When leftists look at the private sector, they see tips of icebergs – for every businessperson caught gouging the consumer, they insist there are a thousand under the surface waiting to trap the unwary. Whereas a libertarian like myself sees the mirror image – the odd bad civil servant caught is not a rotten apple as they claim, but the tip of another large iceberg.
Surely we have seen enough to know that large organisations like the government and their crony capitalists in the corporate sector are deeply resistant to independent investigations, whistleblowers and all other genuine threats to their status?
Whereas those that battle away in the competitive private sector don’t even get the chance to be that corrupt – they either treat their customers and employees well, or they crumble into dust like the costumed retards in the entertainment industry are doing so reliably these days, those beloved of progressive dunces the world over.
There are few cover-ups in the world of dogwalking and fishmongering – these people do a good job or they get told to piss off by their customers. But in the public sector and the corporate world that depend upon it …?
When we catch a corrupt civil servant or corporate lackey, we are seeing the Tip of An Iceberg. But when we catch a corrupt landscape gardener or carpenter, we are finding a Rotten Apple.
My claim is that terrible government officials and corrupt crony capitalists are the both the tips of icebergs, so the cries from Left and Right about rotten applies need to go away. Those that work in the public sector or depend upon their relationship with it, are routinely terrible and usually without consequence.
Alex Noble, “Corruption In The Coercive And Voluntary Sectors: Rotten Apples? Or The Tips of Icebergs?”, Continental Telegraph, 2019-12-02.
July 16, 2024
QotD: Corruption and crony capitalism
April 26, 2024
QotD: The secret rulers of Japan
Remember, this may look like an economic planning bureaucracy, but it’s actually a secret samurai clan. So they’re constantly doing the kinds of stuff that any good feudal nobility does. For instance, the economic planning bureaucrats frequently cement their treaties by marrying off their sister/daughter/niece to a mentor or to a protegé. They also sometimes legally adopt each other, ancient Roman-style. Naturally they also have an extremely complicated set of rules governing their internal hierarchy, rights of deference, etc. But remember, this isn’t just a secret samurai clan, it’s also a government agency! Agencies have rules too — explicit rules written down in binders, rules governing promotion and succession and all the rest. Sometimes, the official rules and the secret rules conflict, butt against each other, and out of that friction something beautiful emerges.
The highest rank in MITI is “Vice-Minister” (the “Minister” is one of those elected political guys who don’t actually matter). But it’s also the case that somebody who’s been at MITI longer or who’s older than you (these are actually the same thing, because everybody joins at the same age) is strictly superior to you in seniority. But that can create a paradox! What happens if a young guy becomes Vice-Minister? He would then be more senior than his older colleagues by virtue of office, but they would be more senior by virtue of tenure, and that would mean either an official rule or a secret rule being broken. To resolve this impossible conflict, the instant a new Vice-Minister is selected, everybody who’s been in the bureaucracy longer than him resigns immediately, so that his absolute seniority is unambiguous and unquestionable. And then … the first act of the new Vice-Minister is to give everybody who fell on their swords powerful jobs as executives and board members of the biggest Japanese corporations. The entire process is called amakudari, which means “descent from heaven”.
Amakudari is really a win-win-win-win: the new Vice-Minister has unchallenged power within the agency and a whole host of new friends in the private sector, the guys who resigned all have cushy new jobs that come with better pay and perks, the companies that are descended upon now have an employee with great connections to the agency that controls their fates, and MITI as a gestalt entity can spread its tentacles throughout the economy, aided by cadres of alumni who think its way and help translate policy into reality.
John Psmith, “REVIEW: MITI and the Japanese Miracle by Chalmers Johnson”, Mr. and Mrs. Psmith’s Bookshelf, 2023-04-03.
March 21, 2024
QotD: South Africa under Thabo Mbeki
Things look very different when political considerations force the majority of an organization to be underqualified (and there are simply not very many qualified or educated black South Africans today, and there were even fewer when these rules went into effect). A shock on that scale can lead to a total breakdown in function, and indeed this is precisely what happened to one government agency after another. Johnson notes that this issue, and particularly its effects on service provision to the rural poor, pit two constituencies against each other which many have tried to conflate, but are actually quite distinct. The immiserated black lower class (which the ANC purported to represent) didn’t benefit at all from affirmative action because they weren’t eligible for government jobs anyway, and they vastly preferred to have the whites running the water system if it meant their kids didn’t get cholera. The people actually benefited by Mbeki’s affirmative action policies were the wealthy and upwardly-mobile black urban bourgeoisie, a tiny minority of the country, but one that formed the core of Mbeki’s support.
That same small group of educated and well-connected black professionals was also the major beneficiary of Mbeki’s other signature economic policy: Black Economic Empowerment (BEE). Oversimplifying a bit, BEE was a program in which South African corporations were bullied or threatened into selling some or all of their shares at favorable prices to politically-connected black elites, who generally returned the favor by looting the company’s assets or otherwise running it into the ground (note that this is not the description you will find on Wikipedia). The whole thing was so astoundingly, revoltingly corrupt that even the ANC has had to back off and admit in the face of criticism from the left that something went wrong here.
What made BEE so “successful” is that it was actually far more consensual than you might have guessed from that description. In many cases, the white former owners of these corporations were looking around at the direction of the country and trying to find any possible excuse to unload their assets and get their money out. The trouble was that it was difficult to do that without seeming racist, because obviously racism was the only reason anybody could have doubts about the wisdom of the ANC. The genius of BEE is that it allowed these white elites to perform massive capital flight while simultaneously framing it as a grand anti-racist gesture and a mark of their confidence in the future of the country.
This is one particular instance of a more general phenomenon, which is that at this stage pretty much everybody was pretending that things were going great in South Africa, when things were clearly not, in fact, going great. But this was the late 90s and early 00s, the establishment media had a much tighter hold on information than it does today, and so long as nobody had an interest in the story getting out, it wasn’t going to get out. Everybody who mattered in South Africa wanted the story to be that the end of apartheid had resulted in a peaceful and harmonious society, and everybody outside South Africa who’d spent decades supporting and fundraising for the ANC wanted this to be the story too.
John Psmith, “REVIEW: South Africa’s Brave New World, by R.W. Johnson”, Mr. and Mrs. Psmith’s Bookshelf, 2023-03-20.
December 28, 2023
The Liberals may be bad at “deliverology”, but they’re world-beaters at pouring money into black holes
Tristin Hopper explains the apparent paradox that the federal government is spending money faster than it can be printed, yet the things the government is responsible for are perennially underfunded:
From back when The Onion was allowed to be funny – https://youtu.be/JnX-D4kkPOQ
This may surprise the average Canadian given that so much of the government is noticeably threadbare and underfunded. Canadians are dying in hospital waiting rooms due to unprecedented shortages in health care. The navy’s so strapped for cash that it can only deploy one offshore patrol vessel at a time. The RCMP’s federal policing is so under-resourced that Parliamentarians are now calling it a threat to national security. And even $600 billion in cumulative debt hasn’t been enough for the Liberals to honour their 2015 campaign promise to ensure universal clean water on First Nations reserves.
It’s popular to blame all this on some easy-to-identify example of government profligacy, such as Ukraine aid, free hotel rooms for refugee claimants or Prime Minister Justin Trudeau’s noted penchant to rack up outsized travel bills. But Canada’s fiscal problems are well beyond anything like that. At the current rate of spending, the cumulative $2.4 billion in military aid that Canada has sent to Ukraine represents less than a month’s worth of new debt.
So where’s all the money going? Below, a cursory guide to how Canada is able to spend so much while seemingly obtaining so little.
Debt servicing just got way more expensive
First, an easy one: The Trudeau government borrowed an obscene amount during the COVID-19 pandemic, and with rising interest rates the treasury is getting hammered with debt-servicing costs.
As recently as 2021, interest charges on federal debt cost $20.3 billion per year. In the current fiscal year, it’s probably going to blow past $46.5 billion. Ottawa now spends about as much on debt management as it does on health care transfers to the provinces.
The phenomenon of pricier debt is not limited to Canada: Virtually every government in the world ran up record-breaking debts during COVID and are now facing the consequences. But if Canada is different, it’s that our rate of pandemic debt accumulation was at least $200 billion higher than it needed to be. And in justifying all this extra spending at the time, Trudeau argued that it was a good time to take out extra debt since “interest rates are at historic lows”.
The corporate welfare is just unbelievable
Canada has a long history of government signing over grants and bailouts to politically connected corporations. As far back as 1972, then NDP Leader David Lewis famously championed the cause of stopping Canada’s “corporate welfare bums”.
But the Trudeau government has taken corporate welfare to new heights. It was only a few years ago that Bombardier was the undisputed champion in collecting federal grants, bailouts and interest-free loans. Over 50 years, according to an analysis by the Montreal Economic Institute, Bombardier received a cumulative “$4 billion in public funds”.
In just the last calendar year, the Trudeau government has signed two subsidy agreements that would dwarf that $4-billion figure several times over. In the spring, both Stellantis and Volkswagen agreed to build EV plants in Ontario in exchange for federal subsidy packages that could cost as much as $18.8 billion (plus another $9 billion from the Ontario government).
And that new $18.8 billion liability on the books doesn’t even account for the massive ramp-up in the corporate welfare everywhere else. To name just a couple: In 2021, Air Canada got a $5.4 billion loan package. And the Trudeau-founded Strategic Innovation Fund gets about $1.5 billion per year in handouts to green energy companies.
August 29, 2023
The noble reasons New Jersey banned self-service gas stations
Of course, by “noble reasons” I mean “corrupt crony capitalist reasons“:
“Model A Ford in front of Gilmore’s historic Shell gas station” by Corvair Owner is licensed under CC BY-SA 2.0
New Jersey’s law, like Oregon’s, ostensibly stemmed from safety concerns. In 1949, the state passed the Retail Gasoline Dispensing Safety Act and Regulations, a law that was updated in 2016, which cited “fire hazards directly associated with dispensing fuel” as justification for its ban.
If the idea that Americans and filling stations would be bursting into flames without state officials protecting us from pumping gas sounds silly to you, it should. In fact, safety was not the actual reason for New Jersey’s ban (any more than Oregon’s ban was, though the state cited “increased risk of crime and the increased risk of personal injury resulting from slipping on slick surfaces” as justification).
To understand the actual reason states banned filling stations, look to the life of Irving Reingold (1921-2017), a maverick entrepreneur and workaholic who liked to fly his collection of vintage World War II planes in his spare time. Reingold created a gasoline crisis in the Garden State, in the words of New Jersey writer Paul Mulshine, “by doing something gas station owners hated: He lowered prices”.
In the late 1940s, gasoline was selling for about 22 cents a gallon in New Jersey. Reingold figured out a way to undercut the local gasoline station owners who had entered into a “gentlemen’s agreement” to maintain the current price. He’d allow customers to pump gas themselves.
“Reingold decided to offer the consumer a choice by opening up a 24-pump gas station on Route 17 in Hackensack,” writes Mulshine. “He offered gas at 18.9 cents a gallon. The only requirement was that drivers pump it themselves. They didn’t mind. They lined up for blocks.”
Consumers loved this bit of creative destruction introduced by Reingold. His competition was less thrilled. They decided to stop him — by shooting up his gas station. Reingold responded by installing bulletproof glass.
“So the retailers looked for a softer target — the Statehouse,” Mulshine writes. “The Gasoline Retailers Association prevailed upon its pals in the Legislature to push through a bill banning self-serve gas. The pretext was safety …”
The true purpose of New Jersey’s law had nothing to do with safety or “the common good”. It was old-fashioned cronyism, protectionism via the age-old bootleggers and Baptists grift.
Politicians helped the Gasoline Retailers Association drive Reingold out of business. He and consumers are the losers of the story, yet it remains a wonderful case study in public choice theory economics.
The economist James M. Buchanan received a Nobel Prize for his pioneering work that demonstrated a simple idea: Public officials tend to arrive at decisions based on self-interest and incentives, just like everyone else.
August 5, 2023
In the “New World Order”, China was expected to become more democratic. Instead, the west is rapidly becoming more like China
N.S. Lyons discusses the unhappy convergence of Communist China with the post-democratic western world, led by the United States:
Differences and tensions between the United States and China have never been greater. The whole world is dividing itself between the blocs of these two opposing superpowers. A new Cold War is dawning, complete with a global ideological “battle between democracy and autocracy“. Freedom is on the line. The future of global governance will be determined by the winner of this extended competition between two fundamentally opposed political and economic systems – unless a hot war settles the question early with a cataclysmic fight to the death, much as liberal democracy once fought off fascism.
This is the simple and easy narrative of our present moment. In some ways it is accurate: a geopolitical competition really is in the process of boiling over into open confrontation. But it’s also fundamentally shallow and misleading: when it comes to the most fundamental political questions, China and the United States are not diverging but converging to become more alike.
In fact, I can already predict and describe the winner set to prevail in this epochal competition between these two fiercely opposed national systems. In this soon-to-be triumphant system …
Despite a rhetorical commitment to egalitarianism and “democracy”, the elite class deeply distrusts and fears the people over whom it rules. These elites have concentrated themselves into a separate oligarchic political body focused on prioritizing and preserving their rule and their own overlapping set of shared interests. Wracked by anxiety, they strive constantly to maximize their control over the masses, rationalizing a need to forcefully maintain stability in the face of dangerous threats, foreign and domestic. Everything is treated as an emergency. “Safety” and “security” have become be the watchwords of the state, and of society generally.
This elite obsession with control is accelerated by a belief in “scientific management”, or the ability to understand, organize, and run all the complex systems of society like a machine, through scientific principles and technologies. The expert knowledge of how to do so is considered the unique and proprietary possession of the elite vanguard. Ideologically, this elite is deeply materialist, and openly hostile to organized religion, which inhibits and resists state control. They view human beings themselves as machines to be programmed, and, believing the common man to be an unpredictable creature too stupid, irrational, and violent to rule himself, they endeavor to steadily condition and replace him with a better model through engineering, whether social or biological. Complex systems of surveillance, propaganda, and coercion are implemented to help firmly nudge (or shove) the common man into line. Communities and cultural traditions that resist this project are dismantled. Harmfully contrary ideas are systematically censored, lest they lead to dangerous exposure. Governing power has been steadily elevated, centralized, and distributed to a technocratic bureaucracy unconstrained by any accountability to the public.
All of this is justified by a utopian ideological dialectic of historical progress and inevitability. Those more in tune with the tide of history (i.e. elite interests) are held to be morally and intellectually superior, as a class, to backwards reactionary elements. Only certain views are stamped “scientific” and “correct,” although these may change on a political whim. An economism that values only the easily quantifiable reigns as the only moral lodestar, and frictionless efficiency is held up as highest common good; the individual is encouraged to fulfill his assigned role as a docile consumer and cog in the regime’s machine, not that of a self-governing citizen. The state regularly acts to stimulate and manage consumer demand, and to strategically regulate and guide industrial production, and the corporate sector has largely fused itself with the state. Cronyism is rampant.
The relentless political messaging and ideological narrative has come to suffuse every sphere of life, and dissent is policed. Culture is largely stagnant. Uprooted, corralled, and hounded, the people are atomized, and social trust is very low. Reality itself often feels obscured and uncertain. Demoralized, some gratefully accept any security offered by the state as a blessing. At the same time, many citizens automatically assume everything the regime says is a lie. Officialdom in general is a Kafkaesque tragi-comedy of the absurd, something only to be stoically endured by normal people. Yet year by year the pressure to conform only continues to be ratcheted higher…
Which country does this describe? If you can’t quite tell, well, that’s the point. For many citizens of the West, the systems of governance under which we live increasingly feel uncomfortably similar to what appears offer in the People’s Republic of China.
July 12, 2023
“[E]lite colleges are machines for laundering privilege”
Scott Alexander ponders the reasons our elite universities operate as they do:
Harvard University Memorial Church.
Photo by Crimson400 via Wikimedia Commons.
We could think of “the best college” as a self-fulfilling prophecy; for whatever reason, one college has gotten a reputation as the one whose signal is most valuable. Everyone naturally tries to get in there; if they fail, they go to the college with the next-best reputation, and so on. The system is stable; the “best” college will keep its reputation (since it gets the best students) and the best students will always want to go to the best college. If, as Matt’s son suggests, all the Ivies started accepting the worst students instead, an Ivy degree would soon become a signal that you’re bad, and employers would stop respecting it.
I heard a fascinating variation of this hypothesis from Matt Christman of Chapo Trap House: elite colleges are machines for laundering privilege.
That is: Harvard accepts (let’s say) 75% smart/talented people, and 25% rich/powerful people. This is a good deal for both sides. The smart people get to network with elites, which is the first step to becoming elite themselves. And the rich people get mixed in so thoroughly with a pool of smart/talented people that everyone assumes they must be smart/talented themselves. After all, they have a degree from Harvard!
The most blatant form of this obfuscation: suppose you own a very successful family business. You can leave your son your fortune, you can leave him the business, you can leave him your mansion, but you can’t (directly) leave him an aura of having deserved all these things. What you can do is make a $10 million donation to Harvard in exchange for them accepting your son. Your son gets a Harvard degree, a universally-recognized sign of being a highly meritorious person. Then when you leave him the business, everyone will agree he deserves it. Who said anything about nepotism? Leaving a Harvard graduate in control of your business is an excellent decision!
This happens a little, but I think it mostly isn’t this obvious. More often the transactions are for abstract goods: prestige, associations, favors. The Maharaja of Whereverstan sends his daughter to Harvard so that she appears meritorious. In exchange, Harvard gets the credibility boost of being the place the Maharaja of Whereverstan sent his daughter. And Harvard’s other students get the advantage of networking with the Princess Of Whereverstan. Twenty years later, when one of them is an oil executive and Whereverstan is handing out oil contracts, she puts in a word with her old college buddy the Princess and gets the deal. It’s obvious what the oil executive has gotten out of this, but what does the Princess get? I think she gets the right to say she went to Harvard, an honor which is known to go mostly to the meritorious.
People ask why Harvard admissions can still be bribed or influenced by the rich or well-connected. This is the wrong question: the right question is why they ever give spots based on merit at all. The answer is: otherwise the scheme wouldn’t work. The point of a money-laundering operation is to take in both fairly-earned and dirty money, then mix them together so thoroughly that nobody can tell which is which. Likewise, the point of a privilege-laundering operation is to take in both fairly-earned and dirty privilege, then stamp both with a Harvard degree. “Fairly-earned privilege” means all the brilliant talented ambitious youngsters admitted on the basis of their SAT scores and grades and impressive accomplishments; “dirty privilege” means the kids of various old-money aristocrats, foreign potentates, and ordinary super-rich people. Colleges mix them together, with advantages for both groups.
Is this good or bad? It’s good insofar as it provides a justification for making some elite positions dependent on merit and accessible to anyone, but bad insofar as it helps defend and obfuscate the ones that aren’t. It’s good if you think it’s good for all the elites (meritocratic and otherwise) to know each other and be on the same page; it’s bad if you don’t want them to be (maybe because it helps them oppress people more efficiently).
I expect that without such a system the elites would do their own thing without any concession to merit whatsoever – so maybe it beats the alternative.
July 11, 2023
QotD: The Calgary Stampede
The Stampede itself is very solvent, earning an operating surplus of $3.1 million in 2011, but if the costs and benefits to the city were all counted up, the former would have to include the salaries of the thousands of high-paid Calgary professionals who see major parts of their calendar devoured by Stampede preparations and aftermath. It would include the tacit outright cancellation of nine-to-five work for the duration of the Stampede at key Calgary oil patch companies and law firms. And it would include the arms race of conspicuous consumption that sees expensive entertainers like Cirque du Soleil and the Tragically Hip brought into town for exclusive corporate affairs at Stampede time.
Meanwhile, the perceived importance of the Stampede has led to the entrenchment of a shadowy, at least slightly sinister relationship between the city’s government and the Stampede board. It took a long skein of bailouts, sweetheart deals and low-interest loans from Calgary’s city government to make the show what it is today. Over the decades, Calgary has repeatedly used its power to borrow cheaply to fund Stampede expansions, and even expropriated land outright in the Victoria Park neighbourhood in the late 1960s when some homeowners were reluctant to sell. Because the city technically owns the Stampede grounds, the Stampede pays no property tax on them. Conflicts of interest are rampant and ignored, except on those occasions when the Stampede tries to pull off some particularly ambitious business or real estate deal. Local media know they must tread carefully before broadcasting or printing anything even slightly negative about the various entities that sustain the city’s totemistic event.
Of course the Stampede has made the name of Calgary world-famous. Calgarians abroad are as sure to be asked about their Stampede as Edmontonians are to be asked about their big mall. But the marketing effect is double-edged. Andy Sayers, a communications specialist for a mid-sized Calgary oil-patch-service company, says he and others in his field “struggle with themselves” every year as the bacchanal he compares to “the last days of Rome” approaches. “I spend most of my time trying to inculcate the image of our firm as ultra-modern thought leaders”, he says. “Then I have to create the invitations to our Stampede event. It’s tricky to wrap yourself in the blanket of the Stampede — to offer a down-home feeling to visitors without making yourselves look small-time.”
Colby Cosh, “The Calgary Stampede at 100: It may be over-the-top and at times dangerous, but Calgary’s Wild West show is the best party in Canada”, Maclean’s, 2012-07-06.
May 1, 2023
“And I, for one, welcome our new CRTC internet overlords”
In this week’s Dispatch from The Line, among other maple-flavoured items is the discussion of how the newly passed Bill C-11 will impact Canadians’ everyday online experience:
We at The Line have spent a lot more time trashing Bill C-18 than its cousin, C-11; the reason for that is fairly simple, if unflattering. Both bills are unwieldy little monsters, rife with competing agendas and we only have so much time and energy to spare. Of the two, though, C-18 affects us and our business more directly as it attempts to force Big Tech companies into secret negotiations to prop up dying legacy media outlets.
C-11, which passed this week, is the Liberals’ attempt to overhaul the Broadcasting Act to bring major streaming services like YouTube and Netflix under the heel of the CRTC. This is generally a pretty bad idea — and we’ll get into that in a second. But the passing of the first major overhaul of the act since the ’90s will, we expect, be heralded by the usual suspects of CanCon leeches who see in the legislation an opportunity to siphon evil Big Tech profit while forcing major platforms to force-feed Canadians into consuming more home-grown shite.
Anyway, part of the bill, it is hoped, will force online streamers to feature more Canadian content for Canadian users, particularly content that highlights the usual progressive checkboxes. And while this does make us roll our eyes a bit — just make good stuff and let people choose what they want for themselves! — we admit that this provision is the less objectionable aspect of C-11.
After this, matters get much more dicey. The attempts to force tech companies to pay for more CanCon will almost certainly backfire in the long run: companies like YouTube have already promised that they will comply with legislation by creating pass-through fees for their creators. In other words, if the government forces YouTube to pay a percentage of its profits into a CanCon fund, YouTube will generate that revenue the only way it can — by skimming more cash from its content creators and re-directing some to the creation of Canadian shows that are then commercialized by major broadcasting networks like Rogers. Seems fair!
Where the bill goes off the rails is over years-long battle over user-generated content protections. Upon hitting the upper chamber, the senate actually advocated for amendments that would ensure that Joe Blow YouTuber wasn’t going to fall under the auspices of CRTC regulation — changes that were rejected by the House. How the CRTC defines a content generator worthy of its regulation, or uses any of its new powers, is now up for consideration by the CRTC itself.
Obviously, we at The Line are concerned about how a regulator is going to employ poorly defined and vaguely stipulated legislative powers to control how Canadians are presented which content, and by whom. We are open to the hopeful possibility that the CRTC is so completely in over their heads that all of the concerns about the bill prove fruitless and overblown. But as a rule, we don’t like to rely on the incompetence of our betters to assure our protections and freedoms.
And that brings us to the major philosophical problems with C-11; the first is that legislation should generally not generate more confusion and uncertainty. As a rule, we think that our laws should be written in such a way that an ordinarily intelligent person with a standard education should be able to understand the laws that govern them. By this measure, the Broadcasting Act — like many others — fail a very basic test. C-11 is written so poorly that even experts seem to disagree about the scope of the bill and how our media landscape will be affected by it in the years to come.
[…]
There is, arguably, no reason for the CRTC, nor for the Broadcasting Act in its current form, to exist anymore. Digital space isn’t finite. Canadians can easily find news and entertainment that is relevant to them. We don’t need the government to ensure that Canadian content is produced and funded. Or, if some government intervention is deemed necessary, it need not amount to anything more complicated than a simple tax, with revenues diverted to one of this country’s myriad granting agencies to aid production. Instead, we have a government that seems hellbent on extending the power of a regulator at the very moment in history that this regulator is most redundant.
Given that we’re being led by an increasingly insular government that equates all criticism to disingenuous misinformation, and seems to want to stamp out the evils of wrong opinions on the Internet in the coming Online Harms bill, well, let’s just say we’re increasingly concerned and perturbed.
April 8, 2023
“The evidences of history and human nature are very clear: the Enlightenment was a tremendously bad idea”
Theophilus Chilton tries to persuade conservatives and libertarians that Classical Liberalism has failed:
The Course of Empire – Destruction by Thomas Cole, 1836.
From the New York Historical Society collection via Wikimedia Commons.
The premise for this article might seem surprising to many who are used to believing that the Fukuyaman “end of history”, with its proposed ultimate victory of liberal democracy and market capitalism, is a done deal. After all, we look around the world and see the spread of democracy (even if by military force) taking place, as well as seeing the world seemingly integrated into a global economy characterized by complete fungibility of capital, resources, and labour. Yet, while this may be the façade which we are presented, it is manifestly obvious that most of what is called “democracy” is a sham and most of what is called “capitalism” is merely a cover for cronyism at the highest levels. This is the case even in the United States. We can no longer call our system “liberal” in any sort of classical sense when you can be jailed for referring to someone with the “wrong” pronoun and where the supposedly “free” press is effectively only the propaganda arm of one political party.
All over the world, classical liberalism is being supplanted by socialism and progressivism. This is obvious. What is even more obvious is that classical liberalism has been completely unable to prevent this from occurring. While there are some places where the tide is at least being slowed, this is due to the efforts of nationalists and others calling for stronger government along reactionary and traditional lines, not by those advocating for Reaganism, Thatcherism, or other manifestations of modern classical liberalism. Indeed, the two primary expressions of modern classical liberalism – libertarianism and American-style conservatism – are basically failures in every way. Libertarianism has devolved into a clown show of competing virtue signals, while conservatism (which has yet to actually conserve anything) has fastened onto itself the straitjacket of ideological dogmatism dictated to it by neo-conservatives and K-Street lobbyists.
We should not be surprised, however, that this has been the case. Classical liberalism itself was doomed from its inception. The reason for this is that classical liberalism derived directly from the sort of shoddy and shallow philosophies that drove the so-called “Enlightenment”. The Enlightenment – which we were all told was a good thing by our publik skoolz – represented a marked departure by Western civilisation from traditional realities upon which successful Western cultures were built. In contrast to the traditional values of the West, Enlightenment values represented a very skewed, unrealistic form of wishful thinking. Once these departures began to be codified into practice at the national level, it was only a matter of time before the leftward drift affected even the most morally well-insulated nations.
Below, I would like to discuss four basic areas where classical liberalism as an Enlightenment philosophy was set up for failure from the beginning.
On a somewhat less polemic level, Andrew Potter wonders if the sense of civilizational decline and dissolution many of us are feeling is down to the lack of community:
Here are some charts that were going around the social media the other day:
Boyle — a partner at Andreessen Horowitz — paired these charts with links to a series of reports and studies connecting these declines to a clutch of modern day problems, in particular rising levels of anxiety and depression, despair, most notably amongst the young.
As the boomers used to say, you don’t need a weatherman to know which way the wind is blowing. The Western world is in a bit of a funk.
Our political systems have become impossibly polarized, our economies stagger from one crisis to the next, and the welfare state is bumping up against the limits imposed by escalating costs and diminishing state capacity. All of this comes as people are losing faith in the institutions that have served for decades as the building blocks of a cohesive society. Our reserves of social capital are depleted as numerous countries report falling levels of patriotism, religiosity, and community-mindedness. Everyone’s more or less given up on having kids, while close to a third of men aged 18-30 haven’t had sex in the past year.
These stats vary from country to country, and some places are obviously doing better than others. But the trends are grim across the board; there’s no question that, in general, people in the West are in a bad way. The debate revolves around the cause or causes of these phenomena. Is it social media? The pandemic? Housing prices, debt and precarious employment?
One possibility is that the problem lies with the modern world itself. That the basket of rights-based political individualism and consumer-driven economic capitalism might provide us with all manner of creature comforts and technological wonders, but it doesn’t give us meaning. At the dark heart of liberalism lies nihilism.
This is not a new charge, it has been around as long as there has been liberalism. Yet there’s a bit of disagreement over exactly where the problem lies. For some, from Dostoevsky to the existentialists, the worry was deeply metaphysical: that in the absence of a god, or some comparable external source of absolute morality, the only alternative is raw moral relativism.
For other critics, the complaint is more aesthetic. The consumer goods and individualistic values that liberalism promotes are seen as terribly shallow and narcissistic, with the vulgar virtues of television and cheeseburgers supplanting the higher arts of opera and the terroir.
But there’s another argument, that sort of splits the difference between the metaphysical and the aesthetic worries. This is the idea that for all its promotion of radical pluralism, liberalism is actually hostile to true difference and diversity, of the sort that permits the flourishing of distinct communities. This was the central complaint of the Canadian philosopher George Grant, whose anti-American nationalism was based not on any sense that Canada was intrinsically worthwhile, but that its more collective approach to public life would foster a communitarianism that was not possible in the United States.
February 6, 2023
Food prices going up? Destroying “excess” production? That’s Canada’s Supply Management system working at peak efficiency!
Jon Miltimore reports on recent comments about some of the weird requirements for quota-holding dairy farmers under the Canadian Supply Management system:
Canadian dairy farmer is speaking out after being forced to dump thousands of liters of milk after exceeding the government’s production quota.
In a video shared on TikTok by Travis Huigen, Ontario dairy farmer Jerry Huigen says he’s heartbroken to dump 30,000 liters of milk amid surging dairy prices.
“Right now we are over our quotum, um, it’s regulated by the government and by the DFO (Dairy Farmers of Ontario)”, says Huigen, as he stands beside a machine spewing fresh milk into a drain. “Look at this milk running away. Cause it’s the end of the month. I dump thirty thousand liters of milk, and it breaks my heart.”
Huigen says people ask him why milk prices are so high.
“This here Canadian milk is seven dollars a liter. When I go for my haircut people say, ‘Wow, seven dollars Jerry, for a little bit of milk'”, he says, as he fills a glass of the milk being dumped and drinks. “I say well, you have to go higher up. Cause we have no say anymore, as a dairy farmer on our own farm. They make us dump it.”
[…]
In the United States, the primary regulations are high-level price-fixing, bans on selling unpasteurized milk (which means farmers have to dump their product if dairy processors don’t buy it), and “price gouging” laws that prevent retailers from increasing prices when demand is low, which incentivizes hoarding.
In Canada, the regulations are even worse.
While the price-fixing scheme for milk in the US is incredibly complicated and leaves much to be desired — there’s an old industry adage that says “only five people in the world know how milk is priced in the US and four of them are dead” — in Canada the price is determined by a single bureaucracy: the Canadian Dairy Commission.
The Ottawa-based commission (technically a “Government of Canada Crown Corporation”), which oversees Canada’s entire dairy system (known as Supply Management), raised prices three times in 2022, citing “the rising cost of production”.
Food price inflation remains a serious issue in Canada, but the problem is particularly acute in regards to dairy products, which has seen their annual inflation rate triple over the past year, to almost 12 percent.
If the farmers were doing this sort of price-fixing themselves, it would be illegal. Instead, because it’s the government doing it, it’s mandatory. You aren’t allowed to produce any of the supply-managed products outside the system, and the government helpfully protects Canadians from being “victimized” by cheaper imports by high tariffs on anything competing with supply managed output.
As with any rigged market, the costs of “protecting” the market are diffused among all Canadian consumers, but the benefits are concentrated in the hands of the quota-holders (and the bureaucrats who oversee the system). My issues with the supply management system are one of the “hobby horses” I’ve ridden many times over my nearly 20 years of blogging.
January 25, 2023
QotD: “National unity” and economic commonsense
But never is a compelling explanation offered of just how the people of the nation are made more united – of just how some common national cause is being pursued – when one subset of the people convinces the government to reduce the real incomes, options, and freedom of another subset of the people.
Economically uninformed economic nationalists … focus only on the gains that protectionism brings to protected domestic producers. … being blind to the losses suffered by all fellow citizens save the relatively small handful of protected interests – or, inexplicably, discounting the reality or severity of these losses – interpret the gains enjoyed by the protected interests as evidence that protectionism is in the national interest.
It’s all (to use an old-fashioned term) poppycock.
Don Boudreaux, “Bonus Quotation of the Day…”, Café Hayek, 2019-04-01.
January 15, 2023
One last dance for Davos?
Elizabeth Nickson on the “walls closing in” but this time it isn’t “on Trump”, but it might be “on the World Economic Forum” and their enablers:
Klaus and his gang were in full egomaniacal flight last week in Davos. I wonder how secretly scared they were, swanning around in their $30,000 Loro Piana topcoats dreaming of what … a nice quiet prison? Their liability for this latest attempt to escape the whirlwind through forced pharmaceuticals and the construction of the Biomedical Security State, must be dawning on them. It was always a possibility, but they figured the populace — thanks to their equally witless behaviourists — were so dumb they’d consent to being permanently damaged and think it was the fault of the extreme right. And climate change.
[…]
In Australia, the more Covid shots you’ve had, the more Covid you get and the more you die. The unvaccinated sail by relatively unperturbed.
Did you know that Big Pharma takes between $8 to $10 Trillion out of the US economy every year? GDP is only $23 Trillion. That’s a lot of money to claw back by every injured person, every family who lost a wage earner, a mother, a treasured child. This is a profit center for the great unwashed unmatched in human history. A massive transfer of wealth from the .01% to us.
They are all liable: every executive, every celebrity, every film producer, every hospital chief, every newspaper publisher, every television station owner, every multinational media company, every medical center, every university, every employer, every politician who forced and bullied people. Their wealth is about to become ours.
May 10, 2021
They don’t make politicians like Lyndon Johnson anymore … thank goodness
Another of the reader-contributed book reviews at Astral Codex Ten considers the personal history and astounding political career of LBJ, as told by biographer Robert Caro:
2: LBJ’s guide to amassing power
(i) Seduce older men
(Eww, not like that.) LBJ had a gift for becoming a “professional son” to any powerful man. At college, LBJ sat at professors’ feet and stared at them as if they were God’s gift to the educational system. LBJ constantly ran errands for the college president, Prexy Evans, and wrote glowing editorials about him.
LBJ’s fellow students were not amused. One said:
“Words won’t come to describe how Lyndon acted toward the faculty — how kowtowing he was, how suck-assing he was, how brown-nosing he was.”
But this flattery paid off. Evans put LBJ in charge of the financial aid program. Yes, really. And when other students wrote nasty comments about LBJ in the yearbook (e.g. the time he stole the Student Council elections), Evans ordered professors to cut out those pages with razors.
LBJ would repeat this flattery with President (Franklin) Roosevelt, Speaker Rayburn, and Senator Russell.
(ii) Treat your employees like dirt
LBJ wanted his staff to be absolutely loyal, so he could direct them like chess pieces. He found their weak points — their weight, their divorce — and mercilessly taunted them. I’m not going to describe the crude things he did.
Before his marriage, LBJ treated Lady Bird like an angel; once they were married, he treated her like one of his employees.
[…]
(v) Use money in new and exciting ways
LBJ funneled government contracts to Brown & Root, a construction company. In return, they gave his campaign gobs of money. During the 1948 election, two of his campaign staff ate at a cafe and then accidentally left behind a brown paper bag containing $50,000 in cash (more than $500,000 in today’s money). Luckily no one stole it.
Using all of this money, LBJ was able to make the media say whatever he wanted about his opponent, Coke Stevenson. He hired “missionaries” to hang out in bars and spread rumors about Stevenson. Thousands of federal workers also repeated LBJ’s talking points.
(vi) Cheat
But Stevenson was a storybook character, so money couldn’t defeat him. He simply told the people of Texas that he would continue to do the right thing, and they believed him. LBJ had lost the 1941 Senate election because Pappy O’Daniel had cheated better than he did. Now LBJ would cheat, and he would cheat big.
In 1940s Texas, basically every type of election fraud was real: Dead people voting, county bosses writing down whatever numbers they wanted, Mexicans being hired to cross the border and vote, etc. By buying tens of thousands of votes, LBJ was almost able to close the gap between him and Coke Stevenson. That wasn’t enough, so six days after the election, Luis Salas “found” 200 more votes for LBJ, giving him a margin of victory of 0.01%.
February 2, 2021
When the self-defined elites achieved class consciousness
At Rotten Chestnuts Severian adds to his ongoing series of posts identifying areas where Marx was right:
“Jay Gould’s Private Bowling Alley.” Financier and stock speculator Jay Gould is depicted on Wall Street, using bowling balls titled “trickery,” “false reports,” “private press” and “general unscrupulousness” to knock down bowling pins labeled as “operator,” “broker,” “banker,” “inexperienced investor,” etc. A slate shows Gould’s controlling holdings in various corporations, including Western Union, Missouri Pacific Railroad, and the Wabash Railroad.
From the cover of Puck magazine Vol. XI, No 264 via Wikimedia Commons.
… I liken Karl Marx to one of those bird-masked medieval Plague doctors — he sees the pathology clearly, indeed far faster and better than anyone else, but his proposed “cure” is far likelier to kill you than the actual disease. Worse, what makes Marx’s cure especially lethal is what ends up making his diagnosis essentially right: It’s a self-fulfilling prophecy.
The proletariat is achieving class consciousness, all right — look no further than the GameStop “short squeeze” for proof. But the only reason the proles are achieving class consciousness is because the “capitalists” forced them to, just like Marx said they would. The Elite and the Bureaucracy (usually, but not always, a distinction without a difference) finally achieved class consciousness through the combination of NAFTA and the Louvre Accords. Starting around 1990, then, the Elite self-consciously embraced their role as rootless, stateless, jet-setting parasites (with the wannabe-Elites in the Media, academia, and the bureaucracies signing up for tours of duty as fart-catchers, both to bask in reflected glory and in hopes of being promoted).
In short, our “Capitalists” — really, “financial-ists” or “spreadsheet gangsters,” since they don’t actually make anything, they just bust out existing firms via debt manipulation — behave exactly as Marx described factory owners behaving all the way back in the First Industrial Revolution.In my naivete, I used to think Marx’s ranting was hyperbole. I cited the example of Andrew Carnegie — a real bastard in his youth, who went on to be one of the world’s great philanthropists. That’s human behavior, I said, as opposed to the bloodthirsty caricature of Marx’s fantasies … but I was wrong, comrades. Carnegie happily would’ve sold his fellow Americans down the river, just as Bezos, Gates, and the rest of the pirates-in-neckties are happily selling us down the river now. Only two things prevented it back then: one structural, one cultural.
The structural one is simply technology, and therefore uninteresting. Britain’s “free traders” — you know, the Jardine-Matheson types who started the Opium Wars for fun and profit — would’ve happily outsourced Britain’s entire industrial base to China if they hadn’t been hampered by wind speed. By the time this was technically feasible — which is about 1860, if you’re keeping score — simple inertia had taken over. They didn’t retool until they had to, at which point instant communications and modern ships … well, you know the rest. Like I said, it’s vital, but boring.
The cultural one is much more interesting. You might be tempted to say, as I did, that Jardine and Matheson were always on the lookout for #1, of course, but were sincere British patriots for all that, just as Carnegie for all his faults was an authentic American. I doubt it, comrades. I sincerely doubt it. What kept these guys in check wasn’t patriotism, or even culture. Rather, it was fear.
