In Defense of Anagorism

political economy in the non-market, non-state sector

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  • The 53% backlash, and other reactionary tendencies

    Take a look at the McFadden cartoon posted by laura k at wmtc. The transition from the second panel “don’t be haters, we’re job creators” to the third “increase productivity, not employment” is one of the strongest arguments for dealing with the backlash known as “53%.” Our side should definitely exploit the inevitable tension between the ideology of “get a job” and the ideology of “life doesn’t owe you a job.” The editorial statement that keeps coming back like a bad penny in the 53% signage is the implication that life is supposed to be frustrating. Making one’s way in the world (“getting established” as my mom called it) is apparently supposed to be some kind of Chinese puzzle. Even the hackneyed cliché about pulling oneself up by the bootstraps refers to a gravity-defying stunt, and keeping one’s nose to the grindstone refers to an act of self-mutilation.

    In the fifth panel in the cartoon, someone is saying “giving away food only encourages the poor not to starve.” Words to that effect were expressed in complete seriousness and non-irony by the 19th century Social Darwinists. One of the reasons I refuse to jump on the post-left bandwagon is because I sincerely believe that the statist left, even though statist, is on vastly higher moral ground than the statist or libertarian rightist tendencies. When I was a kid, one of the most aggressively parroted talking points of the populist right (particularly those elements with Bircher tendencies) was about all the planks of an earlier Socialist Party platform having been adopted as American economic policy. It’s a propaganda meme that’s still being catapulted. If we take statist socialism to be the abolition of the private sector by political means, then is not its exact opposite, the abolition of the public sector, an equally “extremist” position? And is not the abolition of the civilian public sector implied by the laissez-faire doctrine of “separation of economy and state” almost as extreme? Maybe not quite as extreme as abolition of the whole public sector, but their “night watchman state” is, first and foremost, an armed agent; a practitioner of deadly force, so what it lacks in extremism, it makes up for in statism. At least the principled among the anarcho-capitalists call for total abolition of the state. I call not for separation of economy and state, but a third alternative, which I will find, or die trying. My point for the purpose of this discussion is that there was a time that laissez-faire was considered an extremist doctrine, and that there are reasons why a reasonable person should still consider it to be such. I would also suggest that large portions of the laissez-faire program have already been implemented in the policy sphere, in a world in which any foray by nation states into “mixed economy” (or any failure to depart from previously established mixed economies) can be challenged as a violation of “free trade” treaties. In America, most of the safety net has been rolled back, as has almost all progress won by the political left in the workplace and in labor law. It is true of the political right, as it is of any political tendency, that if you give ’em an inch, they’ll take a mile. It is in that spirit that “center is the new left,” and the tendency called “small government conservatism” has (without any substantial changes in its tenets) gone from being (by reputation) a fringe-right element of Social Darwinism, laissez-faire capitalism and reactionary anticommunism to being the yardstick against which even people about as right of center as Reagan are now (by equally widespread reputation) RINO’s, according to sectors of public opinion who (seemingly mockingly) call themselves “independents” or even “moderates.”

  • The whole apparatus of economic incentives and state enforcement

    In We Don’t Want Full Employment, We Want Full Lives! (h/t Jack Saturday) we find a typical statement of the ideas of post-scarcity, full unemployment, etc. This particular essay stands out from the pack, if nothing else, for this gem of a way of stating the obvious (emphasis, as always, mine):

    In a sane society, the elimination of all these absurd jobs (not only those that produce or market ridiculous and unnecessary commodities, but the far larger number directly or indirectly involved in promoting and protecting the whole commodity system) would reduce necessary tasks to such a trivial level (probably less than 10 hours per week) that they could easily be taken care of voluntarily and cooperatively, eliminating the need for the whole apparatus of economic incentives and state enforcement.(1)

    It is always so very refreshing to see economic incentives and state enforcement lumped together as one side of the same coin than the usual libertopian formulation in which those harsh mistresses called economic incentives are held out as the natural antidote to state enforcement, or more depressingly, the only possible alternative.

    I also simply love how promotion is classified as an “absurd job.”

  • Do you prefer to write notes on paper or on an electronic device?

    Paper, of course.  Doesn’t need batteries.  Nonproprietary.  Graphological techniques can in principle be used to verify authorship.  Machine readability is important to me, but 100 years from now I expect machine transcription of handwritten texts to be more widely available than CD-ROM drives.

  • Quotebag #55

    “How come the people who say they worry about SS going broke never worry about the US Armed Forces going broke? Because they WANT SS to go broke.”—Bill Wald

    “You can’t ‘spend’ your way out of public debt but you can’t cut or save your way out of it either.”—Poor Richard

    “Disobedience, in the eyes of anyone who has read history, is man’s original virtue. It is through disobedience that progress has been made, through disobedience and rebellion.”—Oscar Wilde

    “Everybody needs to make a living, and in our system, everybody needs to do so visibly and individually, which means we are all co-opted to some degree, trained to chase the various currencies of success (grants, papers, awards, accolades, sales, page views).”—Justin Podur

    “Sure, you’ll tell me about the moral hazard of giving someone something for free — never mind the trillions we’ve given to banksters and other common thieves. And you’ll tell me how those people should’ve just gotten a job — never mind that there are 4.3 applicants for every open position.”—Michael Alan Miller

    “The puppet hanging on the board is Paul Samuelson, iconic mathturbater and textbook author, whose Economics taught a generation of economists to bark like trained seals, ‘Lump-of-labor fallacy! Lump of labor fallacy!’ The mouth opens and closes; the arms and legs flap.”—Sandwichman

    “We have the basic fact, pointed out by Adam Smith all those years ago, that the bosses will combine in order to lower wages just as readily as and with far greater ease than workers can combine to raise wages. Most capitalists will also be at pains to point out, in different contexts of course, that labour is a cost. We are nothing but a resource which it is in their interests to get as much out of for as little as possible. Hence the class antagonism created by the wage labour system.”—Phil Dickens

    “My primary autistic problem is poverty.”—Laura Nagle

  • Quotebag #54

    “We have a two-party, one-ideology system of governance, and the ideology is one of economic growth at all costs.”—JP Hayes

    “The problem of pimps is a problem of people. The problem is not merely that a few sociopaths exploit others for their own gain; the problem is that human beings come with built-in exploits, honed by evolution and primed by life experiences, that allow them to be exploited by sociopaths (who constitute at least 3% of the general population).”—Sister Y

    “Hiding is futile. Our only path is sousveillance. Looking back.”—David Brin

    “I have a terror of networking as a practice not only because of my autism but also because I always feel embarrassed when I observe these naked attempts to exploit festive occasions to meet the right people.”—Clarissa

    “The dirty little secret is that the service economy sector with the greatest prospect of expansion is also the one in which the most efficient and least costly way of operating is for the customers to do it themselves.”—Sandwichman

    “When the game of making human babies did not have a good opt-out (i.e., prior to around 1970 C.E.), participation in the wider information games was largely instrumental for better playing the breeding game. But with good ways to opt out of breeding new humans, the original game – the game of breeding to pass some of one’s genetic information into the future — is coming to be recognized as a small, rather pathetic subset of the total space of information games.”—Sister Y

  • Another online ideology sorter

    My new-found interest in psychometrics finds some nourishment in CBC’s Vote Compass, a purveyor of a two-dimensional political spectrum where respondents can compare themselves with Ontario’s four somewhat recognized political parties, in anticipation of the upcoming provincial election.  It’s a 30-item Likert-scale questionnaire.  Here’s a graphic of my result:

    This survey instrument offers a second round in which one can assign a personal priority to each issue; a feature I am considering adding to the Agnostic Ideology Sorter, as it would be a practical application for what I call the maxhi schema.  My profile after completing that part of the survey looks like this:

    No surprise there.

  • Guilty as charged

    The question of whether we’re living in the best of all possible worlds is a question of optimization. Optimism and optimization are, of course, closely related words. I find the assertion that we’re living in the best of all possible worlds to be cause for extreme pessimism. I’m probably not the only person who feels that way, as Voltaire’s Candide is so often held up as a case study in gallows humor. A claim that we’re living in the best of all possible worlds can only be read as a defense of the status quo. I find almost as depressing the idea that we could be one simple step (say, radical deregulation) away from being in the best of all possible worlds. That claim is connected to the ideology of the market mechanism being the best of all possible optimizers, which I regard as a statement of faith (and even an attribution of omniscience), and is why I think the label “market fundamentalist” is entirely justified.

    Assuming that a possible world is not a perfect world, assuming that a possible world is a world of tradeoffs, I assume we are assuming that the best [plural] of all possible worlds embody the most efficient tradeoffs. For example, if there is a tradeoff between unemployment and inflation (not that I’m saying there is), “stagflation” represents the worst of both worlds and is an indication that

     

    • There is some third competing objective that’s being “paid for” in a currency called “misery”,
    • The range of possible outcomes has become less appealing, perhaps due to GNP shrinkage, or even a slower rate of growth, given how much of a fucking treadmill economics tends to be, or
    • We’re not living in the best of all possible worlds

     

    The third possibility is the one I find most palatable, and therefore most plausible (being an optimist, after all). The first, while it represents how we rationally would like to think the world works, troubles me because it is consistent with (even though it does not imply) an already-optimal status quo. The second possibility is the most troubling, as the implication there seems to be that the painfulness of the tradeoffs is inversely proportional to the size of the proverbial “pie.” The trouble with this is that it seems to say “yes, Virginia, money (or “wealth,” anyway) is everything.” And of course, there is a one-size-fits-all panacea; in this case economic growth. I hate panaceas. I’m more into paradigm shifts. One I’d like to see is sociology replacing economics as “the physics of the social sciences.” But perhaps I should be careful what I wish for, as this preference is based mostly on feeling more “tribal” solidarity with the sociologists than with the economists.

    About the plural use of ‘best’ in the second paragraph: Assuming tradeoffs between desiderata, there is a Pareto-optimal set, and either the status quo is a data point on that curve or it is not. In the latter case we are not living in the best of all possible worlds. In the former case, we are doing as well as we can for now, and there is the question of whether we can “push the envelope,” so to speak, or “expand the frontier.” I’m actually open to avenues other than wealth creation by which this can be accomplished. I’m not entirely opposed to accomplishing it through wealth creation, but I am sick and tired of the idea that wealth creators (a.k.a. entreprenoors and other marketeers) are the only class of people who deserve credit for any improvement in the human condition. The implication there is that the rest of us are simply along for the ride, and perhaps if a bunch of us got killed in (say) a train wreck, it wound’t be any big loss for humanity. I also happen to admire a lot of past and present figures on the human stage whose contributions have been more in areas like rabble-rousing and stepping on the toes of giants and things like that, and I want to believe I have at least some of them to thank for at least some of the progress we’ve enjoyed so far. I know, tribalism again. Guilty as charged.

  • Update on the Agnostic Ideology Sorter

    While far from finished, the project has jelled somewhat. All the pages except survey.php have been validated for XHTML 1.0 Strict, with survey.php validated for Transitional. I’ve prepared the downloadable zip file of the site source code, with some rudimentary installation instructions, copyleft notice, etc. There’s still no pigeonholing, but I’m now studying things like factor analysis and clustering. Considering that I didn’t know any PHP whatsoever before undertaking this project, there is hope. Oh, and I’ve learned that the “Likert scale” is the technical term for this all-too-familiar questionnaire format with responses ranging from “strongly disagree” to “strongly disagree.” The results pages (if we can call them that) in place so far compare one’s entries with those preceding it. This leaves high and dry the first few respondents. Since each is assigned a number, knowing that number allows one to revisit at a later time for comparison with subsequent respondents. For now, in addition to the “distance metric” from previous entries offered since the start, there is a page to compare any two profiles, and one to see how any particular survey item correlates with the others.
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    Poor Richard has proposed re-wording some of the response items. I hesitate to do so, mainly because of concerns about statistical validity if profiles collected prior to the change were to be mashed up with later ones. But future plans definitely include enlargement of the questionnaire directly by visitors to the site. By all means, add proposed response items, future features and other proposed changes as comments to the present blog entry!

  • If you could say anything to anyone without consequence, what would you say, and to whom?

    Speech without consequences?  What on earth would be the point?  It would be completely and utterly pointless, would it not?

  • Is price discovery lossless?

    What exactly is implied by the claim that prices incorporate all information? How strong a claim is strong efficiency? More specifically, are price signals a form of lossless compression? In other words, is there a way to derive its input data from its output data? If so, I’m waiting to see a step-by-step method for doing so. If not, I’m anticipating possible excuses. Perhaps prices incorporate all information which is relevant to allocation. My own speculation is that strong efficiency might be a property of a perfectly transparent economy—but would also be redundant information under such conditions. More important to me than whether prices incorporate all information is whether there are more direct ways to uncloak information about economic production and distribution, and of course strategy. I can accept that this is an asymptotic goal, like the frictionless plane or perpetual motion. I have a harder time accepting that a free market (or even a freed market) would be the best of all possible worlds. I have a really hard time being expected to take it on faith that prices are all the information I need in order to make fully-informed economic decisions. If that is the implication of the theory, then it is entirely fitting that market advocates are called “market fundamentalists,” and it shouldn’t be intended as a compliment.