Archive for May, 2008

Better Politicians Than Generals

Politics No Comments »

Leftists and some center-leftist “good government” types, in cooperation with some quasi-conservatives, have, successfully, used campaign finance laws to somewhat impede “big money” in politics.  The changes were widely predicted to be unlikely to happen (by me – wrong!), and if they did happen, certain to be routed around by the clever moneymen of the big factions (again me, again – wrong!). 

So sue me.

There does seem to be some friction.  There does seem to be some slowing down and some sluggishness from both parties; some cowboy elements seem to have a lot more control.  The good government types and leftists,  theoretically, should be happy about this, but I’ve about given up trying to completely understand their motivations in this arena.

This has created a market space for genuinely independent advocacy groups to get their message out.  Primarily using the Internet as an incubator for an idea or a cause, these groups can leverage the initial rush into an ongoing voice in the debate.  Swift Boats for Truth is one such, albeit a disreputable example.  (Yes, the people supporting it are ideologues.  This is one thing that ideologues do.)  There are lots of Democratic groups, some more reputable than others.  There are other conservative and libertarian groups.

In time, I would expect that this grassroots-type movement will greatly increase the amount of direct democracy that this country, er, enjoys.  Liberals thinks this will be a good thing for them; I am not nearly so sure.

There are a lot of conservative blogs out there.  There are quite a few liberal ones, too, but the conservative ones seem to have a serious edge in meatiness.  It’s entirely possible that’s just a wishful bias on my part.  This country is not really used to hearing conservative voices in the numbers that our representation in the population would seem to indicate,  (OK, to forestall some objections from the very far left element, it is true that some Americans would consider the current MSM to be “conservative” in many senses.  You are free to think that.  And yeah, there’s Rush.) 

One thing about political voices is this: when you don’t hear the voice of people you perceive to be like you, you tend to hush up about politics.  When you’re the solitary liberal in the sales team, you might feel a little out of place, and reluctant to speak up.  It seems to be true for conservatives as well; the center-right economy prof feels something of an outsider in her circle.  The more voices in your own key that you hear, the better you feel about piping up and singing.  This doesn’t have to automatically be a cacophony between the voices of the different sides; it could be a harmonic experience. 

That said, there are a lot of conservative voices warming up, and their words are true and sweet.  Are we right about everything?  No.  No political philosophy yet conceived on this earth doesn’t contribute something to the debate, however small; no mortal philosophy ever devised will encompass all truth.  Are we right about many things?  Oh my, yes. 

Culture and civic virtue.  A properly and humanely martial tradition, outlook, and bearing.  A respect for education – and a strong belief in its essentially private and family-value-based nature.  A genuine belief in the spiritual, moral, and legal equality of humankind – and compassion for all of humanity.  A belief in the vibrant and vigorous exercise of liberty under law – the idea that freedom is a powerful gift, whose truest expression comes in its voluntary restraint.  At bottom, the idea that a human being is a self-motivated entity – that you can pick yourself up and do with yourself what you will.  Work, think, learn, play – on your own hook, by your own crook.  We believe in a helping hand to people who have fallen down, and need help to get back up.  We believe in a kindly hand to people who have served well, and reached their time of quiet and reflection.  We believe in a culture of life.

Perhaps most importantly – so important that it is rarely said and rarely articulated – we believe that the proper exercise of power in the human sphere is as low as can be accommodated to reality.  That individuals should yield power only grudgingly to communities, communities only grudgingly to regions, and so on.  This does not preclude reaching a state of satisfaction with a particular balance; sometimes a state or a nation is the place where the power should and must be.  We agree that the nation is the proper place for the final investiture of sovereign power; we aggressively disbelieve that larger entities should take this pride of place.  Thus far, and no farther.

If you are unhappy with the state of politics, if, regardless of partisanship or party you despair – then you might take comfort in having some of these things, at least, in common with your compatriots across the aisle.  These aren’t, alas, all consensus values…but some of them are, and all of them are very strongly represented in the literate common population of the United States.

Some of these values are not shared by fairly large groups of people, or they pay lip service to them.  These are not organized groups; it isn’t the Huguenots or the Templars or the Jews scheming to conquer the world.  It’s just some people who don’t share these values.  Some of them are evil, some of them are misguided, some of them are just dumb, some of them are decent people who have taken, from our point of view, a wrong turn.

That’s what politics is for; to hammer out these things without, hopefully, having to kill one another.  Killing one another is boring.  Bullets get pock-marks in the library steps, and you know who’s going to end up paying for it the next time they raise the assessment.  When we despair of politicians, it might do to remember one thing:

As rulers go, they’re a lot better than generals.

Government Schools and Private Values

Education, Politics No Comments »

We’ve decided to have government run the schools. The education of young people is intimately tied into the transmission of values. This leads us to a serious conflict with the way we have chosen to order our society.

Some people will say that the schools shouldn’t teach values; that should be left for parents.  Unfortunately for that point of view, deciding not to teach values is itself a value choice. And people don’t usually hew to it; they want the school to teach their values, whatever those values are. State schools can teach the consensus values of their community without too much trouble – if there is a consensus set of values.

We have to recognize that people have a strong desire – and a right – to see their kids educated in the way they want them educated.  Larry Liberal wants his son to learn about tolerance and diversity; Connie Conservative wants her daughters to learn morality and individualism.  There’s not really a good compromise here; if their children go to the same school, someone (more likely everyone) is going to be unhappy.

We really only have two viable choices that I can see.  One choice is to voluntarily self-segregate – so that liberals live in one town, conservatives in another.  That mitigates the problem by making it easier for the schools to please the large majority of their constituents.  Liberals, out of Kansas; will the last conservatives and libertarians leaving New York turn out the lights, please.  Our family had a reasonably good experience in the public schools of a small mountain town in rural Colorado; there weren’t any liberals, atheists, or ACLUers around to complain that the kids celebrated Christmas and had Easter break.

The other choice is to completely convert to homeschooling and private schooling.  The government can still have a role in setting voluntary standards, providing curricula, and giving subsidy payments to parents who fall below a certain socioeconomic point.  Virtual academies – public curriculum and funding, but with parents teaching (and doing the values integration entirely independently) – are growing in popularity; that’s how we’re schooling our children.  I see downsides to this; some people will make bad choices about their kids’ schooling, for example, which imposes costs on the rest of us downstream when their kids graduate from the DeVry Institute of Poetry Studies and can’t hold a job.

But I think it’s a lot better than the alternative, which is a continuing failure in our schools to reinforce the value choices of families.

Why Drug Reimporting Wouldn’t Work

Economics, Health Care No Comments »

Drug reimportation is a hot idea these days.  It doesn’t work.  Here’s why.

Say you are a textbook publisher.  You have a line of college textbooks that you produce.  This is a complex and expensive process; you hire high-level scientists and academics to write the books, editors to fix their dreadful writing, fact-checkers to make sure it doesn’t say “e=mc3“, artists to create the thousands of diagrams and charts and pictures.  You pay for printing and warehousing and distributing.  You pay IT companies big bucks to maintain your catalog and run your online order system.  In short, every textbook represents quite a large investment of resources on your part.

You sell these books for $65 apiece to university bookstores across America.  You make decent money; some years you lose a little, most years you make a nice profit.  All is well.

Then one day you get a call from a university in Australia.  They’ve heard about your line of textbooks, which it turns out are better than the textbooks that they can print in Australia.  The university wants to buy books from you.  Hooray, you think.  Now, the problem arises that the Aussies don’t have as much money sloshing around their public university system as we do.  There’s no way, in fact, that they can afford to spend $65 per book.  They can give you $30 per book, no more than that.  You talk things over with your accounting folks, and they tell you:  good news.  It turns out that the marginal cost of producing another textbook and shipping it to Australia is $27.50.  Selling books to Australia won’t make you a fortune, but it will improve your bottom line somewhat without hurting your core business.  Everybody wins, and so the freighters loaded with copies of “Sociology And You” start steaming for Perth.

Until one day you come into your office and on your computer screen there appears a web ad offering copies of “Sociology And You” for $45.  You click on the ad, and it’s a company in Australia that is buying the books from you wholesale, and then reselling them to American college students over the Internet retail. 

Is this a problem?  Well, it’s not much of a problem if these folks are moving 10 books a week.  It’s a huge problem if they’re selling 10,000 copies a day.  As you’re preparing to address this problem, you turn on the TV and hear presidential candidates saying that the high cost of textbooks in America is an outrage, and that what we need to do is reimport these books from Australia, where they’re cheap.

But they’re only cheap in Australia because you are selling them to Australia as a marginal, peripheral business.  The main market for your product is the one subsidizing all the fixed costs of book production; those Aussie dollars are just a little bit of icing on the cake. 

So what happens if the government follows through on its promise of cheap textbooks for everyone?  Well, they pass a law making it legal and easy to reimport these books directly without tiresome Internet runarounds.  Eager wholesalers line up to make a fortune on this book bonanza…only to discover that there aren’t any books available from Australia.  Why are there no books available from Australia?

Because you, not being a complete idiot, have stopped selling Australia textbooks for $30 apiece.  Every book you sold to Australia would end up costing you a sale here in the US, and the US sales are where you make your margin.  Since the Australian sales are jettisonable from the point of view of your core business, you jettison them to save what’s important, the U.S. market. 

Drug reimportation works the same way.  The issues about safety and provenance are purely side issues.  The core of the problem is an economic question:  what does it cost to get this particular product?  It may be that the price is different in one place than another.  Price differentials do create a potential for arbitrage, but they don’t create a reality that the lower price is somehow the right price, or that everyone can get the lower price.  Attempts by government to get the lower price for everyone will simply end up removing the lower price option for the people who had it before.

All drug reimportation laws can do is hurt the availability of American pharmaceuticals in other countries.  You won’t sell textbooks to Australia when those textbooks are destroying your profit center in America; Pfizer isn’t going to sell drugs to Canada if the Canadian drugs are going to destroy their profits here.  It’s as simple as that.

My Knee-Jerk Anti-Regulation Stance

Economics, Politics No Comments »

An acquaintance of mine asked me why I was so knee-jerk in my opposition to government regulation.  Upon reflection, I decided that it was because knee-jerk anti-regulationism is the rational position.

Regulation is an evil in and of itself. It may be a required evil, under a certain circumstance. For example, it is a good thing that we have homicide laws. But we are engaging in a trade-off:  we accept the costs of that regulation (including the promotion of moral decrepitude intrinsic to externalizing the regulation instead of expecting everyone to carry “thou shalt not kill” as an internal moral requirement) because of the anticipated higher cost of not having such a regulation (family vendettas, mass slaughter, blood in the streets).

Other times it’s a bit more of a gray area. Is it a good thing to restrict business activity through anti-trust laws? There are arguments to be made on both sides. Whichever side you come down on, there’s still a trade-off being made.

And then there’s the vast area of regulation which are simply a favored group’s use of state power to impose their preferences on others, with no compelling rationale. There is no objective reason to prefer dense-pack housing to sprawled-out housing; some people would prefer to live in dense pack and others would prefer to live in inexpensive tract homes. If environmentalists grab control of the reins of the state they can make developing the latter impossible through regulation, and that kind of regulation is intrinsically evil.  If developers grab control, they can shift the cost of developing infrastructure onto the city; that is also evil.

Why Socialized Medicine is Incompatible with Freedom

Economics, Politics No Comments »

The essence of the conflict between personal freedom and socialism: if there is no socialism, then people can be largely free to do whatever they want without their fellow citizens, in the person of the state, getting all hincty about it. No skin off my nose if you want to skydive in a hurricane.

But if I am obliged to pay for your health care needs, then you can bet I have a long list of restrictions on your actions. No, you can’t smoke. No, you can’t skydive in a hurricane. No, you can’t have eleven children. As soon as the taxpayers are footing the bill for something, they’re going to demand (and get) control over the something.

So if you want the government to pay for something, you have to be aware that the government is also going to end up controlling that something. The government will give you aid for school – and you’ll go to school in the manner that the government prescribes. The government will pay for your medical bills – and you’ll go to the doctor the government assigns you.

There’s no getting around this; he who pays the piper, calls the tune.

Volunteering for Prohibition

The Drug War No Comments »

When should drugs be illegal?

Truly hardcore libertarians would say never; everything should be legal, there should never be any legal controls on pretty much anything that doesn’t directly kill people, there’s nothing wrong with a crack house next to a school, etc.

I’ve gotten pretty close to that position myself, at times. It has a lot of intellectual appeal, but of course that appeal fades when one sees actual crack houses near actual schools, and the effects on the kids who go to those schools.

I divide drugs and other pharmaceutical substances into three categories, and of course all right-thinking people agree with me. (About the three categories, not necessarily about which drugs go where. That’s a question for the political process to determine.)

Category One: Drugs which are so incredibly and obviously destructive that the state should probably step in, if the populace wants it to, and devote police resources to trying to stamp them out. I would put heroin, amphetamines, and crack cocaine into this category.

Category Two: Drugs that some people have very destructive relationships with, that other people are able to handle reasonably well, and that some people can completely take or leave with impunity. I would put alcohol, pot, tobacco, quaaludes, prescription downers, and most “recreational” drugs into this category.

Category Three: Drugs that most everyone can handle reasonably well, and that hardly anyone has a major life-threatening problem with. I put caffeine, chocolate, and other “food” drugs in this category.

With Category Three drugs, there is never any justification for state intervention. Suck down all the Jolt Colas you want. Have some more M&Ms.

With Category One drugs, if the populace agrees that a drug is that destructive, then there should be a full-fledged civil-rights-infringing, door-breaking-down, drug-interdiction-boat “War On Drugs” for those substances.

With Category Two drugs, such state intervention is incredibly dumb. But at the same time, there is that population of people for whom the particular drug in question really is highly problematic. The pothead who is never not high (with all the concomitant lovely lifestyle issues that this tends to correlate with); the wino living in the gutter because she can’t get off the sauce long enough to get a shower and a job; the five-pack-a-day smoker committing suicide on the installment plan.

As a libertarian, I don’t think it’s the state’s business to force these people into making better lifestyle choices. However, as a humanitarian, I think it is legitimate for the state to help these people make better lifestyle choices if they want it to.

I propose a voluntary prohibition on certain substances. If you know that you’re an alcoholic, you can go register with the state, and the state will harshly penalize anyone who sells you liquor. When you show your ID at the liquor store or the restaurant or the bar, the computer flashes the big “No” sign, and the clerk politely but firmly reminds you that you’re not allowed to drink. The grocery store checkout lady tells you sorry, ma’am, you’re on the do-not-sell-cigarettes list. Pot and other Category Two drugs being legalized, the same thing happens for those substances. You can revoke your banned status during an open disenrollment period held periodically, to prevent people in the throes of withdrawal from slipping back in a moment of weakness.

I think it is a legitimate use of state power to help police people who are asking to be policed. This system would avoid the wasteful foolishness of productive, otherwise law-abiding members of society going to jail for smoking a joint once in a while. At the same time, it would let the people with serious drug problems who want to change get tough-love type support from the government. As an added bonus, private charities could use the no-sell registries to more strongly enforce their own policies – “of course you can stay in our homeless shelter, friend – but we don’t permit you to drink, and you will have to go on the no-drinking register for us to be able to help you.”

Comments and suggestions are welcome.

A Left-Right Compromise We Can All Love

Economics, Politics 1 Comment »

Two facts, not really open to debate by anyone dwelling this side of the moon.

One, the U.S. economy is the largest in the world.  And not the largest in a my-bigger-brother kind of way; largest in a twice-your-size beat you into the dirt kind of way.  About twice the size of China.  (And China has what, five times the population?  Meaning we’re tenfold in productivity per capita.)  China may catch us someday..perhaps.  There’s no certainty of it.

Two, the military budget of the United States, is always going to be a certain chunk of the Federal budget.  Maybe liberal hippie presidents like Carter will whittle away at it; a Reagan will come along and fix the damage and then some.  But it will always be there, always some solid percentage of our Federal effort.

The conflation of these facts provides a common ground for conservatives and liberals.

Liberals want to curb the American hyperpower.  They want us – let’s be fair – to be a strong voice among many other strong voices.  They don’t want us defeated, just maybe humbled some – maybe in a place where we listened to France about as much as France listens to us.

Conservatives want the United States government to back the hell off of being the 1,000 ton leviathan state.  We don’t want the states to pick up a whole lot of the slack, either.  (Maybe towns could do more.)  If we’re not getting that, well, then the leviathan state is going to do the kinds of things WE want it to do.  Kill communists, knock off unprofitable dictators, make the world safe for McDonalds, that sort of thing. 

We can both get our way.  If we reduce the Federal government to, say, 30% of its current size, and cap that as a maximum – and agree to keep that size as a fixed portion of our national revenues barring things like a World War II – then both parties get their wish. 

Liberals get their chastened hyperpower by default.  Conservatives get a strongly-defended nation without substantial global reach, and a major shift in power to local communities – one of our core ideals.  Everybody wins (except for the millions of people who would get dumped out of Federal assistance programs of one variety or another).

This doesn’t have to break the war on terror.  Any such shift is going to take decades; plenty of time to send terrorists for a visit with God.  Hopefully, the other powers of the world will step up, and build their own strong regional militaries; if they don’t, well, then we get to be the hyperpower again by default.

It’s a win-win.  True, the liberals have to give up their dream of welfare statism – but if their own beliefs about the origins of the terror war are true, then they’ll be buying peace and prosperity for the entire world. 

All it will cost them is freedom for us.

Economic Education and Global Revolution

Economics, Politics No Comments »

People on the low end of the economic totem pole – the Sears clerks, the delivery boys, the Mexicans working hard in the factories for $5 an hour – any worker on the mucky end of the stick – should probably be thought of as ready to revolt at any time if not for two mitigating factors. Those factors would be a) the reasonably-often-satisfied hope that step-on-the-ladder economic progress would come for those who work hard, and b) the expectation that the brilliant or the lucky could jump to the top. We might encapsulate these promises as “functionality” and “freedom” – the system will work for you if you work for it, and if you can get ahead on your own hook, God bless ya.

Without these, the system is a rip. I can’t get ahead if I work? I can’t get ahead if I luck out? I can’t get ahead if I invent Viagra? A system with these characteristics would suck. With these, I think things are as good as they can be in this imperfect world.

I have some unease deriving from a fear that both prongs of this two-prong test are decaying in the current situation. There seems to be a profoundly anti-wealth sentiment sweeping both the chattering and the ruling classes, one that seems informed by a kindly egalitarianism but no sense of the hard-headed economic realities – trustafarian socialism. The idea that wealth can be legitimately attained or kept seems to be dwindling.

This endangers the freedom prong. (Wouldn’t “Save the Freedom Prong” make a great t-shirt?)

Much more dangerous in the long run is the strain on the prong of functionality. I think that for a long time we have been able to “coast” in many ways economically, and our citizenry has learned very bad economic habits (dependency, dissolution, divorce). The 21st century is not likely to be a time of placid social adaptation to centrally-planned trends, but instead a brawling chaos as the planned trends snap back on their nitwit originators. We’ve got a workforce that to an extent expects hierarchy and stability in a world where they need independence and flexibility. Most painful is going to be the fact that parts of the population have seen the light and are doing the ‘right’ things (or at least the things that will later get them complained about by the less fiscally successful), and others are stuck in well-meant but ineffectual paradigms and can’t succeed in the new rules. This is going to cause more and more gaps. Add in state policies that favor the rich – more accurately, that reward wealth-building strategies - and the perception, if not the reality, that the system is broken spreads further. A previously-functional system with dysfunctional people in it won’t work for long, especially when a perception (and reality) is created that hard work is for suckers.

I think part of the source of the problem is that kids have to be educated for life in a materialist and capitalist culture, but that we instead saddle them with a load of wouldn’t-it-be-nice stories. This is beneficial for the 5% of the kids whose ruling class parents re-inculcate them with the proper capitalist martial virtue, but dooms the other 95%. The 95% are easy meat for the 5% in the hunt. If the 95% got the same factual education as the 5% (by which I mean the same essentially correct economic outlook, not the material circumstances of the education) the economic picture would look different, because the distribution of information between the participants would be different. By the time reality kicks in at age 35 or so, it’s a bit late to forego the class on French romantic poetry in favor of “Statistical Thinking In a Numerate World.”

Freeing Campaign Finance

Politics, Presidential Race 2008 No Comments »

Since I think the first amendment means what it says, I think that there should be no limitations of any kind on contributions to political parties, movements, or candidates. If George Soros wants to give Barack Obama $10 million, or $100 million, why shouldn’t he be able to?

I also think that the integrity of our political system requires that we know who and what is behind each candidate, so everybody should have to disclose every cent of every contribution, and should have to disclose their volunteer labor as well - the FEC could easily run a web site listing every contribution. If George Soros wants to secretly give $10 million to McCain to hedge his bets, he should not be able to do that. Everything should be on top of the table.

Total freedom, total disclosure. What’s wrong with that?

Proponents of campaign finance reform say this position is terrible, that it leads us away from being a democracy and makes our political system more like an auction.  There are two problems with this position.

The first problem is that it is very difficult to stop money.  Fine, George can’t write a check to Obama because it’s against the law. He can write a check to CBS, and to a production company, and to an “independent” ad agency, and run massive pro-Obama ads himself. Are you going to stop him from doing that? You are? OK. He can hire 100,000 unemployed people to go door to door and say “please vote for Barack, he’s a swell fellow.” Are you going to stop him from doing that? You are? OK. He can send up a rocket and have it skywrite “Barack Obama Is God” in letters 1000 miles tall over the continental US. He can send direct-mail to every household in America.  He can do all sorts of things, and the laws will always be playing catch-up.

At some point we have to lean back and recognize that people can spend time and money to support candidates they like, and there isn’t much to be done about it without turning into a police state.  There are no ways to stop people from spending their money that don’t end up relying on massively-bulked up state power.

Secondly, the auction objection applies at ANY contribution size.

$100,000,000 gets you a gigantic nationwide ad campaign – and the side with more of those has an advantage. $1,000,000 gets you a citywide news blitz – and the side with more of those has an advantage. $1,000 gets you a big Web ad push – and the side with more of those has an advantage. $100 buys you a vote in Chicago – and the side with more of those has an advantage.

Whether we like it or not, money is part of the system – as are volunteer labor, intellectual rationalizations, and media popularity.  All of these things are resources – and we have to decide whether we want a system where people can use their own resources as they choose, or whether we want a system where the state decides how resources are used.

Saying that allowing money contributions makes an election an auction is like saying that allowing volunteer labor makes an election a referendum on whether labor unions like you, or that allowing media outlets editorialize makes an election a popularity contest in the newsroom.  Those are all valid points. Elections ARE auctions, and referendums on what social groups support you, and popularity contests among the chattering classes, and a few other things. They are a way of letting the society decide who it wants in charge – and short of imposing fascism, we aren’t going to be able to keep people from expressing their preferences in ways other than the direct ballot.  I think Obama would make a terrible president, and I say so – and whether the audience is my wife and kids, the people who read my blog, or the millions of viewers who see my TV ads, I have a right to say what I think, and to use my own resources to propagate that point of view.  It doesn’t bother me that people with more resources and different opinions also have that freedom.

People will work for who they want, and they will give money to and for who they want. Trying to restrict those transactions simply forces dishonesty and concealment into what ought to be a transparent process.

We should abolish our entire campaign finance “reform” system, and simply require full and immediate disclosure so that the electorate can determine who is backing who.  That’s all that is necessary for us to be free.

Breaking the Ed School Monopoly

Education No Comments »

The existing teaching industry is not effectively mediated by market forces. Guilds (in the forms of unions) and government (in the form of certification requirements) act as a barrier to entry, preventing genuine market competition from working its happy magic. Any additional allocation of resources to education simply flows to the rent-seekers who control access (in this case the teacher’s unions and their political causes) rather than to the end users. Thus the spiraling spending on education, with absolutely zero correlation to performance. Under the current regime, if you add more teachers, regardless of competence, the net amount of education will not increase. The rent-seekers have no motivation to provide good performance; good performance does not justify them in asking for more resources for their tiny empires.

This may be changing. The colleges of education have become so openly rotten that even legislatures can’t bear the stench. New teacher certification tests are getting acceptance – anyone with a degree can take the test and if they pass, be certified to teach.

This is totally healthy and will be a boon to schools. It’s a difficult slog for a smart person to sit through a graduate program in education – it’s pablum, and bogus pablum at that. If these tests catch on, we could be seeing a much higher caliber of person entering the world of public school teaching.