To do our work, we all have to read a mass of papers. Nearly all of them are far too long. This wastes time, while energy has to be spent in looking for the essential points.
I ask my colleagues and their staffs to see to it that their Reports are shorter.
- The aim should be Reports which set out the main points in a series of short, crisp paragraphs.
- If a Report relies on detailed analysis of some complicated factors, or on statistics, these should be set out in an Appendix.
- Often the occasion is best met by submitting not a full-dress Report, but an Aide-mémoire consisting of headings only, which can be expanded orally if needed.
- Let us have an end of such phrases as these: “It is also of importance to bear in mind the following considerations…”, or “Consideration should be given to the possibility of carrying into effect…”. Most of there woolly phrases are mere padding, which can be left out altogether, or replaced by a single word. Let us not shrink from using the short expressive phrase, even if it is conversational.
Reports drawn up on the lines I propose may at first seem rough as compared with the flat surface of officialese jargon. But the saving in time will be great, while the discipline of setting out the real points concisely will prove an aid to clearer thinking.
Winston Churchill, memorandum to the War Cabinet, 1940-08-09.
September 15, 2018
QotD: Churchill on brevity
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September 14, 2018
QotD: Free market capitalism
What is free-market capitalism? Allan Meltzer, an economist at Carnegie Mellon, a Hoover Institution scholar, and onetime advisor to President Ronald Reagan, offers a classic definition. “As long as you engage in actions where your actions don’t impinge upon other people, you’re free to buy and sell anything you want,” he says, adding that free-market capitalism protects private property. Thomas Coleman, a hedge-fund veteran heading up an economic-policy shop at the University of Chicago, adds another key element: free-market capitalism functions best when people and companies can trade “without systemic distortion of prices.” Deirdre McCloskey, until last year a professor at the University of Illinois, and author of the recent book Bourgeois Equality, says, “I don’t like calling it capitalism, anyway, which was a word invented by our enemies. … I call it instead market-tested betterment, innov-ism. … That’s what’s made us rich.” McCloskey says that the heart of “betterment” is Adam Smith’s ideal of “every man to pursue his own interest in his own way” — and that “doesn’t mean a large government sector,” she emphasizes.
Free-market capitalism isn’t the same thing as radical libertarianism. Stan Veuger, an American Enterprise Institute scholar and economics lecturer at Harvard, dismisses what he calls “the anarcho-capitalist ideal”: an economy with no regulations and zero taxation. “There are places like Somalia that score well” on such purist definitions of free markets, he points out. To work well, capitalism needs “an environment where people can concentrate on being productive,” rather than, say, having private armies to assure personal safety. Free-market capitalism requires laws and rules, more than ever, now that more people live in close proximity in dense cities than ever before. Human activity leads to disputes, and disputes can be solved, or at least moderated, by resolutions that govern behavior. We often forget that markets don’t make broad public-policy decisions; governments do. Markets allocate resources under a particular policy regime, and they can provide feedback on whether policies are working. If a city, say, restricts building height to preserve sunlight in a public park, free-market actors will take the restricted supply into account, raising building prices. This doesn’t mean that the city made the wrong decision; it means that the city’s voters will risk higher housing prices in order to preserve access to sunlight. By contrast, a city that restricts housing supply and restricts prices via rent regulation is thwarting market signals — it takes an action and then suppresses the direct consequences of that action.
Nicole Gelinas, “Fake Capitalism: It’s not free markets that have failed us but government distortion of them”, City Journal, 2016-11-06.
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September 13, 2018
QotD: “God is dead”
The life and work of the maverick German philosopher Friedrich Nietzsche (1844-1900) is associated with five interlinking ideas: the death of God; nihilism and the crisis in morality; the Superman; the will to power; and the eternal recurrence.
Nietzsche first announced that ‘God is dead’ in his 1883 work The Joyful Science. As with much that he wrote, this phrase of Nietzsche’s has subsequently been often misunderstood. Taken literally, it is obviously a nonsensical declaration, for either a Christian god is real and eternal, or else he never existed in the first place. What Nietzsche meant by the death of God was that European civilisation had lost its faith in Christianity, but was still living by values and a morality system based on it. For this reason he believed European civilisation was facing a crisis resulting from the approaching collapse in its morality system, and the dawn of the age of nihilism – hence the title of his 1886 work, Beyond Good and Evil, which was not the libertine manifesto it sounds like, but a contention that Christian values of good and evil have become redundant.
In this respect, Nietzsche was not a nihilist, another common misconception. He viewed the coming age of nihilism with much trepidation, fearing (rightly) that the result would be great wars in the 20th century. He believed that it was imperative that humanity create a new morality system for the coming post-Christian age. The solution, he believed, was a new individualistic morality system in which the strongest, bravest men would become their own masters and creators, and in turn would become philosopher kings and oligarchs of the spirit. This new man was to be embodied in his infamous, hypothetical Übermensch, or Superman (as Über means above and beyond in German, Nietzsche’s word used to be also translated as the Beyond-Man or Overman, but today is usually not translated at all. The Übermensch goes above and beyond.)
Patrick West, “Nietzsche and the struggle against nihilism”, Spiked, 2018-08-03.
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September 12, 2018
QotD: Origins of India’s caste system
In India, the notion of Hindu culture as a giant conspiracy by Aryan invaders to enshrine their descendants at the top of the social order for the rest of eternity perhaps struck a little too close to home.
But Reich’s laboratory has found that the old Robert E. Howard version is actually pretty much what happened. Conan the Barbarian-like warriors with their horse-drawn wagons came charging off the Eurasian steppe and overran much of Europe and India. Reich laments:
The genetic data have provided what might seem like uncomfortable support for some of these ideas — suggesting that a single, genetically coherent group was responsible for spreading many Indo-European languages.
Much more acceptable to Indian intellectuals than the idea that ancient conquerors from the Russian or Kazakhstani steppe took over the upper reaches of Indian culture has been the theory of Nicholas B. Dirks, the Franz Boas Professor of History and Anthropology at Columbia, that the British malignantly transformed diverse local Indian customs into the suffocating system of caste that we know today.
Now, though, Reich’s genetic evidence shows that caste has controlled who married whom in India for thousands of years:
Rather than inventions of colonialism as Dirks suggested, long-term endogamy as embodied in India today in the institution of caste has been overwhelmingly important for millennia.
This is in harmony with economic historian Gregory Clark’s recent discovery in his book of surname analysis, The Son Also Rises (Clark loves Hemingway puns), that economic mobility across the generations is not only lower than expected in most of the world, but it is virtually nonexistent in India.
Steve Sailer, “Reich’s Laboratory”, Taki’s Magazine, 2018-03-28.
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September 11, 2018
QotD: Debunking the “company store” story
First, company stores flourished in many parts of the USA, especially in the coal regions and other places with many isolated work sites, long before any legal minimum wages were put into effect. Second, Alchian is right that the workers understood perfectly how these stores worked (how could they not have when the stores were so common?): they provided basic consumption goods — flour, bacon, beans, kerosene, matches, cotton cloth — at the work-and-living site on credit, as advances against the workers’ future pay. Yes, the prices were higher than in, say, the closest towns. But the closest towns were often much too far away to allow the workers or their wives to go there easily, frequently, or cheaply. So, what the stores actually did was to reduce transaction costs for the workers, who otherwise would have been unlikely to accept employment in remote, isolated places far from stores.
Robert Higgs, letter to Don Boudreaux, 2016-11-06.
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September 10, 2018
QotD: Perversion of the law
The law perverted! The law — and, in its wake, all the collective forces of the nation — the law, I say, not only diverted from its proper direction, but made to pursue one entirely contrary! The law become the tool of every kind of avarice, instead of being its check! The law guilty of that very iniquity which it was its mission to punish! Truly, this is a serious fact, if it exists, and one to which I feel bound to call the attention of my fellow citizens.
Frédéric Bastiat, The Law, 1850.
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September 9, 2018
QotD: Minimum wages hurt the very poorest workers
The theory that minimum wages discharged the least productive workers had been a constant of Anglophone political economy, dating to John Stuart Mill’s (1848) Principles of Political Economy. When England established a minimum wage with the Trades Board Act in 1909, it did so notwithstanding the objections of a generation of England’s most eminent economists – Henry Sidgwick, Alfred Marshall, Philip Wicksteed, and A.C. Pigou – all of whom observed that while the law could make it criminal to pay a worker less than the minimum, it could not compel firms to hire someone at that rate. Even the intellectual champions of the English minimum wage conceded the point.
Thomas Leonard, Illiberal Reformers, 2016.
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September 8, 2018
QotD: Reactions to, and criticisms of, Epicureanism
Hedonism has always been a controversial doctrine, so far as it is opposed to the teachings of the explicitly altruistic philosophies and religious systems. There are difficulties with hedonism when it comes to the exact comparison of pleasures. We do not have any of the more detailed works in which Epicurus might have attempted what Jeremy Bentham later called a “felicific calculus”. But, bearing in mind the difficulties that Bentham and the 19th century utilitarians found when they tried to move from principles to details, there is no reason to suppose he was more successful.
However, it is hard to see anything so scandalous in the pursuit of happiness through moderation and through friendship that should have brought on a flood of often hysterical denunciation and misrepresentation in antiquity that began in his own lifetime and did not end even with the loss of virtually the whole body of Epicurean writings.
The early accusations are very detailed, and are cited by Diogenes Laertius. Among much else, it is alleged:
- That he wrote 50 obscene letters;
- That one of his brothers was a pimp;
- That his understanding of philosophy was small and his understanding of life even smaller;
- That he put forward as his own the doctrines of Democritus about atoms and of Aristippus about pleasure;
- That in his On Nature Epicurus says the same things over and over again and writes largely in sheer opposition to others, especially against his former teacher Nausiphanes;
- That he was not a genuine Athenian;
- That he vomited twice a day from over-indulgence.
Three centuries after his death, Plutarch (46-127 AD) wrote against him in almost hysterical tone. He says:
Epicurus… actually advises a cultivated monarch to put up with recitals of stratagems and with vulgar buffooneries at his drinking parties sooner than with the discussion of problems in music and poetry.
And again:
Colotes himself, for another, while hearing a lecture of Epicurus on natural philosophy, suddenly cast himself down before him and embraced his knees; and this is what Epicurus himself writes about it in a tone of solemn pride: ‘You, as one revering my remarks on that occasion, were seized with a desire, not accounted for by my lecture, to embrace me by clasping my knees and lay hold of me to the whole extent of the contact that is customarily established in revering and supplicating certain personages. You therefore caused me,’ he says, ‘to consecrate you in return and demonstrate my reverence.’ My word! We can pardon those who say that they would pay any price to see a painting of that scene, one kneeling at the feet of the other and embracing his knees while the other returns the supplication and worship. Yet that act of homage, though skillfully contrived by Colotes, bore no proper fruit: he was not proclaimed a Sage. Epicurus merely says: ‘Go about as one immortal in my eyes, and think of me as immortal too.’
Now, all this and more was said against Epicurus when the whole body of his writings was still available, and by men who had access to those writings. It is unlikely, bearing in mind their general ability, that they were incapable of understanding plain Greek. So what could have been their motivation for misrepresenting him in defiance of the evidence, or in repeating personal libels irrelevant to his philosophy?
A possible answer is that they hated his philosophy for other reasons that they were not able or did not wish fully to discuss.
What does make Epicurus and his philosophy so controversial is one further piece of advice on the pursuit of happiness. It is impossible to be happy, he insists, unless we understand the nature of the universe and our own place within the universe.
Sean Gabb, “Epicurus: Father of the Enlightenment”, speaking to the 6/20 Club in London, 2007-09-06.
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September 7, 2018
QotD: Government distortion of the housing market
Behind the veneer of free-market governance is a deep expanse of government involvement in massive areas of the economy, such as the housing market and health care. People don’t make decisions on housing and health-care concerns every day, but when they do, they would benefit from the information that markets provide about whether they can afford a large house or whether a particular drug is worth the price. Government distortion of these key markets has scrambled these signals.
An annual congressional report, “Estimates of Federal Tax Expenditures,” gives insight into how Washington manipulates supply and demand in these sectors. Consider house prices. This year, Washington will pay homeowners $99 billion in forgone taxes to borrow money to purchase or refinance a house or to sell that house and reap the profit. Americans will buy or sell about $600 billion worth of houses this year. Government subsidy, then, represents nearly one-sixth of this market. The federal government also provides a guarantee for most mortgages, thanks to Fannie Mae and Freddie Mac, the two government-supported mortgage companies that benefited for decades from an implicit government guarantee before they got an explicit guarantee during the 2008 financial crisis.
These subsidies have fired the growth of the housing industry. Between 1975 and 1979, the U.S. Treasury paid out $102.6 billion in mortgage-interest breaks in today’s dollars. Between 2015 and 2019, the Treasury will pay out $419.8 billion in such tax favoritism — a more than fourfold rise, nearly ten times the population increase. The hike is particularly extraordinary, considering that in the late 1970s, the annual interest rate on a mortgage was 9 percent, twice what it is today. Taking today’s lower rates into account, Washington has increased the mortgage subsidy more than eightfold.
It’s no surprise that mortgage debt has soared, to $9.5 trillion, from $2.6 trillion in inflation-adjusted dollars in 1981. Back then, mortgage debt constituted 31 percent of our nation’s GDP. Today, it makes up nearly 53 percent. [Dierdre] McCloskey, who thinks that free markets are generally healthy, acknowledges that “there are examples of the price signal not coming through.” The mortgage-interest deduction is “a silly idea,” she says, yet “very hard to change.”
Indeed, government subsidy is a critical factor in whether families can afford to purchase a home, and what kind of home, how large, and in what zip code. The home-mortgage deduction, then, helps determine how people live — yet we barely notice. Few of us consider how the government shapes one of the biggest decisions we’ll ever make, or how the U.S. government’s presence in the housing market maintains the value of our homes.
Nicole Gelinas, “Fake Capitalism: It’s not free markets that have failed us but government distortion of them”, City Journal, 2016-11-06.
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September 6, 2018
QotD: Freedom of speech
A metaphor: we have freedom of speech not because all speech is good, but because the temptation to ban speech is so great that, unless given a blanket prohibition, it would slide into universal censorship of any unpopular opinion.
Scott Alexander, “You Are Still Crying Wolf”, Slate Star Codex, 2016-11-16.
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September 5, 2018
QotD: Why did appeasing the Fascist dictators seem such a sensible policy?
It is a familiar student essay question, whether the revolution could have been averted, but for the world war and resultant loss of up to three million Russian lives. It seems more useful merely to suggest that, in the political and ideological climate of the early 20th century, the collectivist experiment was bound to be attempted somewhere, and Russia or China were obvious testbeds. The consequences for millions of Russian peasants, together with the ferocity of Soviet oppression, were successfully concealed from most western eyes for half a century. The 1789 French revolution killed only a few thousand aristocrats and transferred land to peasants, who thus became ardent upholders of property rights. The Russian version required liquidation of the entire governing class and transfer of land to collective ownership, an incomparably more radical proceeding. Douglas Smith’s 2012 book Former People gives a harrowing account of the fate of the Tsarist aristocracy.
In the West, the gullibility of the Webbs, Bernard Shaw and the rest of the ‘true believers’ was fed by a desperation to suppose the Soviet example viable. ‘Looking around us at our own hells,’ wrote the historian Philip Toynbee, who became a communist at Cambridge, ‘we had to invent an earthly paradise somewhere else’. As late as 1945, the leftist publisher Victor Gollancz brought posterity’s contempt upon himself by declining to publish Animal Farm, George Orwell’s great satire on Bolshevism.
For a counter-revolutionary contemporary perspective, it is impossible to understand the 1930s appeasement of the dictators without grasping the traumatic impact of events in Russia on the propertied classes everywhere. The Winter Palace was stormed only 16 years before Hitler came to power. For at least two decades, Europe’s ‘haves’ were far more frightened of Bolshevism than of fascism.
The ‘clubland hero’ novels of John Buchan and Sapper offer embarrassing glimpses of the British bourgeois view of Lenin’s people and their followers in the decades following the revolution. A belief took hold in polite circles that the bloodiest revolutionaries were not merely communists but also Jews, which meant they were doubly damned in St James’s clubs.
Max Hastings, “The centenary of the Russian revolution should be mourned, not celebrated”, The Spectator, 2016-12-10.
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September 4, 2018
QotD: Law and morality
In the first place, it would efface from everybody’s conscience the distinction between justice and injustice. No society can exist unless the laws are respected to a certain degree, but the safest way to make them respected is to make them respectable. When law and morality are in contradiction to each other, the citizen finds himself in the cruel alternative of either losing his moral sense, or of losing his respect for the law — two evils of equal magnitude, between which it would be difficult to choose.
Frédéric Bastiat, The Law, 1850.
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September 3, 2018
QotD: “Market failure”
It is not too much of an exaggeration to say that markets are considered to fail if and whenever they fail at achieving some ideal, while governments are considered to succeed if and whenever they succeed at achieving anything other than utter chaos and calamity.
Don Boudreaux, “Quotation of the Day…”, Café Hayek, 2016-11-04.
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September 2, 2018
QotD: Coyote’s first rule of government authority
Never support any government power you would not want your ideological enemy wielding.
Warren Meyer, “Regulatory Deception”, Coyote Blog, 2014-11-12.
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