Mailvox: the best defense

In which the self-appointed champion of free trade doctrine, Unger, demonstrates that he literally does not know what he is defending:

Free trade does not require the free movement of labor, dumbass. If I buy a hamburger, I don’t have to move in with the cook, or vice versa. Maybe it works differently on Planet Stupid, where the Superintelligent natives can’t so much as buy a stick of gum without inviting comparisons to U-haul-driving lesbians; here on Earth, it thankfully ain’t so.

Free trade most certainly does require the free movement of labor. This is self-evident because it does so by its very definition. An immigration limitation is, quite obviously, a restraint on trade every bit as restrictive as a tariff or a control on capital. Unger here demonstrates that he knows absolutely nothing about the doctrine he is so dogmatically and so ineptly defending. I don’t mind being called childish names by such an interlocutor, indeed, I would be more concerned if anyone so intellectually hapless claimed to follow my reasoning, let alone agree with it.

Contra his illogical and incorrect insistence that free trade does not require open immigration, I cite Ludwig von Mises in Liberalism: “Under a system of completely free trade, capital and labor would be employed wherever conditions are most favorable for production…. Capital and labor tend to move from areas where conditions are less favorable for production to those in which they are more favorable. But the migration of capital and labor presupposes not only complete freedom of trade, but also the complete absence of obstacles to their movement from one country to another.”

Once more, we see that the defenders of free trade aren’t merely anti-American, they are either ignorant of their own doctrine or astonishingly intellectually dishonest. And it is beyond irony to see a free trader present an appeal to how things work on Earth in the real world.


Mailvox: rethinking Paterno

Adognameop asks about the Vox, What do you make of the recent FBI report regarding Penn State? It seems to reveal what everybody already knew; that Paterno was an accomplice to child rape. Does it affect your opinion of Paterno?

First, I would note that Paterno’s actions did not, in any way, make him “an accomplice to child rape”. An an accomplice is a person who is present at the scene of the crime, actively participates in its commission, and has the same degree of guilt as the person he or she is assisting, is subject to prosecution for the same crime, and faces the same criminal penalties. None of this applies to Paterno.

So, let’s take a look at what Paterno actually did, as opposed to the rhetorical exaggerations of the preening moralists who are presently in competition to see who can feign the most outrage:

Louis J. Freeh, the former federal judge and director of the F.B.I. who spent the last seven months examining the Sandusky scandal at Penn State, issued a damning conclusion Thursday: The most senior officials at Penn State had shown a “total and consistent disregard” for the welfare of children, had worked together to actively conceal Mr. Sandusky’s assaults, and had done so for one central reason: fear of bad publicity. That publicity, Mr. Freeh said Thursday, would have hurt the nationally ranked football program, Mr. Paterno’s reputation as a coach of high principles, the Penn State “brand” and the university’s ability to raise money as one of the most respected public institutions in the country….

Mr. Freeh’s investigation makes clear it was Mr. Paterno, long regarded as the single most powerful official at the university, who persuaded the university president and others not to report Mr. Sandusky to the authorities in 2001 after he had violently assaulted another boy in the football showers.

What is new here is that whereas before we knew that Paterno had reported Sandusky’s actions to the correct authorities, now we know that he was the one primarily responsible for matters not going any further. Whereas before it appeared that his only failing was the excusable moral one of doing no more than his legally defined duty, now we know that he was the main instigator of the coverup. This is a very different thing, and I note that it is actually considerably worse than anything Paterno’s most vehement critics accused him of doing previously.

And yes, it does change my opinion to a certain extent. In light of the latest revelations, I think it would be appropriate for the Penn State football program to receive the death sentence for three or four years from the NCAA. That would send the most unmistakable message to everyone, and would be the one punishment that Paterno would have felt most deeply. How Penn State chooses to respond is really no concern of mine, but as a general rule, I don’t favor whitewashing history. If I were the responsible individual at Penn State, I would not remove Paterno’s name from the various buildings he funded and tear down his statue, but rather seek to use him as an example to teach about the dangers that hubris poses to even the most upstanding and successful.

All men are fallen. I still think Paterno was, for the most part, a good man who made a very foolish and counterproductive attempt to protect his reputation and his football program. Was it wrong? Certainly. Did it have evil consequences? Most likely. Does it merit a harsh punishment? Definitely. But was it indicative of an evil or malevolent intent? I don’t believe so, and to conflate the moral failings of a Paterno with the overt and predatory evil of a Sandusky is a fundamental mistake. It is important to remember that this is not simply a Joe Paterno scandal, but rather a Penn State scandal.

The Freeh report is somewhat ironic in that Louis Freeh would certainly know a coverup when he sees one, given his involvement in similar whitewashes of Ruby Ridge and Waco.


Mailvox: I couldn’t possibly say

JH makes a prediction:

Vox,

I know you love predictions, so I will predict that your views will more and more trend with Wilhelm Roepke over the coming years. While you got me started down the Austrian path years ago with the Mises AGD book study, the moralist and idealist (and perhaps wishful thinker) in me settled on Roepke. I have read a couple of his books, but I like the essay linked here, and it shares many of your recent themes:

Freedom, in other words, means being less dependent on the highly unstable modern economy as much as it does being less dependent on government. This is the point missed by many conservatives: they fail to see that decentralizing the economy is as vital as decentralizing the govern­ment. Dependency is indivisi­ble: dependency on an unstable market naturally leads to dependency on government when market difficulties arise (e.g., from the downside of the business cycle). Government is sought as a substitute, not simply for the market but more specifically for stability.

and

Roepke acknowledges that because the pursuit of self-interest does not always lead to harmony government intervention in the econo­my is sometimes needed. Here Roepke makes the important contribution of distinguishing between “compatible” and “incompatible” interventions. The former intervenes in the market in such a way as not to freeze the price mechanism and thus allows the forces of the market to adjust to the intervention. A protective tariff would be one example of such an intervention.

and

Roepke is not opposed to all forms of technical innovation. What he bemoans, however, is the indis­criminate application of these same tech­niques where they are inappropriate (as in agriculture) or where the social costs outweigh the immediate econom­ic benefits.

and finally

But Roepke is not a “dogmatic democratist,” recog­nizing not only that democracies have their weaknesses but can sometimes be the most despotic form of govern­ment. More important than the particu­lar form of government and narrow consideration of political rules is the (meta-governmental) spirit which informs and controls it. That spirit must be liberal in the properly understood sense. There is a distinction between a liberal order and its opposite, “collectivism.” The latter is the tendency to destroy those healthy forms of society and government identified above. It must recognize the proper spheres and limits of government, of the economy, and other institutions. It is entirely possible, and there are historical examples of this, for a government to be “democratic” but not “liberal.” … The opposite of collectivism is not democracy …

Me: Is it “pie in the sky” thinking to envision a hierarchical society where people have a sense of common purpose, have a physical connection to the land and production of their food, work in small to medium sized businesses producing high-quality or innovative items that fuel not just the spirit of consumption and competition but the (entrepreneurial) spirit of creativity and pride also? Sure, especially in our “multicultural wonderland,” as you (validly but too often) like to point out. But still, I like Roepke’s nuance, passion, conviction, and clarity. And as the cliche goes, you can’t hit a goal/target that you can’t see, Roepke’s vision of a “third way” would serve as a good goal.

Back to my prediction – I have seen you back off or fight the hard line libertarian dogma when you see its faults because you are great at reason and logic, and not wedded to ideology but right/wrong. As fragile as Roepke’s vision is, it seems to agree with you, albeit it may be too “nice” and “pretty” for you. 😉

I don’t know, since I’ve never actually read Roepke, although I remember Congressman McCotter speaking well of his ideas when I interviewed him the first time. But one thing that some people have a tough time grasping is that the libertarian goal of maximizing human liberty not only doesn’t necessarily mean embracing the principles of the American Libertarian Party, but also does not mean maximizing the permissible range of human behavior.

This concept should not be difficult if you understand that maximum tax revenues do not usually coincide with maximal tax rates. In the same way, maximal human liberty is unlikely to coincide with a complete absence of law… even though we acknowledge that the law, as it exists in the USA and most other states, is a transparent fiction to which the elite no longer even pretend to subscribe.


Mailvox: SAVE US CAPTAIN UNDEROOS

RC has a different perspective on the national priority:

You behave as authentic Anti-America. NO ONE, can be as EVIL as OBAMA. Romney may not be your choice. Althought, compare Romney to the EVIL Obama, shows your bias against Mitt Romney and your lack of love for this country. Any one is better than the INCOMPETENT/LIAR/MARXIST MUSLIM/FALSE/PHONY/CORRUPT OBAMA, and all the thugs without any principles, that is destroying this country, very fast.

And so Charlie Brown charged bravely, bravely, for the football. Surely THIS time Lucy won’t pull it away, he assured himself.


Mailvox: by George, they’ve got it!

Nick comments: “It is expected that scientists will announce Wednesday that they have wholly relied on circumstantial evidence to “prove”, via inferences, beyond all resonable doubt (or, if you prefer, 5-sigma certainty) the existence of the “God Particle”.”

It will certainly be amusing if it turns out that the scientific media is reading the tea leaves wrong and CERN is summoning famous particle physicists to Switzerland in order to announce the failure of the Standard Model. But that won’t be half so hilarious as if their announcement of the proof of Higgs boson is eventuall followed by a reluctant admission that it doesn’t actually exist in spite of all their sigmas.

It seems scientists don’t pay much attention to finance, as it is remarkable how often the mathematically impossible black swan shows up to crash the party.


Mailvox: the wages of stupidity

The wages of sin are death. The wages of stupidity are bankruptcy. NW writes to remind me of my prediction of the fatal consequences that result when a church leader parts company with the Bible in favor of the current worldly consensus:

Grace Community United Church of Christ will close its doors this weekend, but the pastor who says his decision to publicly support gay-marriage rights unwittingly thrust it on a path toward financial ruin plans to find a new home for his small congregation….

White said his church’s financial problems started in 2005 after he voted to support same-sex marriage at the United Church of Christ’s national synod. Attendance in the pews immediately dropped off the next week, and soon, three-fourths of his sizable congregation was gone. The departures took a financial toll, so the church took out a $150,000 loan in April 2007 to pay its bills, using the church building as collateral. The ministry owned the structure and owed no debt on the building at the time.

The high-interest loan was trouble from the start, and it was quickly acquired by Shrader and MS Properties. The church fell behind on payments, and interest and penalties began piling on, increasing the debt far beyond the initial principal. A settlement agreement called for the church to pay back $175,000 in May or $200,000 by the end of June.

Far too many members of the organized churches believe that the institutions themselves are the Church. They are not, and the true Church cannot compromise with abomination. Christianity cannot condone homogamy any more than it can condone ritual gang rape or child sacrifice. And when it purports to do so, it ceases to be Christianity.

It is fascinating, is it not, that this wolf in sheep’s clothing has no regrets about destroying his church’s solvency and driving off most of the congregation.


Mailvox: of free trade, Austrians, and authors

CA asks about protectionism in Alabama:

If I understand your position correctly, you say the free movement of labor is an inherent flaw in the free trade ideology. If this is true, the recently passed Alabama HB 56 would theoretically correct for the free movement of labor by forcing illegal immigrants out of the workforce. Apparently it did force them out of the workforce and now Alabama farmers cannot find enough labor to meet their needs because legal workers are unable or unwilling to perform the work that the illegal immigrants had been doing. The situation turns the “they took our jobs” argument on its head.

Would you chalk this up to the fact that Americans have become soft and lazy because illegal immigrants have been doing all the hard work for so long? Do you expect that, if the law is kept on the books, legal workers will eventually take the reigns when the situation becomes more dire? Am I entirely missing the point somewhere? Basically, how do you fit this empirical data into your anti-free trade theory?

I have been enjoying this discussion, btw, thanks for the intellectual stimulation.

First, I have to offer a mild correction to the statement that “Alabama farmers cannot find enough labor to meet their needs because legal workers are unable or unwilling to perform the work that the illegal immigrants had been doing”. The fact is that Alabama farmers cannot find enough labor to meet their needs because legal workers are unable or unwilling to perform the work that the illegal immigrants had been doing at the same lower wages the immigrants had been receiving. Would they have any trouble finding sufficient labor if they paid $1 milllion per hour? Of course not. So, it’s not a problem of a shortage of labor, but rather, insufficient wages.

How does this fit into my anti-free trade theory? Perfectly. In the free trade scenario, the low-wage laborers migrate legally to Alabama and stay there, increasing the farmers’ profits at the expense of the Alabama workers and the local Alabama culture which is now permanently transformed into Mexico-Alabama. The Alabama workers must either reduce their standard of living by accepting Mexican wages or leave Alabama in search of a place where they can find higher wages. Even if overall wealth is increased temporarily, it comes at a high cost in societal destruction, as even if Alabama’s population remains the same, its demographics do not.

And since immigrants are disproportionately young men, the qualitative change in the workforce likely means exchanging young, single Hispanic men for Alabama family men. This will tend to increase crime, lower property values, reduce social cohesion, and incur other costs that don’t show up in the simple economic calculations.

AM, on the other hand, thinks that opposition to free trade is impossible for a libertarian:

According to the lead for your columns you are a “Christian libertarian.” Perhaps you really are a Christian. Your column on free trade definitely scratches the libertarian part. You also seem to believe that NAFTA, etc. are free trade agreements. You also fail to explain any harm from real free trade or any benefits from using force and violence to interfere with individuals who want to trade. You are good at name calling of Ricardo and others who advance the principles of comparative advantage. Yet you have not one word about what is wrong with the principles. I eagerly await your analysis and criticism of the principles of comparative advantage. I suspect I will be waiting a long time. Government borrowing is a problem. That it borrows from those the people of the US trade with, rather than from people of the US doesn’t make the borrowing any more destructive.

I can see how some libertarians can reasonably argue that I am No True Libertarian, but their thinking is simplistic and relies upon the fallacious concept that maximizing human liberty requires maximizing the legal range of human behavior. I will eventually be presenting a positive case for opposing free trade in some circumstances as part of my argument for National Libertarianism. In the meatime, as we can see from the example of this email, many free trade advocates are blatantly dishonest. Let’s list just a few of the obvious falsehoods some of them keep repeating:

1. Free trade does not mean free trade in services.
2. Free trade does not involve the free movement of labor.
3. Free trade does not involve free trade agreements.
4. Free trade is binary.

AM also throws in numerous other falsehoods as well, but I expect most of you can see how absurd they are since, just to give one example, I have obviously supplied considerably more than one word about what is wrong with the principles of comparative advantage. But let’s focus on the idea that NAFTA, GATT and other free trade agreements are not free trade agreements.

Now, I don’t deny that these various agreements do not constitute perfectly free trade. After all, we still have immigration laws, work visas, and numerous other means of preventing the free movement of labor and various tariffs are still on the books. But there is no denying that these free trade agreements have led to a greater volume of trade as well as a reduction in tariff rates and the number of tariffs. Consider the facts:

NAFTA provides for the elimination of Mexican tariffs on 5,900 categories of imports from the United States and Canada (mostly machinery and intermediate goods), representing more than 40 percent of Mexico’s overall trade. Other products are reclassified in a simplified tariff list having four rate bands–5 percent, 10 percent, 15 percent, and 20 percent. The United States eliminated tariffs on 3,100 additional categories of Mexican goods, bringing to 80 percent the portion of all Mexican exports to the United States that will be free from tariffs. Some 4,200 categories already had been included in the General System of Preferences (GSP) and were thus already exempt from tariffs. The treaty eliminates some tariffs immediately and phases out the rest over five, ten, or fifteen years, with vulnerable industries in the United States and Mexico receiving the longest protection.

Mexico’s deadlines for lowering trade barriers are generally longer than those for Canada and the United States. The latter countries are required to lift immediately their tariffs on some 80 percent of Mexico’s nonoil exports, while Mexico must grant immediate free entry to 42 percent of United States and Canadian exports. Special rules apply for trade in textiles, vehicles and auto parts, and agricultural products. The treaty also governs trade in services, including overland transport, telecommunications, and financial services, and it includes provisions for the liberalization of government procurement.

NAFTA requires Mexico to abolish protectionist limitations on foreign investment (except in the energy sector), allow free profit repatriation by United States and Canadian firms, and guarantee investors against property seizure without full compensation. The treaty allows foreign banks to take up to 25 percent of Mexico’s banking market and allows foreign brokerages to take 30 percent of the securities business by 2004, after which all restrictions are to be eliminated.

The dishonesty of the “free trade agreements are not free trade” argument is readily apparent in the way in which the free trade arguments oppose adding new tariffs, raising tariff rates, or reducing immigration on the basis of their free trade doctrine while simultaneously attempting to claim that no amount of eliminated tariffs, reduced tariff rates, or increased immigration can be considered free trade. They’re claiming that the protectionist pros and cons can be judged on a graduated basis, but the pros and cons of free trade cannot be. This is not only dishonest, but is obviously absurd, since the benefits of free trade cannot magically arrive all at once with the Traders’ Paradise if the costs of protectionism appear piecemeal.

NAFTA is not an entirely free trade agreement, but it is an agreement to engage in freer trade, it has in fact led to freer trade, and as such, it serves perfectly well as an example of the failure of free trade doctrine. I note that in all the denials of connection between NAFTA, GATT, and other free trade agreements and genuine free trade, very few free trade advocates have come out and called for the cancellation of those agreements. This is not to say that no free traders ever opposed NAFTA; it should come as no surprise that Murray Rothbard did.

And on a mildly amusing tangential note, I’m not the only one who has noted Gary North’s inability to distinguish between related, but distinct concepts.

According to Gary: “[Mises’s] disciple Murray Rothbard promoted 100% reserve banking. But, because he [Rothbard] opposed the existence of the state, his call for 100% reserves was not a call for legislation requiring 100% reserves.”

Murray Rothbard of course opposed the state. But, according to Gary, Murray would therefore have to oppose all legislation or laws. Yet, clearly, Murray (as a libertarian, not an Austrian), favored laws against murder, rape, etc. In his view, they would be implemented not by the government, but by private defense agencies. It is a misconstrual of free market anarchism to say that advocates of this philosophy oppose all laws. Au contraire: We are supporters of proper law, i.e., laws upholding individual rights and private property. Indeed, our criticism of the government is that it violates such proper law.

And finally, a member of the Dread Ilk has published a book on Round One. No doubt Nate will want to check it out.


Mailvox: free trade and automation

JC has a question concerning the different consequences of free trade versus automation:

Interesting discussion on free trade on your blog. Im still going thru the comments on the last one. I have to admit this discussion is all new to me and I have a lot of homework to do to keep up. But I have a question which I shall preface thus:

If for example an American manufacturer moves to another country with lower labor costs, etc., and sells products to American consumers at a lower price than they would have had they stayed in America and hired American workers, the lower priced consumer goods would not really help them since they wouldnt have jobs to take advantage of the lower prices.

I’m thinking this is just the same as a manufacturer deciding to automate production and laying off workers because it’s cheaper to use machines, which is what is happening in America where manufacturing output continues to grow because of American ingenuity in technology but unemployment remains high. It would be like the manufacturer moving the factory overseas because it would be cheaper to produce there. My question is: How is free trade bad, while automation is good in the example I gave above? (I’m assuming you think technological advances in manufacturing is good of course.)

Im looking forward to spending more time over at Vox Popoli. I know you put it up mainly for yourself, but Im sure you are aware that a lot of people are getting a real education reading the posts there and participating in the discussions.

There are several ways that job losses through automation is preferable to job losses through free trade, but JC is right to point out that there are still some material problems presented by it. This is something that has concerned me for some time, and I’ve been contemplating a post about it ever since Chateau Heartiste brought up the issue a few weeks ago.

First, when jobs are lost to automation rather than free trade, the capital and the profits remain in the domestic market. Second, it’s much easier to prevent free trade than technological progress because in the one case the national interest is in line with the domestic producer, in the other it opposes the producers interest. Third, (and this is a consequence of the first thing), the transition of labor from an automated industry to a new one remains viable when the capital and profits remain within the domestic market, otherwise, labor has no choice but to move where the capital investment is taking place.

This is why dishonest advocates of free trade falsely attempt to claim that the free movement of labor is not part of the free trade doctrine. They know that no one will support free trade once the understand that it intrinsically necessitates the large-scale export of their friends, relatives, and neighbors to other markets, and quite possibly their own expatriation. In the case of automation, on the other hand, there is a reasonable expectation that the capital will be reinvested in the domestic market, thereby creating new jobs in that market. That doesn’t mean the process won’t be painful, or as increasingly concerns me, because there is no real productive need for the excess labor, it will be mopped up using a combination of makework private sector jobs, public sector sinecures, and welfare payments.

Of course, in the case of automation, such a solution is possible because the profits have increased and remain within the country. In the case of free trade, not only have the jobs disappeared, but so have the capital and the profits that would pay for either jobs in a new industry as well as the social safety net.



Mailvox: the permissive will of a red-handed god

KH asks about the so-called “permissive will” that is part of the Calvinist concept of the divine:

I have followed your discussion of Calvinism with great interest. Some of these questions come up routinely in an on going group Bible study. Recently, one Calvinist used the term “permissive will” in reference to God allowing a natural disaster to kill people. (The term was new to me). He argued that God does not cause these tragedies but permits them or allows Satan to cause them. The problem I perceived with this argument is that one is still blaming God for the earthquake or tornado fatalities, whether it was His “permissive/passive” or active will. The term “permissive will” seemed like a euphemism to get around the belief of God controlling every storm and fault line without actually accusing Him of murder. I still feel like there was a missed opportunity for the use of logic to take out that argument. How would you have responded to the use of that term?

This is one of the concepts I lampoon in my occasional reference to the nine billion wills of God – actually, I think I previously referred to 17, but nine billion more appropriately reflects my view of the matter – and it refers to the distinctions that some Calvinists make between the “perfect”, the “permissive”, the “decreed”, the “directive”, the “perceptive”, and the “directed” wills of God. This isn’t quite as insane as it sounds, as there is a necessary and legitimate reason to distinguish between what God demands, what God decrees, what God anticipates, and what God wishes but does not expect, all of which can be reasonably described as what He wills.

However, KH is correct in smelling a rat. Those inclined to omniderigence will draw no such distinction; John Piper, for example, is straightforward about his belief in a literally murderous Jesus Christ who purposefully kills people with tornadoes. But this is a theologically incorrect use of “permissive will”, as that is what is used to explain Man’s ability to sin, not Man’s suffering natural disasters, which is generally considered to be a consequence of God’s “perfect will”.

This use of “permissive will” actually sounds rather more like my very non-Calvinist perspective, although I would never use such a term to describe what I observe to be Satan’s partial sovereignty over the world. It is always intriguing to compare the Calvinist claims of God’s sovereignty with the contradictory claims of Jesus Christ and the Apostle Paul concerning the being they describe as “the prince of this world” and “the god of this age”.