Wednesday, June 06, 2012

Is Greater Productivity a Danger?

Is Greater Productivity a Danger?

Mises Daily: Wednesday, June 06, 2012 by

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It is bad enough that opponents of the free market wrongly blame capitalism for environmental pollution, depressions, and wars. Whatever the failings of their causal theories, at least they are focused on undoubtedly bad things. We have really gone beyond the pale, though, when the market is blamed for something good.

Tim Jackson, a professor of sustainable development at the University of Surrey, does just that in his article. "Let's Be Less Productive," which appeared in the New York Times, May 26, 2012.

Jackson suggests that greater productivity may have reached its "natural limits." By productivity, he means "the amount of output delivered per hour of work in the economy." He acknowledges that as work has become more efficient, substantial benefits have resulted: "our ability to generate more output with fewer people has lifted our lives out of drudgery and delivered us a cornucopia of material wealth."

Despite these benefits, danger lies ahead:

Ever-increasing productivity means that if our economies don't continue to expand, we risk putting people out of work. If more is possible each passing year with each working hour, then either output has to increase or else there is less work to go around. Like it or not, we find ourselves hooked on growth.

If financial crisis, high prices of resources like oil, or damage to the environment make continued growth unattainable, we risk unemployment. "Increasing productivity threatens full employment."

What then is to be done? Jackson has an ingenious remedy. We should concentrate on jobs in low-productivity areas. "Certain kinds of tasks rely inherently on the allocation of people's time and attention. The caring professions are a good example: medicine, social work, education. Expanding our economies in these directions has all sorts of advantages." A cynic might wonder whether it is altogether a coincidence that Jackson is himself employed in one of these professions.

Jackson has in mind other reforms besides greater emphasis on the "caring professions." (One wonders, by the way, whether by this name Jackson intends to suggest that those engaged in high productivity occupations do not care about human beings. To say the least, that would be a rather bold suggestion.) We should also devote more resources to crafted goods that require substantial time to make and to the "cultural sector" as well.

Jackson's program raises a question: how can these changes be achieved? He stands ready with an answer. Of course, a transition to a low-productivity economy won't happen by wishful thinking. "It demands careful attention to incentive structures — lower taxes on labor and higher taxes on resource consumption and pollution, for example."

Jackson is certainly right that if labor becomes more efficient, workers must find other uses for the time they now have available. But why is this a problem? Human beings have unlimited wants, and there are always new uses for human labor.

As Murray Rothbard notes,

Labor needs to be "saved" because it is the pre-eminently scarce good and because man's wants for exchangeable goods are far from satisfied.… The more labor is "saved," the better, for then labor is using more and better capital goods to satisfy more of its wants in a shorter amount of time.…

A technological improvement in an industry will tend to increase employment in that industry if the demand for that product is elastic downward, so that the greater supply of goods induces greater consumer spending. On the other hand, an innovation in an industry with inelastic demand downward will cause consumers to spend less on the more abundant products, contracting employment in that industry. In short, the process of technological innovation shifts work from the inelastic-demand to the elastic-demand industries.[1]

Financial crises may interrupt growth, but given the unlimited character of human wants, they cannot permanently supplant it. Jackson has offered us a cure, but he has failed to show that a disease exists that requires his remedy.

Fuente:

Saludos
Rodrigo González Fernández
Diplomado en "Responsabilidad Social Empresarial" de la ONU
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Friday, June 01, 2012

Liberty in Aquarius?

Liberty in Aquarius?

Mises Daily:Friday, June 01, 2012 by

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While "New Age" can stand for a great variety of heterogeneous movements and worldviews, there are general features characterizing its followers, apart from clothing and food habits: a conviction of being part of a new planetary force that will contribute to or witness a spiritual transformation of humanity — taking a qualitative quantum leap to higher consciousness. Although many of the invoked spiritual beliefs and practices stem from ancient and geographically diverse origins, the New Age movement appears as a mass phenomenon only after the Second World War, or more exactly, in the wake of the "hippie" movement and the student revolutions of the 1960s, and is now present almost everywhere in popular culture and among the intelligentsia.

Apart from sporadic mentions (including in the works of Murray N. Rothbard), libertarian writers seem to have paid little attention to New Age philosophies. This may originate in the perception that spirituality involves matters (until now) not unanimously observable and objectively quantifiable. The libertarian position rests on the nonaggression principle against nonaggressors, which in turn builds on a clear definition of property rights. It remains however unclear whether spiritual matters like "aura," "vibrations," or "energy" are even scarce resources. As long as all behavior under the banner of New Age remains voluntary, it represents "capitalistic acts between consenting adults" (even without the necessity of chapters on "The Sex Guru," "The Channeling Medium," or "The Aura Healer" in a future sequel to Walter Block's Defending the Undefendable).

However, since the New Age literature includes thoughts on the state and on economic matters, it seems justifiable to examine the latter from an Austro-libertarian standpoint. In the following, we will quote spiritual "authorities" on those matters. Due to limitations of space, only a small number of New Age "thinkers" will be considered. The selection does not claim to be representative for the totality of New Age thought. There is no statistical data available for such decisions to be based upon, even if, for example, several worldly or esoteric publications compile ranking lists (like the Watkins Review's list of the 100 most spiritually influential living people). On the other hand, statistical representativeness is probably not a good measure for matters spiritual. After extensive reading of New Age literature as well as numerous conversations with individuals considering themselves as part of the New Age movement, the following commonalities of thought and opinion can be formulated as descriptive for most New Age philosophers: preferences for communal over private property, consumption over thrift, intuition over rationality, nature over technology, and the commune over the family; favorable views of world government; abolition of money; renouncement of the ego and greed; antirational thought; a new class theory and high time preference ("here and now!").

While declaredly nonpolitical, in terms of political organization many spiritual teachers seem to prefer some form of world government. Indian guru Osho (1931–1990, known also as Bhagwan Shree Rajneesh) was one of them:

To make it [the United Nations] a success, the simple thing is to make it a World Government. All nations should surrender their armies, their arms, to the World Government. Certainly if there is only one government, neither armies are needed nor arms. With whom are you going to have a war?

Now each big country, each power, is loaded with nuclear weapons, so much so that if we want to, we can destroy seventy earths like this, right now.…

Politicians are basically, deep down, impotent — hence the urge to power.…

And the power is in such people's hands. Any crackpot can push a button and finish the whole of humanity — the whole of life on earth.…

Each prime minister of the existing countries will become a member of the World Government, and all the prime ministers of the countries which join into one World Government will continue to work functionally. They won't have any real power, because the question of anyone invading anyone else does not arise. They will simply run the railways and post offices, etc., of their countries.

There is a possibility that a few governments won't join the World Government; then they have to be boycotted completely as if they don't exist. There should be no relationship with them, no communication, because that is the only way to bring them to join. And they cannot stand against the World Government. They will have to surrender. It is better to surrender gracefully. And then they will have their government, they will have their internal guards, a national force which can manage internal affairs, but they will not have plants making nuclear weapons and millions of people engaged in the unnecessary exercise of killing man.

The members of the World Government will choose the world president. But the world president will be chosen not from the members of the World Government, but from outside. And one thing should be absolutely certain about him — that he is not a politician. He can be a poet, a painter, a mystic, a dancer, but not a politician. Anything except that. So in this way we will destroy the political power which has been the whole torture in the past.

The way the U.N. is now, with a few countries having veto power, should be dissolved.

It is again a power trip, and this has been the cause of many troubles: one single government can veto something for the whole world. Instead, each president from different nations will have voting power according to the nation's population of matriculates, of high school graduates.

This will change the whole power structure in the world. Then details can be worked out very easily.

While some of the sentences about politics may ring true to libertarians, this passage abounds of logical inconsistencies. Would a world government really have no use of its weapons? However, this may be compatible with a position that defies logical thought:

Question: Why are you so much against logic?

Osho: Because it is logical to be against logic. Logic proves nothing, that's why I am against logic. It only pretends to prove; it proves nothing. It is an empty game, verbal. But the pretension is such that millions of people are befooled by it, and down the ages we have been trained for logic, so it has appeal. But logic has never proved anything. Proof comes only through experience, never through logic.

This empiricist position, together with a denial of universal principles, may lead to the following statements (in 1989!):

I love the Soviet Union because it is a great experiment. It is a milestone in the history of man. Of course it is only half, but still — half is better than nothing. The other half can be raised on top of it.

What Lenin and Stalin have produced has given a good foundation for anybody to raise the temple of consciousness. And this temple will not belong to any religion; it will belong to all individuals who want to enter into initiation, who want to enter on the path.…

It looks very cruel, inhuman. But it was Joseph Stalin who managed the Soviet Union, because it was confronting on enemies two sides. Enemies from within … the Russian Orthodox Church, the intellectuals, the people who did not want to share their property — even the poor masses. As I told you, a man who has only two hens will not share — that's all he has. The masses are the greatest enemy of their own welfare. So you will be surprised to know that one million Russians were killed by Joseph Stalin, and these were not the rich people. These were the poor people who were adamant, stubborn.

Without Joseph Stalin, communism would not have succeeded — although it succeeded out of violence, murder, massacre. First he had to finish all the enemies inside the country, and then he had to make an iron wall around the Soviet Union, because the whole world was against him. All the capitalist countries were against him, against communism, because if communism succeeds in one country it is going to succeed in every country. It is better to kill it in the beginning, because soon it will be gaining more and more strength and it will become impossible to stop it.

The whole credit for protecting the Soviet Union and communism goes to Joseph Stalin. But of course he had to use murder, no trials in the courts, no wastage of time. He had not much time to waste in fighting in the courts. Simply finishing people immediately, just on a suspicion.…

It used to be said, and is still said in every capitalist country, that "You cannot kill one innocent man, even if you have to leave ninety-nine criminals just to save one innocent man." Joseph Stalin turned the whole thing upside down. He said, "You cannot leave one criminal, even if you have to kill ninety-nine innocent men.

So it is not a question of individuals, it is not a question of innocence, it is a question of saving communism at any cost.

Another spiritual authority was Jiddu Krishnamurti(1895–1986), who in his book Education and the Significance of Life writes, "We have to create a world government which is radically different, which is not based on nationalism, on ideologies, or force" (p. 57).

Generally speaking, even if New Age figures may make statements in favor of some politicians (like Deepak Chopra, currently fifth on the Watkins Review's list, who fundraises for Obama), it seems that most of them do not focus on politics and the institution of the state directly. Instead, the latter's actions are perceived to be the results of humanity's collective consciousness, which can be improved only through spiritual practice of various kinds by the greatest possible number of individuals. Sending "positive" energy or vibrations to world leaders and thereby to have a peacemaking influence seems to be the method of choice — not overtly opposing government abuse, which from a spiritual perspective would only reinforce the present "negativity." There seems little understanding of the inherent dangers and the immorality of the state's monopolies of taxation and jurisdiction. As in Marxian ideology, the institution of the state is expected to be dissolved or transformed through a universal dialectic process.

On economics, New Age authorities seem to adopt a now-conventional position of a social-market economy or of moderate interventionism. Deepak Chopra, for example, promotes a "just" capitalism:

A society marked by repression and rigid authority — which is the general political picture in China — can enforce economic growth, but that's not America. Likewise, a completely unfettered free market of the kind that existed in the robber baron era, can generate profits galore, but that's not America, either. We decided long ago that people deserve dignity, a healthy workplace, a clean environment, and lack of ruthless exploitation by owners and bosses.

Many spiritual leaders favor a voluntary reduction of consumer behavior and teach detachment from material things. An ideal lifestyle for some would be that of a man who leaves no traces behind him — like a "bird in the open sky." Economically speaking, it reflects a preference of consumption ("here and now") over saving ("hoarding"), and its result, if consequently applied, would be less capital investment or even capital consumption. However, only a few New Age leaders are outspoken critics of capitalism and the market economy — probably also due to the fact that a considerable part of their followers are from among the wealthy.

There seems to be a consensus among spiritual teachers that greed and "money" caused the current economic crises, as the 14th Dalai Lama (currently second on the Watkins Review's list) explains in an interview with Business Week:

I'm telling people, including some businessmen who are my friends, what this global economic crisis was caused by too much greed, speculation, and hypocrisy — not being transparent. These are the moral and ethical issues.

According to Buddhism, these things happen due to their own causes and conditions. Through years or through decades this present crisis developed. All the causes and conditions were fully ripe. No force could stop it. It's the natural law. So you accept it.

While Austrian economists would readily subscribe to the fact that economic crises are "somehow" related to "greed and money," New Age teachers and their followers rarely show a more profound understanding of the underlying economic mechanisms. Their statements often remain on such a general level that readers may easily find confirmations for them (this may be a strategy similar to that producing the "Barnum effect" in astrology). In the following excerpt, Eckhart Tolle explains how "the present moment can heal the world economy":

We know that ego is the source of the Pain Body — that part of our consciousness that moves toward pleasure and rejects pain. We also know that attachment causes us to care more about things than qualities like Love, Compassion, and Loving Kindness.…

Every country in the world wants growth every year. That is like saying what goes up most never come down. Every politician and statesman is looking for ways to boost GDP to higher and higher levels. But what would happen if we had economic equanimity? What if President Obama as the head of the world's strongest economy began to talk about inner peace instead of economic growth at any cost? Did making more money ever bring anyone you know permanent happiness?

We're not talking about accepting less. We're talking about accepting. Part of living in harmony with the Universe is accepting its physical laws which include the economic cycles of nations. Regardless of the recklessness of banks and stock traders, the Universe cannot sustain continuous expansion. Even the Big Bang, which states that the Universe is constantly expanding, also says that in that expansion the Universe will cool down until all the stars burn out. The Universe will continue to get larger, but it will be a cold, lifeless, and Universe bereft of planets and suns.

This too is what could happen to countries obsessed with positive economic growth. The hapless search for profit at any cost bankrupts our values and quality of life.

Returning to the Present Moment shows us where our real wealth is. And that wealth does not derive from new trade agreements; it comes from the Power of Silence inside every moment; it comes from the infinity between each though; it comes from the heart when it is open and undefended.

A recurring theme in literature on positive thinking is a supposed material superabundance. Instead of having a central warehouse as socialists like Fourier described in their collectivist utopias, some New Age thinkers assume the existence of a universal warehouse, which by inextinguishable supply provides for all material wants — by spiritual mail order so to speak. This may be achieved by the means of visualizations and positive affirmations. In Human Action, Ludwig von Mises warns of the consequences of similar wishful thinking:

Such is the myth of potential plenty and abundance. Economics may leave it to the historians and psychologists to explain the popularity of this kind of wishful thinking and indulgence in daydreams. All that economics has to say about such idle talk is that economics deals with the problems man has to face on account of the fact that his life is conditioned by natural factors. It deals with action, i.e., with the conscious endeavors to remove as far as possible felt uneasiness. It has nothing to assert with regard to the state of affairs in an unrealizable and for human reason even inconceivable universe of unlimited opportunities. In such a world, it may be admitted, there will be no law of value, no scarcity, and no economic problems. These things will be absent because there will be no choices to be made, no action, and no tasks to be solved by reason. Beings which would have thrived in such a world would never have developed reasoning and thinking. If ever such a world were to be given to the descendants of the human race, these blessed beings would see their power to think wither away and would cease to be human. For the primary task of reason is to cope consciously with the limitations imposed upon man by nature, is to fight against scarcity. Acting and thinking man is the product of a universe of scarcity in which whatever well-being can be attained is the prize of toil and trouble, of conduct popularly called economic.

An extreme form of negating scarcity is a movement called breatharianism, which promotes "pranic" nourishment, that is nourishment by sunlight alone. Although its spiritual leader Jasmuheen (Australian-born Ellen Greve) failed to demonstrate her ability in an experiment for the Australian TV program 60 Minutes (excerpts are available on YouTube), there are cases where followers eventually starved themselves to death. In the hundred-page Global Harmonization Program from Jasmuheen's Embassy of Peace the word "economics" does not appear once, at the same time as the "embassy's" programs are supposed to have the "power to … help create a more balanced economic model that because of its altruistic and educational focus, will attract powerful forces of interdimensional support."Download PDF

The Global Sufficiency Network "provides the practical tools needed to move away from the mindset of scarcity that fuels so many of our societal ills and into a new, more harmonious and sustainable way of life on the planet we all call home."

Can New Age "thought" be reconciled with a libertarian position? Since New Age thought does not contradict in principle the nonaggression axiom — on the contrary, peace and harmony representing its core values — there should be sufficient common ground for dialogue. However, rejection of formal, aprioristic logic in favor of "intuition" or empirical reasoning can make it difficult to sensitize New Age followers to the implications of the state's existence and the shortcomings of interventionism.

Since Taoist philosophy — and Asian culture in general — has been inspirational for several New Age movements, Murray Rothbard's article "The Ancient Chinese Libertarian Tradition" may resonate with New Age followers. Rothbard traces the roots of libertarianism to Chinese Taoist philosophers, for whom

Government, in sum, must be limited to the smallest possible minimum; "inaction" was the proper function of government, since only inaction can permit the individual to flourish and achieve happiness. Any intervention by government, Lao-tzu declared, would be counterproductive, and would lead to confusion and turmoil. After referring to the common experience of mankind with government, Lao-tzu came to this incisive conclusion: "The more artificial taboos and restrictions there are in the world, the more the people are impoverished…. The more that laws and regulations are given prominence, the more thieves and robbers there will be."

Even if New Agers do not acknowledge it, the market economy made much of the current New Age movement possible. Capital accumulation and economic growth allowed for time and resources to be freed up to be used for "spiritual" purposes. The appearance of spiritual professions — like aura healers, meditation coaches, or mediums supposedly channeling angels or other spirits — are just a consequence of the division of labor under the present (relatively) capitalistic conditions.

This article can only serve as a very superficial account of New Age economic and political thought, which would need to be continued by more extended research. Reasonable objections may be made about the selected authors and whether they represent the "real" New Age movement or not. Many spiritual leaders propose global solutions that cannot be falsified by aprioristic reasoning since they apply to energetic or spiritual phenomena. However, some of their statements regarding human action do not stand the rigors of formal logic and may lead to catastrophic consequences. Since New Age ideologies are influential in public life and the media, and are among others often linked to agendas of world government and environmentalism, their discussion from an Austro-libertarian standpoint is necessary to expose potentially dangerous fallacies.

Fuente:

Saludos
Rodrigo González Fernández
Diplomado en "Responsabilidad Social Empresarial" de la ONU
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Tuesday, May 29, 2012

mujerchile: This is a defining moment in history.

This is a defining moment in history.

President Barack Obama and First Lady Michelle Obama greet the U.S. Navy's first contingent of women submariners to be assigned to the Navy's operational submarine force, in the Blue Room of the White House, May 28, 2012. The 24 women were accepted into the Navy's nuclear submarine program after completing an intensive training program and serve on ballistic and guided missile submarines throughout the Navy. Also attending were ADM Mark Ferguson, left, Navy Secretary Ray Mabus and Defense Secretary Leon Panetta, right. (Official White House Photo by Pete Souza)

President Barack Obama and First Lady Michelle Obama greet the U.S. Navy's first contingent of women submariners to be assigned to the Navy's operational submarine force, in the Blue Room of the White House, May 28, 2012. The 24 women were accepted into the Navy's nuclear submarine program after completing an intensive training program and serve on ballistic and guided missile submarines throughout the Navy. Also attending were ADM Mark Ferguson, left, Navy Secretary Ray Mabus and Defense Secretary Leon Panetta, right. (Official White House Photo by Pete Souza)


Fuente:

Saludos
Rodrigo González Fernández
Diplomado en "Responsabilidad Social Empresarial" de la ONU
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Five Ways to Avoid the Next Facebook IPO Fiasco

Five Ways to Avoid the Next Facebook IPO Fiasco

On the heels of the Facebook IPO fiasco, many investors are wondering how they can find the next best thing and avoid getting "facebooked" in the process.

Tall order? Not really.

First, look for companies with ideas that can be applied across a wide variety of industries.

If I had said this five years ago, you'd be looking for Internet- related startups or companies that can do "it" better, faster or cheaper.

Going forward however, I think the true innovation will be exponential progress that's made linking living systems with their digital counterparts. Everything from synthetic biology to computational bioinformatics will grow a lot more rapidly than the broader markets.

So will key markets related to healing human illness, solving hunger and figuring out how to deliver potable water to broad swathes of the planet.

No doubt there will be tremendous ethical challenges along the way, but I believe we will see the line blur between what's needed to live and how we actually live our lives.

Though it's hard to imagine given the state of the world at the moment, I believe a fair number of the best up- and- coming investments will be outside the traditional first- tier markets of the United States, Europe and Japan.

In fact, I'd bet on it.

Second, don't confuse the ability to organize or share information with the ability to generate revenue

One might lead to the other but they are not the same thing.

The way I see it, Facebook is a classic example of everything you don't want in a business. It is 900 million users who spend an average of $1.32 a year. Compare that to Amazon.com, which clocks in at a much more valuable and consistent $36.52 per person.

Call me crazy, but I don't think Facebook stock will see the bottom for a while. As I wrote last Friday, at best Facebook is worth $7.50 a share.

Revenue is slowing. Facebook doesn't dominate the mobile markets that are becoming the preferred consumer channel for tens of millions of people. And, in what is perhaps the death knell, startups are already cannibalizing Facebook's user base.

The ability to "like" somebody is really no different than signing their yearbook in high school --only you're using a computer and the Internet to do it.

Third, hunt for ringe thinkers working in their garages.

It's not enough to think differently. The next big things will come from those thinkers operating on the fringes of what the rest of us consider normal.

For example, there's a self-taught school dropout mechanic in Wichita, KS, named Johnathan Goodwin who turned the automobile industry on its ear by figuring out how to convert gas- guzzling hummers into biodiesel trucks and 100 mpg hybrids. Detroit said it couldn't be done yet his company, H-Line Conversions, proved them wrong. Don't forget that Bill Hewlett and Dave Packard started H-P in their Palo Alto garage. Incidentally, their first product was not a computer but an audio oscillator Walt Disney purchased to make the film Fantasia.

Then there's eBay (Nasdaq: EBAY).

Now an institution, eBay has created several millionaires like Jordan Insley and Sarah Davis. Insley has sold more than $8 million worth of electronics via eBay, while Davis has moved more than $4 million worth of designer handbags online. Many eBayers operate from their garages quite literally.

Steve Jobs and Steve Wozniak also built the first Apple computers in Jobs's parents' garage. And the rest, as they say, is history.

Fourth, be a "nowist" instead of a futurist.

Joi Ito, Director of MIT's Media Lab and an early stage investor in both Twitter and Flickr, notes that the ability to respond to suddenly emerging trends is key.

I agree.

It's one thing to identify long- term trends, but it's entirely another to understand the moves you need to make ahead of time.

Consider what's happened during this financial crisis.

Most investors were totally unprepared for the chaos in 2007 just as they were in late 1999. On the other hand, those who had prepared for the unexpected did just fine, including many Money Map Report subscribers.

Why? - Because they invested in companies that had strong international sales, diversified assets, competent management and healthy cash flow. In other words, the "glocals" I've favored and will continue to favor until this mess resolves itself one way or the other.

These are the companies that are quite literally prepared for anything. Many, like ABB Ltd. (NYSE: ABB), CNH Global NV (NYSE:CNH), SPDR Gold Shares (NYSEArca: GLD), and iShares Silver Trust (NYSEArca: SLV) actually melted-up in the triple digits.

Now, with the markets getting ready to roll over again, we're preparing to repeat the process if needed.

Fifth, watch people and travel if you can.

I got started people watching with my grandmother, Mimi. You've heard me talk about her before.

She was widowed at a young age and managed to turn a small life insurance settlement into the money she needed to live out her life in style by becoming an extremely savvy self-taught investor.

We used to go to malls, the country club and even to burger joints (her favorite) just to watch the sea of humanity that paraded in front of us.

At the time, I didn't really understand what she was looking for. Over the years, though, I began to understand Mimi was also watching how and what people bought.

Were they more interested in bulk purchases? Did they favor ultra-expensive goods or counterfeits? Were they paying in cash or whipping out credit cards?

She paid particular attention to folks she referred to as the "most important consumers on the planet"...our middle class. Mimi reasoned that what and where they were buying told her a lot more about the state of the economy than any "five dollar dandy" in a suit on Wall Street ever could.

To this day, that's why I watch the same- store sales for Wal- Mart (NYSE: WMT) and McDonalds Corp. (NYSE: MCD) very closely, among other data points .

And, when I'm travelling, I go out of my way to plunk down in a local shopping mall if I can.

Sometimes this involves luxury goods carried by those stores in Shanghai's Xintiandi shopping complex or along the Avenue des Champs-Elysees in Paris.

Other times, it's simply a Publix Market in Sarasota, FL, that catches my attention or the Vivre near our home in Kyoto.

Either way, the cross section of humanity I see helps me recognize patterns that, in turn, represent opportunities others don't yet see or recognize.

T here are all kinds of ways to spot the next big thing. No one data point is going to present the single "aha" you need, but together they may form a massive blinking sign.

I hope I'm smart enough to "see" it.

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Rodrigo González Fernández
Diplomado en "Responsabilidad Social Empresarial" de la ONU
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Thursday, May 24, 2012

Sponsor a Mises University Student

Sponsor a Mises University Student

Mises Daily:Thursday, May 24, 2012 by

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The right instructor can change a student's life. I know. It happened to me. Looking through the course catalog at UNLV years ago, I noticed the class "EC 742 — History of Economic Thought. Instructor: Rothbard." I didn't know who Murray Rothbard was. I hadn't ever heard of Austrian economics. I didn't know what a libertarian was. I was in my late 20s but hadn't thought much about my worldview at all.

I asked a fellow student about the course, and he urged me not to take the class with Rothbard. "He's a kook," said the student, providing the worst advice in academic history. "Take the class independent study." He then suggested one of the many Keynesian instructors at UNLV.

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However, government has betrayed young people with its continuous meddling in the economy. The future is cloudy because of the endless stimulus plans, high taxation, and overregulation by government busybodies. The Federal Reserve continuously prints money, bailing out bankrupt businesses, allowing these capital wasters to destroy the resources that could spur job growth.

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Mises, Rothbard, and the rest of the great Austrian thinkers taught us that meddling by Washington and the Federal Reserve will not create economic riches. The malinvestments of the boom must be liquidated, and that liquidation process will continue despite Obama and Bernanke claiming they can reinflate the bubble prosperity. They can't.

In these tough economic times, we know that giving to the causes you believe in is hard. But nothing is more important than ensuring that civilization is given a chance to survive and thrive. Your tax-deductible gift of $100, $50, or any amount, would be great. Your contribution of $500 or even $1,000 would be magnificent. Since its founding in 1982, the Mises Institute has trained thousands of young scholars. But we must do more, especially now that campuses and political life and the media continue to be saturated with economic lies.

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I'm thankful every day that I took EC 742 with Rothbard. Please help other students be struck by Rothbard's Austrian lightning.



Saludos
Rodrigo González Fernández
Diplomado en "Responsabilidad Social Empresarial" de la ONU
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Thursday, May 10, 2012

Previous Mises Daily IndexThe Rawlsitarian Paradox

The Rawlsitarian Paradox

Mises Daily: Thursday, May 10, 2012 by

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[Free Market Fairness By John Tomasi • Princeton University Press, 2012 • Xxvii + 348 pages]

Free Market Fairness

To write about bleeding-heart libertarianism is no easy task. Self-professed bleeding-heart libertarians, who include well-known political philosophers, now run their own website, and the movement has aroused among libertarians considerable interest. But the bleeding hearts do not profess a unified philosophical point of view. If someone is a Rothbardian, e.g., or an Objectivist, you at once know what views you need to address; not so for a bleeding heart.

If the movement professes no fixed body of doctrine, though, many bleeding hearts seek to combine support for the free market, albeit often in an attenuated form, with a favorable view of social justice, and, in particular, of John Rawls's theory of justice.[1] Though Rawls was of course far from a supporter of the free market, a number of the bleeding hearts believe that his views can, suitably modified, provide a powerful defense of classical liberalism.

John Tomasi does not in Free Market Fairness call himself a bleeding-heart libertarian, but his excellent book offers the best and most comprehensive defense yet to appear of the position just described. Tomasi is a distinguished and imaginative political philosopher who teaches at Brown University, and every reader of his book will learn a great deal from it.

Tomasi describes in an engaging way what led him to what appears at first sight a mixture of incompatible commitments. On the one hand, he found classical liberalism appealing; on the other hand, he was attracted to a conception of justice usually taken to be inimical to that position.

Two classical-liberal ideas especially attracted him. The free market enables people to mold their own lives; no longer need they passively react to the wishes of others.

Growing prosperity seems to give an ever-wider range of people a sense of power and independence. It encourages a special form of self-esteem that comes when people recognize themselves as central causes of the particular lives they are living — rather than being in any way the ward of others, no matter how well meaning , other-regarding or wise those others might be. (p. 61)

Many have criticized the free market because, in Marx's phrase, it is an "anarchy of production": no central body coordinates the vast array of market prices. But this is of course not a failing but a virtue. Hayek has through his notion of "spontaneous order" done a great deal to illuminate why this is so, and Tomasi is impressed:

I am also drawn to the libertarian idea of "spontaneous order." … Friedrich Hayek argues that a free society is best thought of as a spontaneous order in which people should be allowed to pursue their own goals on the basis of information available only to themselves. Along with the moral ideal of private economic liberty, I find the libertarian emphasis on spontaneous order deeply attractive. (p. xii)

Among his fellow political philosophers, support for the free market is decidedly a minority view. Classical liberalism has been overthrown by what Tomasi, following Samuel Freeman, calls "high liberalism":

The distinctive political commitment of high liberals is to a substantive conception of equality. Perhaps as a result, high liberals are skeptical of the moral importance of private economic liberty. Unlike the classical liberals and libertarians, the high liberal ideal of equality leads them to affirm a conception of social or distributive justice. (p. 54)

Clearly, you cannot at the same time consistently be both a classical liberal and a high liberal. But Tomasi makes a surprising claim. The most important theorist of high liberalism is John Rawls, but Tomasi argues that Rawls's conception of justice as fairness, which he accepts, can be adapted to the defense of "market democracy," Tomasi's version of classical liberalism.

Rawls's theory is not the only left-liberal account of social justice on offer, and Tomasi does not intend to "marry market democracy to the Rawlsian program" (p. 105). But "I [Tomasi] choose justice as fairness simply because, once it has been adjusted and corrected according to market democratic principles, it is the conception of liberal justice I find most compelling" (p. 175).

In order to understand Tomasi's claim and to judge its success, it is important to grasp what market democracy means. It is by no means the same as the libertarianism of Rothbard and Nozick.

Within the framework of market democracy, economic liberties can properly be regulated and limited to advance compelling interests of the liberal state.… Unlike strict libertarians, market democrats can join high liberals as well as classical liberal thinkers such as Milton Friedman, F.A. Hayek, and Richard Epstein, who say that the liberals state should be given the power to provide a social minimum funded by a system of taxation. (pp. 91–2).

Tomasi also favors government support of education, e.g., through a voucher scheme. (A complication, which will not be pursued here, is that Tomasi distinguishes two versions of market democracy, democratic laissez-faire and democratic limited government; the second allows somewhat more direct government intervention than the first.)

But even if Tomasi is not a strict libertarian, does not his position differ entirely from that of Rawls, who expressly repudiates as inadequate the "system of natural liberty"? How then can Tomasi arrive at a Rawlsian defense of market democracy?

Tomasi's answer is not the obvious one that will first occur to most readers. Rawls's difference principle allows inequalities that make the worst-off class in society better off than they would otherwise be. Suppose that a great deal of inequality turns out to be to the advantage of the worst off because, e.g., economic incentives strongly motivate people. Would we not have a Rawlsian justification of inequality?

We very well might; but this is not the line that Tomasi takes. The point just considered depends on an empirical hypothesis about how people in the actual world are motivated. Tomasi prefers to operate at a higher level of abstraction. He is concerned, like Rawls himself, with "ideal theory." This consists of two tasks of identification. The first of these

involves identifying a set of principles of justice that expresses our commitment to treat citizens as free and equal self-governing agents. The second identificatory task concerns institutions … we seek to identify institutional regime types that "realize" the principles of justice. (p. 206)

What Tomasi has in mind, then, is this. Rawls's own social-democratic views are simply interpretations of his theory of justice. If we accept Rawls's principles of justice, we are not bound by Rawls's own views about how these principles are to be implemented, and the door to a market-democratic interpretation of Rawls lies open. To think otherwise, Tomasi holds, is to fall victim to what he calls an "ipse dixit" fallacy. "At the extreme, the exegetical approach treats justice as fairness as a plot in the archaeology of ideas rather than as a living, growing research paradigm" (p. 179).

For each of Rawls's principles of justice, then, Tomasi offers an interpretation congenial to market democracy. Rawls's first principle specifies a set of liberties that enjoys lexical priority to the distributive requirements of the second principle.[2] Rawls does not include rights to acquire and hold productive property among the set, but Tomasi does. The ability to engage in business often proves an excellent way to develop one's moral powers. Why, then, exclude it from the list of protected liberties? Tomasi intends this point to apply to what Rawls terms the "special conception of justice," where "social conditions are favorable to the attainment of social justice" (p. 181). He contends that with "prosperity, the existence of thick private economic liberty is for many citizens an essential condition of responsible self-authorship" (p. 183).

Tomasi offers his own understanding of other Rawlsian principles. For fair equality of opportunity, Tomasi stresses the need for each person to have a wide variety of choices, as opposed to efforts to counter the effects of status. For the difference principle, he emphasizes the need to increase through economic growth the wealth of the worst-off class. Not for him are efforts directly to reduce inequalities, e.g., through progressive taxation.

Those of libertarian inclination will find Tomasi's political program far more acceptable that Rawls's own program, but I do not think that Tomasi succeeds in making a Rawlsian case for market democracy. The problem as I see it is that he does not take adequate account of the originality of Rawls's approach to political philosophy.

The situation that drives Rawls to his theory is that of people in a large society like the United States who are divided by conflicting conceptions of the good. Some of these conceptions may be better than others, and one may in fact be the correct one: Rawls does not commit himself on this question. But none of these conceptions can be shown to be true in the strong sense that it would be unreasonable for anyone to reject it. This state of affairs Rawls terms "the fact of reasonable pluralism."

Given reasonable pluralism, it would be wrong for the holders of one conception to impose their views on others; respect for others requires that we defend our political views with reasons others could acknowledge. Our aim, Rawls holds, should not be a mere modus vivendi with those who profess other conceptions of the good. Rather, we should seek a stable society in which people decide disputed questions by democratic discussion.

He intends the principles of justice to give the conditions under which such democratic decisions can take place. Herein lies Rawls's originality. By inquiry into the conditions of a stable regime, given the fact of reasonable pluralism, one can avoid appeals to controversial moral intuitions or problematic moral theories like utilitarianism. His approach to justification is "political, not metaphysical."

Why did I embark on this elementary account of Rawls's theory? The reason is to bring out that to adopt a Rawlsian account of justice, one must accept democratic participation in a strong sense. For Rawls, the people in a society are bound to one another by special ties and decide political questions together. The echoes of Rousseau here are not accidental.[3]

Tomasi, it is clear, is not committed to this sort of democracy. People on his account need not value at all the process of deciding questions together with other citizens (though of course they are not precluded from doing this) He seems to me entirely right that productive business activity has great value; but this claim, right or not, derives from a particular conception of the good, not from asking for the presuppositions of democratic decision making under the condition of reasonable pluralism. In like fashion, the egalitarian implications Rawls finds in his principle of fair equality of opportunity and in the difference principle are not simply interpretations of his own that reflect distaste for wealth. Rather, once more they are plausibly taken as necessary conditions for the type of democratic participation Rawls favors.

Why does any of this matter? Suppose Tomasi responds that he rejects the democratic solidarity that Rawls wishes to promote. If he does this, though, then his defense of his interpretations of political liberty, fair equality of opportunity, and the difference principle depend on his own conception of the good. Like most political philosophers, he is reduced to his own moral intuitions or moral theory. He has abandoned the distinctive Rawlsian method of political justification.

I do not at all contend that he is wrong to do so: I am not a Rawlsian.[4] But Tomasi ought to be clear that, though he has adopted some Rawlsian themes, he has proceeded in an un-Rawlsian way. Many of the words of Rawls are present in Tomasi's book, but not the music.

Taken apart from the misleading Rawlsian framework, Tomasi's book contains many good arguments in defense of classical liberalism. But the intuitions that underlie these arguments must be weighed against other intuitions and arguments, in particular those that support the more stringent libertarianism from which Tomasi recoils.

Tomasi has little use for strict libertarians. They consider property rights "absolute"; by this he appears to mean that they would not allow the interventions by government such as the social-safety need and provision of vouchers that he thinks acceptable. He remarks that libertarians, like high liberals,

single out the economic liberties for special treatment. But instead of lowering the status of the economic liberties, libertarians elevate them above all others. Economic liberties become the weightiest of all rights. Indeed, libertarians such as Jan Narveson assert that liberty is property. (p. 48, emphasis in original)

But if, as Narveson and Rothbard think, all rights can be analyzed as property rights, how does it follow that property rights are more important than other rights? To the contrary, the conclusion negates the premise. If there are no rights besides property rights, property rights cannot be more important than property rights. If Tomasi means that libertarians believe that property rights in the ordinary-language sense exceed in importance other rights such as civil liberties, this by no means follows from the libertarian view of property. In fact, it is directly contrary to Rothbard's own view that self-ownership is the primary right.

I do not want to close on a critical note. My favorite passage in the book is this:

From George Washington's warning to avoid the dangers of exclusive economic and military pacts with other countries … to James Madison's proposal of a constitutional amendment requiring political leaders wishing to go to war to raise funds from current taxes (rather than hiding the costs through borrowing), advocates of limited government have long been among the strongest critics of the politico-military establishments common with contemporary states … the very idea of a large publically funded military-industrial complex runs against the grain of market democracy. (p. 263)

That is well said indeed.

Fuente:

Saludos
Rodrigo González Fernández
Diplomado en "Responsabilidad Social Empresarial" de la ONU
Diplomado en "Gestión del Conocimiento" de la ONU
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