George Mason University's
History News Network
share

Stealing a meme from Tyler Cowen, here's the best paragraph I've read this morning. It's Cato's Timothy Lee making the case for why libertarians should be supportive of free, open-source software initiatives. He argues that they represent the kind of de-centralized voluntary cooperation that libertarians should support and criticizes some libertarian tech folks for labeling them overly "communal" and the like. In making that argument he writes:

So libertarians are right to criticize policies aimed at accomplishing communal goals via coercive means. But some libertarians have gotten so used to defending the market against those who want to impose collectivism that they start criticizing purely voluntary efforts to organize people on more communal lines. They are forgetting that libertarianism is not necessarily about increasing the role of for–profit enterprise in every aspect of our lives. Commercial activity is one alternative to statism, and an extremely important one. But it's just one possible mode of cooperation, and it's not necessarily the best choice in every situation.

His opening paragraph applies this argument to co-ops as compared to commercial grocery stores. Lee is quite right here and over the years libertarians have become better at distinguishing being "pro-market" from being "pro-business." That's a good thing. But perhaps we now need to be even more careful and make the distinction between being "pro-market" and "pro-voluntary cooperation."

As an intellectual paradigm, post-WWII classical liberal/libertarian thought has not paid nearly enough attention to forms of voluntary social cooperation that exist outside of the market. Our esteemed colleague David Beito's book is one obvious notable exception of course. But beyond that, what have classical liberals had to say about the myriad ways in which humans organize their lives that do not involve the realm of monetary calculation? My own work on the family is my own small attempt to fill this gap.

Long ago, Mises argued that economics (or what he called "catallactics") was just a subset of the broader study of society that he termed "praxeology." (In a more intellectually ideal world, it would be called "sociology.") He suggested that there were other branches of praxeology yet undeveloped. In the 21st century, libertarian thinkers need to begin those explorations. We, I would argue, have a glut of economists and a shortage of sociologists, anthropologists, historians, and political scientists looking at these other forms of voluntary social cooperation.

Monday, March 31, 2008 - 07:57
Comments
share

Since things seem to be hopping here at L&P this week, I thought I would take this chance to inaugurate the first of what I hope will be a number of posts in the upcoming months that track the ways in which the economic circumstances of average Americans are, contrary to the media and other prophets of doom, getting better and better. The media are very good at giving us the bad news, or what they think is the bad news, so I'm hoping to continually catalog the good news that they overlook or that, in the case of today's item, they sometimes stumble across.

I start with, of all places, the front page of today's New York Times (hat tip: Cafe Hayek), with a piece that opens with:

Despite a widespread sense that real estate has never been more expensive, families in the vast majority of the country can still buy a house for a smaller share of their income than they could have a generation ago. A sharp fall in mortgage rates since the early 1980's, a decline in mortgage fees and a rise in incomes have more than made up for rising house prices in almost every place outside of New York, Washington, Miami and along the coast in California.

It continues:

Nationwide, a family earning the median income - the exact middle of all incomes - would have to spend 22 percent of its pretax pay this year on mortgage payments to buy the median-priced house, according to an analysis by Moody's Economy.com, a research company. The share has increased since 1998, when it hit a low of 17 percent before house prices began rising sharply in many places. Although the overall level has reached its highest point since 1989, it remains well below the levels of the early 1980's, when it topped 30 percent.

There are several reasons for this, including the noted increasing incomes (again, contrary to popular myth), but the key is certainly lower interest rates that have enabled monthly mortgage payments to fall as a percentage of income. And, as one interviewee points out, houses today are bigger on average (and he neglects to mention that they have a lot more and better stuff in them - more have central a/c, better building materials, hard-wired smoke detectors, etc.), so families are getting more for their money. Changes in lending practices are noted as another causal factor, as lower down payments have made ownership possible for some even in the face of higher list prices, and efficiencies in the mortgage market are mentioned as well. Home ownership remains at record levels (69 percent) as a result.

This part of the American dream remains within reach of more and more average Americans.

Monday, March 31, 2008 - 07:57
Comments
share

Just when you think Helen Lovejoy is satire, you find her worldview appearing in a serious piece of social science. In The Time Divide: Work, Family, and Gender Inequality by Jerry Jacobs and Kathleen Gerson (p. 200), we get the following:

 

Yet, in the end, children are a collective resource, and their needs should take precedence in our national agenda.

I can't decide which is worse: the treatment of children as "collective resources" or the hubris of claiming that their needs (as interpreted by the authors of course) should trump all else in the supposed "national agenda."

A worse brew of collectivism and hubris will be hard to find on any day.

Update: I wonder whether the authors would feel okay if someone substituted the word"women" for" children" in that sentence. Would they be okay thinking of women as" collective resources" in particular? If so, then welcome to Gilead where women are, in Offred's words,"national resources."
Monday, March 31, 2008 - 07:57
Comments
share

There's much buzz on the Web about Naomi Klein's new book "The Shock Doctrine: The Rise of Disaster Capitalism." (For an overview, see Tyler Cowen's spot-on review today.) Klein argues that "free market ideologues" have consciously created crises as opportunities to force their unpopular policies on unsuspecting populations, both in the US and elsewhere. Those undemocratic moves toward "free markets" have themselves ended in disaster, or so she argues. She manages to link the "shock doctrine" of post-Soviet reform with War on Terror torture (shock... get it?) and lay it all at the hands of... Milton Friedman. She does so, based on Friedman's 1962 quote that goes as follows:

"Only a crisis produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around."

That would seem to be pretty obvious and neutral as written. It also seems to be historically true, though not in the way that Klein thinks. As Tyler and others have noted, the real story of crises in the last 150 years is more like the one our co-blogger Bob Higgs tells in Crisis and Leviathan: when crises occur, it is the state that gains power, rather than some sort of free market utopia emerging. Klein offers numerous examples where she believes that crises have led to "free market" reforms, which in turn have led to disaster. One of those examples is Hurricane Katrina.

Actually knowing quite a bit about this one, the argument is laughable. It was government failure that created the conditions for the flooding of New Orleans, it was government failure (FEMA and others) in this case that turned flooding into a crisis, and it continues to be government at all levels that is the largest roadblock to recovery. (The work of the Mercatus Center's Katrina Project is worth reading. Disclosure: I have a forthcoming study as part of that project.) Moreover, the one organization that was most effective in getting resources to stem the immediate human crisis after the flooding as well as contributing to the longer-run recovery is the favorite whipping boy of Naomi Klein-types everywhere: Wal-Mart. Markets did more to help New Orleans and the Gulf Coast than to create a disaster. Yes, classical liberals offered policy proposals for post-Katrina New Orleans that involved things like school vouchers and other long-standing ideas that we think would improve the lives of people there. But folks on the left dragged out their favorite policy proposals as well. Why does Klein point to just one side as trying to "force" their ideas through in a crisis (as if any of those ideas went through anyway)?

If I could interview Klein, I would ask her two questions:

1. You say that crises are opportunities for free market ideologues to force their preferred policies through in violation of democratic processes. However, in the gravest crisis of the 20th century, the Great Depression, it was government that grew enormously, and the free market was restricted, in ways never before seen in the US. And many of those programs remain with us today, even though the crisis of the Great Depression has long passed. One could make the same argument about several other smaller crises in US history. How do you reconcile the main thesis of your book with the historical evidence that government has grown and markets have been made less free in almost every crisis of the 20th century? Moreover, wasn't FDR's attempt to pack the court and his signing legislation that was later found to be unconstitutional evidence that he tried to force policies on the country by subverting the democratic process?

2. In the aftermath of the biggest crisis in the US of the 21st century (9/11), government spending has grown enormously, government regulations have expanded, and civil liberties are threatened. Each of these are results that people like Milton Friedman and many other classical liberal free market economists not only oppose, but oppose precisely because they are antithetical to the very free market reforms they would like to make. Many on the left, and some free-market libertarians, thus refer to the Bush administration as "fascist." How do you reconcile the left's claim that Bush Administration has engaged in a fascist expansion of government power hitherto unseen in US history with the claim that crises lead to undemocratic free market reforms? Those would seem to be utterly at odds with each other. If Bush really is a fascist, then he really doesn't believe in free markets, and those free market reformers who criticize the Bush-driven growth in government surely haven't seen their ideas win out in this crisis. What gives? It certainly seems like crises produce a lot more government and a lot less free market reform.

Of course, I'm not sure I could be that civil to someone who blames Milton Friedman for waterboarding.

Monday, March 31, 2008 - 07:57
Comments
share

On CNN.com we find this story reporting that 6% of Brits surveyed admitted to pulling out their own teeth with pliers self-treatment because they could not get care through the NHS.

And for the understatement of the day award, I nominate:

Sharon Grant, chair of the Commission for Patient and Public Involvement in Health, which commissioned the survey, said: "These findings indicate that the NHS dental system is letting many patients down very badly.

Where the state promises care and can't deliver, people will, literally in this case, take matters into their own hands. Like the Canadian women who are being told to go to the US to give birth because Canada's vaunted single-payer system has no beds or insufficient equipment or facilities, the inability to find NHS dentists demonstrates that if prices don't ration care, something else will. And those with the fewest resources and least access to power are likely to suffer the most.

Promises of "free care for all" are wrong about all three terms: "free", "care" and "all."

Update: As Mark points out in the comments, I didn't represent the results quite accurately. The 6% figure was general"DIY dentistry" not the subset of that group who admitted to pulling out their teeth with pliers. Even so, I think the overarching point remains.
Monday, March 31, 2008 - 07:57
Comments
share
One of the pervasive economic myths of our time is that the rich are getting richer and the poor are getting poorer, especially the second half. Like all myths, it has a kernel of truth to it - if you do a comparative statics of the percentage of income going to each of the income quintiles, most data do suggest that the rich have a higher percentage than they used to, and the poor a lesser percentage. However, the comparative statics ignores the issue of mobility: the people who comprise the quintiles change from year to year. If we really wanted to know if the rich were getting richer and the poor poorer, we should ask two different questions:

1. What are the odds that a poor household in year X is no longer poor in year X+Y? That is, how likely is it that people can move up (or down!) the income ladder? It could turn out that the gains of the top 20% reflect more poor folks moving up the ladder and that the losses of the bottom 20% reflect an influx of lower-skilled immigrants during the time period being analyzed.

2. What do poor people have in their houses? If those who are poor in year X+Y are far more likely to have, for example, basic consumer goods, than were the poor in years before, we can probably dismiss the claim that the poor are getting poorer.

Well the data support answers to both questions that would suggest that the poor are indeed not getting poorer.

For the first question, a variety of data sets support the conclusion that the poor are likely to move up income quintiles over time. Data from the Panel Study of Income Dynamics at the University of Michigan confirm that result from 1976 to 1991 and a study to be released today by the Treasury Department provides evidence for 1996 to 2005. The chart below shows the absolute income gains/losses of each quintile. In fact, the poor got richer faster than the rich did and the very rich got poorer! Note too that the average gain in median real income was 24% over the period, with the average among the lower to middle quintiles being well above that. So much for the "stagnant wages" hypothesis. In addition, as the WSJ's summary notes, "One of the notable, and reassuring, findings is that nearly 58% of filers who were in the poorest income group in 1996 had moved into a higher income category by 2005. Nearly 25% jumped into the middle or upper-middle income groups, and 5.3% made it all the way to the highest quintile." It will be interesting to read the full report and see all of the results with more nuance. Still, the basic conclusions run in the face of the "rich are getting richer and poor are getting poorer" myth that is out there.

 

 

 

 

 

 

 

 





As for the second question, I reprint a table that I've used in a variety of lectures the last few years. This data compares the percentage of households with various consumer goods in them. Note that the first three columns show the lowest income quintile over an 18 year period, while the last column shows ALL US households in 1971. Two things are clear: the poor have continued to live better and better over that 18 year span and poor Americans in 2002 lived better, by this measure, than the average American did 30 years earlier. So much for the idea that this generation is not doing better than its parents. And, of course, this table does not account for all of the new products that even the poorest Americans have today that no one had 30 years ago, e.g. cell phones.

% Households with:Poor 1984Poor  1994Poor 2002All 1971
Washing machine58.271.780.071.3
Clothes dryer35.650.277.144.5
Dishwasher13.619.658.118.8
Refrigerator95.897.999.283.3
Freezer29.228.630.832.2
Stove95.297.798.387.0
Microwave12.560.093.21.0
Color TV70.392.598.243.3
VCR3.459.786.90.0
Personal computer2.97.459.30.0
Telephone71.076.793.0
Air conditioner42.549.631.8
One or more cars64.171.885.779.5

Lest you think these are frivolous consumer trinkets, consider the health benefits of air-conditioning, the way in which having one or more car makes employment easier, or the ways in which washers and dryers promote cleanliness and good health, or the ways in which cell phones can safe a life and, along with computers, enable us to have access to information and contact with friends around the world.

I know that there are libertarians out there who will criticize this argument on the grounds that I'm making it seem like life is pretty good under the status quo, which runs in the face of the view among some libertarians that the US is on the precipice of a moral and/or economic collapse. I certainly agree that in a more libertarian world, these trends would be even more dramatic (think of the impact on the incomes of the poor if we could reform the educational system along market lines, get rid of minimum wage and licensing laws that restrict employment opportunities, and end the economic and human destruction the War on Some Drugs has caused to poor neighborhoods). But that doesn't mean that the powerful forces of the market don't operate, if only in the form of a somewhat palsied invisible hand, in our own mixed economy. If even a hampered market economy can produce opportunity and rising real incomes for the poor, imagine what an unhampered one could do!

Monday, March 31, 2008 - 07:57
Comments
share

Over at Cliopatria, Timothy Burke complains that Jonah Goldberg's forthcoming new book abuses the word "fascism" in describing modern US liberals as heirs of the fascist tradition of the earlier 20th century. Putting aside whether Goldberg is right or wrong for the moment (though having seen a draft of one chapter on the economics of fascism, I thought his argument was good enough to require a serious response from the left, rather than the comparisons to Ann Coulter it is drawing in Matt Yglesias's comments), I think it's probably a good thing for those on the left to have to deal with what they perceive to be misleading or inaccurate terminology about their beliefs that is damaging.

After all, libertarians have been dealing with everything from Pinochet to Halliburton described by leftists as "the free market," when neither authoritarianism nor corporatism are what libertarians stand for (the latter is closer to fascism, Italian style, in my view). And let's not forget Naomi Klein's book The Shock Doctrine in which Milton Friedman and capitalism more generally are linked to torture and the intentional destruction of communities for political purposes. Then there's Michael Moore blaming the "free market" for the problems with US health care, an industry in which almost half of the expenditures are made by government. The left has practically made a movement out of blaming every social outcome they don't like on "capitalism" or "the free market" (regardless of the actual institutions and policies in place) and/or calling everything that conservatives or libertarians do that they don't like "fascism." It's hard to drum up a ton of sympathy when the current victims have been guilty of the same sorts of sins.

So now that the worm has turned, and a conservative is seen to be abusing the language in describing the views of the left, perhaps folks on the left will be more circumspect in their own use of language when talking about the positions held by conservatives and libertarians, or in labeling the institutions of the very mixed economy as being "free market" or "capitalist." At the very least, I hope they are more empathetic to libertarians when we complain about such abuses.

Cross-posted at The Austrian Economists

Monday, March 31, 2008 - 07:57
Comments
share

My RSS reader this morning brought me this post from Marginal Revolution, which contains a spectacular close-up picture of a snowflake, taken from a book of such pictures. As I hope it does for you, just looking at that photo brought me up short and made me stop in awe, reverence, and wonder. The intricacy, detail, complexity, and sheer beauty of that product of nature cannot be captured in words. And when you stop to consider the uncountable number of snowflakes that fall each year (most of them on my driveway it would seem), all of that awe is upped an order of magnitude.

When I see that snowflake, it engages my reverence for the beauty of the undesigned order of the natural world. Look at the symmetry and detail of that snowflake, and then consider that is the product of undesigned natural processes. I find it an object of awe that natural processes can produce a thing of such detail, complexity and beauty. It is said that only God can make a snowflake. Well for those who understand the science, or who are atheists, we know that you don't need God to do so. But even to an atheist like myself, the spontaneous order of nature can (and should!) generate the same awe, reverence, and wonder that the contemplation of God generates in those who believe. Unfortunately, whenever my wonder at the beauty of nature is engaged, it is with a tinge of frustration.The frustration I feel is that so many smart and caring people seem unable to see and appreciate the identical processes of undesigned order in the social world. "Social snowflakes" are all around us, yet precious few seem to be able to understand and appreciate them to the degree we do the snowflakes found in nature. And too many people think that these "social snowflakes" require a "Creator."

That snowflake produces in me the same aesthetic-emotional reaction I have when I begin to think about Leonard Read's "I, Pencil," or when I ponder the intricate, detailed, complex, and beautiful processes by which Chilean grapes appear in my grocery store in rural New York in the middle of winter. The pencil and the grapes are "social snowflakes": they look simple, but when we hold them still and examine them with the analogous level of detail as that photo produces in the snowflake, they turn out to be the products of extraordinarily complex and intricate social processes that were designed by no one. My aesthetic reaction of awe and wonder is a response to what Pete Boettke, in a perfect turn of phrase, recently referred to as "the mystery of the mundane." What is more mundane than a snowflake? And yet what, it turns out, is more beautiful and complex than a snowflake? And in the way their mundane surface appearances hide processes of production whose awesome complexity was the product of human action but not human design, and should equally be a source of aesthetic and intellectual contemplation, the pencil and grapes are indeed "social snowflakes."

My fervent wish for the 21st century is that more smart and caring people can begin to see and appreciate "social snowflakes." People who are so willing to accept the existence and beauty (and benevolence!) of undesigned order in the natural world should be more willing to open themselves to the possibility that there are processes of undesigned order at work in the social world too. These people know that no one can make a snowflake, but seem blind to the fact that much of the innocent blood that was spilled in the last century was because too many people thought they could intelligently design the social world. Not repeating those mistakes will require a renewed aesthetic appreciation of, and deep desire to understand, the awesome beauty and complexity of the undesigned order of "social snowflakes."

Monday, March 31, 2008 - 07:57
Comments
share
This morning I want to offer the first entry in what I hope will also be a regular "feature" of my blogging here.  I'm going to call this series of posts the "Gilead Watch" in honor of Margaret Atwood's The Handmaid's Tale

For those who haven't read it, the book is a work of feminist science fiction that depicts a future US in which the religious right has created a theocracy (The Republic of Gilead) in which women have, in essence, become state property. Those who are able to conceive and bear children are put to work as "handmaids" of elite couples, there only to be a uterus and justified by biblical injunction.  Other women are assigned to very specific roles within the household, and the whole society has restricted sexual freedom and civil liberties in a variety of ways.  The book is in the tradition of other dystopian "warnings," rather than a prediction of how things might go.  Written in the mid-80s, her perspective is understandable with the rise of religious conservatives during the Reagan years.

During the current administration, with its own deep connections to religious conservatives (who in their most radical form certainly have theocratic ambitions), a number of proposals, policies, and actual legislation have appeared that resonate with the world of Gilead in Atwood's novel.  I keep seeing these echoes in various places and have wanted to call attention to them on a regular basis, and this inaugural post is my first attempt to systematically do so. 

Let me also put my cards on the table, as I know some readers of L&P are less critical of (if not downright sympathetic to) the religious right, and perhaps the Bush administration, than I am:  I have absolutely NO sympathy for religious conservatives and I think building strategic alliances with them is a huge mistake for libertarians to make.  Yes, mainstream religious conservatives are hardly the Christian Nationalists of the Gary North sort, but I fail to see the "libertarian streak" in them that others do.  I find them to be as antithetical to liberty as any other group left or right, if not more so in the ways that many would restrict non-economic freedoms, which are often harder to "work around" than economic ones and in their support for the warfare state.  And as a Jew, albeit an atheist one, I find talk of the US as a "Christian nation" to be downright bone-chilling, even if it is couched in terms that don't explicitly suggest it is the state's role to "Christianize" anyone. 

That said, not all the items in my "Gilead Watch" will involve the religious right, although one of my two today does.  The first is a Salon piece by Michelle Goldberg (viewing of a brief ad required to access) documenting the most radical of the religious right activists - the Christian Nationalists.  I think the connections to Gilead speak for themselves.  The second is a blog entry by Bitch PhD.  She reports on some new federal guidelines that "ask all females capable of conceiving a baby to treat themselves -- and to be treated by the health care system -- as pre-pregnant."  This is more or less the way in which the Handmaids were treated in Gilead:  everything they did was done so that they had the maximum chance for conception and a successful pregnancy.  Now no one is suggesting that women be coerced into reproductive service, but as Bitch points out:

The federal government thinks all "females"--that's what we are, ladies, biological specimens, not people. Not women. All females who are "capable of conceiving a baby"--not becoming pregnant, "conceiving a baby"--are to treat themselves, and be treated, as "pre-pregnant." The federal government. From pubescence through menopause. Throughout highschool, college, and most of one's career.

With such guidelines in place, how much of a step is it from "guidelines" to "requirements?"  Like the novel, here's another warning.  And I happen to love her demand the women get better information about the real risks of things like drinking during pregnancy so that they can make their own choices, rather than simply being told "don't do it."  Bitch has her own libertarian streak in her at times as well.

UPDATE: Things may not be as bad as first thought. See Bitch's post clarifying what was in the CDC report and what was coming from the Washington Post's coverage of it.

More "Gilead Watch" to follow, I'm quite certain.

Monday, March 31, 2008 - 07:57
Comments
share

A week or so ago, I started a series of posts about the ways in which life for average Americans continues to get better, at least economically. Today's entry concerns, actually, the lives of the poorest Americans. This piece from The Christian Science Monitor/MSNBC provides some data on the consumer items owned by the poorest of Americans.

Two-thirds of those in poverty had air conditioners in 1998, up from 50% in 1992. Personal computers have grown increasingly ubiquitous. Where fewer than 20% of homes had them in 1992, nearly 60% did in 2002 (more than own dishwashers).

Still, by almost all measures, the data show rising well-being for all of society. And while the wealth gap may not be narrowing, the rich-poor gap in lifestyles has narrowed substantially since 1992 when measured in many of these tangible items.

 Census survey: percentage of items owned
Item19922002Item19922002
Refrigerator98.7%99.2%Dryer68.5%77.1%
Stove98.0%98.3%Stereo system57.3%72.55
Color TV94.7%98.2%Computer18.6%59.3%
Auto, truck, van85.1%85.7%Dishwasher48.7%58.1%
Microwave76.8%93.2%Garbage disposal37.3%47.0%
VCR68.1%86.9%Freezer32.8%30.8%
Washer75.0%80.0%
Source: Bureau of Labor Statistics, Consumer Expenditure Survey Interview Data, 1992 and 2002; Rich Clabaugh, Christian Science Monitor

See the original piece for more data.

If, at the end of the day, how we "rank" the desirability of a society can be proxied by how well its poorest members are doing, then the US is doing pretty well, and continues to do better. Whatever noise is made about widening income and wealth gaps (which may or may not be what they appear to be), we are doing well by our poorest citizens.

A large hat tip to Will Wilkinson and I commend his discussion of the wealth-happiness angle in the original story.


Monday, March 31, 2008 - 07:57
Comments
share

Now that grades are in, time to catch up on my reading and blogging.  

I just received the new Cambridge Companion to Hayek edited by Ed Feser, and including contributions from a number of luminaries in the Hayek literature.  So far, the collection is a generally excellent introduction to Hayek’s thought.  I am, however, in the mood to pick on one point in Ed’s introduction to the volume.  

In the context of discussing how Hayek insists we must learn to live in “two worlds at once,” and that this means we can never completely overcome the lack of common purpose and deeper community that characterizes the anonymous Great Society, Ed rightly points out that there are still ways in Hayek’s framework to capture elements of that intimacy.  He writes:

Hayek’s promotion of a mild Burkean moralism and religiosity would seem to be his way of taking the bite out of this unhappy situation, as far as that is possible;  a stolid bourgeois allegiance to what is left in the modern world of the traditional family and the church or synagogue would seem in his view to be all we have left to keep us warm in the chilly atmosphere of liberal individualism and market dynamism (emphasis mine).

My question is what work the adjective in the italicized phrase is doing.

Why does Ed feel the need to modify his, in my view, correct discussion of the importance of the family with the word "traditional?" As I encourage my students to do, my first question is "which traditional family?" Does he mean the family form that was the most common throughout human history, namely sets of male-female dyads joined in roving bands of what we would now call "extended family?" Does he mean arranged marriages, especially those arranged for economic gain, political power, or social status, which were the "traditional" family up until the last two centuries or so? (And, of course, all of this is in the West. If we're talking "traditional family" world-wide, that's a whole other issue.) Or does he mean the family based around a marital dyad that has come together based on romantic love? If so, that's only 200 years of "tradition" out of thousands of years of human history. Or does he mean the conjugal nuclear family of the 1950s variety, romanticized in song and story. If so, that's hardly "traditional" as it represented a unique conjunction of social forces that lasted for about 15 years at best.

Bottom line, "traditional" seems to be a classic Hayekian "weasel word" here, whose meaning is unclear but whose purpose is to juxtapose whatever is meant against some unnamed "non-traditional" family.

There is one element that all of those "traditional" families did have in common, however. That, of course, was that the marital dyads that comprised them were dyads of one man and one woman. So it's possible that "traditional" is a code word here for "male-female" and that the real contrast is with same-sex or single-parent families (although even the latter were more common historically than normally recognized, mostly due to the death of women in childbirth or men at work). If so, why doesn't Ed just come out and say it?

The problem, I would argue, is that if the family is, from a Hayekian perspective, rightly seen as a refuge of love, intimacy, and communal feeling against the anonymity and abstract rules of the Great Society, then one would have to argue that these "non-traditional" family forms lack that love etc.. There are better and worse arguments against same-sex and single-parent families, and this would go in the "worse" category. I'm not saying Ed is making this argument, only that if I'm right about what he means by "traditional," his argument implies it.

What bothers me here is the confusion of family form and family function. Ed quite rightly points out that the family has a set of important and possibly irreplaceable functions to perform in Hayek's picture of the social order. But he then slides over into suggesting that only certain family forms can do so. There's a missing step in that argument, namely that only certain family forms can perform those functions adequately. That missing step is, for me, quite the open question, and the use of "traditional family" in the context of discussing the functions families perform is way of not confronting the question of whether or not a multiplicity of family forms are capable of doing so. The language of "traditional family" obscures much more than it illuminates.

I would argue that for Hayekians this conflation of function and form is highly problematic. Hayek's entire social theory is built upon the idea that social institutions have certain functions to perform and that those institutional forms evolve in response to changes in the kinds of functions they need to perform and to changes in other social, economic, and political institutions. To reify one form above all of the others without asking the empirical questions about functionality is to both deny the power of Hayekian evolutionary processes and their ability to discover new institutional forms and to close our eyes to history and empirical social science. That, I would argue, goes against the very core of Hayek's work.

Monday, March 31, 2008 - 07:57
Comments
share

Four jobs I’ve had
1. library clerk
2. replacement window telephone salesperson (don't shoot me)
3. bookkeeper
4. college professor

Four movies I can watch over and over
1. Close Encounters of the Third Kind (no other movie so engages my sense of wonder)
2. Moonstruck
3. Touch of Evil
4. Life of Brian

Four places I’ve lived
1. New York
2. Ann Arbor, Michigan
3. Virginia
4. Oak Park, Michigan

Four TV shows I love
1. Star Trek:  The Next Generation
2. The Simpsons
3. Seinfeld
4. The Twilight Zone (original)

Four highly regarded and recommended TV shows I haven’t seen (much of)
1. Battlestar Galactica
2. Sopranos
3. Lost
4. Curb Your Enthusiasm

Four places I’ve vacationed
1. Marco Island, FL
2. Lake Tahoe
3. London
4. Cannes

Four of my favorite dishes (only 4?!)
1. Any sort of fish chowder
2. Buffalo wings, medium-hot
3. Linguine with shrimp in a really good arrabiata sauce
4. Beignets and hot chocolate from Cafe du Monde

Four sites I visit daily
1. Cafe Hayek
2. Division of Labour
3. Bitch PhD
4. DeanDad

Four places I’d rather be right now
1. At a blackjack table in Vegas, up several hundred dollars
2. In my season tickets seats at center ice in Joe Louis Arena
3. At my university's property on upper Saranac Lake on a cool, clear summer evening
4. At a Rush concert in a very small venue with 200 of my closest friends

Four new bloggers I’m tagging
1. Chris Sciabarra
2. Rob at Big Monkey
3. Glen Whitman
4. David Youngberg

Monday, March 31, 2008 - 07:57
Comments
share

In my relentless attempts at self-promotion, I'm happy to announce that my policy study for the Mercatus Center on the role of the private sector (and the Coast Guard) during Hurricane Katrina, focusing on Wal-Mart, is now available on the web. This study is part of Mercatus' larger project on Katrina, all of which is well worth perusing. Here's the link and the executive summary:

"Making Hurricane Response More Effective: Lessons from the Private Sector and the Coast Guard During Katrina"

Many assume that the only viable option for emergency response and recovery from a natural disaster is one that is centrally directed. However, highlighted by the poor response from the federal government and the comparatively effective response from private retailers and the Coast Guard after Hurricane Katrina, this assumption seems to be faulty. Big box retailers such as Wal-Mart were extraordinarily successful in providing help to damaged communities in the days, weeks, and months after the storm. This Policy Comment provides a framework for understanding why private retailers and the Coast Guard mounted an effective response in the Gulf Coast region. Using this framework provides four clear policy recommendations:

1.Give the private sector as much freedom as possible to provide resources for relief and recovery efforts and ensure that its role is officially recognized as part of disaster protocols.

2. Decentralize government relief to local governments and non-governmental organizations and provide that relief in the form of cash or broadly defined vouchers.

3. Move the Coast Guard and Federal Emergency Management Agency (FEMA) out of the Department of Homeland Security (DHS).

4. Reform "Good Samaritan" laws so that private-sector actors are clearly protected when they make good faith efforts to help.

If disaster situations are to be better handled in the future, it is important that institutions are in place so that actors have the appropriate knowledge to act and incentives to behave in ways that benefit others. The framework and recommendations provided in this paper help to provide a good understanding of the appropriate institutions.

Crossposted at The Austrian Economists.

Monday, March 31, 2008 - 07:57
Comments
share

Actually, Mark, I thought this piece by Michael Neumann at Counterpunch was much better.  Having attenuated free speech in our own societies in the name of protecting people from being offended, we are hardly in a position to be outraged by the Muslim response to the cartoons.   Hoisted on our own petard, as they say.  Key paragraphs:

I cannot say whether the official Western culture of piety, enthusiastically promoted worldwide, played a role in the reaction to the cartoons. I do know that Western piety has left the West without a leg to stand on in this dispute. It is no good trumpeting rights of free expression, because these rights are now supposed to have nebulous but severe limitations. From the moment Western countries started criminalising topless posters in locker rooms, hate speech, emotional abuse and many other sins of impurity, free expression was at the mercy of Western piety. It cannot be invoked against piety of another sort.

The point here is not that the West is hypocritical. Maybe it is; maybe it is just inconsistent: who cares? Hypocrisy is among the most harmless of sins; indeed that it has become such a fetish is one more indication of a culture of piety. The point is rather than the West has put ideological weapons in the hands of those it now wants to repel, and thrown away the weapons that might have proved useful in such an effort. The most basic notions of the rule of law -- that you should not be punished for what you cannot help, like the feelings you have, that no one should be expected to obey laws so vague that the criteria of obedience are mysterious -- were thrown away years ago. They cannot be picked out of the trashcan and held up as shiny Western ideals just because it is now convenient to do so.

Monday, March 31, 2008 - 07:57
Comments
share

In my email this afternoon, I received the Association of American Colleges and Universities' new statement on "Academic Freedom and Educational Responsibility." It's not short, but I'd be curious to see folks' reaction to it around these parts. Over the years, I've been a skeptic of conservative claims of deep bias in the academy (or, alternately, I've been a defender of what I see as some "best practices" in pedagogy, as I think "political correctness" is just bad teaching) and the AAC&U is certainly a left-leaning organization. I'm happy to say I think this statement is largely excellent, and would be interested in others' takes on it.

I like a good deal of what the AAC&U does (I'll be at their national meeting in DC in three weeks), particularly with respect to the importance of liberal education and the need to take more seriously student learning and the centrality of good undergraduate instruction. The program I administer here (our First-Year Program) is certainly built around the values of liberal education that this statement outlines, and in my work with faculty colleagues and students in my courses, I'd like to think I'm on the same page as this statement in claiming that what we care first and foremost about is developing our students' capacity to engage in informed "judgment" among competing claims to the truth. If that is one of our primary learning goals, then making good judgments (and offering arguments and evidence for them) must, as the document argues, involve understanding a variety of competing perspectives on any issue. If you can't counter the other side(s), you aren't learning what a liberally educated person should learn. That is why intellectual diversity is important - because our students will learn more and learn better (which is to say, we will be better teachers) if they are exposed to competing perspectives on issues.

As the document also rightly argues, the decision about what counts as a legitimate perspective in the debate (e.g., "intelligent design" is not science) ultimately rests in the hands of trained faculty in the context of their disciplines, as does the decision about how much diversity there is to be in any given course. What the document does not address at all are the concerns about hiring processes. If intellectual diversity is important to liberal education, then how can you ensure that faculty or programs are able to provide a range of perspectives for students if faculty hire people who are intellectually or politically just like themselves? The document seems to imply that institutions that are committed to the goals AAC&U articulates here should be paying attention to intellectual diversity in the hiring process. After all, how well can an Economics department full of neoclassical economists really teach other perspectives (e.g. Austrian or Institutionalist, much less, say, Marxist)? And how well can a Sociology department full of Marxists or Foucauldians really teach students diverse views (and the differences between Marx and Foucault do not count) of sociological phenomena, like poverty? Too often, I see colleagues make a pass at intellectual diversity by assigning a reading critical of the framework they oppose and claim that's sufficient to expose the student to it. I don't think so. Even with the emphasis on the value of intellectual diversity, the AAC&U document, not surprisingly, says nothing about the role of the hiring process in limiting such diversity, or about ways it could be changed to increase such diversity. This is unfortunate I think.

In any case, comments are open for reaction, especially from those of you involved with NAS and other critics of the academy.

Monday, March 31, 2008 - 07:57
Comments
share
Just finished watching Obama's response to the Rev. Wright controversy. He gave a very good talk, both in terms of content and in terms of him trying to extract himself politically from the situation. The text can be found here (at least for the time being).

The one comment I'd make off the top of my head is that his rhetorical strategy of invoking, in a positive way, the Founders and the Constitution and suggesting that their general vision was right even though it was corrupted by slavery, will lead some to (rightly I think) compare this talk to King's Letter from Birmingham Jail. King's use of Biblical imagery as well as references to the Founders gave that document much of its rhetorical power by calling whites to account by their own value systems.

To be clear, I'm not saying that it is the equivalent of King's Letter, just that this rhetorical element may bring forward those comparisons.

Obama's explicit comparisons between the anger of Wright's generation and how it plays out in African-American churches and the anger of white Americans about ongoing economic change (which Obama has misdiagnosed, but that's another story) or perceptions of reverse discrimination seem to come from a similar sort of place: I understand why you are angry and you need to understand why we are angry and, by your own ideals, you should want to recognize the source of our anger and join in addressing it.

In any case, the speech will continue to get talked about and we'll see if my prediction about comparisons to King's Letter hold up.

Tuesday, March 18, 2008 - 11:49
Comments
share
From today's Detroit Free Press comes this story of a 13 year old boy (with Asperger's no less) who had to endure humiliating and manipulative interrogation by suburban Detroit cops in response to utterly false claims that his father had sexually abused his 14 year old sister, who is autistic.

Here's an excerpt from the story:

For nearly an hour, Detective Joseph Brousseau had grilled the boy about accusations that he and his autistic sister had been sexually molested by their father.

No, the boy insisted, he'd seen nothing to support the detective's lurid suspicions. Three times, he offered to take a lie detector test.

But Brousseau hammered away, challenging the boy's honesty, his manliness, his loyalty to his disabled sister.

Again and again, the detective told the boy his body language betrayed the burden of a terrible secret.

"What if I told you that one of those videotapes confiscated from your parents' house had you in it?" the detective asked suddenly.

The 13-year-old straightened."Was it me doing something sexually?"

"I don't think I'd be bringing it up if it wasn't," Brousseau answered."That's what I'm trying to tell you -- it's going to come out."

If it were merely what it purported to be -- the disclosure of a deviant father's treachery -- the videotaped exchange would be excruciating enough to watch.

But the truth is a good deal uglier than that.

Charges have been dropped. In fact, prosecutors now concede, much of what Brousseau told the boy during his Dec. 4 interrogation was a fabrication.

There were no videotapes depicting the boy in sexual situations with his father or sister. There was no new crime lab evidence confirming his sister's allegations, despite Brousseau's repeated assertions to the contrary.


and let's not forget this part:

The father had spent 80 days in jail without bond on three counts of first-degree sexual assault. His wife, whom prosecutors had charged with abetting her husband's alleged crimes, had been confined by an electronic tether, and their children had been dispatched to separate foster homes.


So a 14 year old girl who cannot speak is manipulated into providing graphic claims about sexual abuse which were enough to jail the father and tether the mother and send the kids to separate foster homes, and then a 13 year old boy is psychologically abused by cops trying to save the evidence-less case.

The police are the good guys, right? The government is here to help us, right?

This is just a toxic brew of paranoia about sexual abuse lurking behind every closed door, out of control and publicity hunting prosecutors (see Mike Nifong), power-hungry cops, and public schools that all-too-quickly seem to be willing to turn every moment of childhood angst into evidence of parental abuse.

It is stories like this that activate my strongest anarchist inclinations: why would we want to give ANY power to the state when its agents are willing to destroy the lives of a family, including 2 children with psychological problems, over a non-existent case? Stories like this also suggest how important it is to set the bar as high as possible in our current world if one believes that the state does have a responsibility to protect innocent children from abusive parents. We better be a lot more certain than THIS before we start busting families apart to save the children.

It's the state we need to be saving them from.
Sunday, March 16, 2008 - 13:58
Comments
share

In threerecentposts, I offered some thoughts about the parallels among environmentalism, religion, and authoritarianism. I want to continue that line of discussion for a moment with a weather report. It's been a very snowy winter here in Canton, over 100 inches actually, which is 50% above our average of about 66. Ottawa to our north has had over 400cm, or 157 inches. We are both nearing our snowiest winters ever. It has been cold, though none of those -30F nights that we usually have a couple of each winter. Still, it's been a "real" winter like we haven't seen for years up here. Thus it's tempting to make all kinds of snarky remarks about global warming. But I'm not going to do that because I'm always quick to criticize people who use every heat wave or warm summer to make claims about a phenomenon whose reality is a matter of decades or centuries, not weeks or years. However, this winter does raise another point that I will get to below.

First, I'll admit that I'm a global warming agnostic. I'm pretty convinced that the planet has become warmer in the last couple of decades (although recent controversies about measuring equipment and whether the warming is more localized keep me skeptical). I'm less convinced that the cause of the warming is human activity. I can't dismiss the possibility, but I'm not as convinced as fellow libertarian Ron Bailey. Here too, recent arguments about solar activity keep me skeptical. Finally, even if global warming is real and human-caused, that says nothing about whether it's: a) something we can do anything about; b) if so, what we should do about it; and c) whether any proposed solutions create more costs to humanity than benefits. It's a long way from a warming world to getting rid of the internal combustion engine. Whatever the reality of the science, the policy solutions will also require some social scientific thinking.

What is troubling me today though, and here's the connection with religion, is the change in the rhetoric by those who believe global warming is real, human-caused, and that it requires a major change in the way we live. For fun, start a discussion with such a person about the current snowy, cold winter and do make the joke about how it is evidence against global warming. My bet is that their reaction will be something like this: "Oh no, it's evidence in favor. You see it's not about 'warming' per se; it's about 'global climate change.' Thus the fact that some areas are having cold, snowy winters is something that 'global warming' would predict, just as it predicts more and stronger hurricanes and all other kind of things. We should expect a more varied climate."

One smaller observation about this line of argument is that it seems to fit the more general "fear of change" that we see among many on the left and right about all other kinds of issues, mostly economic. The earth's climate has "changed" for billions of years, long before humans walked it. Why would we expect it to stop changing because we're here (and as if "we" as human animals aren't part of the earth's ecology anyway)? And how much hubris does it take for us to think we can stop such change? George Carlin got this right years ago.

We've also seen the human costs of a similar hubris in 20th century "socialism." Why would we expect this to be any different?

But that's not the big problem here. The big problem with the "climate change" hypothesis is a very simple issue of the philosophy of science: is the hypothesis of global climate change/warming falsifiable? A much better question to ask your environmentalist friends is this one:

"What climatological or meteorological evidence would convince you that your belief in global warming is wrong?" (Of course they have the same right to ask this of skeptics - what evidence would convince you that the world is, in fact, warming?)

I've tried this and the reaction varies from indignation at having to answer it, to lots of hemming and hawing about possible answers, to serious and thoughtful replies. The point, however, is that those who assert the truth of the hypothesis of global warming have a scientific obligation to have a legitimate answer to that question. If they do not, or if they reject the idea that they must, they are ruling themselves out of the science business and into the religion business. Global warming becomes the equivalent of "it was God's will." The hypothesis that event X was "God's will" is unfalsifiable and is thus purely a matter of faith. Of course, in our best Seinfeldian voice, we might say "not that there's anything wrong with that." Indeed, faith and religious belief are fine, but they aren't science. (Note to my philosophically-inclined readers: I'm not advocating a full-bore Popperian philosophy of science here. I do, however, believe that falsifiability is a necessary condition for a statement to be considered a scientific hypothesis.)

If those who believe that the earth is warming and that humans are the cause want the claim to Science rather than Faith, they had best be prepared to show that their hypothesis (and, like everything else in science, it remains a hypothesis subject to being rejected) is falsifiable and what the evidence would be that would falsify it. When an increased frequency of cold and snowy winters is claimed to be evidence in favor of the hypothesis of global warming, the set of observations that could falsify it seems to shrink dramatically. And my agnosticism and skepticism expand accordingly.

Monday, March 10, 2008 - 10:47
Comments
share
The January/February 2008 issue of The Freeman is now available online.  I have an article therein entitled "Free-Market Money:  A Key to Peace," (PDF) based on this blog post.  I argue that the classical liberal concern with keeping money production out of the hands of the state was, and is, a means by which its anti-imperialism could be effected.  Without recourse to the printing press, the State is that much less likely to be able to afford foreign aggression.  In fact, most central banks have grown out of the need for surreptitious forms of revenue, especially for war. The free bankers and the peaceniks need to get together and see their common ground:  if one believes in peace and opposes the warfare-imperialist state, one needs to consider seriously the arguments against central banking.  The beast needs to be starved.

One of the great things about having the time to blog this year (thank you SLU for your generous sabbatical/leave policy) is that it really can be a platform for first drafts of other things, or just a space to organize your thoughts in a less than fully formal way.  The transformation of a blog post into a Freeman piece is precisely why blogging is, or at least can be, really productive for a scholar.

Cross-posted at The Austrian Economists.
Monday, February 25, 2008 - 18:24
Comments
share
"It seems to me therefore clearly not desirable that generally higher education or research should be regarded as legitimate purposes of corporation expenditure, because this would not only vest powers over cultural decisions in men selected for capacities in an entirely different field, but would also establish a principle which, if generally applied, would enormously enhance the actual powers of corporations."

Answer below the fold.

As if the long sentence wasn't a giveaway, it's that famous corporate shill F. A. Hayek in"The Corporation in a Democratic Society" in Studies in Philosophy, Politics, and Economics, U of Chicago, 1967, p. 305.

Saturday, February 23, 2008 - 12:15
Comments