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The Victory of Truth is Never Assured! (2009) – Article by G. Stolyarov II

The Victory of Truth is Never Assured! (2009) – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
Originally Published February 4, 2009
as Part of Issue CLXXXVI of The Rational Argumentator
Republished July 22, 2014
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Note from the Author: This essay was originally published as part of Issue CLXXXVI of The Rational Argumentator on February 4, 2009, using the Yahoo! Voices publishing platform. Because of the imminent closure of Yahoo! Voices, the essay is now being made directly available on The Rational Argumentator.
~ G. Stolyarov II, July 22, 2014
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Many advocates of free markets, reason, and liberty are content to just sit back and let things take their course, thinking that the right ideas will win out, by virtue of being true and therefore in accord with the objective reality. Sooner or later, these people think, the contradictions entailed in false ideas – contradictions obvious to the free-market advocates – will become obvious to everybody. Moreover, false ideas will result in bad consequences that people will rebel against and begin to apply true ideas. While this view is tempting – and I wish it reflected reality – I am afraid that it misrepresents the course that policies and intellectual trends take, as well as the motivations of most human beings.

Why does the truth not always – indeed, virtually never, up until the very recent past – win out in human societies among the majority of people? Indeed, why can one confidently say that most people are wrong about most intellectual matters and matters of policy most of the time? A few reasons will be explored here.

First, the vast majority of people are short-sighted and unaware of secondary effects of their actions. For instance, they see the direct effects of government redistribution of wealth – especially if they are on the receiving end – as positive. They get nice stuff, after all. But the indirect secondary effects – the reduced incentives of the expropriated to produce additional wealth – are not nearly so evident. They require active contemplation, which most people are too busy to engage in at that sophisticated a level.

The second reason why truth rarely wins in human societies – at least in the short-to-intermediate term – is that people’s lifespans are (thus far in our history) finite. While many people do learn from their experiences and from abstract theory and recognize more of the truth as they get older, those people also tend to die at alarming rates and be replaced by newer generations that more often than not make the same mistakes and commit the same fallacies. The prevalence of age-old superstitions – including beliefs in ghosts, faith healing, and socialism – can be explained by the fact that the same tempting fallacies tend to afflict most unprepared minds, and it takes a great deal of time and intellectual training for most people to extricate themselves from them – unless they happened to have particularly enlightened and devoted parents. If all people lived forever, one could expect them to learn from their mistakes and fallacies eventually and for the prevalence of those errors to asymptotically approach zero over time.

The third reason for the difficulty true ideas have in winning is the information problem. No one person has access to all or even a remote fraction of the truth, and certainly no one person can claim to be in possession of all the true ideas required to prevent or even optimally minimize all human folly, aggression, and self-destruction. Moreover, just because a true idea exists somewhere and someone knows it does not mean that many people will be actively seeking it out. Improving information dispersal through such technologies as the Internet certainly helps inform many more people than would have been informed otherwise, but this still requires a fundamental willingness to seek out truth on the part of people. Some have this willingness; others could not care less.

The fourth reason why the truth rarely wins out is that the proponents of false ideas are often persistent, clever, and well organized. They promote their ideas – which they may well believe to be the truth – just as assiduously, if not more so, than the proponents of truth promote their ideas. In fact, how true an idea is might matter when it comes to the long-term viability of the culture and society whose participants adopt it; but it matters little with regard to how persuasive people find the idea. After all, if truth were all that persuaded people, then bizarre beer ads that imply that by drinking beer one will have fancy cars and lots of beautiful women would not persuade anyone. The persistence of advertising that focuses on anything but the actual merits and qualities of the goods and services advertised shows that truth and persuasiveness are two entirely different qualities.

The fifth reason why the truth has a difficult time winning over public opinion is rather unfortunate and may be remedied in time. But many people are, to be polite, intellectually not prepared to understand it. Free-market economics and politics are not easy subjects for everybody to grasp. If a significant fraction of the population in economically advanced countries has trouble remembering basic historical facts or doing basic algebra, how hard must economic and political theory be for such people! I do not believe that any person is incapable of learning these ideas, or any ideas at all. But to teach them takes time that they personally are often unwilling to devote to the task. As economic and technological growth renders more leisure time available to more people, this might change, but for the time being the un-intellectual state of the majority of people is a tremendous obstacle to the spread of true ideas.

It is bad enough that many people are un-intellectual and thus unable to grasp true ideas without a great deal of effort they do not wish to expend. That problem can be remedied with enough material and cultural progress. The greater problem, and the sixth reason why the truth has difficulty taking hold, is that a sizable fraction of the population is also anti-intellectual. They not only cannot or try not to think and learn; they actively despise those who do. Anti-intellectualism is a product of pure envy and malice, much like bullying in the public schools. It led to the genocides of Nazi Germany, the Soviet Union under Stalin, Communist China under Mao, and Communist Cambodia under the Khmer Rouge. In Western schools today, it leads to many of the best and brightest students – who know more of the truth than virtually anyone else – being relentlessly teased, mocked, suppressed, ostracized, and even physically attacked by their jealous and lazy peers as well as by some egalitarian-minded teachers.

But enough about why most people are unreceptive to true ideas. Even those who are receptive have substantial problems that need to be overcome – and most often are not overcome – in order for the truth to win. The seventh reason why the truth rarely wins is that most of the people who do understand it are content to merely contemplate it instead of actively promoting it. They might think that they are powerless to affect the actual course of affairs, and their sole recourse is simply the satisfaction of knowing that they are right while the world keeps senselessly punishing itself – or the satisfaction that at least they are not an active or enthusiastic part of “the system” that leads to bad outcomes. This, I regret to say, is not enough. Knowing that one is right without doing anything about it leads to the field of ideas and actions being wholly open to and dominated by the people who are wrong and whose ideas have dangerous consequences.

Everyone who knows even a shred of the truth wants to be a theorist and expound grand systems about what is or is not right. I know that I certainly do. I also know that theoretical work and continual refinement of theories are essential to any thriving movement for cultural and intellectual change. But while theory is necessary, it is not sufficient. Someone needs to do the often monotonous, often frustrating, often exhausting grunt work of implementing the theories in whatever manner his or her abilities and societal position allow. The free-market movement needs government officials who are willing to engage in pro-liberty reforms. But it also needs ordinary citizens who are willing to write, speak, and attempt to reach out to other people in innovative ways that might just be effective at persuading someone. To promote the truth effectively, a tremendously high premium needs to put on the people who actually apply the true ideas, as opposed to simply contemplating them.

Read other articles in The Rational Argumentator’s Issue CLXXXVI.

Putting Randomness in Its Place – Video by G. Stolyarov II

Putting Randomness in Its Place – Video by G. Stolyarov II

A widespread misunderstanding of the meaning of the term “randomness” often results in false generalizations made regarding reality. In particular, the view of randomness as metaphysical, rather than epistemological, is responsible for numerous commonplace fallacies.

Reference
– “Putting Randomness in Its Place” – Essay by G. Stolyarov II

A Rational Cosmology – Treatise by G. Stolyarov II – Third Edition

A Rational Cosmology – Treatise by G. Stolyarov II – Third Edition

A Rational Cosmology - Third Edition - by G. Stolyarov II

A Rational Cosmology – Third Edition – by G. Stolyarov II

Contemporary science does not make as much progress as it could, due the fallacy of empiricism-positivism – the idea that no knowledge is certain beyond refutation and that every claim is contingent on highly narrow, particular, and expensive experiments. A Rational Cosmology, however, provides a thorough refutation of prevalent empiricist-positivist fallacies, both in content and in method. It shatters some of the erroneous philosophical interpretations of theories such as Relativity and Quantum Mechanics. Moreover, it refutes the ex nihilo origin of the universe – including its manifestation in popular views of the Big Bang and Big Crunch – the particle/wave view of light, and a host of other fallacious ideas, using the proper, axiomatic-deductive methodology of identifying those theories’ conceptual flaws and internal contradictions.

As constructive alternatives to these fallacies, A Rational Cosmology presents objective, absolute, rationally grounded views of terms such as universe, matter, volume, space, time, motion, sound, light, forces, fields, and even the higher-order concepts of life, consciousness, and volition. The result is a system verified by ubiquitous observation and common sense, the underpinnings of objective science which demonstrate a knowable, fathomable reality and set the stage for unfettered progress, confidence in reason, and full-scale logical investigation of just about everything existence has to offer.

The Third Edition of A Rational Cosmology has been enhanced and edited, with augmentations and revisions to several of the previous essays. There is a new, beautiful cover design by Wendy D. Stolyarov. Furthermore, there are two additional numbered essays and more recent writings within the Related Essays section.

For the first time, A Rational Cosmology is available for free download in the form of unified files. There are four options to choose from.

Download the PDF version.

Download the MOBI version.

Download the EPUB version.

Download the AZW3 version.

The Rational Argumentator welcomes your reviews of A Rational Cosmology. You can submit them to TRA by sending them to gennadystolyarovii@yahoo.com. You are also encouraged to spread the word by reprinting the information on this page or your own comments concerning the book on other media outlets.

Always Think! – Video by G. Stolyarov II

Always Think! – Video by G. Stolyarov II

Mr. Stolyarov explains why thinking is essential and indispensable for everyone; that includes you. He discusses the fundamental purpose of his videos – to cultivate an broadly oriented intellectual mindset among viewers, in an effort to further the progress and maintenance of human civilization.

Remember to LIKE, FAVORITE, and SHARE this video in order to spread rational discourse on this issue.

The Benefits of a Non-Religious Upbringing: A Firsthand Account – Article by G. Stolyarov II

The Benefits of a Non-Religious Upbringing: A Firsthand Account – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
January 26, 2013
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This speech was delivered at the Second Annual International Day of Protest Against Hereditary Religion on January 20, 2013. You can see recordings of the speech and subsequent question-and-answer session here.

                Greetings, ladies and gentlemen, and thank you for attending my speech. It is an honor to present at the Second Annual International Day of Protest Against Hereditary Religion. I will focus on the issue of hereditary religion from a perspective that, in my view, receives all too little attention. Unlike most individuals – and even unlike many atheists – I was not a victim of hereditary religion. I was raised in a non-religious household and have never been religious and was never seriously attracted to religion. I would like to provide my firsthand account of how the absence of religious indoctrination during my childhood enabled me to thrive as a thinker and maintain a high quality of life in adulthood. Through my presentation, I hope to provide a glimpse into the advantages that all children can and should have.

                I was born during the very late years of the Soviet Union, when Gorbachev’s perestroika was already well underway. While the Soviet regime was always atheistic in name, religious freedom was openly tolerated by that time. By the time I was four, Belarus had declared independence from the USSR, and the post-Soviet government no longer had a view of religion one way or the other. Most people who pretended to be nonreligious during earlier eras of the Soviet regime no longer needed to do so, and so there was a widespread apparent revival of Orthodox Christianity during my early years. My family, however, was among those who were truly non-religious, so they never needed to pretend. I was raised largely free from structured ideology, either religious or communist. There was no real emphasis on atheism placed during my childhood, either. I was not taught that religion or religious people were bad, though I was taught about the history of religious atrocities – such as the Crusades, the Inquisition, and the Wars of Religion during the sixteenth and seventeenth centuries. Much of what I learned on this subject was through my own reading of history books, of which there were plenty around the house, and to which I had unrestricted access. My family had no wish to be confrontational, so I was generally asked not to engage in any religion-oriented conversations in public. However, I do remember a situation where I and my grandfather – after whom I am named – were walking on the streets of Minsk and were hailed by Christians selling bibles and religious pamphlets. My grandfather replied firmly that he was an atheist and was not interested, though he did engage them in argument. It was around that time that he had read the Bible from cover to cover on his own, which seemed to reinforce his own atheism, as it does for many who actually delve into that text.

                As a child, I was not expected to think anything about religion, though I did anyway. I was, however, kept away from any sources of religious indoctrination. I want to share a few of the thoughts that went on in my mind at the time:

●             Prior to the scientific age, humans believed that gods inhabited high regions – mountains and the sky. However, humans climbed Mount Olympus and did not find the ancient Greek gods. Humans went into space and did not find heaven or any gods. Moreover, humans have discovered that the sky is not a solid platform or a place that can be inhabited generally; instead, it is a visual effect created by the fact that the Earth has an atmosphere. (I had memorized all the layers of the atmosphere, too.) Thus, it is impossible for gods to live there. Beyond the atmosphere is outer space, where no gods have been observed, either.

●             Prior to the 19th century, humans believed that only a god could have designed human life. However, Darwin’s theory of evolution demonstrated that it was possible for one species to evolve into another in an entirely natural process. (Yes, I knew about evolution – though in very simple terms – at that age.)

●             When I was asked by believers “If there is no God, then who created you?”, I would respond that my parents did. If the question was formulated somewhat differently – as in “What makes your existence possible?” – I would give an answer in terms of material causation – i.e., that I am made of cells, and cells are made of molecules, and molecules are made of atoms, and atoms are made of protons, neutrons, and electrons. Generally, the conversation would proceed until I reached the smallest subatomic particle I could name, which was the quark, and which the believers asserted that God had to create. I generally answered that, while I do not know about the components of a quark, someday science would find out. I was fascinated with numbers from a very early age. I had learned to count at age two, before I learned to read, and by age four I was already delving into very large and very small numbers – to the hundreds of powers of ten, both positive and negative. I grasped that there was no limit in either direction to how large or small these numbers could get, and so I thought that there was also no upper or lower limit to humans’ eventual ability to understand existence at any magnification.

While my reasoning about religion at ages four and five may seem somewhat simplistic now – and the more sophisticated theists could find responses to my reasons for not believing in the existence of God back then – a habit of free thought was nonetheless established very early on in my life. It was never broken. I never hesitated to form my own opinions and to express them, sometimes in ways that got me in trouble with the various powers that be. I am, however, a better person because of this – because I acknowledge the power of evidence, reason, and my own mind in attempting to discover truth. While I may be wrong about particular ideas (and have been wrong in the past), the overall open-ended dynamic of my thinking enables me to overcome any specific errors and to improve my understanding.  I have never been subjected to successful indoctrination into a static, dogmatic worldview whose adherents fear questioning and challenge. The old Soviet system and its communist propaganda machine had already disintegrated by the time of my childhood, while the Orthodox religion – which now has a close affiliation with Alexander Lukashenko’s dictatorial regime in Belarus – was not yet strong enough to try to impose itself. I moved to the United States in time to avoid the worst of Lukashenko’s tyranny. Had I spent my teenage years in Belarus, I would likely have been imprisoned for political dissent. I was fortunate enough to have grown up during perhaps the freest era in the entire history of the former USSR. When I moved to the US, I certainly had more intellectual freedom than I would have had in Belarus had I remained.  But I also came to a society where atheism was a lot less common and a lot less understood.

                I have always tried to maintain a great deal of respect for post-Enlightenment interpretations of religion. Spending my teenage years in the suburbs of Chicago, I thought, initially, that this was pretty much how the majority of Americans viewed their faiths. I attended friends’ Bar Mitzvah ceremonies and engaged in interesting discussions with moderate Christians and Muslims. In that area, even those who called themselves conservatives generally considered religion to be a private matter and focused more on this-worldly political and economic subjects – for which I could respect them and have civil discussions with them. Ironically, it was the politically correct segment of the American Left (which, I understand, is not the entirety of the Left) that tried to crack down on my expression during that time, because I criticized premodern or “traditional” religious paradigms – including Aztec human sacrifice, the Hindu caste system, and traditional Chinese practices, such as foot binding, which were bound with religious views of women’s submissiveness and dependency. To the politically correct Left, all cultures and religions were equal as a matter of dogma – except, of course, for post-Enlightenment Western individualism and rationalism. I realized that atheists and freethinkers generally have as much to fear from this sort of indoctrination as they do from religious fundamentalism of any particular stripe. It does not matter, for instance, whether a blasphemy law or censorship of speech in the schools are based on the dominance of one particular religious sect, or on the fear of offending any religious sensibilities. Either way, the crucial human faculty of reason is muffled, and the capacity for intelligent critical thinking is stunted. Only the freedom of the mind can lead to the discovery of truth and the improvement of the human condition.

                Only when I went to college in Hillsdale, Michigan, did I discover that true premodern fundamentalist Christianity was far more prevalent than I had thought. The student body and professors at Hillsdale are split roughly along traditional conservative and libertarian lines. The libertarians – even those who are  personally religious – tend to be tolerant and to incorporate Enlightenment ideas of individual rights and free expression into their religious views. Many of the traditional conservatives, however, thought that religion was the only legitimate foundation for morality. Those of them who were raised entirely in religious settings – with no allowance for interaction with other worldviews and perspectives – were bewildered at how I, as an atheist, could do anything worthwhile at all. One of them – indeed, one of the better-behaved ones – was listening to me play the piano in one of the practice rooms in the music building. He then came in and asked, with sincerity, “That was beautiful, but I want to know… why? If you do not believe in God, what is the point in doing anything beautiful at all?” Another fundamentalist Christian, with whom I had quite a few discussions, suggested to me at one point that he and I could have nothing in common because I did not believe in God and his entire life was based on that belief. In return, I asked him whether he thought that two plus two made four. When he agreed that this was the case, I pointed out that I thought the same, and that this was indeed common ground. I tried my best to find as much of this sort of common ground as I could, and I made it a personal project of mine to give numerous presentations on campus about the possibility (and, indeed, the superiority) of non-religious objective morality. My many essays on the subject from that time period are freely available for all to read online.

                But it always baffled me how little I was able successfully get across to the fundamentalist Christians at Hillsdale that their way was not the only way. I never tried to de-convert them; rather, my objective was always simply to cultivate mutual respect and to lead them to recognize that, yes, atheists can be just as moral as some of them – while religion is no guarantee of moral conduct and can often be used to excuse genuine atrocities.  Perhaps I reached a few individuals, but many seemed impervious. As new groups of students came in every year, they came with the same preconceptions. It was like a vicious indoctrination machine was working to turn out fresh batches of carriers for the fundamentalist religion meme, with all the built-in defenses that meme entailed. I thought that, if only I could get them to drop the idea that morality requires religion, everything else about them could be maintained without too much harm. I realize now, however, that the pernicious notion of the Christian religion being the sole foundation of morality is one of the defense mechanisms that are deliberately inculcated into children by the cynical professional purveyors of Christian fundamentalism. Most children, and most human beings, want to be moral. Fortunately, in the real world, morality is a matter of actions and not beliefs. Thus, people of any persuasion can act morally by following rather simple negative and affirmative rules of conduct. Yet if, early on in their lives, people form a repeatedly reinforced association between morality and a particular religious persuasion, they will develop a visceral aversion to abandoning that persuasion – even if reason and experience show it to have numerous flaws. They fear that, if they cease being Christian (or Muslim, or Hindu – for that matter), they will cease to be moral human beings. This fear keeps them in the flock and keeps them paying money to the peddlers of their particular denomination’s doctrines.

              Yet reasons to be skeptical about religion abound. No person who is alive can avoid having doubts about pre-scientific systems of thought, formed millennia ago by people who were far less knowledgeable than even the average person today – and who were certainly far less civilized and moral in their personal conduct. Memes of hatred and insularity serve as the immune systems of fundamentalist religions. The more tolerant, post-Enlightenment interpretations of religion avoid these tactics by de-emphasizing institutional religious obedience and shifting their focus toward more abstract theology and more concrete real-world problems with secular solutions. This is an admirable attempt to salvage essential humanity from the grasp of dogma. Yet whether a child is born into a fundamentalist household or a more moderate religious household remains a matter of sheer chance. The children raised by fundamentalists continue to be subjected to an intellectual bubble, where questioning is discouraged and conformity in both thinking and practice is expected at the very least, and enforced through the threat of bodily punishment and social ostracism in many cases.

                I want every child to have the intellectual freedom that I had. I was surely raised with rules and discipline and expectations for moral behavior – but those can exist in complete independence from any expectation of religious or even broader philosophical adherence. Since morality is a matter of action and not thought, parents can expect their children to adhere to certain norms of conduct while leaving them free to think and believe anything they wish. I am not against religious adults who are intelligent and tolerant about their religion. But the choice to be religious or not must be made in an informed fashion, without the pressures of guilt, ostracism, or punishment. Thus, indoctrination into any belief system – without the allowance for dissent or even doubt – is a form of child abuse. It warps and stunts a child’s intellectual development and renders the child ripe for exploitation by knaves, charlatans, and demagogues in authority. Every parent needs to give his or her children the latitude to discover truth for themselves, and to commit errors in the mind of the parent, as long as those errors do not damage the children’s bodily well-being.

                As for me, I never felt myself to be constrained in my thinking – even during the times in my life when I was regimented in my routines of action, as I was in various public schools. I never felt that there were areas of existence or of my own interest that I could not explore. I never felt that I was a bad person for considering certain ideas and evaluating them on their merits. While many religious persons claim that there is a “void” in the human being that only their conception of a god or gods can fill, I never perceived such a void. Perhaps the void only occurs to those who abandon some part of their upbringing with which they were acquainted through repeated reinforcement; perhaps it is a form of nostalgia for a past to which they can no longer claim full allegiance. I, however, was always comfortable with reality as I perceived it through my senses and evaluated it through my mind. Existence is vast and extremely multifaceted. There is enough still unknown, still remaining to be discovered, that it never seemed fruitful to me to add another layer of obfuscatory complexity by superimposing a supernatural dimension upon the natural world. As for any intellectual errors of my past, they have not troubled me, since I consider myself to engage in a continual learning process, where improvement and not shame is the focus. It is better to have a good answer now, and to aspire toward making it better, than to blame oneself for not having the perfect answer the first time.

                As a self-supporting adult, I consider the lack of indoctrination and the ability to exercise complete independence of thought to be my greatest asset. Any situation I encounter – be it in the work I do for a living or in the endeavors I engage in as part of living well – can be approached using reason and evidence. I try to understand the fundamental constituents of the situation and their natures. I then use my analytical abilities and previously accumulated knowledge to construct a solution or improvement. Where I need to rely on the work of others, I use my reasoning abilities to evaluate for myself the degree of that work’s reliability. Everyone makes mistakes on occasion, and so do I. However, adherence to reason is a self-correcting mechanism that can extricate me from the mental traps and vulnerabilities that plague some people for an entire lifetime.

                In the years since I have graduated from college, I have been increasingly amazed at the breadth and open-endedness of existence. Life entails literally billions of possibilities and choices. While some people are, unfortunately, entangled in intellectual straitjackets and are pushed by their indoctrination along very specific and narrow paths (with well-known pitfalls along the way), I have always been determined to make a path of my own – based on my own values, my own talents, and my own flourishing. I will never allow dogma to blind me to possibilities for improvement. The earlier one embarks on this individualized journey, the easier it becomes to avoid common failure types in life. My plea to all parents is to allow their children this precious opportunity. Freedom of thought is the greatest gift you can give to your offspring, and it does not cost a penny.

The Benefits of a Non-Religious Upbringing – A Firsthand Account – Video Presentation and Q&A by G. Stolyarov II

The Benefits of a Non-Religious Upbringing – A Firsthand Account – Video Presentation and Q&A by G. Stolyarov II

Mr. Stolyarov speaks on the benefits of a non-religious upbringing and providing his firsthand account of how the absence of religious indoctrination during his childhood enabled him to thrive as a thinker and maintain a high quality of life in adulthood.

This speech was given at the cyber-rally for the Second Annual International Day of Protest Against Hereditary Religion on January 20, 2013.

In the recorded questions and answers following the presentation, Mr. Stolyarov discusses ways to reach out to other non-believers, possibilities in influencing individuals to increase their use of reason and critical thinking, connections between atheism and libertarianism, and the similarities in tactics used by traditional (premodern) religions and totalitarian regimes.

An MP3 version of this Q&A is available for download here.

TANSTAAFL and Saving: Not the Whole Story – Article by Sanford Ikeda

TANSTAAFL and Saving: Not the Whole Story – Article by Sanford Ikeda

The New Renaissance Hat
Sanford Ikeda
October 3, 2012
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How often have you heard someone say, “There ain’t no such thing as a free lunch,” or, “Saving is the path to economic development”?  Many treat these statements as the alpha and omega of economic common sense.

The problem is they are myths.

Or, at least, popular half-truths.  And they aren’t your garden-variety myths because people who favor the free market tend to say them all the time.  I’ve said them myself, because they do contain more than a grain of truth.

“There ain’t no such thing as a free lunch” (or TANSTAAFL) means that, with a limited budget, choosing one thing means sacrificing something else.  Scarcity entails tradeoffs.  It also implies that efficiency means using any resource so that no other use will give a higher reward for the risk involved.

That saving is necessary for rising labor productivity and prosperity also contains an economic truth.  No less an authority than the great Austrian economist Ludwig von Mises has stated this many times.  In an article published in The Freeman in 1981, for example, he said:

The fact that the standard of living of the average American worker is incomparably more satisfactory than that of the average [Indian] worker, that in the United States hours of work are shorter and children sent to school and not to the factories, is not an achievement of the government and the laws of the country. It is the outcome of the fact that the capital invested per head of the employees is much greater than in India and that consequently the marginal productivity of labor is much higher.

The Catalyst

But the statement is true in much the same way that saying breathable air is necessary for economic development is true.  Saving and rising capital accumulation per head do accompany significant economic development, and if we expect it to continue, people need to keep doing those activities.  But they are not the source–the catalyst, if you will–of the prosperity most of the world has seen in the past 200 years.

What am I talking about?  Deirdre McCloskey tells us in her 2010 book, Bourgeois Dignity: Why Economics Can’t Explain the World:

Two centuries ago the world’s economy stood at the present level of Bangladesh. . . .  In 1800 the average human consumed and expected her children and grandchildren and great-grandchildren to go on consuming a mere $3 a day, give or take a dollar or two [in today’s dollars]. . . .

By contrast, if you live nowadays in a thoroughly bourgeois country such as Japan or France you probably spend about $100 a day.  One hundred dollars as against three: such is the magnitude of modern economic growth.

(Hans Rosling illustrates this brilliantly in this viral video.)

That is unprecedented, historic, even miraculous growth, especially when you consider that $3 (or less) a day per person has been the norm for most of human history.  What is the sine qua non of explosive economic development and accelerating material prosperity?  What was missing for millennia that prevented the unbelievable takeoff that began about 200 years ago?

A More Complete Story

Economics teaches us the importance of TANSTAAFL and capital investment.  Again, the trouble is they are not the whole truth.

As I’ve written before, however, there is such a thing as a free lunch, and I don’t want to repeat that argument in its entirety.  The basic idea is that what Israel M. Kirzner calls “the driving force of the market” is entrepreneurship.  Entrepreneurship goes beyond working within a budget–it’s the discovery of novel opportunities that increase the wealth and raises the budgets of everyone in society, much as the late Steve Jobs or Thomas Edison or Madam C.J. Walker (probably the first African-American millionaire) did.  Yes, those innovators needed saving and capital investment by someone–most innovators were debtors at first–but note: Those savings could have been and were invested in less productive investments before these guys came along.

As McCloskey, as well as Rosenberg and Birdzell, have argued, it isn’t saving, capital investment per se, and certainly not colonialism, income inequality, capitalist exploitation, or even hard work that is responsible for the tremendous rise in economic development, especially since 1800.

It is innovation.

And, McCloskey adds, it is crucially the ideas and words that we use to think and talk about the people who innovate–the chance takers, the rebels, the individualists, the game changers–and that reflect a respect for and acceptance of the very concept of progress.  Innovation blasts the doors off budget constraints and swamps current rates of savings.

Doom to the Old Ways

Innovation can also spell doom to the old ways of doing things and, in the short run at least, create hardship for the people wedded to them.  Not everyone unambiguously gains from innovation at first, but in time we all do, though not at the same rate.

So for McCloskey, “The leading ideas were two: that the liberty to hope was a good idea and that a faithful economic life should give dignity and even honor to ordinary people. . . .”

There’s a lot in this assertion that I’ll need to think through.  But I do accept the idea that innovation, however it arises, trumps efficiency and it trumps mere savings.  Innovation discovers free lunches; it dramatically reduces scarcity.

Indeed, innovation is perhaps what enables the market economy to stay ahead of, for the time being at least, the interventionist shackles that increasingly hamper it.  You want to regulate landline telephones?  I’ll invent the mobile phone!  You make mail delivery a legal monopoly?  I’ll invent email!  You want to impose fixed-rail transport on our cities?  I’ll invent the driverless car!

These aren’t myths. They’re reality.

Sanford Ikeda is an associate professor of economics at Purchase College, SUNY, and the author of The Dynamics of the Mixed Economy: Toward a Theory of Interventionism.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.

Free Speech is Vital for Civilization – Video by G. Stolyarov II

Free Speech is Vital for Civilization – Video by G. Stolyarov II

Mr. Stolyarov explains why recent riots in the Middle East and some Western countries should not be allowed to infringe upon the absolutely vital right of free speech – including tasteless and offensive speech – for any individuals. Only by allowing unbridled criticism of political and religious ideas can a society undergo true innovation and transformative changes that raise standards of living across the board.

Mr. Stolyarov also elaborates upon the absolute distinction between the expression of ideas and physical actions that have the potential to harm other people. He explains that an idea per se can be interpreted in many ways and is not a guarantee of any given behavior. Furthermore, he criticizes the “internationalist” school of law, which would subordinate the American First Amendment to a repressive global “consensus” which would limit certain forms of unpopular expression. The pursuit of truth, not consensus, ought to determine which ideas prevail and which are abandoned.

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Ron Paul’s Super Tuesday Successes and Long-Term Implications – Video by G. Stolyarov II

Ron Paul’s Super Tuesday Successes and Long-Term Implications – Video by G. Stolyarov II

Ron Paul’s respectable second-place finishes in Virginia (where he had his highest percentage of the vote to date), Vermont, and North Dakota are indicative of a longer-term rise in appreciation for liberty. Mr. Stolyarov explains that if Ron Paul’s supporters can achieve a brokered Republican National convention, then Ron Paul’s influence on this election cycle will be great indeed.

Ron Paul’s Second-Place Finishes
* Virginia – 107,471 votes – 40.4%
* North Dakota – 3,187 votes – 28.1%
* Vermont – 14,408 votes – 25.5%

(Video originally published on March 7, 2012.)