What Happened to Serious Economic Policy Debates?

Economic policy determines whether economies, and hence citizen real income grows nationally and how that income is distributed. The invisible hand of a market economy guides investment to its most profitable, hence most productive uses. Not so for the heavy hand of the state. The Soviet Union saved and invested five to six times as much as the US, but productivity lagged and the economy eventually collapsed. Taxpayers have some control over “public” investment performance at, e.g., the small private level (condo, coop) but voter influence declines as the distance and size of the governing body increases. Making national investment policy even more difficult is the fact that even highly productive public investment may not pay off until well into the future. While rational economic policy would devolve decision-making and funding to the lowest possible level, the federal government’s lack of a hard budget constraint allows it to fund without accountability. The Constitution’s enumerated powers has proven an insufficient constraint on this perverse political incentive.

 

During President Trump’s term, pre-pandemic, real wages rose steadily at about 2% reflecting the steady real economic growth, but fell under Biden by over 2% due to inflation. Black unemployment and poverty fell under Trump, and continued to fall under Biden. While Trump proposed deep budget cuts, the Congress passed essentially the Democrats’ budget under both Ryan and Pelosi. Trump passed what in the ’60s under Kennedy was called a Keynesian tax cut, now called a “voodoo economics” supply-side tax cut for the rich to spur business investment, that worked essentially as planned.

 

Trump takes undue credit for the good performance during his term, for which the main stream media (MSM) accuse him of lying. Biden does the same, for which the MSM cheers. Independent voters favor Trump over Biden by 45% to 34% on the management of the economy. Numerous Democratic commentators have speculated that voter mistrust of Biden reflects FOX fake news popping up on TV sets uninvited to brainwash unsuspecting viewers.

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Transmitting the Passwords – or Not

I ran across a poem, said to have been written by the French aviator/writer Antoine de St-Exupery.

I don’t think St-Ex wrote this poem: I’m pretty familiar with his works and haven’t seen this poem in any of them, and it also doesn’t seem stylistically quite right.  I do, however, recognize the book and the passage that were surely the inspiration for the poem,  That would be his unfinished novel of ideas Citadelle, published in English under the unfortunate title Wisdom of the Sands.  (The reason the novel is unfinished is that St-Ex disappeared in 1944 while flying recon missions in a P-38 with the American forces)

Citadelle represents the musings of a fictional desert prince: on society, on government, on humanity.  Here are some excerpts from the relevant passage:

“Nevertheless,” I mused, “these men live not by things but by the meaning of things, and thus it is needful that they should transmit the passwords to each other, generation by generation.  That is why I see them, no sooner a child is born, making haste to inure him in the usage of their language; for truly it is the key to their treasure.  So as to be able to transport him into this harvest of golden wonders they have reaped, they spare no toil in opening up within him the ways of portage.  For hard to put into words, weighty yet subtle, are the harvests it behooves us to transmit from one generation to another.”

“..But if the new generation lives in houses about which it knows nothing save their utility, what will it find to do in such a desert of a world?  For even as your children must first be taught the art of music, if they are to take pleasure in playing a stringed instrument; even so, if you would have them, when they come to man’s estate, capable of the emotions worthiest of man, you must teach hem to discern, behind the diversity of things, the true lineaments of your house, your domain, your empire.

Else that new generation will but pitch camp therein, like a horde of savages in a town they have captured. And what joy would such barbarians get of your treasures?  Lacking the key of your language, they would know not how to turn them to account….(the barbarian) throws down your walls and scatters your possessions to the winds.  This he does to revenge himself on the instrument which he knows not how to play, and presently he sets the village on fire–which at least rewards him with a little light!  But soon he loses interest, and yawns. For you must know what you are burning, if you are to find beauty in its light.  Thus with the candle you burn before your god. But to the barbarian the flames of your house will say nothing, for they are not a sacrificial fire.”

“..This, too, is why I bid you bring up your children to be like you.  It is not the function of some petty officer to hand down to him their inheritance,; for this is something not comprised in his manual of Regulations..You shall build your children in your image, lest in late days they come to drag their lives out joyously in a land which will seem to them but an empty camping place, and whose treasures they will allow to rot away uncared-for, because they have not been given its keys.”

It strikes me that most of the institutions of America today–and also, I think, throughout much of the West–are acting, unconsciously or with intention, to inhibit the kind of password-transmission about which St-Ex wrote in the above passage.

I’m also reminded of something CS Lewis wrote, which I quote very loosely:  “If you want to destroy an an infantry unit, you cut it off from its adjacent units.  If you want to destroy a generation, you cut it off from its adjoining generations.”

Two earlier posts inspired by CitadelleWhen Sleep the Sentinels and Of Springs and Cables

Odes to Liberty

Playing fast and loose with the definition of “ode,” this was an annual Independence Day tradition on the long-neglected blog. The original was posted July 4, 2002. Most years a change or addition was made. This is the most recent incarnation. 


Scenes from “John Adams” showing the meeting of the Second Continental Congress, at which the vote for independence from Great Britain is conducted, and the public reading of the Declaration of Independence. [Original video with both scenes is now a dead link, new videos have been found.]

The Declaration formally proclaimed our independence – the Battle of Yorktown won it.

Through these fields of destruction
Baptisms of fire
I’ve watched all your suffering
As the battle raged higher
And though they did hurt me so bad
In the fear and alarm
You did not desert me
My brothers in arms

Dire Straits, “Brothers in Arms”

“Then I will live in Montana, and I will marry a round American woman and raise rabbits and she will cook them for me. And I will have a pickup truck, or possibly even a recreational vehicle, and drive from state to state. Do they let you do that?”

Vasili Borodin (played by Sam Neill), The Hunt for Red October

“‘We hold these truths to be self-evident… That all men are created equal, that they are endowed by their Creator with certain inalienable rights… That among these are Life, Liberty and the Pursuit of Happiness… That to secure these rights, governments are instituted among men …’. And this paper that from the French Revolution on the whole West has copied, from which each of us has drawn inspiration, still constitutes the backbone of America. Her vital lymph. Know why? Because it transforms the subjects into citizens. Because it turns the plebes into people. Because it invites, no, it orders the plebes turned into citizens to rebel against tyranny and to govern themselves. To express their individualities, to search for their own happiness. (Something that for the poor, for the plebes, means to get rich). The exact contrary, in short, of what the communists used to do with their practice of forbidding people to govern themselves, to express themselves, to get rich. With their practice of installing His Majesty the State on the throne.”

Oriana Fallaci, The Rage and the Pride

“With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood.”

Martin Luther King

“There is an inverse relationship between reliance on the state and self-reliance.”

William F. Buckley

“The State exists simply to promote and to protect the ordinary happiness of human beings in this life. A husband and wife chatting over a fire, a couple of friends having a game of darts in a pub, a man reading a book in his own room or digging in his own garden – that is what the State is there for. And unless they are helping to increase and prolong and protect such moments, all the laws, parliaments, armies, courts, police, economics, etc., are simply a waste of time.”

C. S. Lewis, Mere Christianity

“Funny that the same people to whom diversity is a holy word so often bemoan diversity of opinion as divisive. But in a democracy, politics are naturally divisive: you vote for this candidate and someone else votes for that one; you vote yes (or no) on a proposition and other citizens disagree. What’s not divisive? Saddam and his 99.96% of the vote. That’s how it went during the previous Iraqi election — an illustration of the Latin roots of the word fascism, which actually means a bunch of sticks all tied together in one big unhappy unified bunch, and not (despite what many assume) any variation from p.c. received-wisdom regarding gay rights, affirmative action, bilingual education, etc. This election was different because it was divisive, which means it was better.”

Cathy Seipp (Samizdata quote of the day, February 01, 2005)

“It’s all wrong. By rights we shouldn’t even be here. But we are. It’s like in the great stories, Mr. Frodo. The ones that really mattered. Full of darkness and danger they were. And sometimes you didn’t want to know the end. Because how could the end be happy? How could the world go back to the way it was when so much bad had happened. But in the end, it’s only a passing thing, this shadow. Even darkness must pass. A new day will come. And when the sun shines it will shine out the clearer. Those were the stories that stayed with you. That meant something. Even if you were too small to understand why. But I think, Mr. Frodo, I do understand. I know now. Folk in those stories had lots of chances of turning back only they didn’t. Because they were holding on to something…That there’s some good in this world, Mr. Frodo. And it’s worth fighting for.”

Sam Gamgee (played by Sean Astin), Lord Of The Rings: The Two Towers

“[W]e recognize that we are living in the middle of the most overwhelmingly successful experiment in human history. Not perfect. Just the best place in the world to live in, that’s all.”

Jay Manifold

“I will not be pushed, filed, stamped, indexed, briefed, debriefed or numbered! My life is my own.”

Number Six (played by Patrick McGoohan, “The Prisoner” TV series)

“Patriotism means to stand by the country. It does not mean to stand by the President or any other public official save exactly to the degree in which he himself stands by the country. It is patriotic to support him insofar as he efficiently serves the country. It is unpatriotic not to oppose him to the exact extent that by inefficiency or otherwise he fails in his duty to stand by the country.”

Theodore Roosevelt

This Tea Party protest sign illustrates Roosevelt’s musings on patriotism – and the powers of the citizen as exercised via the ballot box:


“So this Jefferson dude was like, ‘Look, the reason we left this England place is ’cause it was so bogus. So if we don’t get some primo rules ourselves – pronto – then we’re just gonna be bogus, too.”

Jeff Spiccoli (played by Sean Penn), Fast Times at Ridgemont High

“Democracy extends the sphere of individual freedom, socialism restricts it. Democracy attaches all possible value to each man; socialism makes each man a mere agent, a mere number. Democracy and socialism have nothing in common but one word: equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.”

Alexis deTocqueville, Democracy in America Vol. 2

“We who lived in concentration camps can remember the men who walked through the huts comforting others, giving away their last piece of bread. They may have been few in number, but they offer sufficient proof that everything can be taken from a man but one thing: the last of the human freedoms — to choose one’s attitude in any given set of circumstances, to choose one’s own way”

Viktor Frankl, Man’s Search for Ultimate Meaning

Shall It Be Sustained?

As a July 4th tradition, I’ve posted an excerpt from Stephen Vincent Benet’s poem Listen to the People.  The title I originally used for these posts was It Shall Be Sustained, which is from the last line of Benet’s poem.

Narrator:

This is Independence Day,
Fourth of July, the day we mean to keep,
Whatever happens and whatever falls
Out of a sky grown strange;
This is firecracker day for sunburnt kids,
The day of the parade,
Slambanging down the street.
Listen to the parade!
There’s J. K. Burney’s float,
Red-white-and-blue crepe-paper on the wheels,
The Fire Department and the local Grange,
There are the pretty girls with their hair curled
Who represent the Thirteen Colonies,
The Spirit of East Greenwich, Betsy Ross,
Democracy, or just some pretty girls.
There are the veterans and the Legion Post
(Their feet are going to hurt when they get home),
The band, the flag, the band, the usual crowd,
Good-humored, watching, hot,
Silent a second as the flag goes by,
Kidding the local cop and eating popsicles,
Jack Brown and Rosie Shapiro and Dan Shay,
Paul Bunchick and the Greek who runs the Greek’s,
The black-eyed children out of Sicily,
The girls who giggle and the boys who push,
All of them there and all of them a nation.
And, afterwards,
There’ll be ice-cream and fireworks and a speech
By somebody the Honorable Who,
The lovers will pair off in the kind dark
And Tessie Jones, our honor-graduate,
Will read the declaration.
That’s how it is. It’s always been that way.
That’s our Fourth of July, through war and peace,
That’s our fourth of July.

And a lean farmer on a stony farm
Came home from mowing, buttoned up his shirt
And walked ten miles to town.
Musket in hand.
He didn’t know the sky was falling down
And, it may be, he didn’t know so much.
But people oughtn’t to be pushed around
By kings or any such.
A workman in the city dropped his tools.
An ordinary, small-town kind of man
Found himself standing in the April sun,
One of a ragged line
Against the skilled professionals of war,
The matchless infantry who could not fail,
Not for the profit, not to conquer worlds,
Not for the pomp or the heroic tale
But first, and principally, since he was sore.
They could do things in quite a lot of places.
They shouldn’t do them here, in Lexington.

He looked around and saw his neighbors’ faces…

The poem is very long, and is worth reading in full. The full text was published in Life Magazine; it is online here.

Benet’s poem ends with these words:

We made it and we make it and it’s ours
We shall maintain it. It shall be sustained

But shall it?

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Lewis vs Haldane: Another Look

In 1946, there was an interesting interchange between JBS Haldane and CS Lewis. I’ve excerpted it here in the past…given the current revived interest in socialism and even Marxism these days, this argument is very relevant and I thought the interchange would be worth republishing and rediscussing.

Haldane was an eminent British scientist (population genetics) and a Marxist. C S Lewis was…well, you probably already know who C S Lewis was.

Haldane’s published a critique which was directed at the series of novels by Lewis known as the Ransom Trilogy, and particularly the last book of the series, That Hideous Strength.  Lewis responded in a letter which remained unpublished for many years.

To briefly summarize That Hideous Strength: Mark, a young sociologist, is hired by a government agency called NICE–the National Institute for Coordinated Experimentation–having as its stated mission the application of science to social problems. (Unbelievably, today the real-life British agency which establishes rationing policies for healthcare is also called NICE.) In the novel, NICE turns out to be a conspiracy devoted to very diabolical purposes, as Mark gradually discovers. It also turns out that the main reason NICE wanted to hire Mark is to get control of his wife, Jane (maiden name: Tudor) who has clairvoyant powers. The NICE officials want to use Jane’s abilities to get in touch with the magician Merlin and to effect a junction between modern scientific power and the ancient powers of magic, thereby bringing about the enslavement of mankind and worse. Jane, though, becomes involved with a group which represents the polar opposite of NICE, led by a philology professor named Ransom, who is clearly intended as a Christ-figure. The conflict between NICE and the Ransom group will determine the future of humanity.

A brilliantly written and thought-provoking book, which I highly recommend, even if, like me, you’re not generally a fan of fantasy novels.  I reviewed it here.

With the context established, here are some of the highlights of the Lewis/Haldane controversy:

1) Money and Power

In his article, Haldane attacks Lewis for the latter’s refusal to absolutely condemn usury, and celebrates the fact that “Mammon has been cleared off a sixth of our planet’s surface”…clearly referring to the Soviet Union. Here’s part of Lewis’s response:

The difference between us is that the Professor sees the ‘World’ purely in terms of those threats and those allurements which depend on money. I do not. The most ‘worldly’ society I have ever lived in is that of schoolboys: most worldly in the cruelty and arrogance of the strong, the toadyism and mutual treachery of the weak, and the unqualified snobbery of both. Nothing was so base that most members of the school proletariat would not do it, or suffer it, to win the favour of the school aristocracy: hardly any injustice too bad for the aristocracy to practise. But the class system did not in the least depend on the amount of pocket money. Who needs to care about money if most of the things he wants will be offered by cringing servility and the remainder can be taken by force?

This lesson has remained with me all my life. That is one of the reasons why I cannot share Professor Haldane’s exaltation at the banishment of Mammon from ‘a sixth of our planet’s surface’. I have already lived in a world from which Mammon was banished: it was the most wicked and miserable I have yet known. If Mammon were the only devil, it would be another matter. But where Mammon vacates the throne, how if Moloch takes his place? As Aristotle said, ‘Men do not become tyrants in order to keep warm’. All men, of course, desire pleasure and safety. But all men also desire power and all men desire the mere sense of being ‘in the know’ or the ‘inner ring’, of not being ‘outsiders’: a passion insufficiently studied and the chief theme of my story. When the state of society is such that money is the passport to all these prizes, then of course money will be the prime temptation. But when the passport changes, the desires will remain.

2) Centralized scientific planning

Haldane: “Mr. Lewis’s idea is clear enough. The application of science to human affairs can only lead to hell.” While denying that this is a correct statement of his views, Lewis goes on to say:

Every tyrant must begin by claiming to have what his victims respect and to give what they want. The majority in most modern countries respect science and want to be planned. And, therefore, almost by definition, if any man or group wishes to enslave us it will of course describe itself as ‘scientific planned democracy’.

and

My fears of such a tyranny will seem to the Professor either insincere or pusillanimous. For him the danger is all in the opposite direction, in the chaotic selfishness of individualism. I must try to explain why I fear more the disciplined cruelty of some ideological oligarchy. The Professor has his own explanation of this; he thinks I am unconsciously motivated by the fact that I ‘stand to lose by social change’. And indeed it would be hard for me to welcome a change which might well consign me to a concentration camp. I might add that it would be likewise easy for the Professor to welcome a change which might place him in the highest rank of an omni-competent oligarchy. That is why the motive game is so uninteresting. Each side can go on playing  ad nauseam, but when all the mud has been flung every man’s views still remain to be considered on their merits.

3) Democracy and conservatism

Haldane accuses Lewis of being anti-democracy, which accusation Lewis denies. He expands on his views:

I am a democrat because I believe that no man or group of men is good enough to be trusted with uncontrolled power over others. And the higher the pretensions of such power, the more dangerous I think it both to the rulers and to the subjects. Hence Theocracy is the worst of all governments. If we must have a tyrant a robber baron is far better than an inquisitor. The baron’s cruelty may sometimes sleep, his cupidity at some point be sated; and since he dimly knows he is doing wrong he may possibly repent. But the inquisitor who mistakes his own cruelty and lust of power and fear for the voice of Heaven will torment us infinitely because he torments us with the approval of his own conscience and his better impulses appear to him as temptations. And since Theocracy is the worst, the nearer any government approaches to Theocracy the worse it will be. A metaphysic, held by the rulers with the force of a religion, is a bad sign. It forbids them, like the inquisitor, to admit any grain of truth or good in their opponents, it abrogates the ordinary rules of morality, and it gives a seemingly high, super-personal sanction to all the very ordinary human passions by which, like other men, the rulers will frequently be actuated. In a word, it forbids wholesome doubt. A political programme can never in reality be more than probably right. We never know all the facts about the present and we can only guess the future. To attach to a party programme – whose highest real claim is to reasonable prudence – the sort of assent which we should reserve for demonstrable theorems, is a kind of intoxication.

This false certainty comes out in Professor Haldane’s article. He simply cannot believe that a man could really be in doubt about usury. I have no objection to his thinking me wrong. What shocks me is his instantaneous assumption that the question is so simple that there could be no real hesitation about it. It is breaking Aristotle’s canon to demand in every enquiry that degree of certainty which the subject matter allows. And not **on your life** to pretend that you see further than you do.

Being a democrat, I am opposed to all very drastic and sudden changes of society (in whatever direction) because they never in fact take place except by a particular technique. That technique involves the seizure of power by a small, highly disciplined group of people; the terror and the secret police  follow, it would seem, automatically. I do not think any group  good enough to have such power. They are men of like passions with ourselves. The secrecy and discipline of their organisation will have already inflamed in them that passion for the inner ring which I think at least as corrupting as avarice; and their high ideological pretensions will have lent all their passions the dangerous prestige of the Cause. Hence, in whatever direction the change is made, it is for me damned by its  modus operandi. The worst of all public dangers is the committee of public safety.  The character in  That Hideous Strength whom the Professor never mentions is Miss Hardcastle, the chief of the secret police. She is the common factor in all revolutions; and, as she says, you won’t get anyone to do her job well unless they get some kick out of it.

Professor Haldane’s article can be found here.

Lewis’s response appears in the essay collection Of Other Worlds;, edited by Walter Hooper; excerpts are on-line at this site. There’s also a Wikipedia article on Haldane.

Previous version of this post here.