000 from Congress because her husband took the trouble to die while in office. (WSJ 10/18/13, p. A12)

Federal Government incompetence: See the health insurance exchanges, in preparation for four years! Enough said! Note: I am not sure whether I am more afraid that its implementation will succeed or that it will continue to fail in exemplary fashion.

Mindless federal borrowing: It has become an integral part of the culture that the government must borrow to live. I said “integral part of the culture.” Below, an illustration I could not invent if I wanted to.

Larry Fink is the CEO of BlackRock, by some defensible measure, the largest investment firm in the world. Mr Fink said 10/16/13 or 10/17/13 (WSJ):

I have been in this business for 37 years. For 34 years I did not know there was such a thing as a debt ceiling.

Our point exactly! One of the highest placed business executives in the land takes government borrowing so much for granted that he does not know it’s subject to Congress-imposed limitations. He even sounds incensed when he learns the truth.

That’s what makes us conservatives, “extremists.”

Why do I care? I care because, unless there is another wave of fast economic growth lasting for several years, we are guaranteeing that our children and grand children will live in poverty. It’s wrong; it’s immoral.

And then, there is the growing phoniness of the public discourse including discourse by the mainstream privately owned press.

During the two days following the cessation of the pretend-government “shutdown,” the main media are eager to pretend that the multitudes feel great relief. They talk as if the average folks out there had experienced tremendous suffering because federal non-essentials were furloughed. I, for one, feel no relief at all. I don’t know anyone who does. (Agree, it’s an unsystematic sample but it’s a sample.) This is all the media’s deliberate exaggeration or a misplaced identification with federal public servants. It’s becoming more and more obvious that such public servants are overpaid and that they enjoy too many unearned privileges. (State public servants also, in some states, such as mine, California.) I don’t identify. It pisses me off. The more I know, the more pissed off I am.

They, the mainstream media, echo dumbly the noises coming from the administration about the alleged “costs” of the “shutdown” to the national economy. No one takes the trouble to do a net calculus, even to raise the issue of a net calculus. Isn’t it true that for each day certain federal bureaucracies are unable to do their job, some of the main producers in the nation are better able to produce? Again, the EPA comes to mind. And the IRS, of course. And a number of federal agencies whose names I don’t even know.

Besides, it’s an empty formula, a truism that (theoretical) wealth that fails to be produced usually is not regained, as the administration says gravely.

N. S. ! That’s what happens with Columbus Day and with Presidents’ Day, for example. (When only public servants and bank employees don’t work. When nearly the whole private sector keeps on producing wealth.) Why not cancel both holidays if non-production is a cause for worry? Why not make federal public servants come to work on both days if the president is worried? He only need issue an executive order. Bet you, he won’t even mention the possibility. And why do I have to state the obvious? Why aren’t the media doing their job? Have they been hypnotized? And, I almost forgot: if the president loses sleep over the missed production of federal employees, he could imitate the French in reverse and institute the federal forty-four hours work week. Would anyone notice?

Something else does not add up in the media’s discourse. For days, during the so-called “shutdown,” both administration officials and supposedly independent pundits threatened us with a world economic abyss because of number of non-essential federal employees were prevented from going to work. (I am not making this up; I am not exaggerating that we were told this ad nauseum; go back to those recent days, you will be amazed.) Yet, the day he current agreement is announced, the day we jumped form the edge of the supposed abyss, the markets reacted limply. The Dow Jones Industrial gained a lackluster 175 points that day. Now, that’s nice; it’s a gain for sure. However it’s no more of a gain than happens, for example, when the international price of the oil barrel comes down by ten dollars. The next day, the Dow Jones was flat. Trouble over; no big deal after all. Forget what we said yesterday. Forget the alarm. We were just kidding!

The Republican cave-in saves us from falling into the Grand Canyon and the market gives us a small hot dogs party by way of celebration! Does it make sense?

President Obama’s deftness never ceases to amaze me. No mistake seems to stick to him. On the day of the agreement, he declared that the new debt ceiling is not really debt. No one in the mainstream press questioned this absurd statement. Let me repeat, by the way, that I don’t think he is lying. He really does not know better. Academia is overflowing with his type of intelligent ignorance.

Perhaps, I am not grasping what’s going on, culturally. Perhaps, the reservoir of white American guilt concerning the long atrocity that was slavery, concerning racial segregation and discrimination also, is far from exhausted. Perhaps, the president can write checks on this for a long time to come. Or maybe, as Rush Limbaugh suggested, he struck a giant chord with the millions by giving them a chance to see themselves as victims. If you are a victim, almost any grotesque behavior is permissible. Soon only my wife, our grown children and I will be the only non-victims left in America. It will be a lonely existence. And, I wonder how long we will be able to support the victims because two of us are long retired (thus mirroring American demographics to come).

At one point one of Mr Obama’s servants referred gravely to the global reputational damage the shutdown has caused to the United States. (I don’t remember exactly who or when but I heard it with my own ears.) The “red line” in Syria about using chemical weapons does not in any way affect the credibility of the US, I suppose. The hundreds of civilians who died from chemical weapons died and all is forgiven. In the words of Pres. Obama’s former Secretary of State, “What difference does it make now?”

The day after the agreement the president gave another speech in which he advised those who don’t like something to just win elections in order to be able to change the something. I don’t think it was mistake. It was Freudian slip. President Obama does not believe that tea party Senators and Representatives who oppose him so tenaciously were just as elected as he was. It sounds familiar to me because I know history rather well and French history very well. The weakling tyrant, Louis-Napoleon, the Emperor Napoleon the Third (there was no Second) was initially elected. His supporters really thought that if you were elected by a sizable majority, you were morally allowed to do anything. They thought that was democracy. (There is a very nice readable piece by my old buddy Karl Marx on this topic for your reading pleasure where and when it rains: The Eighteenth Brumaire of Louis Napoleon, Abstract of Chapter I.)

Thus do we drift fast toward a one-party state. I warned about this a long time ago, before Mr Obama was even elected. (See also on this blog: “Fascism Explained“)

The unspeakable Senate Democratic leader Harry Reid said after the agreement was reached: “This is a time for reconciliation.” I don’t think so. I hope not.

Imperialism or Federalism: The Occupation of South Korea

A recent op-ed in Foreign Policy highlights South Korea’s very successful rent-seeking campaign in regard to US military services:

When it comes to taking charge of coalition forces here on the Korean Peninsula, South Korea has been a little gun shy. South Korea and the United States this week are celebrating the 60-year anniversary of an alliance forged after the Korean War; there were two parades, a big dinner, video retrospectives, and a lot of talk of katchi kapshida (“we stand together”). But after decades of confidence-building joint exercises and billions of dollars in military assistance, it’s time for the South Koreans to step up and assume what’s called “operational control” of all forces stationed here if war should break out. The problem is, the South Koreans aren’t quite ready.

This brings out two interrelated but distinct trains of thought in my mind. First, it destroys the arguments, found on the hard Left, about a brutal US imperialism in the region. Seoul has made a US military presence on its soil a top priority for sixty years now. This has been the case during the autocratic period and it is now the case for the democratic one as well. A state cannot have a brutal presence in another state’s territory if the latter state continues to make the former’s presence a top priority.

Second, this is not to say that the US is not imperialistic. Here is how Merriam-Webster online defines imperialism: “the policy, practice, or advocacy of extending the power and dominion of a nation especially by direct territorial acquisitions or by gaining indirect control over the political or economic life of other areas.” With this useful definition in mind, South Korea’s rent-seeking necessarily brings up anti-imperial arguments from the center and the Right; namely, that South Korea is taking US taxpayers for a ride (the Cato Institute has done some especially good work on this topic).

So here are the relevant circumstances: the US military is currently on the Korean peninsula, and it is fairly entrenched, and the South Koreans overwhelmingly want it there, and US citizens don’t seem to mind all that much the presence of their military along the 38th parallel. So what exactly is the problem? Why is Foreign Policy, a traditionally interventionist publication, highlighting South Korea’s rent-seeking now? The answer, I think you all know, is government gridlock. Notice first how gridlock is not necessarily a bad thing. It forces Americans to reassess their priorities and to make tough compromises.

Libertarians have long called for Washington to withdraw its troops from South Korea (and correctly so). Among their grievances are the aforementioned rent-seeking tactics of the South Koreans, the unnecessary expenses that accompany such arrangements, and the fact that a US military presence causes unnecessary problems with China and North Korea.

Given the costs and the unnecessary dangers associated with occupation, I am in full agreement with libertarians. However, given the four circumstances mentioned above, I think there is a better way to go about pursuing a more just situation: federate with each other. By federate I do not mean that Seoul should send two senators and X number of representatives. That would be extraordinarily unfair. However, if the 17 provinces in South Korea each sent two senators and X number of representatives, justice would be achieved.

The objections to such an idea are numerous. They include political, cultural and economic angles, and none of them ever hold up to scrutiny. But what exactly is wrong with the status quo? What’s wrong with a complete military withdrawal? My answer to the first question is simply that the status quo is unfair. The South Koreans are ripping the Americans off. My answer to the second question is a bit more complicated.

A complete withdrawal implies that South Korea is not paying its fair share. Indeed, that it is not paying its share at all. A complete withdrawal also implies that foreign occupation creates unnecessary dangers, and it is indeed difficult to imagine a nuclear-armed North Korea without the presence of the US military along the 38th parallel (would Beijing or Tokyo stand for that? Would there be two Koreas? Korea today, without the war, would look like Vietnam).

A withdrawal also implies that the US no longer cares about the South Korean people. Only the hard, fringe Korean Left wants the US out. It’s not the threat of China or North Korea I’m concerned about (only demagogues are concerned about that), but rather the lost opportunity to enhance liberty and equality under the law in both the US and South Korea.

A federation would go a long way toward tackling these problems. South Korean provinces would suddenly find themselves paying their fair share. Two armies would become one (that means soldiers from the province of Jeollanam would be fighting in Afghanistan and not just patrolling the 38th parallel). The propaganda about American imperialism coming from the socialist paradise of North Korea would be rendered obsolete. A new peace – based on consent and equality – would begin to arise. My inspiration for these thoughts comes from a segment of Adam Smith’s Wealth of Nations (pgs 681-682; bottom of 779-794 in the Bantam paperback edition), musings from Hayek’s The Road to Serfdom (223-236 in the definitive, paperback edition) and Mises’s fascinating argument in Liberalism (105-154 of the paperback edition from FEE; here is a pdf of the book from mises.org). I’d even go so far as to claim that it is a more libertarian position than the calls to withdraw from the region. At any rate, it would certainly address the problem of rent-seeking that the US now finds itself facing (which in turn proves that the libertarians were correct all along).

An Exemplar of Governance: The United States and Chinese Citizens

I’ve briefly pointed out the penchant of Chinese citizens to look to the US as a role model for governance before. As Dr Foldvary has argued, it’s about governance, not government. Foreign Policy‘s Passport blog takes a look at how the recent government shutdown in Washington is viewed by citizens of the Chinese state:

[…] both China’s state-run and private-but-state-supervised mainstream media outlets have thus far reacted with restraint. Meanwhile, users of the country’s bustling, often candid, often profane social web have found a silver lining in the political paralysis that would surprise many Americans […] In Chinese social media, meanwhile, the government shutdown became an opportunity to criticize the Chinese government […]

Some veiled their critiques. Xu Jilin, a professor of history at East China Normal University in Shanghaiwrote, “The government has shut down, but the country is not in disorder — now that’s what you call a good country where people can live without worry.”

The gridlock itself, decried by most commentators in the U.S., struck many Chinese as a sign of lawfulness. As one user remarked, “A government that can shut down, no matter how big the impact on everyone’s lives, is a good thing. It shows that power can be checked, and the government can’t spend money however it wants.” […] Others took more direct aim at their own government. As one user noted, “Comrades, no need to worry that the same thing will happen in our country!  In any event, delegates in our National People’s Congress [China’s […] legislature] cannot cast dissenting votes, haha.” Another wrote, “I wish China’s government would shut down and let corrupt officials have a taste of it.”

I think these admittedly anecdotal reactions are simply a testament of the age-old, distinctly human problem of confusing society with state. The Chinese people themselves don’t have beef with the US or its people. The American people themselves don’t have beef with Beijing or its people. However, both governments are engaged in a power struggle, and as a result, people suffer. Perhaps the most heartening development can be found in this statement:

The growing connections between China and the United States mean that no issue is strictly domestic for either country.

While some no doubt view the growing interdependence of the two societies with unease, I cannot help but see a future of peace, prosperity and harmony. This does not mean I see an absence of conflict, but only that such conflict will be handled according to rules and procedures that have been laid down in the past and that can be altered so long as it is done so in a manner conducive to yet another round of rule-following and procedures.

Relative or Absolute Advantage: A Question of Conditional Cooperation

A while back I posted a summary of a question posed by economists to various groups of people in a book I am slowly but surely getting through:

The Harvard political economist Robert Reich […] asked a set of groups of students, investment bankers, professional economists, citizens of the Boston area, and senior State Department officials this question: for the United States which of the two following scenarios is preferable? (1) one in which the US economy grows by 25 per cent over the next ten years, while that of Japan grows by 75 per cent or (2) one in which the US economy grows at 10 per cent while the Japanese economy grows at 10.3 percent (132).

I then asked readers the same question, although only Dr Amburgey answered (thanks a lot jerks!). Professor Amburgey stated that he would prefer scenario #1. As an academic who specializes in strategic management at a prestigious business school I would have expected him to pick scenario #1 as well. Why? Here is how Agnew and Corbridge summarized the findings:

Most people in each group except one chose (2). The economists, thinking quantitatively, unanimously chose (1). The magnitude of difference in (1) may have pushed some people towards (2). What is clear, however, is that most of the respondents were willing to forego a larger absolute increase in ‘their’ economic well-being to prevent a larger relative advantage to Japan (132).

Okay let’s slow down for moment. Does everybody see why economists chose scenario #1?

Because economists (and normal people, too) would rather live in a society where the economy grows by 25% instead of 10%. This is what Agnew and Corbridge mean when they write that economists are thinking quantitatively. So why did everybody but the economists choose scenario #2, including high-ranking State Department officials?

The inclination to forego getting richer (‘absolute increase’) if it means the other guy doesn’t get as rich as he otherwise would (‘relative advantage’) is something anthropologists call ‘conditional cooperation,’ and it seems to be a human universal. Here is what academics are stating in plain English: people are willing to forego gains in wealth if it means that others will lose out, too. The question of “How much?” is relative to a given situation.

Why humans do this is the subject of vigorous academic research, but if humans do this is acknowledged by everybody.

Economists and other academics trained in quantitative analysis are not the only ones who prefer absolute gains over relative ones, though. Libertarians are, by and large, also more likely to choose scenario #1 (I wish it were the case that libertarians were unanimous on this, but as the movement grows, so too does the number of less than intelligent people in our quadrant). Some of this may have to do with IQ, but I think the cooperative nature of our worldview also plays an influential role in the way we make our choices.

One doesn’t have to be economically-adept to choose scenario #1 (though it helps). A question that libertarians may ask is, in response to the prompt, “Why should I care if the Japanese get richer, faster than I do?” This question would more than likely be followed with a statement along these lines: “As long as they are not gaining their riches through force or fraud I see absolutely nothing wrong with this scenario.”

And it would be this response that explains why I consider myself to be a libertarian.

By the way, here is the book I’ve been reading that sparked the post. It’s titled Mastering Space… and it was written by a couple of Marxist geographers in 1995. The book is an interesting attempt to reconcile the world that stood before them (a liberal, democratic world) with the one that they believed would occur through socialist revolution (with the Soviet Union leading the masses out of the dark depths of capitalist slavery). Some of the most fascinating research to come out of the Marxist paradigm has been produced since 1991. I think it would be wise to heed Orwell’s suggestion that the Left-Right paradigm be abandoned and replaced by an authoritarian-libertarian one.

Несколько слов про Сирию

Не знаю как у вас там, а у нас, у большинства населения, вполне четая позиция по этому вопросу. Лично я считаю, что не надо вообще туда к ним лезть, в их закрытый мусульманский мир. Пусть живут по своим законам и сами решают свои проблемы.

Далеко за примерами ходить не надо. Достаточно вспомнить военные вмешательства во Вьетнам, в Ирак, в Чечню, в Афганистан. Попытки железной рукой пресечь конфликт вылились в многолетнюю затяжную войну с бандформированиями, в партизанское движение, в террористические акты по всему миру. Возникает вопрос: надо ли оно нам дальше? Я конечно понимаю Обаму, для которого Сирия – это как болячка на демократическом теле, которую постоянно расковыривают, и которая не дает покоя. И, казалось бы, если влезть туда “всем миром”, можно террористическую заразу подавить. Ха-ха-ха. На словах все получается гораздо радужнее, чем в реальности.

“Война это плохо. Поэтому мы вторгнемся в Сирию, как великие демократы и покажем им всем огнем и мечом, что убивать друг друга – это грех”. Окей. Если такая позиция кого-то устраивает – пусть так оно и будет. Только после того как очередные террористы взорвут очередные торговые центры – не надо плакать. Сами виноваты.

В России, повторюсь, позиция по Сирийскому конфликту весьма четкая, так как мы до сих пор пытаемся решить собственные конфликты с Чечней. И каждый год мы теряем солдат, которые подрываются на очередных минах, расстреливаются в засадах, погибают где-то в горных лесах, преследуя очередной бородатый отряд партизан-горцев.

У нас в России весьма двойственное отношение к нашему президенту. Его вроде как и любят и не любят одновременно. Однако его письмо в New York Times с разъяснением позиции России по поводу Сирии вызвало у нас в стране волну одобрения. Применять силу нужно лишь для самообороны, для отстаивания независимости СВОЕГО государства, и для охраны его границ. А вторгаться в другие страны и насаждать там свои порядки – это неправильно. Каждый живет как умеет.

Предвижу некоторое количество комментариев на тему того, как русские вторглись в Осетию в августе 2008 года и принудили Грузию к миру в коротком вооруженном конфликте. Так вот, там была слегка другая ситуация. Прочитайте статьи на Википедии об этом конфликте, прежде чем набрасываться меня с обвинениями в двойных стандартах.

Relative or Absolute Gains: A Question of Conditional Cooperation

From Mastering Space…:

The Harvard political economist Robert Reich […] asked a set of groups of students, investment bankers, professional economists, citizens of the Boston area, and senior State Department officials this question: for the United States which of the two following scenarios is preferable? (1) one in which the US economy grows by 25 per cent over the next ten years, while that of Japan grows by 75 per cent or (2) one in which the US economy grows at 10 per cent while the Japanese economy grows at 10.3 percent (132).

Before I continue, I guess it would be better to ask this question to readers as well. I’ll post the rest of my thoughts later (as well as the answer), but right now I am genuinely curious as to which option NOL’s humble readership would pick.

Eye Candy

Just below the fold…

Continue reading

From the Comments: Open Borders, Immigration and the Sociology of Gradualism

Dr Delacroix takes issue with my woefully inadequate summary of his work on open borders in the Independent Review. He writes:

Small yet somewhat important correction: In our piece in the Independent Review, Nikiforov and I argue for somewhat more than a guest worker program and our reference is not a to a EU “guest worker program.” (I am not sure whether there is one.) Rather, we argue that little harm would be done and, as we see now, much harm avoided, by simply agreeing that citizens of Canada, the US and Mexico (especially Mexico) can freely move across the common borders of the three countries. including for the long term. What we have seen in the EU for now more than twenty years shows that there is no reason to attach this free movement principle to citizenship.

That you may work, open a business, pay taxes in Mexico does not logically imply that you may vote in Mexican elections. That you may not does not deprive you of any “rights.” As an immigrant into Mexico you knew what you were doing. You moved under your own power. It’s unlikely anyone even invited you. If you crashed the party, you have no moral right to complain that the food is not kosher (or hallal, you decide).

Several years later, I think that the only reason for this insistence on tying residence to citizenship is the Democratic Party’s totalitarian aspirations. Observing the drift in the Obama administration toward non-legality clarified the picture for me, personally. (I am not speaking for my co-author, here. He just spent three years in Russia; I will ask him.)

Historical precedents matter, and a preference for gradualism may make it desirable -in this country- to transition through a somewhat familiar “guest worker program” rather than directly decree open borders for the citizens of the three NAFTA countries.

I am for whatever works but we must keep concepts distinct from each other: A tomato is not really a fruit, not really.

PS I am glad Notes On Liberty publishes my essays (and even my stories) and that it links to my blog. When I grow up, I want a readership like Notes’ readership!

Russian and US Relations: Definitely Cooler and a Further Inquiry Into Why This Is

I appreciate Evgeniy’s recent remarks on the deterioration of Russian and American relations. This is an issue that has not received as much attention as it should.

From my own point of view, I can think of a few items that have caused deterioration on the American side of the relationship. Here is a small and by no means comprehensive list:

  1. The missile shield being built in Eastern Europe, ostensibly for the prevention of missile attacks from Iran. This is pure garbage. Iran has zero interest in attacking Europe with missiles. The Europeans have proven themselves to be very even-handed when it comes to affairs in the Middle East over the past few decades, and especially in regards to all things Israel. The missile shield in states previously under Moscow’s thumb is a direct provocation towards Russia, and there is absolutely no need for it. Russia, for its part, has no need of attacking Europe either. Moscow currently has a symbiotic relationship with Europe and its energy needs and its own problems in the Caucasus and the Far East.
  2. The contempt that establishment foreign policy figures in Washington have shown, and continue to show, towards Russia. The remnants of the Cold War have simply refused to go away in Washington. I think this is largely because if the establishment consensus were to acknowledge that Cold War policies are irrelevant, then they would all be out of their lucrative jobs. This contempt spills over into the political arena as well. Remember Mitt Romney’s comments about Russia being the “number one enemy” of the United States? Pure nonsense and both the American people and the Russian people deserve better.
  3. The continued occupation of the Balkans by Western coalition troops. NATO should have either dissolved or become an all-European alliance once the Warsaw Pact came apart and the Soviet Union split up. Taking sides in the Balkan conflict was designed to do two things at once: 1) stick the West’s thumb in Russia’s eye and 2) convince the Muslim world that the West was paying attention to its needs. A few years after attacking Serbia and initiating the process of splitting it up into smaller states, two skyscrapers full of innocent people were bombed by two jet planes filled with innocent people in New York City. The attacks were done in the name of Islam. In addition to the failure of the Balkan invasion to court the Muslim world, the exercise of power in Russia’s traditional backyard did indeed infuriate the Russians. Instead of an ally or a friend, the policies of NATO have led to cool receptions and deep levels of mistrust in Moscow.

These three policies are a good starting point for understanding why Russian-US relations have cooled considerably since the collapse of the USSR and the presidency of George HW Bush. I think more reaching out is needed on both sides, and I again thank Evgeniy for initiating this discussion. I am hoping for a long and prosperous friendship between free thinkers from two magnificent societies. A friendship that is dedicated to peace and understanding between two peoples who should have never been enemies in the first place.

One Sure Thing About Globalization – The American Motion Pictures Industry World Hegemony Part 5

[Editor’s note: this lecture was delivered to the Leavey Institute of Santa Clara University in 2003. You can find it reproduced in whole here]

The Virtuous Global Effects of American Motion Pictures Hegemony

If one concedes the possibility that screen products generate or encourage violence, one must also accepts the possibility that they may affect behavior in socially desirable ways. (One can’t have it both ways: Television and, by extension, the cinema are either impotent or they may exercise a virtuous influence, as well as a pernicious one.) Thus, Curtin (1999) argues that satellite television circulates globally beneficently subversive (i.e. non-traditional), images of femininity, and therefore, alternative ways of being a woman. A moving testimony comes from the Albanian novelist Ismail Kadaré (1999): During the long night of Albanian communism (Albania was the most isolated country on Earth for forty years. Its paranoiac regime ended up cutting off relations with all countries except North Korea), Kadaré comments at length on how frequent exposure to garden–variety Western television courtroom drama ultimately induced among Albanians a distaste for personal blood feuds as old- fashioned or un-modern.

So, I pose the question: What virtuous influence may the ubiquitous American movies have on the rest of the world and, in particular, on the poor and on the downtrodden everywhere?

Even if one subscribes to the idea that movies don’t do much directly to alter either the values or the behavior of viewers, they inadvertently carry factual information, in their settings, as well as in the mundane aspects of their plots. I don’t see how some of that information cannot cumulatively have a liberating effect on those who live under less fortunate circumstances. American movies are shot mostly in the US (sometimes in Canada).They are directed mostly by American directors (or by Americanized Brits). Although Hollywood is one of the world centers of political correctness and of left-wing piousness, Hollywood films cannot help but convey to global audiences important realities of American life (and generic features of life in Western, secular, democratic, capitalist societies, in general). Among these: Continue reading