This
week’s political riff is about letting go of really bad obsessions and
habits. We are Homo sapiens -- the animal who rationalizes, insisting that our favorite dogmas are
immune to evidence. Delusion is our greatest talent, which explains most of our gruesomely awful human history.
Remember the popular definition of insanity?
“Doing the same thing over and over, while
expecting different results.”
One choice example of repetitive-delusional
craziness is the wretched-endless War on Drugs, a lunacy that should have been rejected
by our parents and grandparents who recalled the great ‘success’ of
Prohibition. Yet, for seventy years the U.S. – and every nation we could bully
into going along – has spent trillions trying to cure chemical dependency and
addiction with prisons.
This drives up the price and profitability of illicit substances, feeding vast, spectacularly-wealthy criminal cartels that enriched the very worst humans while spreading infection and violence, sucking life out of local economies.
This drives up the price and profitability of illicit substances, feeding vast, spectacularly-wealthy criminal cartels that enriched the very worst humans while spreading infection and violence, sucking life out of local economies.
Should we battle against addiction, a common human failure mode? Sure! I’d replace
prohibition with strong diversion programs, with coerced-conservatorship rights for loving relatives. Ending one failed approach
does not mean having to go full-monty libertarian. Some European nations have
experimented with methods that work far better than our own absurd approach.
But what’s fascinating is how long it takes for millions of
people to blink, stare at actual outcomes, and admit, at last: “Okay, that’s not working. Let’s stop listening to puritan demagogues. Does anyone have ideas to try next?” That's the pragmatic, problem solving attitude Americans were once famous-for. Alas.
Now, at long last, the Drug War’s spell is breaking. Marijuana is legal in Washington and Colorado. A dozen other
states are liberal with medical-pot. All are wrestling with how to handle the inevitable problems, but with science, not a sledge hammer. Indeed, last week the Obama Administration pulled all federal enforcement dealing with small-time pot users, in states that
request it.
(Libertarians take note: this has only happened in “blue states.” Not one red or confederate state has even sniffed at the trend. Given that Republicans are not supporters of "economic freedom," will a day come when libertarians draw the correct conclusion? Nope, that is one addictive mistake they'll cling to, forever.)
(Libertarians take note: this has only happened in “blue states.” Not one red or confederate state has even sniffed at the trend. Given that Republicans are not supporters of "economic freedom," will a day come when libertarians draw the correct conclusion? Nope, that is one addictive mistake they'll cling to, forever.)
== The Cuban Insanity
==
Likewise, President Obama’s recent decision to restore
diplomatic relations with the last purely communist dictatorship on Earth –
Cuba – while retracting some (not all) of the sanctions against trade and
commerce and travel: what does it mean?
Fifty years, and not once have the
Castros or their partisans showed the slightest inclination to knuckle under.
Indeed, the U.S. trade embargo gave them an excuse for their economic and
political management. Depriving them of
that scapegoat is one of many reasons why this move is overdue. Let Cubans aim resentment at their own inept rulers. Also, increased flow of human contact will only undermine the Castros’ grip.
(Both the Castros
and the American right are completely loony to claim the U.S. embargo ever mattered much. Not while the entire rest of the world was
trading openly with Cuba. Only broad embargoes work. Seriously Marco Rubio? How stupid do you think your
supporters… oh, never mind.)
Back to the topic at-hand. Addictions that never worked.
We’ve looked at seventy years of an insane, counter-productive Drug War… plus fifty years of a stupid
foreign policy that did no good. Are there other examples?
== Supply Side ==
How about Supply Side (Voodoo) Economics or SSVE. For a
decade I’ve demanded that its supporters trot out ONE example of this blatant
idiocy ever having predicted actual outcomes.
The theory's simple: lavish tax gifts to the rich
will be invested in industrial productive capital or R&D that would boost the supply of new
goods and services. Cuts in tax rates would
be more than compensated by vastly increased taxable incomes, erasing all government red ink. Reduce income in order to increase it! What could possibly go wrong?
This dogma, clutched by the American Right,
does a logical flip on what
we do know to be true, from Keynsian
Economics, that money in the pockets of the middle class (especially the
working poor) is immediately spent, making it “high velocity cash” which
stimulates via “Demand Side Economics” or DSE.
For example, had Congress passed the Infrastructure Bill,
setting 100,000 workers fixing our decaying bridges, most of that money
would have come back as taxes in a quick-stimulated economy, building recovery
momentum much quicker while giving us
safe bridges and roads. GOP congressmen
have been quite open over their reasons for blocking the bill. Precisely
because (they admit) it would have worked.
(Note, while not all Keynsian trips are valid (!) it works most of the time. Yet more proof is seen in this month's apparent economic takeoff into rapid U.S. economic growth, which was inarguably stimulated by the spending power of the middle class, including the sudden cash infusion from low gas prices, aided by rising auto fuel efficiency. Not a scintilla of it came from "supply side.")
(Note, while not all Keynsian trips are valid (!) it works most of the time. Yet more proof is seen in this month's apparent economic takeoff into rapid U.S. economic growth, which was inarguably stimulated by the spending power of the middle class, including the sudden cash infusion from low gas prices, aided by rising auto fuel efficiency. Not a scintilla of it came from "supply side.")
That works, so why not Supply Side? Ah, but just because SSVE is a flip of the proved DSE, that does not
mean the incantation works. In science we
learn a habit. If predictions fail, the theory has been “falsified.”
Maybe not completely, but it loses credibility and its proponents should back off. Go back to the drawing board. SSVE has failed even once to predict outcomes successfully. Let me reiterate the dare: find one example.
Maybe not completely, but it loses credibility and its proponents should back off. Go back to the drawing board. SSVE has failed even once to predict outcomes successfully. Let me reiterate the dare: find one example.
Moreover, most economists – even Adam Smith – would quickly
tell you why.
Because the rich mostly do not invest added wealth in R&D or risky productive capital.
Because the rich mostly do not invest added wealth in R&D or risky productive capital.
Oh, some do. We have Angel investors and Venture Capitalists
and Warren Buffett and tech geniuses like Gates and Bezos and Musk etc… a majority of whom (by my
rough poll) appear to be democrats. But
Adam Smith wrote 250 years ago about how most aristocrats who gain a bit more
wealth plonk it swiftly into passive “rent-seeking” properties. Real estate or equities bubbles – exactly what we saw happen after those giant
Bush Tax Cuts. Bubbles that do
nothing to increase productive capacity or introduce new goods or services.
And yet, these folks keep expecting different results! Just recently, radical Tea Party Governor Sam
Brownback rammed through the biggest tax cut for the rich in Kansas history,
confidently forecasting that his state would soon lead the nation in growth,
putting the state budget soundly in the black and allowing more to be spent on
education. Instead, Kansas has plunged into a sea of red ink. Brownback is
“borrowing” from pensions and schools and highway maintenance to fill chasms,
and the state lags behind the nation in jobs and economic recovery.
Here, at least, we can see a reason for the persistence of an insane dogma. There are powerful
people who benefited from SSVE. Yes, Warren Buffett and Bill Gates are saying
“raise our taxes! But many in the
aristocracy want a return to feudal pyramids of privilege. They will pay
apologists to keep pushing catechisms and incantations, knowing that – in some
regions of the nation and the world – there are people who will believe
anything, if you just repeat it enough times.
== Is the Left any
better? ==
Does it seem I am picking on just one “side?” Dogmatism is a
disease of the mind. It can take root wherever brains are fertile
with passion, while low in logic.
Take Marxism. Let me be clear that Old Karl was a pretty
bright fellow, an incisive critic of his times and a generator of very
interesting hypotheses about the processes of capital formation, some of which
are proved standards in economics, today.
But his passion took charge at some point and he became… instead… a
science fiction author, writing just-so stories about possible futures. Even that would have been okay… if he had
done what good SF authors do – admit that “it’s just a plausibility, not a
prediction.”
Alas, he began taking his stories seriously, as forecasts
and not warnings. And he became... a guru.
Across a hundred years, many of those Marxian auguries were tested.
Time and again, they proved mistaken or off-target. But Lenin and Mao and
others kept finding excuses! For
example, it was not in the most
developed proletariats (in England and Germany) but among the least developed (Russia and China) that
socialist revolutions burgeoned. And
Marx never imagined that the west might reform itself to include and share
power with a vast and empowered middle. He certainly never envisioned Franklin
Delano Roosevelt.
We who recall the obstinate insanity of the Soviet Union can
tell you, this syndrome – in science it is called confirmation bias, or else
hallucinatory delusion -- exists in all directions, including the so-called
“left.” Indeed, that side of the insipid spectrum contains some cargo cults, to
this day. For example romantic-nostalgic attitudes of suspicion toward science
and technology, which have been the average person’s greatest-ever friend.
Certainly the hostility we see toward
science fiction in almost every university literature department, the
boldest and most useful form of narrative, is evidence of some kind of mental
derangement.
As I’ve long held, it is not that one side has a monopoly on political craziness. All
zealotries are infested with this sickness. It’s that one end of the
American political spectrum is currently owned
and operated by its lunatics. That is our current crisis, in this phase of the re-ignited American Civil War. The resurgent Confederacy’s insanity must be
faced down, yet again…
… but never assume there is zero danger from other directions. Be capable of turning your head.
== Where the delusions truly fester ==
Alas, there is no comparison. The Neo-Confederacy is where incantation after utterly disproved incantation still throttle minds into endless repetition of mistakes.
Want one more? John Mauldin takes on the Mighty SVM. That’s Shareholder Value Maximization, for you newbies. “The world’s dumbest idea” Mauldin calls it, in which Milton Friedman — Saint Milton to the right — in 1970,wrote, “There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits...”
Ah, but then John M asks the question: “How to get corporate executives to focus on maximizing the wealth of shareholders? The solution: pay them a s***load of money (but not just cash – stock and options now constitute about two-thirds of total CEO compensation).”
Now note this. John Mauldin is an economist with very conservative political leanings… though sane, which causes him real dissonance on that Fox-lobotomized part of the spectrum. We argue over some of the rationalizations that he comes up with, for the way the right has veered into worship of oligarchy. Which is why this most recent missive of his — assailing one of the central premises of republican economics — left me gasping.
“But, alas, there is pretty good research to suggest that larger incentives actually translate to lower performance. To make matters worse, both the average tenure of a corporate CEO and the average lifetime of an S&P 500 company have plummeted since the 1970s. Bottom line: SVM has pretty well laid the kingdom to waste. Our newsletter focuses on three areas of damage: (1) declining and low rates of business investment, (2) rising inequality, and (3) a low labor share of GDP.”
== Where the delusions truly fester ==
Alas, there is no comparison. The Neo-Confederacy is where incantation after utterly disproved incantation still throttle minds into endless repetition of mistakes.
Want one more? John Mauldin takes on the Mighty SVM. That’s Shareholder Value Maximization, for you newbies. “The world’s dumbest idea” Mauldin calls it, in which Milton Friedman — Saint Milton to the right — in 1970,wrote, “There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits...”
Ah, but then John M asks the question: “How to get corporate executives to focus on maximizing the wealth of shareholders? The solution: pay them a s***load of money (but not just cash – stock and options now constitute about two-thirds of total CEO compensation).”
Now note this. John Mauldin is an economist with very conservative political leanings… though sane, which causes him real dissonance on that Fox-lobotomized part of the spectrum. We argue over some of the rationalizations that he comes up with, for the way the right has veered into worship of oligarchy. Which is why this most recent missive of his — assailing one of the central premises of republican economics — left me gasping.
“But, alas, there is pretty good research to suggest that larger incentives actually translate to lower performance. To make matters worse, both the average tenure of a corporate CEO and the average lifetime of an S&P 500 company have plummeted since the 1970s. Bottom line: SVM has pretty well laid the kingdom to waste. Our newsletter focuses on three areas of damage: (1) declining and low rates of business investment, (2) rising inequality, and (3) a low labor share of GDP.”
One more theory that "ought to work!" And indeed, I do not blame Milton Friedman for posing it. It might even have been worth trying! The culpable idiots are those who can ignore 40 years of 100% negative outcomes and persist in what has become solely a method for vampires to suck the rest of us dry, and to demolish real, flat-fair-open market competition. They are the parasites described by Adam Smith. The truest enemies of enterprise capitalism.
But ignoring outcomes has become the utter reflex of members of the outright cult that has hijacked the once-intellectual movement of William F. Buckley and Barry Goldwater.
But ignoring outcomes has become the utter reflex of members of the outright cult that has hijacked the once-intellectual movement of William F. Buckley and Barry Goldwater.
== The insipid axis
==
Do you doubt that I could go on and on, listing relentless, reflexive obstinacies? I go into a number of them here, where I show that a disparity of OUTCOMES -- with 100% negative results from the last two Republican administrations (find one counter-example, I dare you) would make any thinking conservative wonder if - perhaps - he or she should be fighting to save the movement from monsters. Except for misplaced loyalty. And habit.
But it goes far beyond that. Beyond mere politics.
You’ve heard me say it before. Some of our vilest habits and addictions are
the simplest. Metaphors like the hoary and lobotomizing so-called left-right political axis. Admit it. You
could not give a simple and clear definition of that awful thing, if your life
depended on it! Certainly if you did, it
would have little in common with the definition offered by the next person you
meet, or the next.
Even worse than metaphorical addictions are those based on
mental states, like the recurring allure of outrage. Sanctimony and
self-righteous indignation are unbeatable, luscious highs that cannot be
matched by any drug. And they are
catered to by pushers in mass media,
who pound incessant drum-beats of cynicism, anger and fear.
So many actual metrics of national and world health getting
better every year (with notable and worrisome exceptions), that humanity ought
to feel confident in our ability to solve more problems, and yet more!
Hence, what can we make of this plague of incited rage and despair? It deeply undermines our can-do conviction that we can take on challenges, overcome obstacles, and make continued progress.
Hence, what can we make of this plague of incited rage and despair? It deeply undermines our can-do conviction that we can take on challenges, overcome obstacles, and make continued progress.
In that respect, there is only one word for the merchants of
anger and doom, whose incantatory sermons keep enticing us into simplistic
insanities.
They are traitors.
They are traitors.
The real world is complicated. Yes, there are some elegant,
underlying laws of physics and nature.
But we learned those – and how
to grasp complexity – by paying attention to experimental results. By willingly
letting go of beautiful theories that have proved –just-plain-wrong.
Not by frantically clinging to comforting tenets and mantras fed to us by biased media and “think tanks” that answer to puppet-master elites.
Not by frantically clinging to comforting tenets and mantras fed to us by biased media and “think tanks” that answer to puppet-master elites.
Stop preaching to
others about their addictions, when you haven’t looked in a mirror to deal with
your own.












