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Why Free-Market Advocates Are Not Obligated to Defend the Economic Status Quo – Video by G. Stolyarov II

Why Free-Market Advocates Are Not Obligated to Defend the Economic Status Quo – Video by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
******************************

Many on the political left today equate advocacy of free-market capitalism with an “anything goes” support for the economic status quo. Many on the political right give credence to this perception by, indeed, seeking to defend the status quo just because it happens to be so. Yet this is neither an obligatory nor an advisable approach for characterizing a genuinely well-considered free-market outlook.

Suppose that you are a free-market advocate and also an engineer, well-versed in the principles and methods for constructing durable, safe structures. Suppose you also identify severe deficiencies in a bridge proposed to be constructed by a completely private enterprise. Mr. Stolyarov explores the implications of this dilemma and the appropriate responses in a free society.

Reference

– “Why Free-Market Advocates Are Not Obligated to Defend the Economic Status Quo” – Article by G. Stolyarov II

Why Free-Market Advocates Are Not Obligated to Defend the Economic Status Quo – Article by G. Stolyarov II

Why Free-Market Advocates Are Not Obligated to Defend the Economic Status Quo – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
******************************

Many on the political left today equate advocacy of free-market capitalism with an “anything goes” support for the economic status quo. Many on the political right give credence to this perception by, indeed, seeking to defend the status quo just because it happens to be so. Yet this is neither an obligatory nor an advisable approach for characterizing a genuinely well-considered free-market outlook.

Suppose that you are a free-market advocate and also an engineer, well-versed in the principles and methods for constructing durable, safe structures. You hold that individuals and businesses should have the freedom to be able to build structures which would improve human well-being, in exchange for the opportunity to earn a profit (or not, if they wish to build structures for a charitable purpose). Now suppose that you are tasked with evaluating the integrity of a particular structure constructed by a private business – perhaps a bridge. This particular bridge happens to be fully privately funded – no subsidies, no exclusive rights, no barriers to competitors’ entry. The business undertaking the construction intends for the bridge to be used as part of a major new toll road that is intended to carry massive amounts of traffic.

Unfortunately, upon deploying your technical skillset and studying the bridge design carefully, you find that the bridge, while it is represented as being able to withstand one thousand cars at a time, would in fact collapse under the weight of only five hundred cars. You also find that, in your basic repertoire of engineering techniques, you have knowledge of construction techniques and superior materials which would rectify these design flaws and enable the bridge to be as safe and as durable as originally represented. The trouble is that the business owners want to hear none of it. They are attached to their original design partly out of cost considerations, but mostly because they simply cannot understand your findings or appreciate their significance, no matter how many different ways you have attempted to communicate them. The business owners have almost no engineering knowledge themselves and are generally contemptuous of overtly mathematical, “nerdy” types (like you). They are skilled salespeople who have capital from a previous venture and are eager to make additional money on a high-profile project such as this bridge. Suppose that you know that you have all of the technical knowledge of your discipline firmly on your side, but it is the owners’ money on the line, so, unconvinced by your arguments, they build the bridge according to their original specifications. They still advertise it as highly durable, but in a sufficiently nebulous way that the advertisements do not truly make any specific promises or technical claims. (This business is short on technically knowledgeable professionals, but spares no expense in hiring attorneys to litigation-proof its marketing materials.) The driving public’s impression from the marketing campaign is expected to be, “It is an incredibly sturdy, state-of-the-art, daring new bridge that you will enjoy driving on in safety and style.” The business owners contend that there is no problem. After all, were this a truly free market, the public could choose to pay to use their bridge or to find some alternative in getting from point A to point B. And competitors could build their own bridges, too, if they could buy the land, purchase the tools and materials, and hire the labor to do it.

Of course, on most days, this bridge would not collapse, since it is rare for five hundred cars to be on it simultaneously. The owners could well be reaping profits from their bridge for years and convince the lay public to drive on it with no visible ill consequences during that time. The bridge is, however, vulnerable to high winds, earthquakes, freezing damage, and gradual deterioration over time (exacerbated by substandard construction). As time passes, the risks of collapse increase. No bridge is invulnerable, but this particular bridge is about 30 years farther along the path to decay than other bridges that you know could easily have been built in its place, had the owners only listened to you. As a free-market advocate, you have some sympathies with the owners’ view that the construction of the bridge should not be forcibly prevented, as they are using their own property for their own chosen purposes, and they are not forcing anyone to use it. However, as an engineer who knows better when it comes to quality of bridge design and construction, what do you do?

This dilemma illustrates a question at the core of how free-market advocates approach the world in which they find themselves – a world, of course, which is far from free in an economic sense, but where many people still use their own property for their own purposes. There are some who will assert that the very fact of private, voluntary use of property renders such use inherently above criticism, provided it is a manifestation of free choice. (We can overlook, for the sake of this argument, the fact that, in the real world, many incentives and constraints upon human action are routinely distorted by the effects of political influences in favor of one group or set of outcomes and/or in opposition to others.) In this argument’s more typical instantiation in today’s world, some would assert that any outcome of “private enterprise” in today’s world must be acceptable for free-market advocates, since it was (ostensibly) somebody’s use of private property for a private purpose. For example, mass corporate layoffs (virtually unheard of until the 1970s), raising the price of a life-saving, long-generic drug by 5,556 percent (as pharmaceutical executive Martin Shkreli did with Daraprim in 2015), listening to or creating brutal “gangsta rap” (virtually unheard of until the 1990s), teaching of creationism in private schools (common throughout history, but increasingly untenable in the face of over 150 years of mounting evidence), and many other behaviors of questionable rationality and/or taste are defended as being the decisions of private entities – so what could be wrong about them?

The problem with reflexively defending any and every behavior, just because a private entity undertakes it, even in the absence of market distortions, is that it misses an essential point. The market is nothing more than the sum of the choices and actions of its participants. A market outcome is not a Panglossian “best of all possible worlds” scenario. Even in the absence of compulsion or restraint, some people will be mistaken, irrational, overconfident, immoral, confused, or all of the above. Ex ante, they may expect that the transactions and behaviors they engage in will benefit them – much like a tribal shaman might believe that his rain dance would bring forth water for the tribe’s crops – but, ex post, they may well find themselves regretting their behavior, or even if not, they may have still become materially, intellectually, or emotionally worse off from it compared to the alternatives. In addition to choice, there is also truth – which comes in the form of scientific, mathematical, historical, and philosophical principles and facts. Truth is an outcome of combining induction from the empirical facts of reality with deduction from the application of logical reasoning to known facts and incontrovertible first principles. It is entirely possible for a person – including a wealthy, powerful, influential person whose decisions affect thousands or millions of others – to completely miss what the truth is, or even to be ignorant of the correct methods of arriving at the truth. In other words, if the external reality is objective and governed by comprehensible natural laws – and if morality is also objective in the sense that some outcomes are incontrovertibly more beneficial to human well-being than others – then it must be the case that somebody who is thinking in a rational, well-informed manner can truly “know better” than a particular decision-maker who is not.

Does that mean that the market could be replaced by some “superior” system of decision-making? Ultimately, no. We have no guarantee that any substitution of decision-making for that of private actors could lead to a necessarily preferable result from those decision makers’ free choices. If Person A is irrational and mistaken, we have no guarantee that leaving Person B in charge of A’s life would not lead to even more irrational and mistaken choices, compounded by the knowledge problem that B will necessarily have in relation to A’s situation. The possibility that B could be not simply misguided but nefarious, and seek to sacrifice A’s genuine interests in favor of B’s own, is a further argument against this kind of command-and-control approach. More devastating, however, would be an outcome in which a different person, C, really is doing his best to act in a truthful, rational, and just manner, but the controller B does not see it. Or perhaps B does see it and thinks it is all well and good, but B needs to set uniform standards that would keep the lowest common denominator in check, and C’s scrupulous, innovative, and principled way of living could never be generalized to a society-wide system of controls.

But getting back to you, the engineer: How to address the dilemma that you are in? Has the “market” not “decided” that the bridge of substandard technical quality is just fine? Not so fast. We must never forget that we are the market, and that the market does not only consist of the first decisions and inclinations of some small group of wealthy, powerful, or connected individuals. Quite the contrary: We are what a truly free market consists of. A truly free market consists not only of our affirmative choices, but also of our negations and criticisms of certain other choices. It consists of our knowledge, including those situations where we truly “know better” than certain others. You, the free-market engineer, could not force the bridge owners to change their design. However, you could fully publicize its flaws in a fully free society, one characterized by robust protections of free speech and lack of a climate of frivolous litigation with regard to libel laws. If today such professional criticism is difficult, it is because many larger, politically connected enterprises will hire legions of attorneys to squelch sufficiently specific assertions in meritless litigation that is too costly for ordinary people to counter. But a truly free society would lack this obstacle and would include a legal system that is designed with speed, simplicity, affordability, and protections for peaceful natural persons in mind. A corporation would not be able to sue you for publicizing detailed criticisms of its products; the judge would be empowered to simply throw out such a lawsuit at first glance. A truly free market of goods and ideas is not an indiscriminate stew of anyone’s and everyone’s plans. Any such plans also would get tested, scrutinized, refined, and ultimately accepted or rejected by the other market participants. To the extent that one owns property that could sustain the perpetuation of a plan, one might counter even strongly held prevailing opinions – but only temporarily and only if one has other means of replenishing that property if the plan causes it to be depleted.

Moreover, in a truly free market, barriers to entry exist only on the basis of the constraints of the physical world, not on politics and special behind-the-scenes influence. Thus, competitors can always arise with a superior business model. Perhaps if you, the engineer, criticize the existing bridge sufficiently, another business enterprise will learn of its defects, purchase another piece of land, and construct a parallel, sturdier bridge that takes your suggestions into account. The misguided owners of the first bridge might eventually find themselves out of business because travelers will discover that safer, more convenient routes are available. And if the bridge ever does fail, a free-market system of civil liability will penalize those businesses who, through negligence, failed to take reasonable precautions to protect the health and safety of their customers. If the bridge ever becomes an imminent danger to travelers, it would be proper for public warnings to be issued and for the law-enforcement entity (be it a minarchist government or a private dispute-resolution agency) to order that traffic to the bridge be discontinued until the immediate danger is averted (perhaps through structural improvements at that time). A free market does not permit the reckless endangerment of unwitting, non-consenting others.

But always, in a hypothetical free-market society or in our own, a free-market-oriented engineer – or any professional, really – should have no compunction about expressing the truth about the soundness and validity of any party’s decisions or proposals, be they private or governmental. Just as a private party may well propose building a substandard bridge, so might a government today actually develop a decent bridge, especially if the incentives of a given political system are conducive to that particular outcome. The free-market engineer should not hesitate to praise the technical design of a good bridge, no matter what its source – because truth is true, and a bridge that could support two thousand cars at a time would, indeed, support those cars no matter who constructed it (provided the methods and materials used are identical in each case). A free-market perspective is a political and economic position which is compatible with completely rigorous, objective views of matters of science, technology, mathematics, history, metaphysics, epistemology, ethics, psychology, and any other conceivable discipline. Free-market advocates should respect people’s right to make choices, even when those choices are mistaken, but can maintain their own right to criticize those mistakes using as high a set of standards as they consider justified. If your values include striving for truth and justice, then those values are a part of the market as well, and you can improve market outcomes by working to instantiate those values in reality.

This essay may be freely reproduced using the Creative Commons Attribution Share-Alike International 4.0 License, which requires that credit be given to the author, G. Stolyarov II. Find out about Mr. Stolyarov here.

Individual Empowerment through Emerging Technologies: Virtual Tools for a Better Physical World – Video by G. Stolyarov II

Individual Empowerment through Emerging Technologies: Virtual Tools for a Better Physical World – Video by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
November 23, 2014
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No realm of human activity in the past century has empowered and liberated the individual as efficaciously as technological advancement. Our personal, political, and economic freedoms – though limited in many respects – today allow us to achieve quality-of-life improvements and other objectives that were inconceivable even a few decades ago. Much libertarian, classical liberal, and Objectivist theory supports this insight, but in our era of increasing salience of advanced technology, this support needs to be made far more explicit and applied toward vocal advocacy of emerging, life-transforming breakthroughs that further raise the capacities of the individual. Gamification, augmented reality, and virtual worlds can play a significant role in enhancing and preserving our physical lives.

***

This video is based on Mr. Stolyarov’s essay “Individual Empowerment through Emerging Technologies: Virtual Tools for a Better Physical World“.

References

Playlist: The Musical Compositions of G. Stolyarov II
– “Ayn Rand, Individualism, and the Dangers of Communitarianism” (2012) – Essay by G. Stolyarov II
– “Carl Menger, Individualism, Marginal Utility, and the Revival of Economics” (2006) – Essay by G. Stolyarov II
– “Ludwig von Mises on Profit, Loss, the Entrepreneur, and Consumer Sovereignty” (2007) – Essay by G. Stolyarov II
– “Open Badges and Proficiency-Based Education: A Path to a New Age of Enlightenment” (2013) – Essay by G. Stolyarov II
Runkeeper
Fitocracy
Fitbit
– “Minecraft” – Wikipedia
– “Oculus Rift” – Wikipedia –
– YouTube Videos of Minecraft Computers (here and here)

Individual Empowerment through Emerging Technologies: Virtual Tools for a Better Physical World – Article by G. Stolyarov II

Individual Empowerment through Emerging Technologies: Virtual Tools for a Better Physical World – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
November 9, 2014
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No realm of human activity in the past century has empowered and liberated the individual as efficaciously as technological advancement. Our personal, political, and economic freedoms – though limited in many respects – today allow us to achieve quality-of-life improvements and other objectives that were inconceivable even a few decades ago. Much libertarian, classical liberal, and Objectivist theory supports this insight, but in our era of increasing salience of advanced technology, this support needs to be made far more explicit and applied toward vocal advocacy of emerging, life-transforming breakthroughs that further raise the capacities of the individual. Gamification, augmented reality, and virtual worlds can play a significant role in enhancing and preserving our physical lives.

I find a lot of support for technological progress, self-determination, and the triumph of the individual over the impositions of the collective in the works of Ayn Rand (as an example, see this 2012 essay of mine for a brief analysis of Randian individualism). The Austrian economists Carl Menger and Ludwig von Mises were also great exponents of individualism, and their innovations in value-theory emphasized the importance of subjective preference in the determination of prices, the work of entrepreneurs, and the effects of policy. They grounded their economic work in a deep understanding of philosophy and offered a countervailing view of the world during a time when postmodernism was gaining popularity. They explained that universal laws of economics, derived from the basic fact of human action itself, are at the root of explaining whether societies facilitate flourishing and progress, or misery and stagnation.

Were these great thinkers alive today, it would have been fascinating to observe their insights regarding the power of technology to enable the personal creation of art which was not technically feasible for an individual in prior eras to create. They would surely recognize the amazing influence of the latest generation of technological entrepreneurs on our lives and well-being – not just in the emergence of computers, the Internet, and mobile devices – but also in less-emphasized applications, such as digital art, electronic music, increasingly sophisticated and graphically immersive computer games, and tools for the “quantified self” – an increasing array of metrics for vital bodily attributes and activities. The convergence of these tools is ushering in an era of augmented reality, which rational and determined creators can harness to achieve their goals more effectively and more enjoyably.

I have seen this vast technological improvement affect my ability, for example, to compose music. In a few hours I can create a composition and hear it played back flawlessly by an electronic orchestra, whereas even a decade ago I would have needed to spend weeks internalizing melodies and variations. In order to play my compositions, I would have had to spend months practicing, even then being quite vulnerable to human error. One of my current ongoing projects is to remaster as many of my older compositions (all preserved, thankfully) as I can using the tools now available to me – enabling their flawless playback via synthetic instruments. Today, they can sound exactly as I intended them to sound when I composed them years ago. Many works have already been remastered in this way (available within this video playlist), which has enabled me to hear and to share with the world pieces which have not been in my “finger memory” for over a decade.

Numerous life-improving applications of augmented reality are emerging now and can be expected to expand during the proximate future. Many of these technologies can have strong, immediate, practical benefits in enhancing human survival and functionality within the physical world. Already, mobile applications such as Runkeeper, scoring systems like that of Fitocracy, or devices like the Fitbit allow individuals to track physical activity in a granular but convenient manner and set measurable targets for improvement. Significant additional innovation in these areas would be welcome. For instance, it would be excellent to have access to live readings of one’s vital statistics, both as a way of catching diseases early and measuring progress toward health goals. This vision is familiar to those who have encountered such functionality in virtual worlds. Players track and improve these statistics for their characters in computer games, where it proves both interesting and addictive – so why not bring this feature to our own bodies and other aspects of our lives?

Computer games – one type of virtual world – expand the esthetic and experiential possibilities of millions of people. While not fully immersive, they are far more so than their predecessors of 20 years ago. They can extend the range of human experience by enabling people to engage in actions inaccessible during the course of their daily lives – such as making major strategic decisions in business, politics, or world-building, exploring outer space, or designing and interacting with a skyscraper without the hazards of being a construction worker. (Minecraft comes to mind here as an especially versatile virtual world, which can be shaped in unique ways by the creativity of the individual. I can readily imagine a future virtual-reality game which is a more immersive successor of Minecraft, and where people could create virtual abodes, meeting places, and even technological experiments. Minecraft already has mods that allow the creation of railroads, industrial facilities, and other interesting contraptions.)

One common and highly gratifying feature of computer games that has long fascinated me is the ability to make steady, immediately rewarding progress. Any rational, principled economic or societal arrangement that promotes human flourishing should do the same. Emerging efforts at the “gamification” of reality are precisely a project of imparting these rational, principled characteristics – hopefully remedying many of the wasteful, internally contradictory, corrupt, and fallacy-ridden practices that have pervaded the pre-electronic world.

Tremendous technological, cultural, and moral progress could be achieved if this addictive quality of games were translated into the communication of sophisticated technical concepts or philosophical ideas, such as those underpinning transhumanism and indefinite life extension. If there were a way to reliably impart the appeal of games to knowledge acquisition, it would be possible to trigger a new Age of Enlightenment and a phenomenon never seen before in history: that of the masses becoming intellectuals, or at least a marked rise in intellectualism among the more technologically inclined. This aspiration relates to my article from early 2013, “Open Badges and Proficiency-Based Education: A Path to a New Age of Enlightenment” – a discussion of an open-source standard for recognizing and displaying individual achievement, which could parlay the abundance of educational resources available online into justified reward and opportunities for those who pursue them.

While some critics have expressed concern about a future where immersion in virtual worlds might distract many from the pressing problems of the physical world, I do not see this as a major threat to any but a tiny minority of people. No matter how empowering, interesting, addictive, and broadening a virtual experience might be (and, indeed, it could someday be higher-resolution and more immersive than our experience of the physical world), it is ultimately dependent on a physical infrastructure. Whoever controls the physical infrastructure, controls all of the virtual worlds on which it depends. This has been the lesson, in another context, of the recent revelations regarding sweeping surveillance of individuals by the National Security Agency in the United States and its counterparts in other Western countries. This inextricable physical grounding is a key explanation for the unfortunate fact that the Internet has not yet succeeded as a tool for widespread individual liberation. Unfortunately, its technical “backbone” is controlled by national governments and the politically connected and dependent corporations whom they can easily co-opt, resulting in an infrastructure that can be easily deployed against its users.

A future in which a majority would choose to flee entirely into a virtual existence instead of attempting to fix the many problems with our current physical existence would certainly be a dystopia. Virtual reality could be great – for learning, entertainment, communication (especially as a substitute for dangerous and hassle-ridden physical travel), and experimentation. Some aspects of virtuality – such as the reception of live statistics about the external world – could also be maintained continually, as long as they do not substitute for the signals we get through our senses but instead merely add more to those signals. However, the ideal use of virtual reality should always involve frequent returns to the physical world in order to take care of the needs of the human body and the external physical environment on which it relies. To surrender that physicality would be to surrender control to whichever entity remains involved in it – and there is no guarantee that this remaining entity (whether a human organization or an artificial intelligence) would be benevolent or respectful of the rights of the people who decide to spend virtually all of their existences in a virtual realm (pun intended).

Fortunately, the pressures and constraints of physicality, so long as they affect human well-being, are not easily wished away. We live in an objective, material reality, and it is only by systematically following objective, external laws of nature that we can reliably improve our well-being. Many of us who play computer games, spend time on online social networks, or even put on virtual-reality headsets in the coming years, will not forget these elementary facts. We will still seek food, shelter, bodily comfort, physical health, longevity, and the freedom to act according to our preferences. The more prudent and foresighted among us will use virtual tools to aid us in these goals, or to draw additional refreshment and inspiration within a broad framework of lives where these goals remain dominant.

In a certain sense, virtual worlds can illustrate some imaginative possibilities that cannot be experienced within the non-electronic tangible world – as in the possibility of constructing “castles in the air” in a game such as Minecraft, where the force of gravity often does not apply (or applies in a modified fashion). There is a limit to this, though, in the sense that any virtual world must run on physical hardware (unless there is a virtual machine inside a virtual world – but this would only place one or more layers of virtuality until one reaches the physical hardware and its limitations). A virtual world can reveal essential insights which are obscured by the complexity of everyday life, but one would still remain limited by the raw computing power of the hardware that instantiates the virtual world. In a sense, the underlying physical hardware will always remain more powerful than anything possible within the virtual world, because part of the physical hardware’s resources are expended on creating the virtual world and maintaining it; only some fraction remains for experimentation. People have, for instance, even built functioning computers inside Minecraft (see examples here and here). However, these computers are nowhere close to as powerful or flexible as the computers on which they were designed. Still, they are interesting in other ways and may employ designs that would not work in the external physical world for various reasons.

Most importantly, the fruits of electronic technologies and virtual worlds can be harnessed to reduce the physical dangers to our lives. From telecommuting (which can reduce in frequency the risks involved with physical business travel) to autonomous vehicles (which can render any such travel devoid of the accidents caused by human error), the fruits of augmented reality can be deployed to fix the previously intractable perils of more “traditional” infrastructure and modes of interaction. Millions of lives can be saved in the coming decades because a few generations of bright minds have devoted themselves to tinkering with virtuality and its applications.

The great task in the coming years for libertarians, individualists, technoprogressives, transhumanists, and others who seek a brighter future will be to find increasingly creative and sophisticated applications for the emerging array of tools and possibilities that electronic technologies and virtual worlds make available. This new world of augmented reality is still very much a Mengerian and a Misesian one: human action is still at the core of all meaningful undertakings and accomplishments. Human will and human choice still need to be exerted – perhaps now more so than ever before – while being guided by human reason and intellect toward furthering longer, happier lives characterized by abundance, justice, peace, and progress.

“Human Nature” is Tautological (2009) – Article by G. Stolyarov II

“Human Nature” is Tautological (2009) – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
Originally Published March 10, 2009
as Part of Issue CLXXXIX of The Rational Argumentator
Republished July 23, 2014
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Note from the Author: This essay was originally published as part of Issue CLXXXIX of The Rational Argumentator on March 10, 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 23, 2014
***


What is meant by the term “human nature”? In one sense, it is supremely uninformative. The “nature” of any existent can be defined simply as “that which that existent is.” To say that “X is human nature,” is simply to say “X is what humans are and/or do.” This is fine by itself, provided that it is not used as an explanation for any particular human characteristic or activity. X may be human nature, but X does not occur because of human nature. To say that human nature is the cause of any phenomenon is to say that such a phenomenon causes itself. To say that “some people steal because of human nature” is to say that “some people steal because they steal” or that “some people steal because that is the way humans are.” This is not particularly enlightening as to why some people actually steal.

The striking fact about uses of “human nature” in discourse is that the term is virtually never invoked to account for all the wonderful things people do. Few, if any, people say that humans build great buildings, create art, invent machines, and save lives because “that’s just human nature.” But when it comes to some humans killing, stealing, lying, raping, and committing a host of other abuses, “human nature” virtually never leaves the discussion. This leads me to suspect that a lot of presuppositions are smuggled in under the umbrella label of “human nature” which are not implicit in the term. Namely, most people whose discussions are peppered by the term frequently presuppose that all human beings somehow have even the worst vices “in their nature.”

If “human nature” is “the way human beings are,” then it is clearly contrary to empirical evidence to suppose that killing, stealing, lying, and other vices are inherent in human nature. We can find numerous examples of good, upstanding people who have never killed or stolen – and even a few whom we cannot imagine lying. Surely, “the way they are” is such that they do not kill, steal, or lie. This is as much a part of their human nature as killing, stealing, and lying are a part of the natures of genocidal dictators in North Korea, Iran, Zimbabwe, and Sudan. There is no reason to suppose that anyone is capable of any vice just because some people have been observed engaging in some vices.

The facts that some people do commit vices that others do not commit and that no vice is universal to human beings indicates to us that no vice is inherent to human nature – the way humans are. Rather, every vice is incidental to human nature. That is, the natures of some humans happen to be vicious, just as the natures of some cats happen to be white (not that there is anything wrong with white cats). But vice is no more an inseparable part of humanity than whiteness is an inseparable part of cathood. It may well be that some people will always be irreparably vicious, no matter what external stimuli short of death are applied to them. This is why it may be reasonable to advocate killing genocidal sadists and other comparable entities. But this is no commentary on all the other humans of this world.

Moreover, it is essential to recognize that prevailing trends with regard to behavior change over time. 300 years ago, if two Western, upper-class males had a dispute, it would often culminate in a duel to the death. Today, the disputants would be more likely to sit down and quasi-civilly discuss their differences. The statistical prevalence of each kind of behavior has changed dramatically. Moreover, the change has been an unambiguous improvement. “What humans are” does not need to be static and set in stone. Rather, as incentives, institutions, and motivations change, so does behavior – and the sum of our behaviors constitutes our “natures.”

The view of “human nature” that I have presented thus far is fully in accord with the principle of individualism. This principle asserts that each human being is fundamentally different and should be judged on his or her own qualities, and not on the qualities of other human beings who happen to share some direct or indirect association. Moreover, individualism holds that each human being can control his or her own behaviors to a substantial extent. Each person is free to choose virtue but is just as free to choose vice, and each person must be prepared to be judged by the rest of us on the basis of his or her choices. The question remains, of course, what would motivate people to choose virtue as opposed to vice?

Granting that people always have free will to act virtuously or viciously, what would lead people to want to pursue either course of action? Earlier, I described some incentives for moral behavior that motivate people to pursue virtuous and beneficial courses of action with regard to themselves and others. On the other hand, what motivates vice? The kinds of vice that do damage to others – killing, stealing, infliction of injury, and deception – all seem to stem from some sense of personal inadequacy. Either one does not have enough things and wishes to take away the things owned by others, or one feels slighted, deprived, or persecuted in some manner by others and wishes to correct this perceived victimization by destroying its perceived source. Harm that people do to themselves seems to stem either from a conviction that their lives are not quite worth living or from a simple failure to consider all of the long-term harmful consequences of their decisions.

Exploring the common human motivations for committing immoral acts might lead us to an understanding of how to alter these motivations and direct the “natural” desires of more people toward virtue. For instance, if a person is motivated to steal by a lack of food, then if this person had food, he might not resort to stealing (provided, of course, that he recognizes the change in conditions and does not continue to resort to stealing due to the inertia of habit). On the other hand, the new-found presence of food might get the person to focus on some other attribute he believes to be lacking in his life – say, a car – and steal that. How might it be possible to get such a person to refrain from stealing? Clearly, all people perceive some kinds of inadequacies in their lives. The ways that people’s incentives are structured will lead them to consider whether moral or immoral means are the best ways to compensate for such inadequacies.

The proper incentive structure to give to each person is such that the costs of any vicious act will be greater than its perceived benefits. I note that these costs can be both external – such as any kind of punishment – or internal – such as a feeling of self-loathing and disappointment for having committed an immoral act. Well-developed internal aversions to vicious conduct reduce the need for external incentives to encourage virtue. A wide variety of institutions, technologies, and patterns of interaction shape both people’s external and internal incentives. Yet what is most important to remember is that we are not fated to be locked into any particular configuration of incentives, motivations, and outcomes. These continually fluctuate and sometimes experience radical directional shifts. In shaping these incentives, we ought to lose the defeatism of those who claim that “human nature” will forever sentence us to suffer evil instead of correcting it. Rather, we must act such that our individual, incremental effects are for the better rather than for the worse.

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

Incentives Matter… On the Margin (2010) – Article by G. Stolyarov II

Incentives Matter… On the Margin (2010) – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
Originally Published January 10, 2010
as Part of Issue CCXXXI of The Rational Argumentator
Republished July 22, 2014
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Note from the Author: This essay was previously published as part of Issue CCXXXI of The Rational Argumentator on January 10, 2010, 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.
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~ G. Stolyarov II, July 22, 2014
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One of the favorite expressions of economists is “Incentives matter.” There is much truth to this idea, but it is instructive to examine how it works a bit more closely.

An incentive is a set of conditions that favors one course of action and/or disfavors its opposite. A positive incentive increases the reward or decreases the cost associated with a decision, while a negative incentive increases the cost or decreases the reward associated with it. An incentive can be a condition of the natural environment, a conscious human choice, or an emergent outcome – a characteristic of what Friedrich Hayek called a “spontaneous order.”

But it is not the case that all human beings are moved by the same incentives to a particular course of action or inaction. For instance, an increase in the cost of gasoline might lead some people to drive less – but a wealthy car enthusiast might just take the hit and pay the higher price; for him, a negative incentive was not a sufficient deterrent to his behavior of choice. On the other hand, ample information and culture available virtually for free on the Internet might motivate more people to become computer-literate, but for certain individuals with a strong visceral fear of electronic technology, this might not be enough; the positive incentive has failed to overcome the psychological barriers within them.

We can best see how incentives matter by examining large-scale changes in behavior. Crime statistics in an area might fall, for instance, if people were allowed to carry concealed weapons in public, where a previous law might have prohibited this. But there would still be some individual acts of crime, just as there would still be some people who would never think of committing a crime, no matter how easy it would be to perpetrate one or to get away with it. If the government raised the minimum wage, the unemployment rate would increase over what it would have been otherwise, but it is not the case that all workers – or even all workers previously earning less than the minimum wage – would suffer or lose their jobs. Some low-income workers might even get a pay raise, but likely at the expense of others being laid off or never being hired in the first place. Yet some generous employers might choose to personally absorb the cost increase and refuse to lay off any workers – but this might mean fewer other investments in their businesses or a lower standard of living for these business owners.

We can summarize this insight by stating that incentives matter on the margin. If a person’s other characteristics – including ideas held, material position, and skills – strongly favor one course of action over another, then an incentive to the contrary is unlikely to change that person’s behavior. On the other hand, if a person is barely inclined one way or another, then an incentive might result in a shift of behavior.

Once made explicit, all of this might appear self-evident to someone who paid attention in a basic economics course. Why is it important, and why does it bear emphasizing? There are several reasons.

Recognizing the marginal importance of incentives prevents individuals from looking for panaceas or overnight revolutions, of which our world yields extremely few, if any. On the other hand, it also inculcates one against despair. Any sufficiently strong incentive will result in a desirable or undesirable statistical shift, but it is unlikely to completely solve a problem. On the other hand, it is also unlikely to completely doom the state of affairs, either. Human beings are remarkably resilient and intricately complex. Crimes, disasters, bad laws, and health defects will destroy some and keep down others – but human innovation and creativity will not completely die; it will flourish somewhere, in some way or another, where the negative incentives are not strong enough to thwart the civilizing desires of the best among us. But it is also important to recognize that human existence is a continual struggle against both natural perils and the follies and even the evils committed by our fellow men. We will need more than one incentive to be favorably arranged if we are to keep these enemies of civilization at bay.

The marginal functioning of incentives is also a cause for hope. If a destructive policy were to completely cripple some facet of human life, then there might not be a way to resist it effectively. But because some individuals are sufficiently strong internally so as not to be diverted from their course by the policy, they can amass the will and the resources to resist it. Moreover, people can condition themselves to respond more or less strongly to certain incentives. The more a person can train himself to persevere in the face of significant externally imposed costs, the more likely that person is to succeed despite such obstacles. Such successes are the building blocks upon which all human civilization has been built.

It is instructive to remember that there has never been an even tolerably calm and safe environment for innovators to flourish; at every time and place in history, some force – deliberate or not, more severe or less so, but never particularly mild – stood in the way of the thinkers and creators to whom we owe our progress. Where the carriers of civilization overcame these forces, they created a more favorable environment for us. We must, likewise, strive against the challenges of our time. By overcoming existing negative incentives, we can create positive ones for the future, through the examples we set and the work we bring forth.

Click here to read more articles in Issue CCXXXI of The Rational Argumentator.

Illiberal Belief #6: Good Intentions Are Enough – Article by Bradley Doucet

Illiberal Belief #6: Good Intentions Are Enough – Article by Bradley Doucet

The New Renaissance Hat
Bradley Doucet
November 11, 2012
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  There is a tendency among some people to focus almost exclusively on intentions. They may not explicitly believe that motives are all that matter, but they speak and argue as though that were the case. They spend a lot of time praising people they think have good intentions, who they imagine will act in ways that are beneficial to others, while condemning those they think have bad intentions, who they imagine will act in ways that are beneficial to themselves (either disregarding others or knowingly injuring them).There are several reasons why being overly concerned with people’s intentions in this way is misguided. First, it is simply not possible to be sure what another person’s motives are in any given instance. We are not mind readers, so when we infer someone’s intentions from his or her actions and declarations, we do so with a greater or lesser amount of uncertainty. To claim to have knowledge of another person’s mind is simply arrogant. It is sometimes not even possible in certain cases to be sure about our own motivations, much less someone else’s. This is because intentions are complex. We likely have several reasons motivating any given action, some of which even push us in opposite directions.

A second problem with obsessing about intentions is that actions which benefit oneself often benefit others as well. If I work in order to make money, those who voluntarily purchase the product of my labour also benefit, and this is equally true of any voluntary market transaction. This kind of self-interest should be praised as the motor that drives the world to become ever more prosperous, with condemnation reserved for that sub-category of self-interested actions which actually do harm the interests of others.

Finally, it has been said before, but it bears repeating: the road to hell is paved with good intentions. Good intentions alone—even redefined to include benign self-interested intentions, and even setting aside the very real knowledge problems involved—are simply not enough. What’s the use in wanting to help the poor, for instance, if the manner in which I choose to do so succeeds only in perpetuating their plight? If one wants to do good, one must actually learn how to do good, or one may very well inadvertently end up making things worse. Instead of wasting time judging people based on what we imagine their intentions to be, we should focus on whether what they are saying makes sense, and on whether the results of their actions are actually good.

Bradley Doucet is Le Quebecois Libré‘s English Editor. A writer living in Montreal, he has studied philosophy and economics, and is currently completing a novel on the pursuit of happiness. He also writes for The New Individualist, an Objectivist magazine published by The Atlas Society, and sings.
On Moral Responsibility in General and in the Context of Voting – Article by G. Stolyarov II

On Moral Responsibility in General and in the Context of Voting – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
November 3, 2012
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Here, I aim to briefly outline the general nature of moral responsibility as well as its implications for how a person ought to approach voting in an election.

Moral Responsibility in General

The source of all morality is the life of the human individual. As I explain in my video series, “Life as the Origin and Basis of Morality” (see Part 1 and Part 2), the life of the individual is the necessary precondition for any moral system, and therefore the preservation of that life is the foremost moral principle. The principle has to be universalizable to all individuals, or else one’s claim to the legitimacy of protection for one’s own life would be arbitrary and simply a matter of “might making right” (that is, if one can protect oneself against stronger individuals who do not recognize this legitimacy). If, however, one recognizes that the moral primacy of life is an abstract principle that can be applied to every person, then one can justly claim the moral high ground in defending one’s own right to life as an implication of this principle.

The existence of moral responsibility arises from two facts: (i) human beings can choose their actions, and (ii) various human actions can have varying degrees of beneficial or harmful consequences to human life. An action is moral if it benefits the life of any human being (including the actor) without harming any other human being. An action is immoral if it directly and unavoidably harms the life and infringes on the legitimate prerogatives of any human being – even if some other party might benefit from the action. Because each individual human being is an end in him- or herself, no action that “benefits” some people by harming others can be considered moral.  The deliberate and direct infliction of harm upon any person trumps any possible benefit that can be gained from an action. Furthermore, in reality (contrived hypothetical “train-track” scenarios notwithstanding), it is causally impossible for a harm to result in a benefit and for genuine benefit to be unachievable without harm.

Moral responsibility can be a source of both praise and criticism. A person should be praised if he is morally responsible for a beneficial action. A person should be criticized if he is morally responsible for an accumulation of sufficiently harmful actions. It is possible for a generally good person to be morally responsible for a harmful action. This alone does not make the person evil, and a person may compensate for a harmful action through restitution to its victims. Once appropriate restitution has been made, the harmful action should cease to adversely affect our judgment of the perpetrator. However, restitution to persons other than the victims would not suffice, because the benefit of one person cannot outweigh the harm done to another. If irreversible harm has been done, the moral wrong cannot be fully righted, and therefore the perpetrator must always bear some degree of moral responsibility. However, the adverse judgment of the perpetrator can be mitigated if the victim remains alive and decides that the perpetrator can confer a certain alternative benefit that would compensate for the harm without undoing it.

To clarify, this principle does not prohibit or denounce the use of force in order to defend oneself against harm or to punish a wrongdoer who has inflicted harm, as long as the punishment is proportional to the harm and has the effect of preventing future harm committed by such a wrongdoer. However, the retaliatory use of force is only appropriate if directed against genuine wrongdoers, exercised with extreme care for its proportionality, exercised lawfully, and performed without “collateral damage” to innocents. Infliction of harm upon an innocent person is never morally justified, for any goal.

A person is only morally responsible for actions directly within his or her control. A person does not bear any share of “collective guilt” for the actions of others whom somebody deems to be “similar” to that person in some respect. Neither does a person bear any “blood guilt” for the actions of ancestors or descendants. Sometimes a person’s actions may contribute to a larger harm – as when large numbers of people make poor decisions that result in a combined substantial damage to the lives of some innocents. In that case, each person whose actions directly contribute to the harm bears some degree of moral responsibility, in proportion to his or her contribution to the harm. However, in such cases, it is extremely difficult to isolate the contribution of any particular individual, and so the most practical remedy is not restitution, but rather the persuasion of individuals to desist from continuing to contribute to the harm.

Because moral responsibility relates to actual benefit and harm to human beings, there can be no moral responsibility for “victimless” actions, though one can bear moral responsibility for either benefiting or harming oneself. The moral responsibility for harming oneself can only be compensated for through reparations to oneself – i.e., through performance of actions that benefit oneself and undo the harm. Thus, actions that harm oneself alone cannot be undone by adhering to the dictates of others, and so no prohibition or external punishment can ever be appropriate for such actions. This is why a legitimate legal system would only prohibit and punish harm inflicted by an individual upon others and would allow an individual to harm himself without legal penalty. In this way, a class of immoral actions (harms to oneself) ought to be entirely legal. If an action does not damage the life of either oneself or others, then it can be neither illegal nor immoral.

While morality ultimately focuses on consequences, an individual’s intent in carrying out an action can have long-term effects on that individual’s moral standing. It is possible to have ill intent in carrying out an action but, through good fortune, to end up harming no one. In that case, no moral responsibility can exist because no one has been harmed. However, a person who continues to act upon ill intent is extremely likely to cause actual harm through repeated action. Therefore, acting with ill intent is like a game of Russian roulette as far as moral responsibility is concerned. One might escape moral responsibility any given time, but the probability of incurring it in the future is close to certain. Furthermore, acting with ill intent ultimately damages the individual’s capacity to choose morally, as it results in the reinforcement of habits of thought which oppose the preservation of human life and the cultivation of human civilization.  Likewise, good intent can assist an individual in committing moral actions by cultivating habits of thought that render moral choices easier. However, good intent must be reflected in benefits to human life before an action can be considered moral. Good intent cannot absolve a person of moral responsibility for a harmful act, though it should (if aided by an understanding of cause and effect) assist the person in avoiding similar harmful acts in the future.

 Moral Responsibility and Voting

In any scenario of voting, the individuals who participate are numerous, and the outcome results from an aggregation of individual votes. No given person can be said to specifically be responsible for the outcome of the election being one way or another, even if the outcome results from a difference of one vote (because anyone else’s one vote would have had the identical impact). Nonetheless, if the outcome of an election is the rise to office of politicians who perpetrate harmful actions, then the people who voted for those politicians share some of the moral responsibility in the harms – since, without the vote, those politicians would most likely not have come to power (unless they staged a coup). A clear case of this is the moral responsibility of the Germans in 1933 who gave Hitler’s Nazi Party the plurality of the vote. Were it not for this moral sanction, the harms committed by the Nazi Party would never have come to pass. Of course, the moral responsibility of the typical German voter who supported Hitler was slight compared to the moral responsibility of the actual Nazi leaders and their followers who actually partook in carnage and destruction. Nonetheless, by committing an action that clearly demonstrated support for the Nazi Party, even the otherwise peaceful Germans who voted for it helped to make its atrocities possible.

A person who does not vote for a winning candidate (either by voting for a losing candidate or by not voting at all) cannot have moral responsibility for what transpires when the winning candidate is elected, because he did not grant support to and sometimes explicitly opposed the winning candidate. He can therefore justifiably say, of what transpires afterward, that it did not transpire with his approval or assistance. In electoral situations, it is seldom the case that a single person can make all the difference (unless he is exceptionally good at persuasion of vast numbers of people), but a single person can choose not to be part of the problem. This is why a person should always vote his conscience (if he votes at all) and should never support a candidate who might commit incremental harm relative to the status quo, in that person’s view. However, a person could justifiably support a candidate who might bring about incremental benefit, even if that benefit is not as comprehensive as the voter might desire.

It is important to note that voting for a candidate who would commit incremental harm is not justified by the presence of a candidate whom one expects to commit even greater harm. Because harm can never bring benefit, it should follow that the infliction of lesser harms can never avert greater harms. The person who actively supports a move in the direction of harm (relative to the status quo) simply legitimizes the political system’s infliction of harm upon himself and others. By signaling to the political system that he will tolerate a certain degree of incremental worsening of his situation, he invites politicians to gradually ratchet up the degree of harm they cause, as long as they can claim (justifiably or not) that their opponents would bring about even greater harm.

In this case, what is the nature of the moral responsibility of the person who votes for a “lesser evil” in his mind? If the “lesser evil” loses, then there is clearly no moral responsibility if the person did not otherwise engage in harmful behavior to promote the “lesser evil” or to damage those who criticized the “lesser evil.” However, support for a losing “lesser evil” can lead to unfortunate habits of thought that would leave one vulnerable to the entreaties of politicians who intend to inflict harm. Just like ill intent in committing an action leaves one vulnerable to committing harm in the future, voting for a losing “lesser evil” leaves one vulnerable to voting for a winning “lesser evil” in the future. If one votes for an incrementally harmful candidate who wins, then one does share in the moral responsibility of those actions which a reasonable person could have anticipated on the basis of the candidate’s past record, rhetoric (including any tendencies for duplicity and lies contained therein), and character. This moral responsibility is clearly not of the same caliber as the moral responsibility of the politician who actually inflicts the harms, or the enforcers who act on his behalf. Furthermore, because the moral responsibility of voters is always highly dispersed, it is impractical to design appropriate restitution for it. Rather, the sole practical remedy is for the voters in question to recognize the mistake of their prior actions and, in the future, to work to the extent of their abilities to undo the harms of the winning candidate’s actions in office. For instance, a person who recognizes that he was deceived into supporting a “lesser evil” who won can focus his efforts on defeating this politician or similar politicians as the next election approaches. This person could also work at persuading others not to make similar mistakes.

The most reliable way to avoid adverse moral responsibility in voting is to vote for a candidate whom one considers to be an improvement over the status quo in absolute, not relative, terms – and without regard for how others might vote. Morality is not based on consensus, but on objective truth. One’s own understanding of objective truth, and the continual pursuit of improving that understanding, is the best path to moral action and the habits of thought that facilitate it.

As the ISideWith.com survey of voter preferences shows, if voters truly voted in accordance to their understanding of the most preferable courses of action, the American electoral landscape in 2012 would be quite different. For one, the 2012 Presidential contest would clearly be between Gary Johnson and Barack Obama, rather than between Obama and Mitt Romney.

Are We Destroying the Earth? – Article by Sanford Ikeda

Are We Destroying the Earth? – Article by Sanford Ikeda

The New Renaissance Hat
Sanford Ikeda
October 3, 2012
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People often complain that mankind is destroying the earth: that insatiable consumption and relentless production have laid waste to irreplaceable swaths of our planet, and that these activities have to stop or someday it will all be gone.

Which raises the question: What does it means to “destroy” something?

When you burn a log, the log is destroyed but heat, light, smoke, and ashes remain.  It’s in that sense that physics tells us that matter is neither created nor destroyed.  Similarly, cutting down a forest destroys the forest but in its place are houses and furniture and suburbs.

The real question is: Is it worth it?

Value Can Be Both Created and Destroyed

What people usually mean when they say mankind is destroying the earth is that human action causes a change they don’t like.  It sounds odd to say that my wife, by eating a piece of toast for breakfast, is “destroying” the toast.  But if I wanted that toast for myself, I might well regard her action as destructive.  Same action, but the interpretation depends on purpose and context.

When a missile obliterates a building and kills the people in it, it may serve a political purpose even though the friends and family of those killed and the owners of the building are harmed.  The perpetrator’s gain is the victim’s loss.  In the political realm, one person’s gain is necessarily another person’s loss.  You rob Peter to pay Paul; you kill Jack to appease Jill.  It’s a “zero-sum game.”

In the economic realm, however, a thing is destroyed to the extent that it loses its usefulness to somebody for doing something.  Someone may want to bulldoze my lovely home just for fun.  If she pays me enough I may let her do it and be glad she did.  When not physically coerced, a trade won’t happen unless each side expects to gain.  If it does happen, and if the people who traded are right, then all do in fact gain.  Each is better off than before. The trade has created something–value.  If they are wrong they destroy value and suffer a loss, which gives them an incentive to avoid making mistakes.

Profits and Losses Help to Minimize the Destruction of Value

In free markets gains manifest themselves in profit, either monetary or psychic.  (In the short run, of course, you can sustain a monetary loss if you think there’s a worthwhile nonmonetary aspect to the trade that will preserve the profit.)  Now, the free market is not perfect, despite what some economics professors say about the benefits of so-called “perfect competition.”  People don’t have complete or perfect knowledge and so they make mistakes.  They trade when they shouldn’t, or they don’t trade when they should.  Fortunately, profits and losses serve as feedback to guide their decisions.

There’s another source of market imperfection.  People may be capable of making good decisions but they don’t trade, or trade too much, because the property rights to the things they would like to trade aren’t well-defined or aren’t effectively enforced.  In such cases their actions or inactions create costs they don’t bear or benefits they don’t receive.  The result is that their decisions end up destroying value.

If I free-ride off the oceans, if for example I don’t pay for dumping garbage into it, then the oceans will become more polluted than they should be.  If there is a cleaner, more efficient source of energy than fossil fuels, but no one can profitably use it because the national government prevents anyone from doing so (for example by prohibitions or excessive taxation), then again the value that would have been created will never appear.

Aesthetics or Economics?

Our esthetic sense of beauty is part of what makes us human.  If we wish to protect a lake or a valley from development because we think it beautiful, how do we do that?

To some extent it’s possible to do what the Nature Conservancy does, and purchase the land that we want to protect.  But that’s not always possible, especially when the land is controlled not by private persons but by the national government, which makes special deals with crony capitalists in so-called public-private developments.  In any case, even the free market is not perfect.  Economic development and material well-being mean that some beautiful landscapes and irreplaceable resources will be changed in ways not everyone will approve.

Remember, though, that economics teaches us that an action is always taken by someone for something.  There are no disembodied costs, benefits, and values.  In a world of scarcity, John believes saving rain forests is more important than saving the whales.  Mary believes the opposite.  If we are to get past disagreements on esthetics–essentially differences of opinion–that can turn into violent conflict, we need to find some way to settle our differences peacefully, some way to transform them into value-creating interactions.

Imperfect though it may be, the free market has so far been the most effective method we know of for doing that.

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.