We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

Samizdata quote of the day

“When egalitarian redistributors make an effort to justify the assumption that the state has the legitimate right to rearrange entitlements to achieve equality, it’s usually in the form of an invocation of the theory that all production is inextricably joint, that is, that all that you have (at least above the barest and meanest possible kind of brute existence) would be impossible without the farmers in the fields growing the crops that nourish you, the cop on the beat protecting you from thieves, and so on, and that none of the inputs into that process could be added or withdrawn. It’s the cop on the beat, i.e., the state, however, that gets the attention, since it’s assumed that the enforcement of claims to wealth and income is what accounts for the fact of your having wealth and income at all, and thus the state, as the sine qua non of that wealth and income, is entitled to dispose of all of it.”

Tom Palmer

Samizdata quote of the day

After you have convinced people that you fervently believe your cause to be more important than telling the truth, you’ve lost the power to convince them of anything else.

Megan McArdle

Samizdata quote of the day

Via Bryan Caplan at EconLog:

“It’s only human,” you cry in defense of any depravity, reaching the stage of self-abasement where you seek to make the concept “human” mean the weakling, the fool, the rotter, the liar, the failure, the coward, the fraud, and to exile from the human race the hero, the thinker, the producer, the inventor, the strong, the purposeful, the pure–as if “to feel” were human, but to think were not, as if to fail were human, but to succeed were not, as if corruption were human, but virtue were not–as if the premise of death were proper to man, but the premise of life were not.”

He’s quoting the John Galt speech out of Ayn Rand’s Atlas Shrugged. I agree with Caplan that that is a great quote. And she was right: if we say “it’s only human” when we refer to someone being an asshole, or forgetful, or inconsiderate, or loses their temper, or some such, shouldn’t we also say “it’s only human” when a person is thoughtful, considerate, productive, courageous and adventurous”?

On a slightly different tack, though, I think people often use the “I am only human” when, as the use of the word “only” implies, we are talking about the limits, and inevitable fallibility of we creatures. But then again, it is precisely because of our limits and partial knowledge, that it is all the more admirable, and worthy of note, when we imperfect creatures do the right thing, do things well, and show excellent character.

Getting the sign wrong

It is surprisingly easy to get the sign wrong when reasoning about quantities. Consider this old riddle:

Three ladies go to a restaurant for a meal. They receive a bill for $30. They each put $10 on the table, which the waiter collects and takes to the till. The cashier informs the waiter that the bill should only have been for $25 and returns $5 to the waiter in $1 coins. On the way back to the table the waiter realizes that he cannot divide the coins equally between the ladies. As they didn’t know the total of the revised bill, he decides to put $2 in his own pocket and give each of the ladies $1.

Now that each lady has been given a dollar back, each of the ladies has paid $9. Three times 9 is 27. The waiter has $2 in his pocket. Two plus 27 is $29. The ladies originally handed over $30. Where is the missing dollar?

To get the missing $1 in the question we have done this arithmetic: 10 + 10 + 10 – 1 – 1 – 1 + 2 – 30 = -1

The correct arithmetic is: 10 + 10 + 10 – 1 – 1 – 1 – 2 – 25 = 0

Positive numbers represent payments from the ladies to the restaurant, and negative numbers represent money received by the restaurant. The result should obviously always come out to zero. That +2 should be a -2. Okay, there is a 30 where there should be a 25 as well, but only because the +2 yielded an intermediate result of 29 which is close enough to 30 to cause confusion.

This getting the sign wrong is the same mistake that means Tim Worstall has to point out that jobs are a cost. The new widget factory will create 1000 jobs, we are told. If it produces 1000 widgets per year, that means we get one widget per man-year of time. The man-year of time is a cost. If we could somehow arrange for the widget factory to create only 100 jobs for the same output, we would have just as many widgets and 900 man-years left to spend on some other useful thing. We would be richer.

This mistake crops up in trivial ways all the time. My friend recently gave up full-time work to look after the children for various financial and logistical reasons. Think how the economy is losing out, she mused. Not only am I not producing widgets, I am not paying the nursery workers or buying train tickets for my commute. Well it is true that the widgets my friend used to make are no longer made, but the nursery workers do not count: the same amount of childcare is being done as was being done before. It is not correct to add the childcare previously done by the nursery worker to the childcare now done by my friend. At worst there is now an unemployed nursery worker who will go and do something else instead, but that is just a market optimising everyone’s activities to match the level of demand. The train tickets were just part of the cost of getting the widgets made.

Ah, train tickets. We are going to get a new high speed rail link between London and Birmingham. The government is going to ‘invest’ £32.7bn in order to reap up to £46.9bn of ‘economic benefits’. I wonder how many of these benefits have the wrong sign. Counted among the benefits are “hundreds of jobs”, but these are already included in the cost figure.

Also counted are ticket sales. Which makes sense if the ‘investment’ was really an investment. But invest here really means to steal from the British public £32.7bn so that they can then pay, say, £40bn for train tickets in exchange for £40bn worth of train travel. I make that -32.7 – 40 + 40 = -32.7. Where is the missing £32.7bn?

The map is not the territory

Recently some teacher acquaintances on Facebook were discussing the recent public sector strike. Some were annoyed at accusations that they had spent the day shopping. Others said they had enjoyed spending the day shopping. Someone posted a message pointing out that Jeremy Clarkson, who said rude things about the strikers, was more than welcome to do a hard job saving lives or teaching disabled children. It occurred to me that, among other things, not all and probably less than half of public servants do such worthy jobs, and in any case what is relevant is what is really going on, which is that whatever the job, public servants (including (heh) Jeremy Clarkson, according to NickM) get their salaries and pensions from money extorted from others.

I considered getting involved in the conversation. I mentioned it to Michael Jennings. “The problem is that they think we are mad,” he said. Not only that, I thought, they will take offence and cast me out of society. “And they have the generally accepted narrative,” Michael observed. “How did this happen?”

I have some ideas about that. They are not original, have probably been stated better by someone else, and a more erudite person than I might well be able to summarise this entire post by stating the name of some philosopher or linguist. But here is my train of thought.

The primary purpose of language is cognition. So says The Monster in an epic comment on Eric Raymond’s blog.

I believe that communication is not even the primary use of language, despite the common belief that it is. That honor belongs to cognition. We use language to think; we produce names for groups of concretes that share certain properties and thereby achieve computational economy by not having to reason independently about the characteristics of every member of that group anew, as if we’d never seen any other members before.

This was in defence of an article by Eric Raymond in which he had used the same insight to seek to “undo the perversion of language that serves the enemy so well.” Clever use of language can manipulate people’s ideas. It makes sense: we put things into words to abstract big ideas and reuse them quickly and easily. I am a computer programmer. In software we write some code to, say, sort a list of items into numerical order, we give the code a name (sort) and then we just type ‘sort’ whenever we want to sort a list. If everything works to plan, we never have to think again about how that sorting code works. We have abstracted it. We might do some sorting of specific kinds of list mixed in with some other algorithm to do something complicated, like display a list of all the teachers in a payroll database whose salaries are greater than x, and give that code a name (GenerateRedundancyCandidates). In this way we build up layers of complexity at increasing levels of abstraction and get to do vastly complicated things with not as much effort as you might think.

Human language is the same. And therein lies a danger, because humans are not like computers: they are likely to forget that the word stands for something real, or get confused about what it stands for, or change its meaning half way through a sentence. → Continue reading: The map is not the territory

Upon what basis can an Occupy protest ask someone to leave?

… because “This is private property” or any other version of “You have no right to be here” are open to some fairly obvious ripostes.
“We were here first” – “Er, not quite first. The actual owners of the space were there before you.”
“We are the 99%” – “We’re poorer than you, you middle class ****-ers”
“We represent the 99%” – “Who voted for you, then?”
“We are the official accredited Occupiers” – “We refuse to be defined by your oppressive structures, and hereby declare ourselves to be Occupying this Occupation!”

I have been reading the minutes of the General Assembly of the Occupy protesters who have taken over the empty UBS bank building in Sun Street, Hackney. One area of concern does seem to be people “abusing the space”.

If people want to stay over night (sleep-overs) they need (1) to be part of a working group (2) They need to have an on-going task that warrants their stay. There will be ‘monitors’ to make sure sleep-overs are not abusing the space. Individuals that stay over and are found to not be working will be given one warning before being asked to leave.

And if they say no, what then? When a warning is given, it must be a warning of something. Presumably it is a warning that the bigger group of Occupiers will eject the smaller group of Occupiers – because they can.

Unless, of course, they can’t. If a fight develops, what then? Call the cops? Problem with that.

Samizdata quote of the day

As the scientific forester may dream of a perfectly legible forest planted with same-aged, same-species, uniform trees growing in straight lines in a rectangular flat space cleared of all underbrush and poachers, so the exacting state official may aspire to a perfectly legible population with registered, unique names and addresses keyed to grid settlements; who pursue single, identifiable occupations; and all of whose transactions are documented according to the designated formula and in official language. This caricature of society as a military parade-ground is overdrawn, but the grain of truth that it embodies may help us understand the grandiose plans [for a planned society] we will examine later. The aspiration to such uniformity and order alerts us to the fact that modern statecraft is largely a project of internal colonization, often glossed, as it is in imperial rhetoric, as a “civilizing mission.” The builders of the modern nation-state do not merely describe, observe, and map; they strive to shape a people and a landscape that will fit their technique of observation.
[…]
The more static, standardized, and uniform a population or social space is, the more legible it is, and the more amenable it is to the techniques of state officials. I am suggesting that many state activities aim at transforming the population space and nature under their jurisdiction into the closed systems that offer no surprises and that can best be observed and controlled.

– James C Scott,Seeing Like a State: How Certain Schemes to Improve the Human Condition Have Failed (1998)

Not as rational as Sam Harris likes to claim

Here is a long blog post by Timothy Sandefur dissecting the collectivist economics and moral philosophy of Sam Harris. Harris is one of the “new atheists”, who, along with Richard Dawkins, Daniel Dennett and Christopher Hitchens, have developed a bit of a reputation for bashing religion. I haven’t read Sam Harris, and Sandefur does not make me any more inclined to do so. (Of all these men, Hitchens is the best, in my view.)

It is interesting that those who criticise religion on the grounds of reason and logic can, as in the case of Harris, make such basic errors on subjects such as trade, notions of self-ownership, justice and the like. It is as if they are craving a secular god to fill a gap left by the traditional one. I must say I was quite shocked at the incoherence of some of Harris’s comments and his failure to examine and demonstrate his premises, such as when he talks about “fairness” without asking what he might mean by that. It is disappointing. On a related point, Greg Perkins, who writes at the Noodlefood blog, had a point about the big gaps in “new atheist” thinking a few years ago. (That link has been updated).

I suggest people brew up a coffee for Sandefur’s posting. It is not a 60-second read. Another case, in fact, of how blogging is often where the quality writing is, whatever some sneerers might once have said about this medium.

Welcome, Instapundit readers! Meanwhile, Reason’s Hit & Run blog has a related issue on how supposedly pro-science leftists can make utter tits of themselves.

Timeless words of a master

“Now who is the Forgotten Man? He is the simple, honest laborer, willing to earn his living by productive work. We pass him by because he is independent, self-supporting, and asks no favors. He does not appeal to the emotions or excite the sentiments. He only wants to make a contract and fulfil it, with respect to both sides and favor on neither side. He must get his living out of the capital of the country. The larger the capital is, the better living he can get. Every particle of capital which is wasted on the vicious, the idle, and the shiftless is so much taken from the capital available to reward the independent and productive laborer. But we stand with our backs to the independent and productive laborer all the time. We do not remember him because he makes no clamor; but appeal to you whether he is not the man who ought to be remembered first of all, and whether, on any sound social theory, we ought not to protect him against the burdens of the good-for-nothing.”

The Forgotten Man, page 209 from On Liberty, Society and Politics. The Essential Writings of William Graham Sumner, Edited by Robert C. Bannister.

His idea that a large swathe of people who asked for no favours – nor received many – has its echoes, however imperfect, in such expressions as Richard Nixon’s “Great Silent Majority” or, in the UK perspective, “Middle England”, or perhaps, “the coping classes”. Sumner is a useful reminder that the great classical liberal thinkers of the 19th Century and before acutely understood the issues of class and the difference between the self-reliant and others, but without the tedious animosity and simple-mindedness of the Marxians or the patronising dreams of High Tories a la Disraeli or, god help us, David Cameron or the late Harold Macmillan.

I strongly recommend this book, although these reprints of old classics by Liberty Fund are not exactly cheap.

Selfish activism for liberty

I am not entirely happy about an article, which is fine as far as it goes in defending libertarians from the idea that we are all callous brutes who would rather walk by the other side of the road, so to speak. I agree that that is wrong. Of course, there are one or two so-called libertarians who might not give a damn about anyone else but themselves, and they are happily avoided. In my experience, however, the vast majority of libertarians are not just right-thinking, they are fine individuals: generous, creative and benevolent to their fellows. But this is a rationally selfish thing. Think about it: if you believe freedom is a good thing because of the wealth and opportunities that it leads to, you will realise pretty fast that it is inconsistent to want freedom for yourself but not for anyone else. Not just inconsistent, but dumb.

However, for all that the article does make that sort of point, citing fine groups such as the Institute for Justice, the article is somewhat spoiled by this rather silly paragraph:

“There are a lot of libertarians working on issues that could be construed as self-interested – lowering taxes is the obvious example. There are even some hard core Ayn Rand sycophants who embrace little more than themselves. Find that repugnant? Have at ’em! But you’re just misinformed if you think that libertarians as a whole care for nothing more than their self-interest. Countless libertarians are working to advance the freedom and fair-treatment of people other than themselves. Often they do so more consistently than some of the liberals who sneer at them.”

He’s making a fairly basic mistake here. The pursuit of rational, long term self interest – the words “rational” and “long-term” are crucial – is totally congruent with spending time and money to support the genuine freedoms of others. After all, as any Rand “sycophant” would argue, if we do not defend freedoms with a bit of effort, and go into bat to defend causes that are important, even if they are unpopular, or appear weird, then they will find themselves in a very lonely place if their own freedoms are attacked. A genuinely selfish person, who holds his own life and flourishing as his ultimate value and cultivates the virtues to achieve it fully (reason, independence, honesty, pride, productiveness, justice and integrity), will want to see freedom expand. The cost of spending a bit of time lobbying, arguing and campaigning is, for such a person, outweighed by the long term benefits. The individual benefits if the total sum of liberty is increased, in obvious and not-so-obvious ways. For the Rand “sycophant”, the real stupidity would be to ignore the wider world and its problems. By the same token, libertarians understand the Law of Unintended Consequences: a lot of supposedly “altruistic” government interventions, for example (I use the word altruist in the usual, not Randian sense) make many real or imaginary problems far worse (examples: the War on Drugs, Prohibition, state education, etc).

One example of “selfish activism” might illustrate the point. For a long time I have been going along to events hosted by FOREST, the UK-based pressure group that defends the rights of people to smoke in privately owned places such as pubs. I don’t smoke, in fact I dislike the stink of tobacco and ask people not to spark up in my apartment. But I defend the libertarian line on smoking because I realise that if such freedoms get eroded without protest, then things I want to do could be banned next. For similar reasons, I’ll defend the right of people to publish hateful remarks (so long as they don’t demand I have to republish them), or practice non-conventional lifestyles I might abhor (so long it is consensual), and so on. For me, the long-term payoff – more freedom – is the point. I don’t see campaigning for justice or freedom as intrinsically good. It is much more important than that – it benefits me.

Another way of putting it is that life is not a zero-sum game. I obviously cannot spend all my time trying to defend freedoms or other issues; I have my own business and personal life and various interests to pursue. (My golf swing needs a lot of attention). But if I can, by my advocacy of hopefully good ideas and opposition to bad ones, make the world a marginally better place for myself and others, then I cannot think of a more truly selfish objective than that. In other words, I am not a classical liberal because it is an unchosen duty. I enjoy it and see the benefits.

And let’s not forget, another reason why libertarians defend the causes they do is that, despite the odd glitch, we get to meet some excellent people and make good friends. Some of my greatest mates are those I have encountered through such networks.

Spirit levels and egalitarianism

I am a bit late to this debunking of a book called The Spirit Level, which I had seen on sale in paperback at a local bookshop. Via Kristian Niemietz – who writes at the IEA blog – I came across the essay attacking TSL’s contention that egalitarian societies – where wealth gaps are small – “almost always” outperform societies in which governments do not seek to equalise incomes.

I must admit that I nearly bought The Spirit Level to see if it did say anything of value, but it turns out to be yet another call for controls on our terrible materialism and consumerism, perhaps in the same vein as works such as “Affluenza”. Ugh.

A sensible approach to limited liability

I have noticed from some libertarians, such as “left libertarians” such as Roderick Long, a hostility to the idea of limited liability corporations. I understand and even sympathise with such opposition to statutory limited liability. It can and does foster corporate structures that become so unwieldy that they are indistinguishable from the State in key respects. But the key word to remember here is statutory. Consensual Limited Liability of a sort that can be arranged without an explicit statutory power is, in my view, no different from say, other consensual commercial transactions that are recognised in law, such as via Common Law. Of course, limited liability firms may be far less common under such a system but it is unwise to bet on it disappearing. And given all the benefits of limited liability: the ability to get large pools of investors to finance large ventures, it seems an issue worth examining in detail.

The reason some free marketeers, particularly of the more radical sort, get angry about limited liability is that they see ownership and control torn asunder, creating a serious misalignment of interests. Case in point being an argument made by Kevin Dowd and Martin Hutchinson, in their book that analyses the recent credit crunch, Alchemists of Loss. They take the view that listed banks, protected by limited liability, have, unlike old partnership-owned banks with unlimited liability, made dangerous bets. A problem that is, of course, made much worse by corporate welfare via bailouts, central bank funny money, the usual. In the same way, you could argue that limited liability companies in general exhibit negative behaviours when politics intrudes.

But one of the High Priests of libertarian capitalism, Murray Rothbard no less, made it clear that there is nothing in principle wrong with the idea of limited liability. His argument strikes me as pretty solid:

“Finally, the question may be raised: Are corporations themselves mere grants of monopoly privilege? Some advocates of the free market were persuaded to accept this view by Walter Lippmann’s The Good Society. It should be clear from previous discussion, however, that corporations are not at all monopolistic privileges; they are free associations of individuals pooling their capital. On the purely free market, such men would simply announce to their creditors that their liability is limited to the capital specifically invested in the corporation, and that beyond this their personal funds are not liable for debts, as they would be under a partnership arrangement. It then rests with the sellers and lenders to this corporation to decide whether or not they will transact business with it. If they do, then they proceed at their own risk. Thus, the government does not grant corporations a privilege of limited liability; anything announced and freely contracted for in advance is a right of a free individual, not a special privilege. It is not necessary that governments grant charters to corporations.”