And the Internets trembled

The Dread Ilk are breeding! The Mad Aussie writes from Down Under:

Just wanted to let you know personally that Sarah [aka Crystal Lake] and I got engaged on Sunday. Rest assured I did it with class, style, and of course, some wine glasses filled with piss…. I don’t have a clue right now how it’s going to unfold yet, I hear Sarah’s mum has ideas, so I’ll give it time. Anyway, there you go, the ilk, your blog, the world, the way, the light, this beer, Bane rolling his eyes.

Congratulations to both Jamie and Sarah. I wish them a happy, fruitful and life-long marriage.


Mailvox: the difference between pico and nano

One would require the ability to detect interest measured in these units in order to discern my level of interest in what apparently has been an unhappy atheist outing on a television show. Nevertheless, DoCD writes:

I know you don’t write much about popular culture but have you caught any of the general atheist reaction to last night’s episode of Glee? Most of the observant ones are annoyed that their worldview wasn’t fairly and objectively represented and was defined by two prototypical angry atheists, one of whom ended up asking their sister to pray for them by the end of the episode, and another who is angry that he’s the subject of ridicule because of his sexuality and because of his mother’s death.

I watched the episode with my girlfriend — try not to judge — and I think the episode was pretty fair, even though I had to stomach through ridiculous lines of dialogue about the spaghetti monster and Russell’s teapot. I think the “religious side” ultimately won out, but I don’t think the atheists were presented nearly as unfairly as they seem to claim. In fact, most atheists I know arrived at their worldview due to an emotional reaction, not an intellectual one, but seek intellectual arguments to justify their atheism.

I’m not really sure what they expected to see, guest appearances by Dawkins and Hitchens mebbe? A soda cracker being defiled? I suppose the fact that the creator of the show is a former Catholic who still goes to church and is openly gay might be swaying their perceptions, but the truth is that I just don’t get what they’re whining about.

Now, I have seen part of one episode of a show in which twenty-somethings attempting to look like high school students dressed up like Lady Gaga in order to perform an improbably professional cover of an exceedingly banal pop song. It struck me as MTV meets the Donny and Marie show; no doubt it will be popular with the vacuous set. Needless to say, it takes considerably more than that to draw my attention away from my technotopian existence, so no, I was not aware of this dramatic little – if you will excuse it – tempest in Mr. Russell’s teapot. But KE enlightened me when he sent subsequent email.

“My wife revealed to me that the TV show Glee had an episode dealing with atheism this week, where the two characters were (this is what made me laugh since the stereotype fit perfectly), a self-righteous, uncaring, feminist coach and a flamboyant, gay kid.”

Because the New Atheists are explicitly working off the lavender model as per Richard Dawkins’s strategery, it shouldn’t be surprising that they are upset that they are not being given the conventional Saint Gay treatment on television, where every stand-in for the community is happy, healthy, handsome, popular, and behaves in a manner almost exactly opposite to the way the vast majority of the represented community is known to behave.

Anyhow, there is little of interest on the religion/atheism front these days; as I expected, the New Atheists are already a spent intellectual force. The only real point of interest in that area for me at the moment is to learn how heavily Sam Harris leaned on Marc Hauser’s fraudulent morality research in what is sure to be a philosophical trainwreck of a book on science-based morality. While I am well-disposed to skeptics and contrarians in general, it is unfortunate that Sam hasn’t yet learned that taking contrary positions to established and easily verifiable facts instead of consensus opinion founded on false assumptions is a sure means of rendering your arguments not only ridiculous, but ineffectual. So, without further ado, I shall return with some relief to Cicero, Divine Right, and the technotopia.


Mailvox: the homophobia hypothesis

CM was one of the few first-time emailers to write in regarding the Clementi suicide who managed to remain coherent, civil, and emotionally continent in objection to my post on the subject:

My evangelical brother told me about your blogging on the Clementi suicide. He directed me to it because he thought I had made a few observations consonant (the kid had a false sense of security, believing that official bureaucratic pronouncements matched sentiments on the ground; online coming-out is too easy and lowers the threshold for the kind of cussedness that being openly gay requires) with yours. While he cautioned that I’d still disagree with “half of it”, I wasn’t prepared to read such low snark—nor to be so misunderstood.

Poor Tyler Clementi got in over his head by bringing a man home to his dorm before developing a thicker skin. When faced with bureaucratic indifference, some revulsion or amused contempt from his dorm-mates, and possibly hostility, blame or hysteria from his lover and/or parents, he couldn’t take it. A dutiful kid, he probably naively expected support rather than to have his sense of violation compounded. It was not because he felt shame at being identified as gay or despaired over his “evil” act of sexual discovery.

You really ought to go over to Salon and read the far more thoughtful, nuanced responses to this article. They far surpass the article itself, your blog item, and the comments at your blog.

As his was a reasonable email, I did as requested and found myself actually laughing out loud at the article, although in CM’s defense, it must be noted that he was recommending the responses to the Salon article and not the article itself. The writer’s attempt to blame a gay conversion therapist and James Dobson as well as the ever notorious “society” is more than a little amusing; apparently the Boston Red Sox and Clementi himself are about the only ones whose hands are not dripping with Clementi’s blood. To quote the author: “The guilty parties are everywhere”!

That’s helpful. It would appear someone needs to let Mr. Fenton know that the man committed suicide and by definition, he is the only individual who can possibly be held directly responsible for the action. But on to those surpassing comments….

“A couple of Asian Americans college students at an Ivy League with regular tolerance campaigns hardly seem like the types to be in lockstep with the conservative Christian agenda.”

“In other words, the writer would like to see large swaths of people jailed, not becuase of their involvement in any particular crime, but because they hold beliefs that the writer opposes. Thanks for the clarification, L.M. Fenton. It is always good to know exactly where your political opponents stand. Understanding that that the left-wing and the homosexual rights community wants to criminalize their opposition for holding fast to their public views is helpful to this debate.”

“I disagree with focusing on the pranksters for the sole or even bulk of the blame. Only weak people jump from bridges and weak child jumpers belong to the ones who raised them.”

“Indeed, these are not Christo-fascist redneck southerners here, but two highly educated privileged young people at an elite liberal college, and on top of that, neither of the are white and likely neither are Christian. Most people of Indian descent are Hindu or Muslim and most people of Asian descent Buddhist or Muslim; heck, they could be atheists or agnostics for all we know. But I’ll bet neither of them are Pentecostal Christian Conservatives and I’ll bet neither Ravi nor Wei would have the faintest idea who James Dobson is. Unfortunately, like the Phoebe Prince incident, it may turn out that Mr. Clementi was already depressed and unhappy and even suicidal BEFORE this incident took place. It wouldn’t make it right — it was absolutely deplorable, ugly behavior — but it might explain why he killed himself instead of (say) beating the crap out of Mr. Ravi.”

These comments may be more thoughtful than a blog post which I admittedly scribbled in minutes, but I really don’t see much difference between what I wrote and most of the comments that don’t echo the “we are all guilty” theme. I certainly can’t say that I disagree with any of the ones quoted above. Moreover, it is worth pointing out that the “homophobia kills homosexuals” hypothesis is both logically unsound and empirically incorrect. Unlike most of my hysterical critics, I happen to be somewhat familiar with recent research into suicide statistics as part of the process of responding to Richard Dawkins’s claims about the psychological damage of being raised Catholic while writing The Irrational Atheist.

The orientationally-challenged argue thusly. Or more accurately, they would argue thusly if they had the emotional continence to actually present their argument in a rational manner:

1. Homosexuality is psychologically healthy and is not shameful. Therefore, homosexuals do not kill themselves out of shame of their sexual predilection.
2. However, homosexuals are known to kill themselves at higher rates than psychologically normal individuals do.
3. Therefore, there must be some external force that supersedes their psychological normality and causes some of them to kill themselves.
4. Society, particularly Christian society, rejects homosexuals.
5. Therefore, it is the social rejection of society, especially Christian society, which is serves as that external force causing otherwise psychological healthy homosexuals to kill themselves out of shame, guilt, fear, and/or social rejection.

The logical structure of this argument is sound enough. And yet, the argument also happens to be completely wrong. If it were true, then we should be able to observe the following material consequences as a matter of course.

1. Tolerant societies that have adopted social measures such as homogamy and orientational equality laws will have lower male suicide rates, especially among the orientationally challenged, than less tolerant societies.

2. Religious societies where the orientationally challenged are most rejected will have the highest male suicide rates, especially among the orientationally challenged.

3. Male Suicide rates will have fallen over time as societies have grown more socially progressive and tolerant of the orientationally-challenged. These declines will be most marked in the most tolerant societies.

Now let’s look at the facts. We will define a tolerant society where homogamy or civil unions are recognized; here are six tolerant societies: Belgium, Austria, Switzerland, France, Sweden, the Netherlands. Next we will define moderate religious society, where homosexuality is generally considered to be wrong, but not illegal: Ireland, USA, Italy, Mexico, Honduras, Paraguay. And finally, we will define an intolerant society as one where homosexuality is illegal: Saudi Arabia, Algeria, Libya, Cameroon, Kenya, Uganda.

According to the World Health Organization, the average male suicide rate for tolerant secular societies is 21.6 per 100,000. The average male suicide rate for moderate religious societies is 9.6 per 100,000. And the average male suicide rate for intolerant societies is unknown because as it turns out, none of them publicly report suicide rates. However, in searching for these unreported rates, I did find a study that reported primary indicators of high societal suicide rates that can be used to estimate them; perhaps one day I’ll see about doing so for these countries.

One of the only countries where the specific issue has been studied is in the heavily secular and tolerant country of Norway where 20% of gay men between the ages of 16-24 attempt suicide at least once. It would appear highly unreasonable to attempt to blame either James Dobson or intolerant Southern Baptists for the self-destructive actions of young gay atheist Norwegians.

So it is clear that the first logical conclusion of the homophobia hypothesis is false. The second conclusion is unclear, but the available evidence suggests it is false. As for the third conclusion, it is also false since suicide rates are trending upward rather than falling, especially among young men.

a) “In 21 of the 30 countries in the World Health Organization (WHO) European region, suicide rates in males aged 15-19 rose between 1979 and 1996.”

b) “Canadian suicide rates greatly increased in the 1960s and 1970s and, while they have levelled out in the 1980s, they are still at the highest level in Canadian history. Between 1960 and 1978, the overall suicide rate rose from 7.6 per 100,000 population to 14.8, according to Statistics Canada figures.”

c) “Each year, almost 5,000 young people, ages 15 to 24, kill themselves [in the United States]. The rate of suicide for this age group has nearly tripled since 1960, making it the third leading cause of death in adolescents and the second leading cause of death among college age youth.”

Although the case against it is not yet absolutely conclusive, there is definitely sufficient evidence to conclude that the “homophobic society causes suicide” argument is false. The homophobia hypothesis empirically fails, and logic points to false assumptions being made the first and fifth points. This conclusion is supported by the fact that, far from being a causal factor in suicide, religion tends to be the strongest inhibiting factor known to social science. “Numerous studies have found a statistical relationship between normative religious beliefs (as indicated by church attendance, church membership, or religious sanctions against suicide) and national or regional suicide rates (e.g., Huang, 1996; Kelleher, Chambers, Corcoran, Williamson, & Keeley, 1998; Neeleman, Halpern, Leon, & Lewis, 1997). Across different regions of the United States, higher levels of Catholic Church membership are associated with lower suicide rates (Burr, McCall, & Powell-Griner, 1994). The Ukraine’s western provinces, where more people attend church, have lower suicide rates than its eastern provinces, where fewer people attend church (Kondrichin & Lester, 2002). Nations that publish relatively more religious books tend to have lower suicide rates (Cutright & Fernquist, 2001; Fernquist, 2003a).”

In addition to their flaming hysteria, one of the most amusing things about the homocritics was their frequent reference to my supposed “ignorance” when it is completely clear that they don’t know even the most basic facts about suicide or its causal factors. Even so, does the failure of the homophobia hypothesis mean that my idea about the dichotomy between shame over one’s orientation and gay rights propaganda creating a psychological disturbance encouraging one to commit suicide is correct? No, of course not. In fact, I have come across an alternative thesis that I consider to potentially present a stronger logic. But more on that in a future post.


Mailvox: an atheist on the religion survey

S contemplates the Pew quiz:

I read with considerable interest your post earlier today about the Pew religious knowledge quiz. I took the test and was surprised to discover that even though I’m an atheist (and am apparently rather unusual in professing that I don’t really hate religion and have no particular desire to destroy the concept of God), I scored 73%. So, not great, but not bad either. By way of background, I’ve got an undergraduate degree in Maths and Economics, and a Master’s in financial Mathematics. I seemed to do pretty well compared to both believers and non-believers from all backgrounds.

The reason I write today about this is that I just finished watching Bill Maher “debating” Bill O’Reilly on the Factor tonight after taking that quiz and was appalled by the immaturity and folly of a supposedly “enlightened” atheist. Now I’m not a big fan of O’Reilly’s, but I was stunned to see just how utterly ignorant a militant atheist like Bill Maher is about Christianity, which he apparently hates with a vengeance. He seems to think that the Bible is the literal word of God, when even an atheist like me understands that this is not the way the Bible is written, nor is it the way the Bible is canonically interpreted. He thinks that Christian scripture and law is derived from the Old Testament- he quoted from Deuteronomy stating the Mosaic law that he who breaks the Sabbath shall be killed, even though the actual quote is from Exodus, and Maher quoted it out of context. He seems to believe that Christianity and science are incompatible, but I’ve accepted for a long time now that the Enlightenment simply could not have happened without Judeo-Christian tradition, law, and science.

Vox, I doubt you and I will ever agree about the existence or nature of God. However, I find myself strongly agreeing with you about these pinheads (to coin a phrase) who call themselves atheists but who are little more than “social autists” with little understanding of what they criticise. And even where we inevitably disagree, I suspect that our disagreements will generally be far more genial and fair-minded than anything that atheists like Bill Maher are capable of. Thanks for the great writing; I certainly look forward to reading a lot more of it to come.

S understands, in a way that many do not, that I have absolutely no problem with atheists qua atheists. I was, after all, agnostic for a long time and I still find myself generally more comfortable in secular intellectual culture than in American evangelical culture. For example, if you peruse my reading list for 2010, you will look in vain for the religious self-help books and rehashed theological fiction that make up the vast majority of CBA publishing today. I’d much rather kick back in the Comfy Chair and read Balzac or Procopius than anything that is likely to appear in a Northwestern Bookstore.

The fact is that I neither despise nor pity those who don’t believe in God. My opinion about them is similar to what it would be of those who don’t believe in gravity because they cannot see it. (See the actual force, not its effects.) Because the effects of rejecting God are both clearly delineated and observable, I simply find it a little strange that some people cannot see those effects and on that basis deny the existence of the causal factor. But that doesn’t bother or upset me, it merely causes me to mentally shrug my shoulders and think, “well, good luck with that”.

On the other hand, having a very small degree of orange-green color blindness, I can completely understand the bewildered feeling of an individual who simply does not see the big orange letter on the green background to which another individual is pointing, wondering what on Earth he could possibly be seeing.

The atheists with whom I do have a problem, and for whom I regularly demonstrate a great deal of contempt, are the liars, the cheats, the deceivers, and the malicious. If one genuinely believes that religion is a crutch for the weak and psychologically needed, what does it say about those who are so eager to kick that crutch out from under those who clearly need its support? And, as an armchair intellectual, I find their willful ignorance of history, religion, and philosophy to be as astonishing as it is irksome. Intelligent? I don’t even consider them to be educated. To claim that religion either causes war or is an important strategic element of war is to be every bit as ignorant as the apocryphal Flat Earth proponents so often cited; the significant difference being that the Religion Causes War Society not only exists but is even willing to expound their ludicrous and historically illiterate arguments in public.

Anyhow, I very much welcome atheists of S’s stripe here. I don’t expect anyone to agree with me all the time about anything; my best and oldest friend has made a habit of playing Devil’s Advocate in our conversations for more than three decades. The reason I value the questions and the doubts of intelligent atheists who are more interested in rational debate than in exhibiting their psychological issues is because they help keep the Christians and other theists from lapsing into intellectual sloth and thereby prevent this blog from devolving into the sort of circle jerk that has rendered the New Atheism so toothless.

But speaking of the quiz, it is worth pointing out, as Bethyada noted yesterday, that the Pew Forum ignored its own definitions of “atheist” and “agnostic” in reporting the results. Whereas self-identified atheists and agnostics scored 20.9, the Pew Forum defined an atheist as “someone who does not believe in God” and an agnostic as “someone who is unsure that God exists”. Therefore, the “nothing in particular” crowd should have been included in the “atheists and agnostics” group – supporting the case made in TIA, these Low Church Atheists outnumber the self-identified High Church ones by a factor of 4.5 – which reduces the atheist and agnostic score to 17.4, below that of white evangelicals at 17.6.


Mailvox: religious ignorance

Much has been made of the fact that atheists and agnostics scored the highest on the Pew Forum’s recent quiz on the world’s religions. I’ve certainly received a lot of emails about it from atheists and Christians alike. But what hasn’t been pointed out is that they still only answered 65 percent of the questions correctly. This may help explain the dichotomy we often see here between the atheist’s belief that he knows a lot about religion and his demonstrated ignorance of the tenets of a particular religion. The fact that an atheist happens to have heard of Vajrayana Buddhism or Divine Command theory, usually through a second-hand reference, will set him well ahead of the average religious individual. But it doesn’t actually mean that he knows anything about any specific religion or that his knowledge is likely to compare favorably with that of a religious adherent who happens to take his religion seriously.

Furthermore, logic suggests that someone who subscribes to no religion is far more likely to be familiar with the competing tenets of the various religions than any one adherent is to be familiar with the others. This perspective is supported by the fact that both Jews and Mormons outscored atheists and agnostics when the questions related to Islam, Buddhism, and Hinduism were left out of the equation and that Mormons and evangelicals scored much better than anyone – 86 percent and 73 percent respectively – on questions related to the Bible.

So, my conclusion is that atheists should try to keep in mind that while they know more about religion in general than most evangelicals do, they don’t know as much about the Bible or Christianity. And Christians should remember that knowing a lot about Christianity is not synonymous with knowing a lot about religion.

So, if you’re interested, take the short version of the quiz yourself and report on how you did. Here is my score, which apparently would have had me in the top .02 percent: “You answered 15 out of 15 questions correctly for a score of 100%.”


Mailvox: the police respond

EJ replies to my column on America’s devolution into a police state:

I just read your article in World Net Daily. I was somewhat surprised by your article. I have been employed by a state law enforcement agency in California for 22 years. I was a deputy with the Orange County Sheriff’s Dept., before my current position. I have a bachelor’s degree from a state university in California. My father retired from this department after serving 27 years. My brother is also an officer with this department.

Having worked and socialized around officers and deputies throughout my life, I have determined that these are some of the finest people I have met. I am a christian and am a deacon in my church. Certainly I see a rougher crowd in church than the people I work around. I have never felt bad about arresting criminals. I didn’t go into this line of work for the authority I would receive. In college, I struggled to determine whether I would rather be a teacher at a high school, or a law enforcement officer. I finally chose law enforcement.

I too believe in the 2nd Amendment. I believe without the second, all other amendments (freedoms) would soon be lost. I am an NRA member. I don’t know what happened to the gentleman in Las Vegas. You don’t either. But some of your rhetoric sounds like far left revolutionary propaganda. Currently I reside in far northeast California. I cite motorists everyday for traffic violations. I have never considered myself a tax collector for the state. I give as many verbal warnings as I do citations. I don’t do this for the money, and having watched media report only stories for which they make money, I suspect they are more interested in making money than my department.

I am a conservative and receive respect for my position from other conservatives. Liberals (far left) usually look at me with disdain. I guess I am just surprised at your attack on me and others in law enforcement. When I was growing up, my father taught me to protect those weaker than I. I have taught my son the same values. Recently my 17 year old son told me he will not be attending college as I hoped, but will be joining the United States Marine Corp to defend his country. I’m sure you feel the same disregard for the military as you do law enforcement.

I think it’s safe to assume EJ is unfamiliar with my attitude towards teachers, at least the unionized public school variety. As for his email, he sounds like a nice, normal, largely clueless man who is paying less attention to the observable reality around him than he is to a romanticized version of it. For example, it is irrelevant that he does not consider himself a tax collector for the state, because that is in fact what he is. Due to what appears to be his kind and positive nature, he may be a bad and inefficient tax collector, but that is a question of job performance rather than the nature of the job.

It is interesting to see how he attempts to defend the police by conflating them with the military. This is common practice among the police; they have a severe inferiority complex and for obvious reason. There is nothing “far left” about my criticism of the police, and what is particularly troubling about this email is that EJ clearly believes it is “far left revolutionary propaganda” to insist that police officers guilty of murdering an innocent man in public should be punished for their crimes and that it is an intrinsic conflict of interest for the police to investigate alleged crimes committed by the police.


Mailvox: Monday column

TA writes in response to today’s column on Police State America:

I had a chief of police as a neighbor while growing up. He pistol whipped a black kid once. And I had a neighbor that became a cop and a friend that became a cop in spite of his criminal record and both of them were cowards. I have said for many years that 25% of any police force should be in prison, 25% should be under psychoanalysis regularly and 50% should get better pay.

We would get fewer nuts on the force if we drafted our police forces instead of hiring them. Only management that doesn’t come into contact with the public on a regular basis should be career personnel. And as you said, cops should not be allowed to investigate cops. Because they have been indoctrinated into an “us against them mentality” ‘them’ being the public and ‘us’ being every cop a self appointed heroic martyr who is the law instead of an enforcer of the law.

These three cockroaches will get theirs some day and of coarse be amazed at the injustice of it all.

I don’t think a police draft is the answer, but it’s true, there probably would be fewer issues with psychologically disturbed individuals seeking employment.


Mailvox: defending free trade

EJ takes exception to my previous post critiquing Ricardian comparative advantage:

I have to disagree with you regarding free trade.

You write: “This example assumes that there is something that the old man can do that is of value to the young man. But that’s not necessarily true. What if instead of 2 people, there are 20 and all the old man can usefully do is gather 5 coconuts a day when two young girls with no other useful skills can gather 100, more than the castaway society needs, in the same time? Yes, total production will increase +5, but so what? No one is going to give him anything for his worthless coconuts because there is already a coconut glut thanks to the highly productive young girls. Austrian-savvy individuals should be able to see the seeds of an Austrian critique of Ricardo here.”

Your example fails to take into account that there are always other needs to be satisfied, needs which require other goods beside coconuts. Either the old man or the young girls can, for instance, gather berries, help build a hut, etc. Ricardo is right in that, by shifting the old man’s production into that which he does comparatively best, society benefits. The only time this isn’t true is if every need has already been satisfied and there is absolutely no other task that the old man can do. Your assumption strikes me as an unwarranted; it is certainly not true that all needs have been met in the world we live in.

Ricardo’s discovery has astounding consequences for libertarians. I’ve noticed in your writings that your libertarianism seems to stem from an understanding that men is fallen, and that, therefore, it makes little sense to allow a fallen man to lord it over his fellow creatures. This was largely my take, too, but thanks to Voxiversity, I’ve been reading my Rothbard. Since voluntary exchange benefits both parties, free trade between two people is a good which should be extended as far and wide as possible.

This is not to say tariffs are always wrong. As Ilana Mercer pointed out in last week’s column, a revenue tariff on all goods would be a reasonable way to fund a minimal state. But free trade itself remains sound.

There are two significant errors here that render EJ’s criticism invalid. The first flaw is this erroneous simplification. “The only time this isn’t true is if every need has already been satisfied and there is absolutely no other task that the old man can do.”

The proper formulation would have been as follows: “It isn’t true whenever there is no other need that the old man is not only capable of satisfying, but willing to satisfy in return for the compensation that he is offered in return.” It is irrelevant to argue that all needs have not been met in the world; the old man on his desert island has no ability to meet the needs of a hungry child in Somalia and the meager compensation he is offered for collecting sea shells may be insufficient to move him to collect them.

Furthermore, there may be no demand for the services he can supply. The bankruptcy of Say’s Law can be seen in the way the old man’s ability to donate sperm to his nubile female castaways in no way creates any demand for the product. In much the same way, the international market for American workers whose only skills concern filling out paperwork for regulatory compliance and creating Powerpoint demonstrations is extremely limited.

The second and much more serious error is in the statement that “voluntary exchange benefits both parties”. This is both logically and empirically false because it posits a non-existent human rationalism without temporal limits. While it is true that value is subjective, thereby allowing the possibility to defend totally irrational actions as at least nominally rational, this still doesn’t avoid the problem of how the subjective values that the Misean acting man assigns are necessarily momentary in nature. What the acting man defines as a beneficial exchange at one moment he may very well not define as beneficial in the very next moment for a wide variety of reasons. And it is this fatal flaw in the logical foundation that causes the entire edifice in support of free trade to collapse.


Mailvox: praxeology and free trade

S asks about reconciling trade barriers with distrust of government:

as always, great work with the blog. I’m a big fan of your writing on economics, especially when applying Austrian theory to show how badly Keynesians misunderstand the subject. As such, I was hoping to ask you for some clarification regarding free trade. I read your book, The Return of the Great Depression, and found your comments on free trade rather interesting. (It’s been 9 months since I read the book so I apologise if I misrepresent any of your arguments.)

If I understand what you write correctly, it seems that the paradigm of comparative advantage espoused by Ricardo and his intellectual descendants doesn’t really make sense because of what you characterise as “the n-body problem”. In other words comparative advantage might work when dealing with two isolated counterparties, but what works for two entities does not necessarily work for three or more because of the exponentially increasing complexities introduced by additional trading entities. On this basis, you argue that a policy of unrestricted free trade doesn’t make any sense from a theoretical or practical perspective.

Here’s my question: given that the conclusions of praxeology generally argue that government intervention is a bad idea, how can this be consistent with a policy of government intervention in trade using tariffs to support specific industries or the general economy?

I’ve been trying to figure this out for a while. The articles at Mises.org generally reference Ricardo’s theory to support their arguments even though Ricardo wasn’t an Austrian theorist. Then there’s this article which makes a lot of interesting points in favour of protectionism, even though it’s written by a guy who is a Keynesian (as far as I can tell). What are your thoughts on the “correct” policy regarding trade?

There are three ways to consider the problem. We can look at it logically, we can look at it empirically, and we can look at it historically. The Ricardian position fails by all three metrics, in part because there is an inherent fallacy in your observed dichotomy. To observe that government is always inefficient and to mistrust its application of power is not synonymous with saying that there is absolutely no role for national governments. Libertarian minarchy is neither anarchy nor the U.S. Constitution, but I think it is worthwhile to note that protecting the borders and funding itself through tariffs are two of the very few genuine powers that the U.S. Constitution grants the federal government.

It is a very odd and perverted form of American conservatism that supports democracy-building on the other side of the globe, but argues against American industry-protecting import duties.

But that’s a tangent. Getting back to the logical angle, the Ricardian notion of comparative advantage completely fails because it is too focused on the TOTAL production rather than the nation-specific production or the effects on a nation of being forced to exchange its manufacturing from one set of goods to another. But the biggest problem is that because it relies on a labor theory of value, it fails to take demand, much less the limits of demand, into account. Furthermore, being a pre-industrial concept, comaprative advantage simply does not envision that a nation could possibly have nothing to physically produce that is considered worthy of trade. Consider the Wikipedia example.

Two men live alone on an isolated island. To survive they must undertake a few basic economic activities like water carrying, fishing, cooking and shelter construction and maintenance. The first man is young, strong, and educated. He is also faster, better, and more productive at everything. He has an absolute advantage in all activities. The second man is old, weak, and uneducated. He has an absolute disadvantage in all economic activities. In some activities the difference between the two is great; in others it is small.

Despite the fact that the younger man has absolute advantage in all activities, it is not in the interest of either of them to work in isolation since they both can benefit from specialization and exchange. If the two men divide the work according to comparative advantage then the young man will specialize in tasks at which he is most productive, while the older man will concentrate on tasks where his productivity is only a little less than that of the young man. Such an arrangement will increase total production for a given amount of labor supplied by both men and it will benefit both of them.

This example assumes that there is something that the old man can do that is of value to the young man. But that’s not necessarily true. What if instead of 2 people, there are 20 and all the old man can usefully do is gather 5 coconuts a day when two young girls with no other useful skills can gather 100, more than the castaway society needs, in the same time? Yes, total production will increase +5, but so what? No one is going to give him anything for his worthless coconuts because there is already a coconut glut thanks to the highly productive young girls. Austrian-savvy individuals should be able to see the seeds of an Austrian critique of Ricardo here.

Anyhow, that’s just a superficial first pass at the intrinsic logical flaw of Ricardian comparative advantage. More on the empirical and historical flaws as well as the government question in future posts.


Mailvox: economics and immigration

LR asks about low interest rates:

So this may be a dumb question, but I was reading an article that was talking about the returns bank were receiving on home loans (5-6%) and the returns that savers were receiving on their savings accounts (practically nothing) and how elderly people that had previously been able to live off of Social Security and the interest from their savings were now having to spend their principal. My question is why don’t people take their savings out of the banks so that the banks then have to compete for their business by offering decent interest rates? If enough people did this, could it force the banks to operate differently?

Because people primarily use banks as a place to store their money. They aren’t going to take the risk of stuffing their cash under a mattress and only one in a thousand Americans utilizes precious metals as a store of value, so the Fed has realized that it can crush depositors with impunity without having to worry about mass withdrawals. In other words, what you’re describing is theoretically possible but realistically implausible. If people aren’t withdrawing their money because two percent of the banks are failing every year, they’re not going to withdraw it over zero interest either.

MB wants to know if a Republican sweep in November can stave off economic contraction:

I’m hearing from a few pundits that if the Republicans take the House (at least) the stock market will pick up because business will trust that no more insane bills will pass for two years or more. They’ll “trust” that govt won’t make things worse. If the equities market does swing up, when will this Depression hit home if the day of reckoning keeps getting postponed?

There might be a very short term bump, but the reality is that the central problem with the economy isn’t the Obama administration, the health care act, or the business community’s inability to calculate future employment and regulatory costs. The central problem is the massive amount of debt that is crippling the private sector and no amount of change in the political makeup of Congress is going to change that. Furthermore, there is absolutely no reason to expect that the Republicans aren’t going to do pretty much the same thing that they did before and resolutely defend the interests of Wall Street and the Federal Reserve against the futile fury of the electorate.

MM asks about different waves of immigration:

I would like to first say that though this is my first time to write you, I enjoy reading your blog, and I do so regularly. Second, I would like to ask you a question regarding immigration, I have been reading your posts on that subject, and would like to get a clearer picture of your opinion on the subject (or maybe of the US history as well).

Here is my question: I would like to understand how you differentiate what happened during the 16th and 17th centuries (even the US as a nation was founded by early settlers from other countries or at least their children) from the immigration which is recently happening in the US? If you can label the latter as detrimental do you consider the former to have been so as well?

Again, you mentioned in a previous post that there were 3.3 million more people in the US every year during the period (1997-2010). Do you think that this is necessarily a bad thing to the US nation? What if the 3.3 million were not mostly Mexicans, Somalis and people from the third world, but rather wealthy and skilled western Europeans, would that be okay?

The main differentiation between the various waves of immigration was ethno-cultural. The English and Dutch immigrants were very different from the later Irish, German, and Scandinavian immigrants. They, in turn, were very different from the later Asian, African, and South Central American immigrants. The significance of these ethno-cultural differences is much greater than most people can imagine, let alone understand.

For example, the present American public school system would not exist were it not for the heavy German influence, hence the term “kindergarten”. Having grown up in Minnesota, I can testify the reason the upper Midwest is so inclined to the left is due to the German/Scandinavian heritage of the immigrants who settled there; this is the reason that the University of Wisconsin, Madison is more socialist than the erstwhile Patrice Lumumba University and why Democrats in Minnesota are more properly known as the Democratic-Farmer-Labor Party.

So, I don’t regard the formative Anglo-Dutch immigration to have been harmful; that was the America of the Constitution, after all. The German/Irish/Scandinavian immigration transformed the Constitutional Republic into a Progressive Democratic Empire and laid the groundwork for the present Third World immigration that will convert the Democratic Empire into an Authoritarian Oligarchy. I consider that to be detrimental, but those who prefer authoritarian oligarchs will obviously feel otherwise.

In answer to the last question, one percent new immigrants every year is simply too much for any nation that is even nominally democratic. If you consider that the average presidential vote margin is around 3.5 percent, such an immigration rate means that new immigrants can theoretically control national elections within a single electoral cycle. Immigration and democracy are simply not compatible and I am confident this will soon become eminently apparent as the recent wave of immigrants transform the areas they settle into plausible replications of the lands from whence they came.