The ideology that dare not speak its name

by John Q on April 22, 2009

The set of ideas that has dominated public policy around the world for the last thirty years has been given a variety of names – neoliberalism[1], economic rationalism, the Washington Consensus, Reaganism and Thatcherism being the most prominent. Broadly speaking, this set of ideas combines support for free market (or freer market) economic policies with agnosticism[2] about both political liberalism and the relative merits of democracy and autocracy. Since demands for definition are inevitable, I’ll point to mine here.

A striking feature of all of these terms is that they are currently used almost exclusively by opponents of the viewpoint being described, to the point where any use of such terms invariably provokes protests about unfair labelling (this is true even of the most neutral term I can find, “economic liberalism”). Even more striking is the fact that these terms were originally used in a broadly positive sense by supporters of the ideas concerned. I’ve done the story on economic rationalism, Don Arthur covers neoliberalism (with links to more from Taylor Boas and Jordan Gans-Morse (pdf) and you can check Wikipedia for the others.

Why is it that neoliberalism seems to be subject to a political version of the euphemism treadmill? A look at the history will help a bit.

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Rum, Sodomy and the Nash redux

by Henry Farrell on April 22, 2009

John’s post reminds me that I was giving some grief to Matt Welch about seasteaders and the more … conceptually novel side of libertarianism last week (Matt held his own).

This came up in an argument over Peter Leeson’s new book on the joys of eighteenth century piracy as an exercise in stateless government, and the recent excitement off the coast of Somalia. I suggested that Somalia looked like a libertarian paradise – no government, lots of guns etc – something that Matt certainly didn’t agree with personally. But what I didn’t know (until one of the bloggingheads commenters pointed it out) was that Peter Leeson himself has written an article arguing that “modern Somalia is teh awesome”:http://www.google.com/url?sa=t&source=web&ct=res&cd=1&url=http%3A%2F%2Fwww.peterleeson.com%2FBetter_Off_Stateless.pdf&ei=f1HvSY3bIt6HlAfM_tQp&usg=AFQjCNGG2u3zX0OOHBmfsJ00LJIiuI829Q (or, at least, a lot better than you might think). As he argues in a different, summary essay (linked to below):

Like all other choices, the choices we face in “selecting” governments are constrained. Unfortunately for most developing countries, the political choice set they face is far smaller than the political choice set more developed countries face. Historical features, such as clan tension, rampant corruption, territorial conflicts, and many others, which cannot be changed in the short run, severely restrict the kind of government countries like Somalia can reasonably expect to have if they have a government. Sadly, well-functioning, well-constrained governments like the ones we observe in the U.S. and western Europe are not part of this choice set. Ultra-predatory, corrupt, and abusive governments, however, are. And so is anarchy. As Somalia’s experience illustrates, for many LDCs with these limited options anarchy may very well be the best feasible choice.

I’ll leave the claim here to others who know African politics better than me (Chris Blattman, feel free to chime in) and merely note that these views presents an interesting question for the Princeton people charged with publicizing his book. On the one hand, piracy and Somalia are surely topical issues, but on the other, professor Leeson’s views on piracy and the benefits of Somalian political organization are likely to be unpopular with many people (his current proposed solution for the Somalian piracy problem, by the way, is to privatize the ocean).

I’ve started reading his book on piracy, which is an entertaining enough exercise, but one which I suspect is a bit fishy on the empirics. He clearly has his ideological druthers (see “here”:http://www.cato-unbound.org/2007/08/06/peter-t-leeson/anarchy-unbound-or-why-self-governance-works-better-than-you-think/ for his grand theory of why we don’t really need government), but then, so do we all. While I don’t find his claims for anarcho-libertarianism to be particularly convincing, I am probably not the target audience, and they have their place in the grand ideological debate. What I do find disconcerting though, is his obvious sweet tooth for efficiency arguments and just-so stories. History, when you look at it at all carefully, is much too messy to support any ideological explanation unequivocally. The book (and the academic articles that it draws upon) simply feel too neat to me, and don’t persuade me that he went into his research on these topics looking to be surprised by what he found (which I really think you should, any time you engage in empirical research). Others’ mileage may vary.

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Reading the Bible in Reading Time

by Harry on April 22, 2009

A story that circulates in some evangelical and homeschooling circles concerns a boy who was told, in a public elementary school, that he could not read the Bible during his free reading time. One version of the story has him being sent home. In some versions of the story (that have been told to me directly) the courts find in favour of the school. I’ve heard the story for quite a while, and assumed there was a grain of truth in it, but have never done the work to find the details (I assumed that the “sent home” version was embellishment, and that the “court finding for the school” bit was… well, at best remarkably ignorant of the law). But now I look for the story, I can’t find any version in what I regard as a reliable news source. Here is the Thomas More Law Center’s version of its own work, which must be true, surely. But google the boy’s name and you get lots of blog posts, but nothing from, for example, the Chicago Tribune, or AP, or.. (There’s the Catholic News Agency, which I might regard as reliable if it weren;t the only source). More mysteriously I’ve heard versions of the story for at least a decade, whereas this version seems very recent. I’m not the best googler or wikipedia user, but am surprised I haven’t found more. Do any readers know the true story?

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Periplum Perspectives – “Ready the Dinghy!”

by John Holbo on April 22, 2009

I learned a new word today: periplum! From wikipedia: [click to continue…]

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Ghost dinosaurs, Eisner Nominations, etc.

by John Holbo on April 21, 2009

Now back to comics-related matters! Readers who missed last week’s thrilling installments should be made aware that I have started a webcomic of sorts, “Squid and Owl”, which I am updating weekdays as a Flickr set and at J&B. Naturally, I crave your attention. Today, for example, I make an Anthony Powell joke.

In other webcomics news, the first two chapters of Chris “the ISB” Sims’ “The Chronicles of Solomon Stone” are up. Half-vampire skate detective, with unsteadily Cockney sidekick/love interest vs. volcano island lair dinosaur ghost witches. I would say it is quite amusing.

In actual whatchamacallit comicscomics news, the Eisner nominees have been announced. [click to continue…]

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Explaining Marx to newbies

by Chris Bertram on April 20, 2009

I’m lecturing on Hobbes this week. Since it is a first year lecture, I’m not going to get too deep into any of the controversies, but I will try to give the students a sense of who Hobbes was, why he remains important and how his ideas connect to other topics they may come across. I’ll probably say something about Hobbes’s time resembling ours as a period of acute religious conflict.

Suppose I were lecturing about Karl Marx: I’d do the same thing. I’d probably start by discussing some of the ideas in the _Manifesto_ about the revolutionary nature of the bourgeoisie, about their transformation of technology, social relations, and their creation of a global economy. Then I’d say something about Marx’s belief that, despite the appearance of freedom and equality, we live in a society where some people end up living off the toil of other people. How some people have little choice but to spend their whole lives working for the benefit of others, and how this compulsion stops them from living truly truly human lives. And then I’d talk about Marx’s belief that a capitalist society would eventually be replaced by a classless society run by all for the benefit of all. Naturally, I’d say something about the difficulties of that idea. I don’t think I’d go on about Pol Pot or Stalin, I don’t think I’d recycle the odd _bon mot_ by Paul Samuelson, I don’t think I’d dismiss Hegel out of hand, and I don’t think I’d contrast modes of production with Weberian modes of domination (unless I was confident, as I wouldn’t be, that my audience already had some sense of those concepts). It seems that Brad De Long “has different views to mine”:http://delong.typepad.com/sdj/2009/04/delong-understanding-marx-lecture-for-april-20-2009.html on how to explain Karl Marx to newbies. Each to their own, I suppose.

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The Girls From Planet 5

by John Holbo on April 20, 2009

Sigh.

You know what that means. I’ve been reading Jonah Goldberg again. Here we go, pondering the notion that a few of these teabag types might be right-wing extremists of a certain sort.

I wrote a book on fascism which tried to show that what everybody knows isn’t necessarily true. The idea that soldiers will return from war and become right-wing militants? Well, that has its roots in Fascist Italy, where veterans returned as black-shirted shock troops of “Il Duce,” Benito Mussolini. The only problem with this theory is that what they clamored for was socialism — the socialism of the trenches! — and their leader had earned the title “Il Duce” as the leader of the Socialist Party.

Now obviously ‘socialism of the trenches’ means something like: recover that feeling of unity and common cause we had, in the immediate aftermath of that initial irruption of chaos and disaster, when everyone set aside petty class differences and stood, shoulder to shoulder, against a perceived external enemy.

And it’s obvious that nothing like that could be spiritually akin to – oh, say, Glenn Beck’s 9/12 project. Because Glenn Beck isn’t in favor of socialism.

Sigh.

Let’s talk Texas secession. Like I said, Belle bought me this stack of old paperbacks – because she loves me – and the whole mouldering lot are turning out to be weirdly prescient. First the beaver management, now this. [click to continue…]

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The university after what, now?

by Michael Bérubé on April 20, 2009

Last Thursday I took part in a plenary session of the <a href=”http://www.csaus.pitt.edu/frame_home.htm”>US Cultural Studies Association</a>.  The session was called “the university after cultural studies,”  and the participants were (besides myself) Marc Bousquet, Michele Janette, Cary Nelson, Sangeeta Ray, and Jeff Williams.  We were each given eight minutes to speak, and we were admirably (I might say anomalously) disciplined, coming in at 50 minutes altogether.  For those who might be interested, I’ll post my remarks below, with this brief explanation/ introduction:  my talk assumes that everybody in the ballroom, at a cultural studies conference, can speak to the impact of cultural studies on their own research and/or teaching and/or program and/or department, so that <i>somebody</i> has to get up and say that whole entire huge sectors of the university are not “after” cultural studies at all: they didn’t have any cultural studies to begin with, so they’re not “after” cultural studies in a temporal sense, and they’re not interested in doing any now, so they’re not “after” cultural studies in that sense either.

And without further ado:
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J.G. Ballard has died

by Henry Farrell on April 20, 2009

Via “Paul McAuley”:http://unlikelyworlds.blogspot.com/2009/04/jg-ballard.html. I haven’t seen any obituaries yet. I preferred his early novels, and (even more) his short stories to his later work. I read “The Voices of Time” (probably in one of the old Spectrum SF collections) when I was seven or eight, and didn’t understand it at all, but somehow, it caught me and haunted me. Much of his later work read like different versions of the same novel. But they were often very funny – his over the top plotlines with their garden-suburbia-turned-into-chaos and insane reformer-cum-dictator-wannabes were intended to be satirical. I have a particular fondness for Super-Cannes, if only because of how it jumps up and down in glee on the corpse of the notion of social capital. His work had its problems – most obviously in its depiction of women which was at best chilly, at worst rather worse than that. But he was genuinely a great writer, in the sense that Borges described Kafka as being a great writer – he created his own precursors (but these summoned ancestors were to be found less in literature as such than in what he perceptively called ‘invisible literature’ – all the bureaucratic forms and minutiae that define our lives). We all live in the decaying aftermath of the Space Age that he, better perhaps than anyone else. described. If he was a novelist who was better at describing landscapes and extreme social situations than people, he captured, as a result, something important about an era in which individuality simply doesn’t mean as much as it once seemed to. There are bits of the world (and not-unimportant ones) that are Ballardian – if you’ve read him, you experience the shock of recognition when you see them.

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Good news from the EPA

by John Q on April 19, 2009

The US Environmental Protection Authority has announced that emissions of CO2 and other greenhouse gases are a threat to public health, which opens the way for them to be regulated under the Clean Air Act, a measure once promised by George Bush as a presidential candidate but ferociously resisted by his administration.

As Brad Plumer explains here, the regulations will transform the Congressional debate over bills to introduce a national cap-and-trade system. In the absence of EPA regulations, and assuming continuation of current practices regarding the filibuster, the Republicans in the Senate could block any action as long as they could muster 41 votes (and of course, ratification of a treaty like Kyoto requires 66 out of 100 votes). But now the effect of a filibuster will be to leave the EPA to deal with the issue by regulation, which might include establishment of emissions trading schemes, as well as technological mandates to adopt best practice technology. Almost certainly, some Senate Republicans will prefer a deal where they get to protect some favored interests to a system of regulation over which they have no say.

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Bye, and thanks

by lane on April 18, 2009

That’s it for my guest-blogging here at CT. Thanks once more for the invitation, and to those who read and/or commented on the posts. You can find me at Consider the Evidence.

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Switch and bait

by Henry Farrell on April 18, 2009

As I mentioned previously on this blog, I had a somewhat unfortunate experience a few months back. I was working in my office, when a work-study knocked on my door with a brand new MacBook Pro, which he told me had been sent over from my school’s technology program. I was nonplussed, and told him that he must be wrong, that I hadn’t ordered one etc, but he insisted, and indeed my name was on his work-order form. So I finally acquiesced, on the grounds of gift-horses, and the wisdom of not inquiring too closely into the dental conditions thereof, and unpacked it. 2 hours later, I was completely hooked – more rational and altogether nicer than my Windows box, while much smoother than my Ubuntu installation. I would have wanted to take it home and marry it, if I wasn’t married already. 3 hours later, I discovered that of course it had been a mistake, and that it was in fact intended for a colleague with a vaguely similar name (the person preparing the work order had not unreasonably gotten confused). And I had to give it back.

Hence my proposal (copyright Henry Farrell 2009, but if Apple want it, they can have it in return for a rolling program of hardware replacement to be negotiated) for a new TV ad series, building off of the classic series from the early 2000s, and entitled (in honor thereof) Bait and Switch. Deliver Apple computers to a number of unsuspecting Windows users, selected from various advertising friendly demographics. Give them a few days to get used to their new machines. Then tell them that it is a mistake, and that they will have to give them back and return to Windows. And film their reactions, consternation, refusal etc. I imagine it would make for great television (perhaps I am speaking from the zeal of the new convert).

Second, and more seriously, having been bait-and-switched myself, I have finally taken the plunge and bought a MacBook Pro for the new book that I hope to start writing. Good software recommendations and general tips are gratefully appreciated. I already know about (and have bought) TextMate, and plugged in MultiMarkdown thanks to Kieran’s earlier tutelage (he was the first person I emailed when I thought I had been given a new Apple free, gratis and for nothing). I’m also probably getting Scrivener, for aforementioned project. But any other recommendations for productivity software etc would be gratefully appreciated.

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Reducing inequality: how to pay for it

by lane on April 18, 2009

The Labour Party returned to power in the U.K. in 1997 based in part on a pledge by Tony Blair and Gordon Brown not to raise taxes’ share of the British economy. In his 2008 presidential campaign, Barack Obama promised to reduce taxes for the bottom 95% of Americans. In both instances this commitment succeeded in insulating the progressive candidate from what had become the right’s most powerful electoral club: stoking fear of tax increases by the left.

But while it may be smart electoral politics, committing not to increase taxes’ share of GDP, as Blair did, or to lower taxes for most of the population, as Obama has done, makes it difficult for a government to make much headway in addressing income inequality. Obama has some leeway; the economic crisis has necessitated increases in government spending that can justifiably excuse some backtracking on his campaign pledge. Fully consistent with his promise, he should increase the tax rate on high-end incomes (beyond simply letting the Bush reductions expire). Two other progressive tax reforms are worth pursuing, though they would affect some in the bottom 95%. One is to reduce or end the homeownership subsidy. More than 80% of the $160 billion in foregone revenues from the deduction for mortgage interest and property tax payments goes to households in the top income quintile. The other is to introduce a modest tax on financial transactions.

But should the focus be confined to steps that make the tax system more progressive? Many on the left view heightened progressivity as the key to inequality reduction. Yet in the United States and other rich countries the tax system overall, including taxes of all types and at all levels of government, is essentially flat; households throughout the income distribution pay roughly similar shares of their market income in taxes. As the following chart shows, inequality reduction is achieved not through taxation but with government transfers (and services).

Taxes help to reduce inequality mainly via their quantity rather than their progressivity. The greater the tax revenues, the more government is able to boost incomes and living standards of those in the lower half of the distribution with transfers and services.

Moderate or high levels of tax revenue can’t come solely from higher rates or new taxes on the rich; the math simply doesn’t work. To significantly increase spending on transfers and/or services, President Obama and/or his successors will need to increase taxes on the middle class. One way to do this would be via a federal consumption tax, such as a value-added tax (VAT). We have state and local consumption (sales) taxes, but we raise less money from consumption taxes than any other rich country. Consumption taxes are regressive, and for that reason they’re often dismissed by the American left. But they can be tweaked to limit the degree of regressivity. And if the money is put to progressive use, the benefits may outweigh this drawback.

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In my view, raising and indexing the minimum wage, enhancing the Earned Income Tax Credit, and expanding and improving public services ought to be our top priorities for boosting the incomes and living standards of Americans in the lower half of the income distribution. What about the other component of rising inequality: soaring incomes of those in the top 1%?

It’s tempting to want to intervene directly in markets to reverse this trend. One way to do so is to legislate some sort of pay cap — a maximum wage, if you will. I don’t think this is the right way to go. If the value-added by particular individuals — a CEO, financial innovator, top athlete, movie star, or what have you — is sufficient to merit pay above the cap, firms will figure out ways to get around it, for instance by providing non-monetary perks or deferring pay.

Stricter regulation of the financial sector is another possibility. This is a good idea, though mainly to prevent a repeat of the current economic downturn. If doing so has the indirect effect of reducing enormous payouts to financial players, so much the better.

The simplest and best strategy is to let markets largely determine high-end earnings and incomes and use the tax system to redistribute (more here and here). We should increase the top income tax rate and/or add one or more new rates for those with very high incomes.

This would help to reduce income inequality. And it follows logically from the rationale for progressive taxation: the higher your income, the larger the share of it you can afford to pay in taxes. Since high-end pretax incomes have risen sharply in recent decades, those at the top can afford to pay a greater share of those incomes in taxes than they did in the past. So far they haven’t had to do so, as the following data on the top 0.01% of households (about 10,000 households) indicate. This group’s average inflation-adjusted pretax income soared from $7 million in 1979 to $35 million in 2005, but the share of that income they paid in taxes didn’t increase.

What’s the proper effective tax rate on top incomes? It’s the rate that is consistent with fairness norms and produces the most tax revenue without (significantly) reducing work, investment, and innovation. I don’t know what that rate is. Maybe it’s 40%. Perhaps it’s 50% or 60%. It could conceivably be even higher. Figuring this out requires policy adjustment and monitoring.

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Dolly

by Harry on April 17, 2009

Dolly, a play by Christopher Douglas (aka Ed Reardon and Dave Podmore) about the events surrounding Basil D’Oliveira’s selection to play for England (described and analysed rivetingly in Peter Oborne’s Basil D’Oliveira: Cricket and Conspiracy: The Untold Story (UK) which I discussed in detail here). With Douglas himself as Peter West.