Free Markets and Morality—PART II

PART I of this series explained how capitalistic economic/political systems are morally superior to the non-capitalist/collectivist economic/political systems the Pope advocated in the apostolic exhortation,  EVANGELII GAUDIUM, and how capitalistic systems provide greater incentives for participants in such markets to be moral compared to more collectivist economic/political systems.

In this PART II, let’s put the Pope’s economic proposals (which are perhaps more extreme than the proposals of prior popes, but are nevertheless generally simpatico with Catholic tradition) into a historical context and compare and contrast how well the poor have fared in those systems the economic/political systems that have grown out of other religious traditions. The differences are important, significant, and stark.

Over the last millennia, countries with Judeo-Christian heritage have achieved greater economic progress for their citizens, especially the poor and middle-income people, than have non-Judeo-Christian countries. (In percentage terms the poor in both China and India have recently improved more, but the standard of living of the poor in those countries remains far below the standards of living of Judeo-Christian heritage countries.) Those better economic results were largely achieved because of a greater adherence to free market capitalism by Judeo-Christian countries.  With a long history of robust data, the correlation between greater capitalism and better economic results has proven to be very high. It is also true that significantly better economic performance and moral outcomes have been achieved by some Judeo-Christian countries than others. Let’s sort out the salient differences and the differential results in these countries.

AUTHOR’S NOTES: By no means am I suggesting that northern European people are innately better than any other people. I am saying, however, some economic/political ideas are better than others, and that over the last millennia, the northern Europeans’ ideas have proven to be better than others in advancing human living standards— especially for the poor. In earlier times, other people had better ideas than their peers and, consequently, rose above their peers. For example, the ideals of Catholic Holy Roman Empire achieved the best results until a better set of ideals came along. Many other empires rose before that because of better ideas. Hopefully, in the future, a different set of people will develop economic/political ideals that are superior to those of the northern Europeans and will eclipse what the current ideals. 

It must also be noted that the northern Europeans also came up with some of the worst ideas ever (e.g., nazism, socialism and communism) that inevitably led to the killing of over 200 million people. Moreover, northern Europeans and their colonies were slow to implement its good ideas (they just happened to be faster than most, if not all, other peoples). That they imposed their anti-slavery ideology on most of the rest of the world is of mixed morality.

What Pope Francis said in the EVANGELII GAUDIUM is generally consistent with views of previous popes, i.e., the poor should be helped by alms and the rich are to either give “enough” to the poor or else be guilted and/or condemned to eternal damnation if they do not.[i] Catholics also opposed (1) the state getting involved in dispensing alms to the poor, and (2) anyone judging whether a poor person deserves alms. A rich person’s chances of salvation were improved by charitable giving to the poor—regardless of how “deserving” the recipient of the charity is. For many centuries, that Catholic economic ideology has been more widely accepted and fostered in southern European countries and the countries in the Americas colonized by those southern European countries.

By contrast, the economic ideology concerning helping the poor and dealing with the rich that was widely accepted and fostered by the mostly Protestant northern European countries and their colonies in the Americas is very different from Catholic ideology. An important feature of the ideology is known as the “Protestant work ethic.”[ii] Very roughly speaking and omitting much,[iii] Protestants more generally considered the honest rich to be praiseworthy for both creating a wealthier and advanced world, and for their honoring a duty to be charitable. Protestants were more likely to support state involvement in giving alms to the poor, with the proviso that alms be given only to the “deserving poor.” Begging was prohibited. Protestants disagreed with Catholics “placing a halo” over the heads of the poor (the poor were to be helped, not judged, and the path to salvation was in the giving without regard to why the recipient was poor, i.e., why a person was poor was irrelevant). Consider these quotes:

“Luther’s theological understandings of the priesthood of all believers and of Christian freedom helped redefine poverty, toppling it from its pedestal of theological virtue. The theological redefining of poverty, accompanied by a widespread contempt of begging, created are [sic] invigorated need to discern those “deserving” of relief from those who were “undeserving.”  This shift is demonstrated in the common chest ordinances of sixteenth-century German-speaking Protestant cities. The common chest was Luther’s alternative to the Catholic system of poor relief, a system that relied on indiscriminate dispersal of alms by the wealthy.”[iv] “By giving poverty its “halo,” Protestants argued that the Church was systematically preserving poverty.”[v] (Note how similar this charge is to charges made against leftists today.[vi]

Note also how today’s leftists have expanded the halo so that it will go around the heads of everyone who is not part of the supposed white male power structure.

Let’s set aside the question of which of the two ideologies concerning the treatment of the rich and the poor is theologically superior. (Let’s also not deny that capitalism did and does spawn great evil—as every other ism does). Rather, focus on the differences in economic standards of living of the poor (which was the focus of the Pope’s exhortation) that are achieved by the two ideologies. (Is this ideology the only relevant distinction between nations with Catholic and Protestant heritages? No. Is it a very significant distinction with respect to the disparate improvements in the standards of living of the poor? Yes.)

The clear results from a very robust “natural experiment” over hundreds of years has conclusively proven that the Protestant ideology is far superior to the Catholic ideology at (1) achieving improved standards of living for the poor, (2) being the source of vastly more charitable contributions to the poor at home and around the world, and (3) being the source of the vast majority of the medical and other technological improvements that the poor people today enjoy that earlier generations of poor people did not. As Danial Hannan so poignantly and vividly described in “Inventing Freedom: How the English-Speaking Peoples Made the Modern World,” the assertions above are clear from a comparison of the results of the northern European/American countries with the results of the Southern European/American countries to behold the dramatic differences in outcomes. In particular, that natural experiment dramatically proved which approach was better at improving the material well-being of the poor. For example, the poor in northern countries suffer when their economies experience depressions and depressions, but that is nothing in comparison to the plight of the poor in they collectivist countries collapse—not an uncommon occurrence.

Perhaps as important, it was primarily ideas that sprung up in Scotland and England that resulted in almost universal worldwide abhorrence to slavery—something that had been commonplace throughout prior history. While Pope Paul III condemned the enslavement of indigenous peoples by in 1537,[vii] it was the English, after they accumulated sufficient wealth and power to suppress slavery, who bore most of the cost of strangling the transatlantic slave trade (with much of that effort being against transporters from and to Catholic countries).[viii]

By essentially all economic and moral measures, the Catholic approach that the Pope urged on all nations as a means of helping the poor has been less successful in freeing slaves and raising the standards of living of the poor than the one he decries.

I have no doubt that that Pope Francis was well-meaning when he issued the EVANGELII GAUDIUM. Having grown up in a Catholic country with Catholic schools, he was, no doubt, taught that what he believes about economics is sound and his exhortation would lead to a better life for both the rich and the poor. History, economics, and logic, however, suggest he is economic/political beliefs will result in more evil than good.


[i] Some have called this ideology a “guilt ethic” in contrast with the “work ethic.” I find that label to be too glib and harsh. It strikes me, however, that there is some merit to the claim that Catholics are more likely to promise eternal damnation and to guilt rich people for not giving to poorer people while Protestants are more likely to praise the goodness of those who so give. None of this, however, is to say that all of the differences in prosperity between the north and the south are attributable to this one element.

[ii] See “The Protestant Ethic and the Spirit of Capitalism.”

[iii] These issues are so vigorously debated among scholars with very different takes on what happened that only rough approximations are possible. It is doubtful that any two knowledgeable people would agree with each other in extensive detail. Some proof of this can be found in the fact that there are many sects of each of the two strains of Christianity.

[iv] See “The Deserving Poor: The Reimagining of Poverty in Reformation Theology and Poor Relief

[v] Id. Footnote 25

[vi] See “What Democrats Really Care About.” Also not that Democrats are much more apt to extend this “halos” over a near limitless list of “oppressed,” “excluded,” “marginalized,” “disenfranchised,” . . . people.

[vii] See “Catholic Church and slavery.”

[viii] See “The Abolition Project,” particularly “Suppressing the trade.”

Free Markets and Morality—PART I

A primary “progressives’”[i] pastime appears to be seeking, finding, and pointing out ways in which free markets and the participants therein, especially those who succeed, are immoral. I was reminded of this fact last week when Freakonomics served up a rebroadcast of a 2013 podcast [ii] that followed Pope Francis’s apostolic exhortation “EVANGELII GAUDIUM.” That rebroadcast was timely because this controversial Pope[iii] created yet another controversy last month by implying that atheists could go to heaven.[iv] In the Evangelii Gaudium, the Pope said, among other things, “. . .  today we also have to say “thou shalt not” to an economy of exclusion[v] and inequality. Such an economy kills. . .. Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless. . ..” Because capitalism cannot achieve paradise, truthful factoids of capitalism’s shortcomings abound. The Pope’s language, however, is nothing more than a typical inaccurate and hyperbolic promotion of collectivism via a denunciation of capitalism. However, to highlight and exaggerate capitalism’s weaknesses and ignore its strengths is both a distortion of its worth and uncharitable.[vi] This line of thinking also reflects a profound lack of understanding of the human condition, human nature, and economics;[vii] ignores counter-evidence, and is founded on myths.[viii] (Whether the Pope is falling for myths about inequality or exploiting his flock’s belief in these myths for political ends is something I will leave for the Pope and God to sort out among themselves.)

The Pope purports to understand economics. For example, he says,

“. . . some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naïve trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system.” I’ve addressed what is wrong with his statement about “trickle down” before.[ix]

That the Pope fails to see the vastly greater amount of “greater justice and inclusiveness in the world” that relatively free-market countries have caused around the globe compared to any other economic system reveals blindness of the light of capitalism. Unlike the Pope is doing here, Jesus urged his followers to count their blessings rather than their tribulations.

The Pope also appears to believe any system that results in significantly unequal incomes is unjust. According to that logic, it would be unjust not to award As to everyone regardless of how much the student studied for the exam or the student chose not to answer any of the test questions. More than being faulty logic, it ignores the greater unjustness of the inequality of power among the participants in more collectivist economic systems he would substitute for the capitalist systems he decries. By wanting to redistribute wealth, the Pope makes clear that he believes wealth is good for people to have. He makes a positive passing reference to the vastly improved standards of living of those who live in the improved world that is brought about by free markets, “We can only praise the steps being taken to improve people’s welfare in areas such as health care, education and communications.” [x] However, he assigns little significance to it. (Talk about ungratefulness!)

Finally, he is wrong to say that advocates of free markets “expresses a crude and naïve trust in the goodness of those wielding economic power. . . .” Advocates of free markets fully understand that people who “wield power” (a misnomer)[xi] in free markets are often bad people. Because the case for free markets does not depend on the benevolence or goodness of anyone,[xii] the naivete or sophistication of free-market advocates concerning the goodness of market participants is irrelevant in deciding what economic system best serves humans.

With the Pope’s premises about free markets being false, the Pope’s message concerning economic policy based on those premises leads to his wrong judgments about the morality of free-market capitalism. Let’s sort out some of how the Pope’s judgments concerning the morality of free markets reveal that the Pope is especially fallible concerning economics.

Let’s start with a fundamental proposition. The essence of free market capitalism[xiii] (a pure form of which has never existed countrywide and likely never will[xiv]) is one party simultaneously, voluntarily, and freely trading something it owns for something another party owns. Such a trade only occurs when each party prefers what it will receive by the trade over what it must giving up to make the trade. Trading makes each party better off (“wealthier”). Consider a simple example: Party A has ten apples, and Party B has ten oranges. For most people, a diet of all apples or all oranges is less enjoyable than a diet of some apples and some oranges. Free markets best facilitate mutually beneficial exchanges for the benefit of all involved.[xv] Hence, free markets facilitate wealth creation.

In no way is the above described fundamental feature of free markets immoral or “dog eat dog.” Exchanges can, of course, produce ancillary negative effects. It is not, however, the free market that creates the evil acts the pontiff laid at the feet of free markets. It is the sins of participants in free markets that create the ancillary evils. Such sins include greed,[xvi] misrepresentation, breaches of promises, the insufficient respect for or enforcement of the law, individual or governmental incompetence, government favoritism (corruption) that advantages one party over others,[xvii] and activities that create more negative than positive effects on third parties (“externalities”), e.g., pollution. Those things are immoral.[xviii] But those things are human fallibilities that are present in all economic/political systems. To blame the system for the sins of the participants is illogical, unjust, and misguides the flock. To create false hope that sins would be less prevalent under some other system without solid proof for that proposition is itself sinful.

However, it’s worse than even that. The economic/political system the Pope proposes is a more collectivist than free market capitalism. Collectivist systems have consistently produced far more immorality and far worse earthly results for the unfortunate average income and poor people who find themselves in those systems. (Venezuela is a dramatic recent example.)[xix] During the 20th century, Communist/Socialist/collectivist governments intentionally killed a minimum of 85-100 million non-combatants. Communist/Socialist/collectivist governments unintentionally killed or enslaved countless more. The deaths of combatants in wars between and against collectivist countries adds mightily to the totals. Free market systems have produced nothing close to comparable. On the contrary.[xx]

The Pope is doing God’s work when he focuses on how poorly humans behave in free market economic/political systems, and to shine a light on sinners and how they should mend their ways. The Pope is doing the work of the devil when he speaks without regard to the facts that compared to any other system known to man free markets restrain human fallibilities and sins and reward human morality. Conversely, other systems, especially the one the Pope promotes, consistently become tyrannical, which results in far more human suffering. To condemn something because it falls short of his standards (paradise?) when his proposed alternative will cause humans to fall even farther from paradise is damnable.

The Pope speaks of the immorality of income inequality, but his focus has less to do with the excess of wealth of some than the lack of wealth of the poor. Of course, there would be less income inequality if everyone were poor, but the Pope’s homily ignores how much less wealth humans will produce as incomes are forced to be more equal. It appears that he incorrectly assumes that it is possible for humans to have their cake (have a system that improves the standards of living of everyone, especially the poor) and eat it too (eliminate the engine that creates motivation to create the desired improvements and the wealth to develop and deliver those improvements).[xxi] He appears oblivious to the fact that the primary source of wealth is free market exchanges (which inevitably create income inequality).[xxii] As I explained in “Wealth,” “Wealth cannot solve all human problems—not by a long shot. It would be hard, however, to find a cause or a pursuit of knowledge that would not benefit from more money behind it.”

The Pope will slow the amazing recent worldwide drop in extreme poverty by[xxiii] throttling the creation of wealth. As Joseph Kaboski put it in the Freakonomics podcast cited above, “. . . we’ve never seen an example of any country that has escaped extreme poverty because of foreign aid or NGOs [wealth redistribution]. . . . More people have escaped extreme poverty in the past 25 years in part through the growth of China and India than in any period of human history. And all of these miracle countries — “miracle” in the economic sense, China, South Korea, Taiwan, Hong Kong, Singapore, Chile down in Latin America — they’ve all grown through, high levels of trade, market economies. And that’s important.”[xxiv]

Income inequality can and often does create societal problems. Reasonable cases can be made for some wealth redistribution to mitigate some of those problems. The Pope’s attempt at such a case, however, was thin on substance and sound economics and heavy on guilting the rich and fomenting disgruntlement by the poor without offering a realistic and beneficial alternative to free market capitalism. The Pope led his flock astray by omitting any clue as to how to prevent redistribution from inflicting infernal harm on the poor and slow wealth creation for the benefit of all humans.[xxv] Instead of showing a way to the truth, the way, and the light, the Pope clears a path for the tyrannical wolves who inevitably control collectivist economic/political governments.

Also absent from the Pope’s homily is an acknowledgment of the power of free markets to elicit moral behavior. Diedre McCloskey’s 600+ page tomb, “The Bourgeois Virtues: Ethics for an Age of Commerce,” explains how in free markets the virtues of Faith, Hope, Love, Justice, Courage, Temperance, and Prudence are advantageous to entrepreneurs. Because they are advantageous, free markets incentivize entrepreneurs to hold and exhibit those virtues to attract and keep customers and employees. Entrepreneurs primarily focus on her fellow man’s needs and desires, and to produce the things that will fulfill those needs and desires at a lower price than their competitors. To succeed in such endeavors requires faith, hope, and treating customers, suppliers, partners, and employees fairly (so those people will want to continue working with the business person in the future) and it takes courage, temperance, and prudence succeed in serving one’s fellow man.

Unlike dogs who might eat each other, successful business people understand that they cannot become exclusively focused on gaining the most advantage out of every transaction. Winning individual games is far less advantageous to a business person than winning what Jordan Peterson calls “the game of games”[xxvi] or “The Game of Life.”[xxvii] The gist is of this idea is that science has discovered that if a mammal wins every game, no one will want to play with that mammal for very long and word spreads about bad sports. Consequently, the optimal strategy for an individual is to play games in a way that causes other individuals to want to play with him. Consequently, to be successful business people (the people who the Pope alleges have too much power) cannot overplay their so-called “power.” They must play the game of business so that customers will want to continue to “play” with them over time.

Of course, there are businesspeople in free markets who succeed despite being unfair or cutting corners, but they are not the norm and are less likely to succeed. Those people, however, are the norm and are more likely to succeed in many other systems—especailly the one the Pope advocates. Free markets are far from perfect solutions, [xxviii] but they are far better at fostering virtues (morality) than any other known economic/political system.[xxix]

They know that having a good reputation as to honesty, trustworthiness, fairness, and caring about customers is essential to success. The best way to gain and retain that reputation is to be honest, trustworthy, fair and care about customer’s wants and needs and to serve those wants and needs better and/or at a price lower than their competitors. If that is not pure morality, it is probably as close to it as a vast number of humans are likely to get. Free market systems reward that. Because collectivist systems do not reward those virtues nearly as well, the people are far less likely to be virtuous. Absent a virtuous cycle, all but the very powerful remain poor and do fewer good works.

 


[i] I put “progressives” in quotes to register my quarrel with people whose policies cause our political system to progress toward to something akin to the divine right of kings (tyrants). See “The Road to Serfdom.”

[ii] See “Pontiff-icating on the Free-Market System: A New Freakonomics Radio Podcast.”

[iii] See “5 times Holy Father caused major controversies with his comments.”

[iv] See “POPE FRANCIS HUGS, COMFORTS LITTLE BOY WHO ASKED IF HIS ATHEIST DAD WAS IN HEAVEN

[v] The word “exclusion” as the Pope is using it suggests that the economic system bars people from participating in it. An explanation as to why that is in no way is that true will have to await a future blog.

[vi] There has never been or ever will be an economy in which people do not get killed. So to say capitalist economies kill is shallow pontification. Even if one felt compelled to point out that people get killed by capitalist economies, to be fair and charitable, one should also account for the lives save, improved, and extended by capitalist societies. Compare the lifesaving and life-improving drugs and medical procedures that have been invented, developed, produced, and delivered to people around the world by more capitalist economies to those of less capitalist economies, and more capitalist societies come out a runaway winner. The vastly larger number of people intentionally or incompetently killed in collectivist political/economic systems compared to capitalist political/economic systems and the Pope’s pontification becomes ludicrous when it comes to morality.

The idea that people are excluded or are “marginalized” by capitalist economies is ludicrous as well, but a discussion of that must await a future blog post.

The phrase “dog eat dog” gratuitously maligns free market capitalism, but if misleads. (Do you feel eaten when you go to the grocery store and trade your dollars for your daily bread?) The Pope, however, appears oblivious to the fact that the alternative to “dog eat dog” capitalism is not the garden of Eden. History teaches us that collectivist economies are “monster eats citizens” or “citizens eat zoo animals” by comparison.

[vii] See Jordan Peterson: Warren Buffett and Wealth” and “Income Inequality Is More Than It’s Cracked Up To Be.”

[viii] See “5 Inequality Myths” and “Is Capitalism Moral?

[ix] See “Trickle Down.”

[x] Pope Francis, EVANGELII GAUDIUM” at 52.

[xi] Unless a business gains special favors from government (e.g., get the government to force people to buy their products), businesses can only offer to sell their goods or services, they are powerless to force anyone to buy anything. The “power” to which people like the Pope refer comes from the desire of the buyer to obtain what she wants. It is not the seller’s fault that the value of the item on offer is higher than she can afford or prefers to pay.

Consequently, businesspeople do not have the power to force anyone to do anything unless the customer does not live up to her end of the deal or the government says the businessperson can force something. That is government power at work—not business power. Government power is even more pervasive in more collectivist economies.

[xii]It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Adam Smith.

[xiii] See “Milton Friedman: The Essence of Capitalism.”

[xiv] A genuinely free market would not be regulated by a government other than with respect to the enforcement of contracts, and private companies would issue money.

[xv] Note that less free markets diminish the benefits of trade. For example, consider what would happen if party A would rather have ten oranges than ten apples, and party B would prefer ten apples to ten oranges, and a government proposes a 10% exchange tax. After an exchange between the parties, each party would wind up with only nine pieces of fruit. Consequently, the probability the wealth-creating trade will happen diminishes, i.e., the likelihood of wealth being created diminishes. (That loss associated with taxes is mitigated to the extent the tax is efficiently deployed to serve a public good. Sadly, however, in this process government inefficiency, waste, and corruption ensures a net loss of wealth in total.)

[xvi] Which may or may not be what you think it is. See “Greed.”

[xvii] For example, tariffs. See “Tariffs Transfer Wealth From the Poor To The Rich.”

[xviii] This overstates the case with respect to some circumstances. For example, almost all trades create wealth for the parties involved. The creation of wealth is a good thing that in theory helps every human in the world to a small degree individually, but potentially to a large degree collectively. In other words, essentially all trades create positive extermalies. Some trades create negative externalities. In many cases people who incure negative externalities can obtain compensation from the parties to the deal, in other cases they cannot. Moreover, positive externalities generally inure to the benefit of everyone, while negative externatities are often more localized. So even in cases where sume of the positive externalities are much greater than the sum of the negative externalities, some people can suffer net losses while other enjoy net gains. In short, while the statement I made is useful to understanding, it is not universally accurate.

[xix] See “Venezuela’s Starving People Are Now Eating The Zoo Animals – The Parisians Had The German Excuse.”

[xx] See “If Goods Don’t Cross Borders…

[xxi] See “More On Two Paths for America.”

[xxii] See “Why a Very Few Have SOO Much – Prof. Jordan Peterson Explains Pareto Distribution.”

sup>[xxiii] See “‘How To End Poverty in 15 years’ Hans Rosling – BBC News,” “Hans Rosling’s 200 Countries, 200 Years, 4 Minutes – The Joy of Stats – BBC Four” and “Dead Wrong® with Johan Norberg – Causes of Poverty Reduction.”

[xxiv] See “Pontiff-icating on the Free-Market System: A New Freakonomics Radio Podcast.”

[xxv See “Welfare programs that do more harm than good.”

[xxvi] See “Jordan Peterson Rats and Morality.”

[xxvii] See “The Game of Life.”

[xxviii]  As if there were such a thing as solutions. See “Solutions.”

[xxix] For a summary of these thoughts see “Bourgeois Virtues?,” also by Diedre McCloskey.

The Benefits of Work to the Worker—A Timeless Issue

As I mentioned in The Luminous and the Shady, Victor Hugo’s “Les Misérables” contains many timeless insights. The passage from “Les Misérables” quoted below came to mind as I was listening to a recent EconTalk interview of Edward Glaeser, a Harvard economics professor, titled, “Edward Glaeser on Joblessness and the War on Work” in which two economists discuss aspects of the value of work.

My earlier post highlighted Victor Hugo’s insight as to the unhelpfulness of the distinction between “the fortunate and the unfortunate.” Here I juxtapose another Victor Hugo insight about the benefits of work to the worker with an excerpt from the above-mentioned podcast.

Economists often focus on the benefits to society of people working. In “Wealth” I posited a moral argument for work that was simpatico with the typical economist perspective. [i] The podcast interviewer, Russ Roberts (See AUTHOR’s NOTE below) says some things simpatico with that perspective. This post presents a perhaps more important perspective on the subject—the non-monetary, non- moral benefits to the worker—which is the perspective of Hugo and Glaeser.

The point made by Glaeser in the quote below is a modern-day, science-based perspective that is noticeably different from, but simpatico with Victor Hugo’s point in the first passage quoted below. In short, while economist typically focus on the importance to an economy that people wanting jobs and that people who want jobs finding jobs, Glaeser claims that the lives of people who have jobs are, on average, better on many very important dimensions than the lives of people who do not have jobs. For example, Glaeser says, “So, if we look at life satisfaction, happiness, we look at divorce, we look at opioid use, we look at disabilities of a variety of different forms, they are found disproportionately–wildly disproportionately–among the ranks of the jobless.”  Hugo highlights the poisonous fruits of idleness in a very different but extremely powerful way. I hope you enjoy the contrast, and the similarities of the perspectives of Hugo and Glaeser, and appreciate their importance.

🙛

AUTHOR’S NOTE: If you are not aware of EconTalk podcasts, you are missing out on something consistently enlightening and entertaining. It is a weekly talk show hosted by Russ Roberts (a professor, economist, author, poet, rap video producer, and scholar) that “features one-on-one discussions with an eclectic mix of authors, professors, Nobel Laureates, entrepreneurs, leaders of charities and businesses, and people on the street. The emphases are on using topical books and the news to illustrate economic principles.”

I strongly urge you to give EconTalk a try. To get a good sense of the show, I recommend that you start with this podcast: Munger on John Locke, Prices, and Hurricane Sandy. Though it was recorded 2012, the ideas discussed in this podcast are timeless and apply to what occurred during and after Hurricane Harvey. (Sadly, the economic illiteracy that induces government officials to act in ways that make matters worse during disasters has changed little since that podcast.)

🙛

An excerpt from Les Misérables, Volume IV – Book Fourth. Chapter II. Mother Plutarque finds no Difficulty in explaining a Phenomenon, Pg. 93:

THE SET UP: While on an evening stroll down a deserted road, aged and slow Jean Valjean was attacked from behind by Montparnasse, a young, agile and strong gang member with an intent to rob. An instant later Valjean had the thug pinned to the ground. Valjean kept Montparnasse pinned until he quit struggling and appeared to be dead. Then Valjean stood up and said:

“Get up.”

Montparnasse rose, but the goodman held him fast. Montparnasse’s attitude was the humiliated and furious attitude of the wolf who has been caught by a sheep. . . .

The goodman [Jean Valjean] questioned, Montparnasse replied.

“How old are you?”

“Nineteen.”

“You are strong and healthy. Why do you not work?”

“It bores me.”

“What is your trade?”

“An idler.”

“Speak seriously. Can anything be done for you? What would you like to be?”

“A thief.”

A pause ensued. The old man seemed absorbed in profound thought. He stood motionless, and did not relax his hold on Montparnasse.

Every moment the vigorous and agile young ruffian indulged in the twitchings of a wild beast caught in a snare. He gave a jerk, tried a crook of the knee, twisted his limbs desperately, and made efforts to escape.

The old man did not appear to notice it, and held both his arms with one hand, with the sovereign indifference of absolute force.

The old man’s reverie lasted for some time, then, looking steadily at Montparnasse, he addressed to him in a gentle voice, in the midst of the darkness where they stood, a solemn harangue, of which Gavroche did not lose a single syllable:—

“My child, you are entering, through indolence, on one of the most laborious of lives. Ah! You declare yourself to be an idler! prepare to toil. There is a certain formidable machine, have you seen it? It is the rolling-mill. You must be on your guard against it, it is crafty and ferocious; if it catches hold of the skirt of your coat, you will be drawn in bodily. That machine is laziness. Stop while there is yet time, and save yourself! Otherwise, it is all over with you; in a short time you will be among the gearing. Once entangled, hope for nothing more. Toil, lazybones! there is no more repose for you! The iron hand of implacable toil has seized you. You do not wish to earn your living, to have a task, to fulfil a duty! It bores you to be like other men? Well! You will be different. Labor is the law; he who rejects it will find ennui his torment. You do not wish to be a workingman, you will be a slave. Toil lets go of you on one side only to grasp you again on the other. You do not desire to be its friend, you shall be its negro slave. Ah! You would have none of the honest weariness of men, you shall have the sweat of the damned. Where others sing, you will rattle in your throat. You will see afar off, from below, other men at work; it will seem to you that they are resting. The laborer, the harvester, the sailor, the blacksmith, will appear to you in glory like the blessed spirits in paradise. What radiance surrounds the forge! To guide the plough, to bind the sheaves, is joy. The bark at liberty in the wind, what delight! Do you, lazy idler, delve, drag on, roll, march! Drag your halter. You are a beast of burden in the team of hell! Ah! To do nothing is your object. Well, not a week, not a day, not an hour shall you have free from oppression. You will be able to lift nothing without anguish. Every minute that passes will make your muscles crack. What is a feather to others will be a rock to you. The simplest things will become steep acclivities. Life will become monstrous all about you. To go, to come, to breathe, will be just so many terrible labors. Your lungs will produce on you the effect of weighing a hundred pounds. Whether you shall walk here rather than there, will become a problem that must be solved. Any one who wants to go out simply gives his door a push, and there he is in the open air. If you wish to go out, you will be obliged to pierce your wall. What does every one who wants to step into the street do? He goes downstairs; you will tear up your sheets, little by little you will make of them a rope, then you will climb out of your window, and you will suspend yourself by that thread over an abyss, and it will be night, amid storm, rain, and the hurricane, and if the rope is too short, but one way of descending will remain to you, to fall. To drop hap-hazard into the gulf, from an unknown height, on what? On what is beneath, on the unknown. Or you will crawl up a chimney-flue, at the risk of burning; or you will creep through a sewer-pipe, at the risk of drowning; I do not speak of the holes that you will be obliged to mask, of the stones which you will have to take up and replace twenty times a day, of the plaster that you will have to hide in your straw pallet. A lock presents itself; the bourgeois has in his pocket a key made by a locksmith. If you wish to pass out, you will be condemned to execute a terrible work of art; you will take a large sou, you will cut it in two plates; with what tools? You will have to invent them. That is your business. Then you will hollow out the interior of these plates, taking great care of the outside, and you will make on the edges a thread, so that they can be adjusted one upon the other like a box and its cover. The top and bottom thus screwed together, nothing will be suspected. To the overseers it will be only a sou; to you it will be a box. What will you put in this box? A small bit of steel. A watch-spring, in which you will have cut teeth, and which will form a saw. With this saw, as long as a pin, and concealed in a sou, you will cut the bolt of the lock, you will sever bolts, the padlock of your chain, and the bar at your window, and the fetter on your leg. This masterpiece finished, this prodigy accomplished, all these miracles of art, address, skill, and patience executed, what will be your recompense if it becomes known that you are the author? The dungeon. There is your future. What precipices are idleness and pleasure! Do you know that to do nothing is a melancholy resolution? To live in idleness on the property of society! to be useless, that is to say, pernicious! This leads straight to the depth of wretchedness. Woe to the man who desires to be a parasite! He will become vermin! Ah! So it does not please you to work? Ah! You have but one thought, to drink well, to eat well, to sleep well. You will drink water, you will eat black bread, you will sleep on a plank with a fetter whose cold touch you will feel on your flesh all night long, riveted to your limbs. You will break those fetters, you will flee. That is well. You will crawl on your belly through the brushwood, and you will eat grass like the beasts of the forest. And you will be recaptured. And then you will pass years in a dungeon, riveted to a wall, groping for your jug that you may drink, gnawing at a horrible loaf of darkness which dogs would not touch, eating beans that the worms have eaten before you. You will be a wood-louse in a cellar. Ah! Have pity on yourself, you miserable young child, who were sucking at nurse less than twenty years ago, and who have, no doubt, a mother still alive! I conjure you, listen to me, I entreat you. You desire fine black cloth, varnished shoes, to have your hair curled and sweet-smelling oils on your locks, to please low women, to be handsome. You will be shaven clean, and you will wear a red blouse and wooden shoes. You want rings on your fingers, you will have an iron necklet on your neck. If you glance at a woman, you will receive a blow. And you will enter there at the age of twenty. And you will come out at fifty! You will enter young, rosy, fresh, with brilliant eyes, and all your white teeth, and your handsome, youthful hair; you will come out broken, bent, wrinkled, toothless, horrible, with white locks! Ah! my poor child, you are on the wrong road; idleness is counselling you badly; the hardest of all work is thieving. Believe me, do not undertake that painful profession of an idle man. It is not comfortable to become a rascal. It is less disagreeable to be an honest man. Now go, and ponder on what I have said to you. By the way, what did you want of me? My purse? Here it is.”

And the old man, releasing Montparnasse, put his purse in the latter’s hand; Montparnasse weighed it for a moment, after which he allowed it to slide gently into the back pocket of his coat, with the same mechanical precaution as though he had stolen it.

All this having been said and done, the goodman turned his back and tranquilly resumed his stroll.

🙛

An excerpt from “Edward Glaeser on Joblessness and the War on Work” with a different, modern take on the value of work to the worker (If you would rather listen to the conversation, click on the link above and go to the 60 minute mark):

Russ Roberts: We opened with–you raised the question early on about meaning in life. A lot of people are pushing for Universal Basic Income as a way to soften the blow of joblessness from technology, if it is coming, if it is as bad as it might appear to be, for some. Sounds like you’re not a big fan of that solution.

Edward Glaeser: A world in which 30%, 40% of America all lives on the dole? Is that a good world?

Russ Roberts: Well, they wouldn’t be living on the dole. They’d be living on the 70%. It’s important to–‘the dole’ always makes it sound like it’s coming from somewhere else. It’s coming from the 60-70% who are working.

Edward Glaeser: That’s right. For sure. For sure. But I think it’s not just an issue of–yes. I mean, I’m less focused on the fact that we would have to–assuming that you and I were still among the working–that we would have to pay for it than I am that it’s just–it’s a horror for the 30%. It’s not just that the 70% have to pay for it. I mean, you’re telling them their lives are not going to be ones of contribution; their lives aren’t going to be producing a product that anyone values? That they are just going to be taking a check from somewhere else? How in the world does that not lead to incredible social problems within the United States? How does that 30% not become, does not, bored, become incredibly resentful and hostile towards the 70% that write the checks? This is–I think this is a horror story that has been dreamed up. And it’s one that, you know, just not the slightest knowledge of what human beings value in their lives. The idea that happiness just involves getting a check seems crazy to me.

Russ Roberts: Yeah. I point out in an essay that if you teach your students that utility maximization is–that the essence of economics and the essence of life is maximizing utility subject to an income constraint, you might tend to overemphasize the material relative to the nonmaterial. We do tend, with our focus on utility maximization, income, GDP [Gross Domestic Product]–and I say this as an economist who often has written on the fact that utility can include non-monetary things, of course. But, we do tend to focus on the material. And, our policy advice overwhelmingly focuses on the material. So, I think you and I are in a minority in worrying about, as economists, worrying about whether a world where 30% or 40% of Americans are not working is, might be a not-so-healthy place.

Edward Glaeser: I think that’s right. But I think it’s not very hard once you get people thinking about this and once you get people looking at the data of what the lives of the jobless are, to move them in this area. When you tell your students–when you talk to your students about this–right? When you talk to your students about utility, and purpose in life, they don’t immediately push back and say, ‘Oh, no, the point of my life is to maximize cash.’ I’ve never once had an undergraduate who said that was the right answer. I think you’re right: Our profession has done some bad in terms of making it seem as if cash is the dominant thing in the world. It’s an important part of the world; but it’s certainly not the dominant–certainly not a wise goal for unique maximization.

Russ Roberts: Yeah. I worry that we’re different, you and me. You and I are different, in the following way. I don’t play the lottery. I’m not going to ask you the personal question whether you play the lottery, Ed. But I don’t play the lottery. But if I did play the lottery and I won, I think I’d still keep my job. I like my job. I like what I do; and I like–I like talking to Ed Glaeser, on a Monday morning. It’s a treat. So, I think I’d still do EconTalk if I were filthy rich. But maybe I’m different. A lot of people, at least think that they are playing the lottery so they can retire, and live a life of leisure. Certainly, Aldous Huxley in Brave New World, and others, other writers of fiction, have tried to deal with the fact that people maybe aren’t so eager to find meaning in their life. They are maybe happy to be on TV, or soma–the drug of Brave New World–or whatever it is that makes us forget, or makes us high, or whatever it is. What do you think?

Edward Glaeser: Uh, I don’t know. It seems like these people who, as we said, are living with some other person in their house; they’ve got, you know, it’s not that they are starving; their family income is $42,000, if they’re in the long-term jobless or over 60[?] in the short-term jobless; and yet, their self-reported life satisfaction is pretty low. Their suicide rates are pretty high. It’s hard to look at the data and be convinced that the Huxley vision was particularly sensible. Now, maybe–and I’ve heard this line from Silicon Valley–maybe we could restructure society in some kind of way that gives people ways to contribute to the world even when they’re not working and enables them to do so in ways that are more pleasant than their old jobs. I just have no faith that America will be able to pull that off. I have no faith in our–I mean, as an economist, I certainly, I believe that culture matters; but I certainly have no idea how to change culture. Whereas, if you are going to work every day, it’s not just that you are doing something that someone’s likely to be giving you positive feedback for, but you are also surrounded by your mates. You are surrounded by people around you who give you some sense of social connection, and that’s also part of why having a job really matters.

Just to make clear what I meant about utility maximization in the material world: In theory, most economic models that we teach our students, and that we use, assume that your satisfaction–your utility–is the same whether you earn your income or whether it’s a check from the government. And I agree with you 100%: I think that’s probably not true. And I don’t think we understand that very well, how it’s not true. And I think sociologists–I don’t know if they understand it pretty well, but that’s what they should–in theory, that’s what they should be doing; I don’t know if we should be doing it. But, we clearly don’t, I think, understand that difference; and I think we ought to think about it.

AUTHOR’S NOTE: Timeless!


[i] “For example, stay-at-home parents not only create human capital when they raise healthy and capable children (and human capital is the ultimate resource), they facilitate the production of wealth by the parent who works outside the home.”

The Luminous and the Shady

I hope that this blog is what it set out to be, “A place to seek clarity on timeless issues and issues of the day.” Over the last ten years or so I’ve read at least one “classic” novel every year. I’m constantly amazed at the insights great minds of the distant past had, how well they presented those insights, and how applicable those insights are to today’s world.[i]

I’m currently reading Victor Hugo’s “Les Misérables.” VOLUME IV, BOOK SEVENTH of the novel contains a passage that fits nicely among the messages I aim to convey.

Enjoy!

🙛

Let us have compassion on the chastised. Alas! Who are we ourselves? Who am I who now address you? Who are you who are listening to me? And are you very sure that we have done nothing before we were born? The earth is not devoid of resemblance to a jail. Who knows whether man is not a recaptured offender against divine justice? Look closely at life. It is so made, that everywhere we feel the sense of punishment.

Are you what is called a happy man? Well! you are sad every day.

Each day has its own great grief or its little care. Yesterday you were trembling for a health that is dear to you, to-day you fear for your own; to-morrow it will be anxiety about money, the day after to-morrow the diatribe of a slanderer, the day after that, the misfortune of some friend; then the prevailing weather, then something that has been broken or lost, then a pleasure with which your conscience and your vertebral column reproach you; again, the course of public affairs. This without reckoning in the pains of the heart.

And so it goes on. One cloud is dispelled, another forms.

There is hardly one day out of a hundred which is wholly joyous and sunny. And you belong to that small class who are happy!

As for the rest of mankind, stagnating night rests upon them.

Thoughtful minds make but little use of the phrase: the fortunate and the unfortunate. In this world, evidently the vestibule of another, there are no fortunate.

The real human division is this: the luminous and the shady.

To diminish the number of the shady, to augment the number of the luminous,–that is the object. That is why we cry:

Education! science! To teach reading, means to light the fire; every syllable spelled out sparkles.

However, he who says light does not, necessarily, say joy.

People suffer in the light; excess burns. The flame is the enemy of the wing. To burn without ceasing to fly,–therein lies the marvel of genius.

When you shall have learned to know, and to love, you will still suffer. The day is born in tears. The luminous weep, if only over those in darkness.


[i] For a modern stab at a snippet of the issues addressed by Hugo, see “Life is suffering, so get your act together!

Slowing the “School-to-Prison Pipeline”—At What Cost?

A Classic Case of Leftist Blindness to Tradeoffs Causing More Harm Than Good

Like essentially all claims about causes and effects with respect to societal phenomena (no matter who makes such claims), what follows cannot be proved or disproved with certitude. With humility, therefore, what follows is a case for the claim that the leftist policies adopted by Broward County officials several years before the February 14, 2018, Parkland, Florida, school shooting (the “Shooting”) were a major contributing factor in creating an environment that substantially increased the likelihood of a school shooting in the county.

As I have often said,[i] societal problems have no solutions—only tradeoffs. In light of this reality, it is irresponsible for policymakers not to rigorously and as objectively as possible (1) identify the foreseeable negative consequences of every proposed policy and (2) assess the probability that a proposed policy will achieve less good than hoped and that the negative consequences will be greater than anticipated. After having faithfully done that analysis, the policy should be adopted only if the risk-adjusted value of positive consequences substantially exceeds the risk-adjusted value of foreseeable negative consequences. The policy should not be adopted if the net positive results is not a substantial improvement because policymakers should recognize that their duty is to act on behalf of the public and that their personal interests are unavoidably in conflict with the best interests of the public.

Let’s sort out why that is true. When the public determines something is “not right” (e.g., a disproportionate percentage of disadvantaged students wind up in the “school-to-prison pipeline”), the public demands that policymakers “do something” to make it better. Sadly, the default assumption of a majority of the public is that government can “make it better.” Insufficient regard (if any regard at all) is given to the possibility that every remedy has negative side effects and that often the side effects are worse than the disease. Politicians can gain popularity, accolades, campaign contributions, and reelections by “doing something”—even if it is unclear whether that “something” will do more good than harm. Sadly, the situation is worse than that. Politicians can gain the benefits of “doing something” even if it is clearly foreseeable that what they propose will do more harm than good. Far too many of them act anyway because the potential benefits to themselves of doing something are large, and the potential costs to themselves of doing nothing are also large. Setting aside the prevalence of corruption (which is why many policies and laws are made), contrary to what politicians say, the real rationale for many of our policies is that having palm leaves laid before your feet by jubilant crowds is much more gratifying than being run out of town on a rail.

The Broward County government’s initiatives leading up to the Shooting present a vivid example of the kinds of problems created by policies that (1) are primarily informed by myopic, nearly exclusive attention to leftist priorities (in this case, lowering the number of students who enter the school-to-prison pipeline—a worthy goal in search of a workable “solution” that does more good than harm) and (2) pay insufficient attention to the knowable (much less the possibility of unforeseeable) negative consequences of the policies (i.e., the tradeoffs).[ii] By clinging to such myopic focus on the good they hoped to achieve, leftist policymakers became blinded to the harm their policies were likely to cause. In particular, this post sorts out why Broward’s policies are yet another tragic example of such leftist blindness leading to practices that do more harm than good.

BACKGROUND

Prior to 2011, government officials in some Florida counties were concerned that if they continued to enforce the duly adopted criminal laws, then they would continue to see a large number and a disproportionate percentage of non-white students being sent from schools to prison.[iii] (See Author’s Note.[iv]) This phenomenon was dubbed “the school-to-prison pipeline.” Dade County Public Schools officials, in cooperation with the Miami police and other officials, adopted a policy of not reporting certain crimes to the police. It is fair to say that Miami-Dade became a “sanctuary city” for high school criminals.

With their touted 60 percent[v] “reduction in juvenile delinquencies,”[vi] the sanctuary polices earned Miami-Dade officials kudos from the mainstream media, rights activists, and leftists in the general public. Sanctuary policies were a cause for boastingv by the school district and police. Perhaps more important to the government officials’ future prospects, the initiative signaled their fealty to one of President Obama’s major initiatives.[vii] In short, the government officials were benefiting from adopting the new policies irrespective of the net effects that such policies were creating. One effect was that fewer student criminals were being introduced into the criminal justice system.[viii] (As discussed below, this effect is both good and bad, a reality apparently lost on the policy’s makers.)

The government officials in Broward County, which at the time was ranked No. 1[ix] at “pipelining” students into the state’s juvenile justice system, were surely not only embarrassed by that No. 1 ranking but also were surely jealous of the kudos that Miami-Dade officials were receiving in the press and from the glitterati. So, Broward County officials jumped onto the bandwagon. According to NPR, [x] in 2013, “Under a new program adopted by the Broward County School District, non-violent misdemeanors—even those that involve alcohol, marijuana or drug paraphernalia—will now be handled by the schools instead of the police.”

Although the Broward County schools, police, and prosecutors appear to have implemented the policies earlier, in October 2016 the “Collaborative Agreement on School Discipline” was formally adopted by the school board and a long list of police departments, government agencies, and even a judge.

The ostensible concern for adopting the sanctuary policies was to improve the wellbeing of the kinds of students who had previously been dumped into the school-to-prison pipeline. Helping those students was certainly a noble aspiration. When it comes to helping students stay out of the school-to-prison pipeline, there are two basic approaches: (1) enable/cause students to become the kind of people who do not intentionally inflict harm on others or (2) lower the penalties on (or establish new “get out of jail free” cards for) students who intentionally inflict harm on others. President Obama’s “My Brother’s Keeper”[xi] program focused on helping kids get on the right path; i.e., the program used the first approach.[xii] However, President Obama’s “Executive Order — White House Initiative on Educational Excellence for African Americans” called on schools not to exercise “methods that result in disparate use of disciplinary tools,” and the Broward County policies were a manifestation of the second approach. (As discussed below, Obama’s My Brother’s Keeper program and his Executive Order undermine each other to some degree.)

When the Broward County program was adopted, the foreseeable and likely harm (up to and including people being wounded or killed by gunfire) that the policies would or might inflict on all students (including students who the new policies were ostensibly designed to help) was given short shrift or ignored altogether. Those tradeoffs were also (perhaps intentionally) obscured by public pronouncements attempting to justify the program. (I suspect that most officials were blind to the negative consequences of their actions; i.e., they were incompetent.) Those officials who were aware of but intentionally imposed those risks in an effort to improve their own standing in the leftist community or to shore up their self-esteem or reelection prospects—which was surely the case with respect to some—are truly damnable.

THE RISKS

Without active, persistent, and effective moral education (which is nearly the opposite of postmodern “moral” indoctrination[xiii]) and discipline in schools, morality and discipline will continue to decrease. Having good morals and acting civilly are essential for a good life.[xiv] Students who get little or poor moral instruction (or possibly instruction to be immoral) and discipline at home are disproportionately helped by effective moral instruction and discipline at school. Feelings of sorrow for children whose homes instill insufficient or poor moral instruction or discipline are a hallmark of good people. When, however,  those justifiable and noble feelings result in a person’s support for policies that reduce the likelihood of those children getting such instruction (and thereby limiting the possibility of their flourishing), those feelings make matters worse for the people who supporters believed the policies would help. Sadly, that is often, if not usually, the case.

One of the most important life lessons a child can be taught is how to be a person who exhibits good morals, self-discipline, and likeability[xv] (“good people” for short—regardless of what caused them to be good). The presence of moral and disciplined people in schools is especially important where the potency of peer pressure is at its maximum. Good people want to avoid inflicting harm on others. Hanging around people who provide positive examples is salutary. More important, hanging around people who either want to inflict harm on others or are sanguine to inflicting harm on others as long as the perpetrator benefits instill negative attitudes and behaviors in fellow students—especially in those who struggle to fit in. Consequently, a higher portion of “not good” people in a student body means that bad influences are more prevalent. If crime pays, even erstwhile good kids are tempted to turn bad.

That effectively disciplining bad behavior reduces bad behavior and that lack of discipline increases bad behavior are undisputable. When potential gains from crime are not sufficiently offset by general and effective moral disapprobation from the community and/or an appropriately high prospect of sufficient punishment, there will be more crime in schools. Absent sound moral instruction, members of the student community are less likely to know how to distinguish which moral beliefs should be shunned or encouraged. Worse, if policies are adopted that imply that crimes and other uncivil behaviors should be tolerated instead of met with deserving punishment or moral disapprobation, the wrong moral lessons are taught to all the students. These realities appear to have been discounted or ignored by the Broward County officials in adopting and implementing their policies.

It is not that policymakers were oblivious to all of the realities described above. At the time of the adoption of the new policies, Michaelle Valbrun-Pope, executive director of Student Support Initiatives for Broward County Public Schools, said, “We’re not compromising school safety. We’re really saving the lives of kids.”[xvi] This statement reveals that the executive director was aware of the arguments that making the campus more accommodating and profitable for criminals would cause overall school safety to decline. No objective and reasonable observer would doubt that if the negative consequences of crime are lowered or criminals are not removed from schools, then overall school safety will be compromised. It is also true that prisons are often both dangerous and the opposite of rehabiliatory and that keeping student criminals out of the prison system could save the lives of some student criminals. Moreover, to the extent that a criminal student’s school has programs that enable erstwhile criminal students to eschew criminality, those programs cannot be administered to former students in prison. So, an honest and accurate statement by the executive director would have been “We’re compromising school safety for most of the students, but we are very likely saving the lives of some students.” Rather than being honest, she offered up the doublespeak quoted above. Because the mainstream media is simpatico with such leftist goals, it lets leftist government officials get away with this kind of doublespeak.

On another occasion, the executive director said, “The first step was to determine what that bad number — 1,062 school-related arrests — actually meant. Mostly (in fact, in about 70 percent of cases), the behavior was a misdemeanor. These are lower-level, nonviolent offenses that nonetheless funneled scores of students into the justice system.”[xvii] This doublespeak, however, ignores the more important fact that all misdemeanors are both crimes and uncivil; i.e., toleration of them conveys bad influences on all the students. Worse, these crimes are often gateway crimes to felonies. More important, she obviously wanted her listeners to focus on the 70 percent number instead of the 30 percent of crimes that are violent misdemeanors (or perhaps felonies—she got away with being unclear on that point) and will go unpunished under the new policy.

One might be comforted by the fact that the policy only requires misdemeanors not be reported to the police. That comfort, however, would not be well founded: “The [school board, police, prosecutors, public defenders, and judicial system representatives] identified 12 misdemeanor offenses, including judgment-call charges, like disorderly conduct, and more concrete behavior, like vandalism and possession of marijuana.”[xviii] Belying what this pronouncement said, over time, school officials and others involved came to the conclusion that limiting the scope of the reporting exemptions just to nonviolent misdemeanors would result in an increase in the number of non-white, non-Asian students who would enter the school-to-prison pipeline. In short, felonies were eventually tolerated and not reported to the police.[xix]

Initially, with increased tolerance and increasingly aggressive non-reporting of criminal behavior, the statistical goals that the officials wanted were achieved. As a consequence, more criminals were roaming the schools, and—as should have been expected—the criminals tested the limits of the leniency. If the fun and gain of lawlessness is not sufficiently punished, then why quit? Why not test the limits? The number of crimes that were more serious than the listed misdemeanors escalated, yet school officials did not dare do anything that would cause their “favorable” statistics to “worsen.” To keep their reported crimes from escalating, tolerance begat a need for further tolerance of more serious offenses. For example, another Broward County school, Dillard High School, did essentially nothing after 14-year-old Mariah Green was violently beaten by a gang of girls (caught on this video). About the school’s handling of the beat down, a Broward school board member said that “more aggressive action should have been taken.”[xx] Of course, reporting the crime to the police was not in the best interest of the officials involved. So, despite the girl’s mother’s fruitless complaints to the administration on multiple occasions about the tolerated mistreatment of her daughter that culminated in the gang beating she suffered, the parents had to sue the district for relief. After quite a bit of searching, I could find no report of how that case was resolved. A reasonable assumption is that the school district, upon a condition of confidentiality, paid big bucks (funded by taxpayers whose children are bearing the brunt of the policies) so that the district could continue it’s flawed, self-serving agenda.

That the policies were self-serving and illogical was made clear by the rest of the Broward County school board member’s comment about the incident. Apparently, the school hallway beatdown was not reported because it was considered a mutual combat situation. (As if neither party to the fight started the fight! How convenient a “solution” to the potential reporting problem.) “‘If what we did was mutual combat, it obviously didn’t work,’ Osgood said. ‘So now we’re looking at it from a bullying perspective.’”[xxi] You see, students in a “good” society must endure beatings (and eventual shootings) in order to serve the goal of avoiding disproportionate incarceration (as if proportional incarceration is objectively appropriate despite the disproportionate level of criminality by different groups of students). On the other hand, “bullying” cannot be tolerated because so many leftists hate bullying (even though much bullying is neither violent nor illegal). Perversely, it serves the board members’ purposes to go easy on criminality but hard on bullying—so that is what they do. The key is that under their policies, bullying need not be reported to the police even if the bullying is also illegal.

Can anyone prove that the Shooting at the Marjory Stoneman Douglas High School was an ineluctable consequence of the Broward County policies discussed above? No. However, one should realize not only that mass indiscriminate shootings are on the rise in America but also that mass shootings in public places against unknown strangers have become a big deal since around 1960.[xxii] It is fair and reasonable to believe that tolerance of and leftist attitudes and excuses for immorality and criminality in schools coupled with vastly less traditional moral instruction and discipline are contributing factors as to why we are now experiencing more indiscriminate mass school shootings.

POSTSCRIPT

It should be noted that the decision not to follow the law was a clear usurpation of legislative powers not granted to any of the people involved in the adoption of the new policy. However, no other government body whose duty is to hold their fellow government bodies accountable took any effective action to prevent or reverse this unlawful usurpation of legislative power by non-legislators. In fact, some of the supposed watchdogs were in on the action. Why? The simple fact is that government officials get much more favorable press when they adopt leftist policies and poses. Worse, they get unmitigated grief and ridicule from the mainstream media if they do not toe the leftist line. Far too many politicians simply do not have the courage to do their jobs and risk being falsely labeled as racists or worse. They meekly let these Titanic policies sail on.

UPDATE May 23, 2018. Here is some sad confirmation of some of the things I said above:  “Schools’ culture of tolerance lets students like Nikolas Cruz slide.”


[i] For example, see “Solutions.” I owe much to Thomas Sowell for bringing this reality to my attention.

[ii] The champion of this approach was FDR. He explained, “It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.” With this comment, FDR revealed his obliviousness to the negative consequences of “regime uncertainty” that such an approach causes. This approach to governance was a prime contributor to the length of the Great Depression.

[iii] Broward County District Superintendent Robert Runcie observed, “We saw huge differentials in achievement gaps among white, black and Hispanics students. . . . Black males in particular were in probably some of the worst situation in this district.” State Judge Elijah Williams said, “Although African-American kids make up just 40 percent of the school district’s population, they account for 71 percent of the school arrests. . . . We had the highest arrest rate in the state of Florida. And coincidentally, we had the highest drop-out rate,” Id.

See also the third “WHEREAS” clause of the “Collaborative Agreement on School Discipline.”

[iv] AUTHOR’S NOTE ON “DISPARATE IMPACT”: Sorting out the fallacies of and problems created by using “disparate impact” as a justification for policies must await another blog post. Suffice it to say that if any subset of a society distinguishes itself from the rest of society’s subsets by being the only subset that believes poking people in the eye with sticks is cool rather than abominable, then any law that punishes eye poking with sticks will necessarily only affect that one subset; i.e., it would have an extremely disproportionate impact on “eye pokers.” Nevertheless, a law that punished eye pokers would be both rational and salutary. Reasonable steps should be taken to induce members of that subset to change their views about the uncivil practice. Punishment of the perpetrators of such uncivil acts (e.g., putting bars between perpetrators and their potential victims) could be both one of many inducements to achieve that worthy goal and a way to protect their potential victims.

[v]MIAMI-DADE SCHOOLS POLICE REDUCES JUVENILE DELINQUENCY BY 60 PERCENT.” (Of course, despite the public announcement’s claim, no 60 percent reduction in delinquencies actually occurred; there was a reduction in the number of reported juvenile delinquencies—surely delinquencies increased as a result of the lessening of the negative consequences for committing the crimes.)

[vi] Leftists appear to understand that incentives matter when it comes to policies that advance leftist agendas. For example, they argue that if the cost of cigarettes, sugary drinks, or carbon dioxide emissions is increased with new taxes, then fewer of those things will be produced. Conversely, if the costs of those items are reduced by repealing the taxes, then the producers’ and consumers’ cost-benefit analyses will cause them to produce/buy more of the items. Yet, these same leftists appear blind to the fact that, in general, reducing the cost of crimes will increase the production of crimes.

[vii] See “Executive Order — White House Initiative on Educational Excellence for African Americans.” “Obama wants to stop ‘school-to-prison pipeline’ for minorities.”

[viii] This is not to say that all the consequences of sending fewer students into the school-to-prison pipeline are negative. For the fraction of the students who were saved from becoming hardened criminals, the effect of the policy was beneficial. The fact that the new policy shields actual criminals (many, if not most of whom will continue their criminal ways in school and afterwards) from the duly adopted laws is mentioned to clarify what is actually happening, and to highlight the negative consequences that are being ignored, obscured, and suppressed by the government officials.

[ix]These districts fought the school-to-prison pipeline. Can Pittsburgh learn their lessons?

[x]Fla. School District Trying To Curb School-To-Prison Pipeline.”

[xi] See “My Brother’s Keeper.”

[xii] Many anecdotal success stories have been attributed to the multibillion-dollar My Brother’s Keeper initiative. See “My Brother’s Keeper—2016 Progress Report.” I certainly wish the program well, but I fear that it will suffer the same lack of success that the Head Start Program did. See “Can We Be Hard-Headed About Preschool? A Look at Head Start,” a Brookings Institution report. Whether My Brother’s Keeper is a net positive use of the nation’s resources or not, the people who spearheaded and run it will benefit, so the program will likely persist (consuming funds that could be used on better programs) regardless.

[xiii]Morality is personal – Believing ethics to be relative, postmodernists subject morality to personal opinion. They define morality as each person’s private code of ethics without the need to follow traditional values and rules.

[xiv] Victor Hugo may have explained this best in Les Misérables. An elderly Jean Valjean was attacked from behind by a young, strong gang member. An instant later, Valjean had the thug pinned to the ground. Valjean then explained why the thug was on the wrong path. Click HERE. Start reading at “How old are you?”

[xv] As to how a parent should do that, see “Jordan Peterson – How To Raise Your Children.”

[xvi] See “Did the Progressive ‘Broward County Solution’ Cost 17 Student Lives?

[xvii] See endnote ix.

[xviii] Id.

[xix]At least three students showed school administrators Cruz’s near-constant messages threatening to kill them — e.g., ‘I am going to enjoy seeing you down on the grass,’ ‘Im going to watch ypu bleed,’ ‘iam going to shoot you dead.’ . . . Threatening to kill someone is a felony.”

[xx]Attorney files notice to sue in Dillard bullying attack.”

[xxi] Id.

[xxii]Mass Shootings in America: A Historical Review.” This report, however, should be tempered by “Are Mass Shootings Becoming More Frequent?” For additional context see “Dead Wrong® with Johan Norberg – School Shootings: Really Increasing?”

Crime, Punishment, and Fairness

Let’s sort out whether it is a good idea for society to punish people for crimes despite the fact that their environments, not their innate selves, caused them to be criminals. This is an important and topical question because the idea that crimes should be punished has come under withering attacks by leftists. Whether those attacks are propitious is relevant to important issues surrounding the recent Florida school shooting.

Note: For a felony to be committed, the perpetrator must have mens rea (a “guilty mind”), “the mental element of a person’s intention to commit a crime or knowledge that one’s action or lack of action would cause a crime to be committed.”[i] Because of this, an act that would otherwise be a crime (e.g., shooting someone) is not a crime if the act was done without mens rea (e.g., it was done in self-defense or by accident).

A core concept of criminal justice systems is that punishing people who intentionally do serious harm to others is advantageous to society. Punishment can be justified by combinations of the following goals: (1) to deter would-be perpetrators from committing future crimes by increasing the costs to them of committing crimes, (2) to reduce the probability that future crimes will be inflicted on innocent members of society by putting bars between the criminal and society, (3) to rehabilitate the criminal into an upright citizen, (4) to establish and preserve the “rule of law” or other propitious norms, (5) to achieve justice, and (6) to obtain warranted vengeance.

An exception to the general rule is that it should not apply to children and the insane. A widely accepted rationale for this exception is described in the McNaughton rule, “that every man is to be presumed to be sane, and . . . that to establish a defense on the ground of insanity, it must be clearly proved that, at the time of the committing of the act, the party accused was laboring under such a defect of reason, from disease of the mind, as not to know the nature and quality of the act he was doing; or if he did know it, that he did not know he was doing what was wrong.”

First note that if a person does not have the mental capacity to know the difference between right and wrong, she is not capable of having the mens rea to commit a crime. Also important, it would serve no more purpose to punish a lion for killing an antelope than it would to punish an insane person for committing a crime. Neither can comprehend either the crime or the punishment, and punishing either would have no effect on other lions or insane people, i.e., it would accomplish nothing.

For multiple reasons, the insanity defense against criminal punishment is long established, venerated, and wise.

Leftists have been inventing and advancing many other new defenses to criminality that have not been time tested, are of dubious validity, and need to be sorted out. As is usual for leftist ideas, they myopically focus on something they (often correctly) identify as a problem, with apparent obliviousness to the serious and unavoidable negative consequences of the proposed “fix” for the problem. The problem with this approach to problem solving was perhaps best described by the great Thomas Sowell, who said:

The ideal of impartiality in the law, exemplified by the statues of Justice blindfolded, implies that particular results for particular individuals and groups are to be disregarded when dispensing justice. It is precisely this conception of justice—at the heart of the American revolution—that is being disregarded. As was aptly said:

The blindfolded Goddess of Justice has been encouraged to peek and she now says, with the jurists of the ancient regime, “First tell me who you are and then I’ll tell you what your rights are.” [Citation omitted.]

In politics, the great non-sequitur of our time is that 1) things are not right and that 2) the government should make them right.[ii]

Just because something is not right, it does not mean that there is an action the government could take to ameliorate the problem without creating even greater problems elsewhere. The constant demands by leftists for politicians to “DO SOMETHING!” cause politicians constantly to do things that cause more harm than good.

Out of valid and genuine concern for the harm “the system” does to people who get caught up in the criminal justice system, many leftists now demand that politicians ignore criminality if the perpetrator’s intent is not attributable to her innate evil, but rather to the bad environment in which the otherwise good person found herself through no fault of her own. It is as if it were the environment that caused the mens rea of the crime, not the person. That could well be true in some instances (at least to the extent that a person might never have considered committing a crime had they been born with more advantages). The disadvantages of being born into a bad situation are certainly unfair in some cosmic sense. By the same token, it is certainly unfair in some cosmic sense that some people are born good-looking, intelligent, physically fit, and coordinated; with leadership ability, creativity, and insight; and with good communication and people skills. While some people have a good measure of all those things, others have little of any of them. There is clearly something wrong with this picture, but it is a true picture of reality. But, again, the fact that there is a real problem does not mean there are solutions to it that will not also make matters worse for everyone, with the possible exception of the criminal.

In particular, there is no reason to believe that any governmental effort to “fix” those kinds of cosmic injustices would not do more harm to the vast majority of people in the world than if the U.S. government did nothing about them.[iii]

 

SidebarYet leftists quixotically forged ahead with supposed fixes to these cosmic injustices. The basic rationale appears to be a jumbled combination of (1) It is unfair to punish someone who did something evil only because she a victim of an environment that “made her do it,” and (2) To punish someone upon whom the cosmos has bestowed great disadvantages is adding insult to injury, and is unfair.

The arguments advanced to “fix” the problems did not win the day in the court of popular opinion. In no small part that was because the people who would suffer the negative consequences of the supposed fixes felt no responsibility for the environment disadvantaged people found themselves in. So leftists resorted to dreaming up theories and accumulating plausible “facts” to support propositions that recharacterize cosmic injustice into something inflicted on “the oppressed” not by the cosmos, but rather by current-day “oppressors,” such as “the patriarchy,” the “white privilege” of privileged white people, the “systemic racism” of a system of the privileged, by the privileged, and for the privileged (which is everyone other than the oppressed), and many similar figments of their imagination.

Rather than contest all that here, let’s accept the premise that much crime is not the fault of the criminal (it is the fault of the environment in which the criminal happens to reside or the fault of oppressors) and sort out its policy implications. The policy implications leftists typically draw from that premise are:

  1. Add more obstacles, tripwires, and safeguards to judicial processes that make prosecutions more difficult and reduce the odds that a criminal will be convicted for her crimes (e.g., Miranda warnings, or expansion of the exclusionary rule that prevent juries from hearing all the relevant facts of a case);
  2. Decriminalize more and more erstwhile criminal behaviors;
  3. Protect criminals from being caught (sanctuary cities); and
  4. Do not report crimes (except for the ones “non-oppressed” people are more apt to commit) so as to make it appear that the leftist policies are reducing crime by and on “oppressed” people.

In addition to ignoring their unintended negative consequences on society at large, these policies ignore the harm they do to the people they are ostensibly trying to help. The irony is that the whole policy agenda is predicated on the idea that it is the environment that is the root of the problem. One might think that leftists would want to improve the environment of disadvantaged communities in ways that would cause people in those communities to be less disadvantaged (“oppressed”). Anyone who thinks that needs to think again. Improving the environments of disadvantaged communities is not what social (cosmic) justice warrior policies do; they make the environment in disadvantaged communities worse.

Peer pressure has a huge influence on most school students. The more bad attitudes and behaviors are tolerated in schools, the larger the number and higher percentages of peers who are criminals there will be in schools. That means more people exerting pressure to adopt self-defeating ideas and attitudes on all the students. Worse, if the positive consequences of committing crimes are greater than the negative consequences, the incentives to commit crimes are strong. Even worse, in such an environment it can appear to impressionable youths that they are suckers if they do not cash in on the benefits of crime, given the slight negative consequences of committing crimes. General disrespect for authority and lawlessness makes more difficult the education of student on the benefits of good morals. In the presence of excess tolerance of bad behavior in a school environment, students will likely view the lessons about good behavior as preposterous. If there is easy gain with crime, but only hard work, harassment, and a slim hope of payoff if one is good and applies oneself to studying, easy gain will win most of the time.

Such lawlessness spills out into the streets and results in far more people being killed in disadvantaged neighborhoods than in school shooting anywhere. The percentage of lives that do not thrive as a result of the environment that leftist policies create is also staggering.

It is truly sad that when the criminal laws are enforced that so many already disadvantaged students find themselves in the “school-to-prison pipeline.” It is even sadder that the percentage of those students who are black and Hispanic is disproportionately high. Sadder still is the fact that leaving those kids in school will make the proportion of black and Hispanic children entering that pipeline, or adopting ideas and attitudes that will prevent them from flourishing, or wounded or killed at school, much higher than it otherwise would be.

This post and my earlier post, “Prelude To A  Post About The  Florida Shooting – A Growing Leftist Trend,” have laid the groundwork for a case in point that will be explored in my next post about the Florida school shooting.


[i] See “Mens rea.”

[ii] See “The Quest for Cosmic Justice,” page 186.

[iii] See “Harrison Bergeron” by Kurt Vonnegut; the movie, Harrison Bergeron; or a condensed version, “2081 HARRISON BERGERON,” a video by an organization I helped make possible.

A Follow Up to “Trump’s Tariffs”

This gem showed up in my inbox this morning: “President Trump’s Predecessors Learned about Steel Tariffs the Hard Way” by Mark Perry.

“the Peterson Institute for International Economics found that tariffs on specialty steel in the 1980s resulted in annual consumers losses of $1 million for every US steel job saved ($2.26 million in today’s dollars). Not.A.Good.Trade-Off.”

Had Bush caused taxpayers to give $500,000 a year to each steel worker whose job was was jeopardized by cheap foreign specialty steel being “dumped” on America, those workers, and all Americans who buy things made of steel (read, “everyone”), would be wealthier today.

Especially hard it by those tariffs were all those workers in these industries:

  1. Manufacturers and retailers of goods that contained steel whose prices had to be higher than necessary because the tariffs increase the cost of its materials;
  2. Manufacturers and retailers of non-steel goods or services that would have had higher sales because their customers would have had extra money because the stuff they purchased that contained steel was cheaper due to foreign steel;
  3. Importers, shippers, and loading dock operators;
  4. Bankers that specialized in international credit; and
  5. Farmers and other exporters whose exports will be lessened by retaliatory import tariffs by foreign governments.

The number of workers that were negatively affected by the higher than necessary steel prices was far greater than the the number of workers employed in the steel industry. And, of course, Americans paid more than necessary for the goods they purchased. As reflected in the study quoted above, the sum of these negatives were 2.6 times as large as the benefits to steel workers.

As mentioned in the prior post, perhaps more significant is the number of people who would have filled jobs that were not created in America because of the tariffs. For example, consider the people who would have been employed at manufacturing plants that would have been built in America had the steel tariffs not made it economically advantageous to build those plants in countries that did not impose tariffs on steel.

Trump’s tariffs may be good for Trump (politically or otherwise) and U.S. steel and aluminum manufacturers, but they are really bad for everyone else, especially American workers.*


* For a discussion of why fewer American jobs causes wages to be lower see: “Tax Cuts and Employee Compensation.”

Trump’s Tariffs—A Sad Realization

“Make America Great Again.” Americans’ visions as to what a “great America” would be vary “bigly.” In the interest of sorting out the variations in those visions, please forgive the following overstatement of the differences:

Some Americans envision a safe and caring place where everyone who happens to be here has equal access to all the goods and services the country produces; everyone has equal societal status and everyone is flourishing in becoming the person they dreamed of being; no one has to work too hard (or not at all if they did not want to work); and omniscient, benevolent, efficient, and effective government officials have unlimited authority to do good.

Other Americans envision a nation in a rough and tumble, dog eat dog world in which citizens have equal legal rights regardless of their race, religion, color, creed, or national origin, and equal opportunities to pursue happiness; and the nation is run by flawed, but constitutionally checked government officeholders who live up to their oaths to “preserve, protect, and defend” the Constitution as it was originally conceived—except for duly adopted amendments.[i]

Most Americans, however, envision an America with various combinations of milder versions of ideas from both extremes.

In rough approximation, many people projected onto Bernie Sanders the ideals of the first set of Americans described above, and other people projected onto Trump the ideals expressed in the second set. Because he had a long history as a senator, one could make some reasonable predictions as to what Bernie’s true political and economic beliefs and policy goals would be. What Trump’s true political and economic beliefs and policy prescriptions would be were (in possible contrast to what he said on the campaign trail because he thought his voting base wanted to hear those things) were a matter of speculation and credulity.

During the presidential campaign I would often ask Trump supporters a version of this question: How, given that 1) running a business is astoundingly different than running a government; and 2) Trump had no track record in public office to reveal what he believed, could anyone have any confidence that Trump has the beliefs he says he has or that he will know what economic policies would make America great again (or what his vision of a “great America” is). The answers I got were variations of the following theme:

Trump’s success in business shows that he is smart, a great leader, and good at identifying and recruiting talented people. With those characteristics he will surround himself with great people to advise him on issues outside his expertise and America will be great again before you know it.

When I followed up noting that there is little reason to believe that someone who has a nose for distinguishing between good and bad business people will also have a nose for distinguishing between good and bad government advisers with respect to issues about which he knows little (e.g., how would he discern the difference between a good economist and an economist who is willing to say whatever she must say in order to get a high level government job), I got either gibberish or crickets.

We now know much about Trump’s ability to pick advisers. The turnover rate for White House staff in the first year was 34%.[ii] That rate is both bad in absolute terms and is higher by far than the previous five presidents. Trump’s record at identifying the right people for government posts is spotty at best—though I would concede that he has picked some excellent policy advisers and judges.

All that would not be particularly important if, despite his hiring flubs, he was consistently getting great policy advice. March 1, 2018 was a sad day in American history on that count. On that day Trump revealed that he is either a consummate crony capitalist (read, “corrupt”), or he has a populist’s (read “clueless”) understanding of foreign trade and tariffs. [iii] That might not be so bad if trade policy was not so critical to a prosperous economy—and a prosperous economy was not so essential to middle and lower income wage growth, but it is—on both counts.[iv]

While scientific consensus is an oxymoron,[v] essentially every economist believes[vi] that free trade (as opposed to unfree trade, including “fair trade”) is the best policy. In other words, tariffs are bad for a country’s economy, jobs, and wage increases, regardless of the tariffs imposed by other countries on their imports.[vii] In short, tariffs do help the protected companies and their employees and investors, and the extra profit generated by those companies adds to the wealth of the nation. Typically politicians benefit politically when they impose tariffs. The sum of negative effects of tariffs on everyone in the country, however, is far greater than the sum of the positives that are created by tariffs.

The reasons why people, sadly those people include a few economists, were explained by Frederic Bastiat over 150 years ago:

“In the economic sphere an act, a habit, an institution, a law produces not only one effect, but a series of effects. Of these effects, the first alone is immediate; it appears simultaneously with its cause; it is seen. The other effects emerge only subsequently; they are not seen; we are fortunate if we foresee them.

There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.”

When it comes to free trade most people only notice (“see”) the initial effect of jobs being saved in the protected industry. It appears that only economists are able to foresee the many more jobs that will never be created because of a tariff.

While I have already blogged about one of the most pernicious negative consequences of tariffs,[viii] the reasons why tariffs are net harmful to the country are too numerous and varied to survey here. To give you a glimpse, however, consider the following realities:

  1. A little under half of U.S. imports are raw materials or component parts of items manufactured in America. Higher costs attributable to more expensive materials and parts makes those manufacturers less competitive in the world market, and increases costs of goods to its customers.
  2. When U.S. consumers must pay more than is necessary for what they buy, they can afford to buy fewer things (i.e., their standard of living is less than it needs to be).
  3. Consumers buying less means U.S. retailers will make fewer sales, which means fewer jobs, which means slower wage growth.
  4. Foreign countries will retaliate by raising their tariffs or increasing their subsidies,[ix] which results in non-protected U.S. companies becoming even less competitive than they were before the tariffs were imposed due to higher costs and poorer customers.
  5. Once an administration reveals that it will grant companies that are sufficiently supplicant (read, “willing to help the president”), thereby making it harder for every other company in the country to profit and grow, it sends a signal to investors and business people that the future business environments is subject to sudden, unpredictable, and significant negative changes based on the unpredictable feelings of the president from day to day. This increase in the risk of the government doing things slows investment and business growth due to “Regime Uncertainty.”[x] The economy was booming as Trump took step after step that led people to believe that Trump was intent on making investing in America safer and more profitable. The imposition of tariffs signals to business people, “don’t be so sure of what the administration will do next.” That fact alone will cause investment and growth to be less than it otherwise would be.

We now have a clearer picture of Trump’s administration with respect to trade, and it is not a pretty picture. We can hope that with these new tariffs Trump has satisfied his urge to “do something about trade deficits” (which is another populist banality) and that all the other pro-business things he has done and will do (which are many and important) will offset a noticeable amount of the harm he has done by the imposition of tariffs. What we now know for sure, however, is that the economic engine will not be running on all cylinders so long as these tariffs remain.


[i] See, “Two Paths for America.”

[ii] See, “Trump Staff Turnover Hits 34%—a First Year Presidential Record.”

[iii] While I see no reason to believe that nothing given or promised to Trump by the aluminum and steel industries to get this deal, I do see a reason to believe that Trump thought it was in his personal best interest to get the publicity for having protected those industries from competition (it was a follow through on a campaign promise). That benefit alone put Trump in a conflict of interest that he exploited using other people’s money for his personal gain. On the other hand, there is little reason to believe that he is any less clueless than the average American about the net harm those tariffs will inflict on all Americans. He probably (mistakenly) believes the deal’s benefits to him personally were minuscule compared to the benefits he bestowed on America. If he were good at picking economic advisers, he could have avoided all of the negatives consequences of his tariffs.

Also see, “The Swamp Is Alive! It Is Alive!

[iv] See, “Tax Cuts and Employee Compensation.”

[v] See, “For Earth Day: Michael Crichton explains why there is “no such thing as consensus science””

[vi] See, “Economists Actually Agree on This: The Wisdom of Free Trade,” and “China threatens to retaliate against US metals tariffs.”

[vii] See, “2018 Economic Report of the President offers both insight and obfuscation on trade.”

[viii] See, “Tariffs Transfer Wealth From the Poor To The Rich.”

[ix] See, “The Latest: EU promises retaliation to Trump tariff plan.”

[x] See, In “Regime Uncertainty — Why the Great Depression Lasted So Long and Why Prosperity Resumed after the War,” Robert Higgs noted: “the willingness of businesspeople to invest requires a sufficiently healthy state of “business confidence….”

Prelude To A Post About The Florida Shooting – A Growing Leftist Trend

BSO-sheriff-israel-car_656923_ver1.0_1280_720I was writing a post about the possible nexus between the leftist school policies implemented in Broward County Florida prior to February 14, 2018 and the mass shooting at the Marjory Stoneman Douglas High School in Parkland, Florida that occurred on that day. In the process, I realized that I was addressing an item that is part of a much larger set of issues having to do with leftist thinking and policies. I decided that providing a context was in order. This post provides that context for many future, non-sequential posts that will present a case for my hypothesis that the supreme aspiration of a growing swath of leftists is to be considered virtuous by fellow leftist, particularly the glitterati, and that this trend is harmful to society. In short, for these people, virtue signaling, not virtue or good policy, is the goal.

In an odd way it is an incarnation of something Adam Smith, the father of economics, wrote, “Man actually desires, not only to be loved, but to be lovely…He naturally dreads, not only to be hated, but to be hateful.”  Imprecise, but handy, substitutes for “lovely” and “hated” in Smith’s claim would be “a virtuous and good person” and “a vile and bad person,” respectively.

That people want to be loved is probably universal among humans—at least until they decide that being loved is an impossibility, at which point they often snap. Smith’s observation that people also want to be lovely is very insightful and generally true. There are, however, people who are not guided by the better angles of our nature. Those people can fairly be considered to be evil whether they are responsible for their state of mind or not. Evil, however, can take many forms. An insidious form of evil is people who desire to be both loved and lovely, but are blind to what is not lovely about what they believe, advocate, and do. (An example of this form of evil will be the subject of the first post in this series having to do with the Broward County School Shooting.)

A vast majority of people in a society desiring to be lovely leads to a good society only in cultures that ascribe to a rational and constructive set of morals, and the culture has a reasonably humane, fair and effective means of maintaining those morals. Cultures that adopt irrational or unconstructive morals are doomed to poor outcomes, if not demise. Cultures that value virtue signaling over virtue are surely doomed to demise.

Despite the serious blows on America’s rational and constructive morals that were inflicted by the early 20th century progressives and mid-20th century communists, the core principles of the America culture remained reasonably intact (held by a large enough majority) until the 1960s. Since the early 1960s, what the American culture considers to be virtuous and good has been changing dramatically and rapidly—for the most part for the worse. (This is not to say “things were better” in the 50s and early 60s, they weren’t. The most of the morals of most Americans in the 50s, however, were better than the morals of today in many respects—despite the fact that some morals are better now than then.)

People of all political persuasions are susceptible to the virtue signaling bug. In my estimation, however, a smaller fraction of other groups are susceptible. Why that is the case may not be identifiable, and the why may be unimportant. For what it is worth, my hunch is that it is driven by a desire to be a member of the “in-crowd,” whatever the in-crowd happens to think and believe from time to time, i.e., they want to be part of the in-crowd regardless of what the cool people think or believe. Clear traces of this phenomenon can be found in all those people who idolized both JFK and Obama, despite the fact that their economic and social policies were radically different.

This phenomenon would not be a problem if the in-crowd always had the best ideas and solutions, but, as it turns out, the phenomenon leads to a disastrous blindness to tradeoffs. If one is blind to the costs of the benefits they seek (a particular bug of leftists generally), the next thing you know, the country is $20 trillion in debt, and has runaway unfunded future liabilities. It is a reason so many leftist policies do more harm than good. Worse, as we saw in the cultures that ushered in Margaret Sanger, Hitler,* Stalin, Mao, Pol Pot, Kim Il-sung, Castro, Chaves, and many other like-minded (leftist[i]) activists and tyrants, lots of people get killed under leftist regimes.

With this prelude as a backdrop, I will soon post an article on the Parkland, Florida shooting that will be the first of many.

🙛

* AUTHOR’S NOTE:  Many leftist will take umbrage at the inclusion of Hitler in the list of leftists above. Many of those will base their feelings on the kind of “analysis” used by Snopes in its article, “Were the Nazis Socialists?” This Snopes article is like so many others that attempt to obscure the issues in order to obscure the facts of the matter. (In a surprising display of scruples, Snopes did not declare whether the answer to the title’s question is yes or no? Those scruples did not, however, prevent them from trying to mislead with respect to the answer.) In this attempt to disassociate leftists from Hitler, Snopes takes the following tact:

Although the terms “left” and “right” as used in American politics can be somewhat less than perspicuous, they are helpful in delineating the basic ideological divide between liberalism/progressivism (as embodied mainly by the Democratic Party) on one side (“the left”), and conservatism/traditionalism (as embodied mainly by the Republican Party) on the other (“the right”). Seen as a spectrum or continuum of ideologies, socialism/communism traditionally falls on the far left end of this scale, nationalism/fascism on the far right.

The sleight of hand lies in this sentence, “Seen as a spectrum or continuum of ideologies, socialism/communism traditionally falls on the far left end of this scale, nationalism/fascism on the far right.” Consider these definitions extracted from Google’s dictionary:

A socialist state is one in which “…the means of production, distribution, and exchange should be owned or regulated [by the state/community].” [Emphasis Added.]

A communist state is one in which is “a society in which all property is publicly owned [by the state/community] and each person works and is paid according to their abilities and needs.” [Emphasis Added.]

An extreme form of a nationalistic state is “…marked by a feeling of superiority over other countries.”

A fascist state is a “…regime… that exalts nation and often race above the individual and that stands for a centralized autocratic government headed by a dictatorial leader, severe economic and social regimentation, and forcible suppression of opposition.”
As you can see, communism is a form of socialism, i.e., the economies of both are collectivist, which is the essence of socialism. To be a communist, a state must own the means of production, while a state is socialist if it controls the means of production, even if done only with regulations.

By contrast neither nationalist nor fascistic states are defined by their economic systems. A fascistic state can be either collectivist/socialist or capitalist. There are varying degrees to which a state is socialist. Modestly socialistic states need not be nationalistic or fascistic, but being either would not affect their status as a socialist state. Theoretically, very socialist states need not be nationalistic or fascistic either, but rarely, if ever, are they not. In other words, Snopes based its argument on a false and inept comparison of two unlike criteria.

Snopes cited many supposed authorities as to whether Hitler was a socialist. All of the quotes were designed to leave the reader with the impression that Hitler was not a socialist. None of the quotes Snopes used to prop up the proposition that Hitler was not a socialists, however, denied the pivotal fact that Hitler’s government exercised very extensive command and control over business through regulations, i.e., whether or not Hitler was, in his heart, a socialist (i.e., he was lying when he said, “We want to see no more class divisions.”) or a racist nationalist, under Hitler government “…the means of production, distribution, and exchange were regulated [by the state].” As such, the Natzi regime was socialist.


[i] See, “Fascism” by Sheldon Richman “Obama, Hitler, And Exploding The Biggest Lie In History,” which is worth reading for this quote alone, “The label “fascist” has subsequently meant anyone liberals seek to ostracize or discredit.” Or this video, “MYTH BUSTED: Actually, Yes, Hitler Was a Socialist Liberal.”

Who’s the Wiser?

Adam Schiff

Trump’s tweet has at least two problems, but Adam Schiff’s “response” is even worse.

Trump’s Tweet

  1. Trump’s tweet appears to suggest that the money spent by Russians on Facebook was the only money spent by Russians to affect the U.S. election—which was surely not the case, and
  2. That the Russians spent anything, anywhere to affect our election is bad whether or not billions of dollars’ worth of fake news were used in an effort to defeat Trump/elect Hillary, i.e., Trump compared two things that were almost totally unrelated.

Neither of these fumbles, however, undermined the fundamental reasons for Trump’s tweet. On the other hand, it is difficult to identify any substantive or fundemental reason (other than pandering to his followers) for Schiff’s tweet.

Schiff’s Tweet

Schiff’s tweet is even more ridiculous than Trump’s.

  1. The point of Trump’s tweet is to suggest that the effects the Russians had on the election were minuscule compared to effects of billions of billions of dollars of free assistance to Hillary’s campaign supplied by the Main Stream Media news. A relevant or rational response to Trump’s tweet would have pointed out how it is that the effects of Russia’s efforts were not minuscule compared to the efforts of the MSM, or make try to make a case that the MSM news was not fake. Schiff did neither of those things. So his comment missed the point.
  2. Schiff’s tweet is premised on the idea that Trump said what he did because he does not know the difference between fake news and foreign interference. Because nothing in Trump’s tweet supports Schiff’s premise, or abridges anyone’s right to freedom of press, Schiff’s bringing up free press in this context is irrational.
  3. Because calling out the MSM press for its biased, fake news (but I stutter.[i]) reporting in no way abridges anyone’s freedom of the press, Trump was merely exercising his freedom of speech, which is every bit, if not more important, than the freedom of the press. Schiff’s tweet shows that Schiff is probably clueless with respect to this point.

As such, Schiff’s tweet was more irrational than Trump’s.

Obviously both tweets are intended to pander to, and they hope grow, their bases. Note, however, that even if the two tweets were equally irrational, Trump’s tweet has the strategic advantage of driving leftists nuts. The more leftists show the public how nuts they are, the better Trump’s chances of winning a second term. Schiff’s irrationally on the primary point of Trump’s tweet (with its problems only as to details) is more likely to help Trump win his next election in the long run.

Trump’s tweet also showed that whereas the support Hillary got from the MSM press was free to her campaign, it was very costly to Trump’s (he would have won much more biggly had he gotten an equal amount of helpful coverage). Schiff offered nothing to defend the press’s misuse of it special privileges.

Moreover, for people in the press to deserve the special protections (“freedoms”) afforded to the press, the press should at least attempt to present the whole story about a new item (opinion pieces excepted).[ii] Trump’s tweet reiterates that the MSM news is not earning its freedoms.

One of the reasons Schiff vehemently opposes Trump is that he feels Trump is dumb. Yet Schiff’s responses to Trump’s tweets help Trump more than it helps Democrats. Which of the two comes off as the wiser in this skirmish?


[i] See “What is Fake News?

[ii] See, “The Truth Is Hard For The New York Times.”