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Ayn Rand, Non-Atomistic Individualism, and the Dangers of Communitarianism – Article by G. Stolyarov II

Ayn Rand, Non-Atomistic Individualism, and the Dangers of Communitarianism – Article by G. Stolyarov II

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The New Renaissance Hat
G. Stolyarov II
September 8, 2012
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James Joseph argues in “Ayn Rand’s Paradox” that Rand’s “defense of individual freedom provides a self-defeating apologia for the American welfare state.” Mr. Joseph’s essay takes the communitarian view that, without the bulwark of “natural community” (including “shared duties” or “natural duties and obligations” or “claims from direct community”), the individual becomes increasingly reliant on government for every benefit in life.

Yet Mr. Joseph’s analysis portrays Ayn Rand as espousing a view that no serious thinker has ever held – the canard of atomistic individualism, which is often used by communitarians against those who do not think that communities can exist as superior entities apart from and greater than the individuals who constitute them. Mr. Joseph believes that “In fact, American statism’s apologia is the individual freedom so touted by Ayn Rand, complete with her denial of the claims of the community on the individual. One need look no further than the ‘Life of Julia’ campaign  to see that American statism is built around the idea of highly independent, atomized individuals that cannot be bothered with claims from direct community.”

True individualism is far from atomistic, and Rand saw this clearly. She wrote, for instance, that “Man gains enormous values from dealing with other men; living in a human society is his proper way of life—but only on certain conditions. Man is not a lone wolf and he is not a social animal. He is a contractual animal. He has to plan his life long-range, make his own choices, and deal with other men by voluntary agreement (and he has to be able to rely on their observance of the agreements they entered).” (“A Nation’s Unity,” The Ayn Rand Letter, II, 2, 3)

But Rand also correctly saw the individual as being primary and precedent to any “community” or “society” – although the conditions of a society can certainly constrain or empower an individual. In response to the questions “Is man a social animal?” and “Can he develop only in society?” Rand stated: “Man does live in society, not on a desert island. But that does not mean society ‘develops’ him. The expression ‘develops in society’ implies that man is a social animal. I believe no such thing. The issue here is: What is primary in a man’s development, society or his mind? Of course, his mind has primacy. Society cannot make or unmake him. An immoral society can mangle him and make it enormously difficult for him to develop properly psychologically. A rational society can help a man’s development a great deal. In a mixed society, the best minds and those who are strongest morally might withstand the pressure from society, whereas the average person will find it beyond his individual capacity and give up. Society cannot form a person. It cannot force him to accept ideas; but it can discourage him. Nevertheless, that doesn’t make man a social animal.” (Ayn Rand Answers: The Best of Her Q&A, edited by Robert Mayhew)

Rand properly recognized that individuals are not better off in insulated vacuums, apart from all other people. She acknowledged that man stands to gain greatly from interactions in society – but he can also come to great harm thereby. The question for Rand, and for all individualists, is not whether one should stand apart from society, but rather which relationships within society are most conducive to the flourishing of the individual, and which are to his detriment. Rand’s answer is that the conducive relationships are those of mutual benefit, where values are exchanged among all parties involved, and all parties seek to be better off and grant their consent to the arrangement. While Mr. Joseph thinks that, in this approach, “Ethics is collapsed into economics,” the truth is more complex and subtle. Economics describes the outcome of people’s existing value judgments (in the form of market prices, interest rates, and other phenomena) and does not directly comment on what individuals ought to value. It explains ubiquitous laws of human action that hold no matter what people happen to prefer.  Ethics, on the other hand, is directly concerned with what an individual should want to have and do – what a good life consists of and how it might be attained. Economics can inform you of the influences that result in the price of food, but it cannot tell you whether you ought to pursue food in the first place.

Rand’s Objectivist ethics arrives at the ultimate value of the individual’s life by recognizing that the very existence and meaningfulness of the idea of “value” depends on a living being that is capable of pursuing values. She writes, “The existence of inanimate matter is unconditional, the existence of life is not: it depends on a specific course of action. Matter is indestructible, it changes its forms, but it cannot cease to exist. It is only a living organism that faces a constant alternative: the issue of life or death. Life is a process of self-sustaining and self-generated action. If an organism fails in that action, it dies; its chemical elements remain, but its life goes out of existence. It is only the concept of ‘Life’ that makes the concept of ‘Value’ possible. It is only to a living entity that things can be good or evil.” (“The Objectivist Ethics” – quotation from John Galt’s speech in Atlas Shrugged)

Unlike an individual human, a collective of any sort cannot, qua collective, breathe, eat, move, or perform any unitary action. To say that a collective can “act” is a misleading figure of speech. Such an “action” can be no more than an aggregation of the extremely disparate and individually motivated actions of a group’s members or participants. The relationships among a group’s members can be quite sophisticated, it is true, but they do not supersede – in terms of either their existence or their moral worth – the essential, indivisible, and indissoluble individualities of the participants.

That brings us to the substance of the disagreement. Mr. Joseph seems to infer that Rand’s individualism is incompatible with relationships within the family – such as the care for parents and children – or within a neighborhood – such as local mutual-aid societies or groups of volunteers. I do not see any reason why such incompatibility need be the case. The exchange of values can readily occur in these circumstances, even in the absence of formal legal contracts or direct exchanges of money. Values are far broader than money and can consist of intangible goods and services – such as friendship, intellectual improvement, esthetic enjoyment, and even love (see my essay “A Rational View of Love” for a detailed discussion). The key principle governing such relationships, to the extent that they are beneficial, is that they should be based on mutual consent as much as possible. Even in cases where full informed consent cannot be given – as with children, pets, or senile elders – consent should be sought to the extent that a living creature is capable of exercising it non-destructively, and a presumption must always exist that a dependent creature would act in a life-preserving and life-enhancing manner if it had greater knowledge and ability to do so.

A respect for the principle of consent in relationships of dependency would imply, for instance, that children should not be forced to accept styles of clothing which they detest or espouse opinions which they do not personally hold through their own conviction; that pets should not be humiliated or restrained from non-destructive inclinations; and that elders should not be infantilized and should be empowered to manage their own affairs to every extent their physical faculties (in combination with technology) permit.

What Rand detested, and what many individualists likewise abhor, is the idea of top-down or compulsory “community” – of the sort that tries to deliberately (inevitably, through the wishes of some central planner or committee thereof) herd people into artificially constructed relationships for the purpose of building “togetherness” (or some comparably disingenuous justification). Compulsory national “service” – be it military or civilian – is the prime example of such exploitation of individuals in order to fulfill the power ambitious of the elites creating the “communities” of cannon fodder or work drones.

Additionally, a misguided perception of the purpose of societal interactions can lead to good people being subverted and shackled by their moral lessers. A misperceived sense of the value of “community” for its own sake (apart from any values for the individuals involved) could lead to the persistence of abuse within families; the continual funding of corrupt, dysfunctional, and even perverse churches or other civic organizations due to ingrained guilt or a sense of disembodied obligation among the contributors; the tolerance of incompetent “old boys’ networks” running local governments, because they are part of the “social fabric” and a deference to tradition prevents their being supplanted by a meritocracy. This kind of perverse communitarianism is a prime example of what Rand called “the sanction of the victim” – as it cannot thrive without the endorsement and participation of the good people who create resources upon which the abusers and parasites prey.  In even worse times and places, the willingness to accept communities over and above individuals has led to thoughtless conformity about the desirability of harming individuals perceived as being “other” or “outside” of the community – persons of different skin colors, national origins, religions, peaceful lifestyles, or peaceful political persuasions.  The vicious tribalist impulse is still strong in all too many humans, and it should not be stoked.

A misguided communitarianism has already resulted in the mangling of the first two decades of most Americans’ lives in the form of compulsory “public” schooling – where academic learning takes second stage to “socializing” the students with one another, which typically means that the best of them will be mercilessly bullied by the worst, while the rest lose themselves in pointless fads and clique rivalries. The travesty of compulsory public schooling serves as a prominent demonstration that – while Mr. Joseph seeks to posit an opposition between the Leviathan and communitarianism – the two go hand-in-hand more often than not. The Leviathan often employs communitarian rhetoric while representing itself as the entity that gets to define and structure the “community” in question.

Are we dependent on other people for much of what is good in life? Certainly! But this, far from requiring a communitarian viewpoint, is actually the implication of a consistent individualism. No one person can know everything or learn to do everything. In order for each of us to maximize our well-being, we need to specialize in some activities while relegating the rest to our fellow humans – with whom we then exchange the fruits of our respective labor. In a market economy based on the principle of individualism, each of us literally depends on the efforts of millions of others to produce the goods and services we daily enjoy.  Truly sustainable economies and societies – ones that operate without degenerating into violence or mass poverty – require that we treat others with the respect needed to facilitate these ongoing transactions. With a small circle of these individuals, we are able to form even closer ties, where formal transactions are not required to maintain ongoing value-trades. In a household, for instance, it is simply more efficient to keep a rough mental picture of other participants’ contributions, rather than itemizing everything in minute detail. Furthermore, the ability to closely trust others in one’s family (provided that it is a good one, without abuse, deception, or exploitation) eliminates the need for most of the typical safeguards of commerce among strangers. Similarly, a custom of volunteer work in one’s neighborhood might result in the capture of certain “positive externalities” – such as the benefits of cleaner streets, happier (and therefore more productive and peaceful) residents, and lower rates of vandalism and other crimes.

Perhaps Ayn Rand’s individualism, properly understood, would allow for precisely the ideal sense of the “natural community” that Mr. Joseph extols – one in which individuals engage in a variety of interactions (many of them non-monetary) to mutual benefit and thereby develop strong ties. Unfortunately, in practice, the explicit idealization of the “community” has not been an effective way of achieving such an outcome. It has, indeed, resulted in the very opposite: an insidious and manipulative elite, or a conformist and prejudiced majority (often incited by that same elite), limiting the freedoms and sometimes ruining the lives of those who wish to use their rational faculties to find a better way.

Republican National Travesty – and What to Do Next – Video by G. Stolyarov II

Republican National Travesty – and What to Do Next – Video by G. Stolyarov II

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The Republican National Convention was a farce, in spite of courageous actions by Ron Paul’s supporters, including the Nevada delegation which Mr. Stolyarov helped elect as a State Delegate.

The change of rules by the Republican National Committee turns the Republican Party into a rigid oligarchy, with no chance for grassroots activists and ideas rising to prominence.

Mr. Stolyarov expresses his thoughts about where friends of liberty should focus next. Breaking the two-party system and supporting Gary Johnson for President, while also working outside the political system to improve individual freedom through technology.

References

– Gary Johnson 2012
– “RINOs Boehner & Sununu Booed As They Change The Rules In A Major Power Grab” – Video – August 28, 2012
– “Evidence Shows RNC Rigged Vote on Rule Change at Republican Convention 2012?” – Texas GOP Vote
– “Call Off the Global Drug War” – Jimmy Carter – June 16, 2012
– “A Cruel and Unusual Record” – Jimmy Carter – June 24, 2012

Unconventional Thinking and Pluralistic Societies – Post by G. Stolyarov II

Unconventional Thinking and Pluralistic Societies – Post by G. Stolyarov II

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The New Renaissance Hat
G. Stolyarov II
August 3, 2012
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I was recently asked whether, with respect to those of us in today’s Western world who think unconventionally, “even if we wouldn’t be physically persecuted, aren’t there certain ‘sacred cows’ that must be respected even to get a hearing in today’s society?”

This is somewhat true, though increasingly less so as there come to be more diverse outlets for intellectual expression. This is where a pluralistic society actually greatly benefits individual creativity and freedom: if one outlet is closed (because one’s views are deemed “politically incorrect” or some other variant of “incorrect”), others may still welcome one’s ideas. I have seen this a lot with economics in recent years, as alternatives to the conventional Keynesian and Neoclassical schools are becoming more prominent and respected.

Furthermore, different thinkers may be deterred by “soft” censure to different degrees. Some people could not care less and would be content to be pariahs, as long as they were permitted to pursue their work in peace. Others will try to be more diplomatic and tiptoe around the “sacred cows” while subtly injecting their own ideas into public discussion. Others still will try to obtain independent sources of support, outside the paradigm they are trying to influence, and in this way “buy” themselves time and influence. It is true that being outside of the “mainstream” today will probably deny one certain opportunities – but virtually every major intellectual or career choice will do the same. One trades some possibilities for others; the important question is whether those tradeoffs are palatable in the sense of achieving one’s own goals while enabling one to lead a reasonably comfortable life.

Ice and Economics – Article by David J. Hebert

Ice and Economics – Article by David J. Hebert

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The New Renaissance Hat
David J. Hebert
July 21, 2012
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What can ice teach us about economics? We’ll see, but let’s begin with some fundamentals.

Prices, property rights, and profit (and loss) lead to information, incentives, and innovation. This simple statement contains nearly every lesson necessary for a free and prosperous society. But what do these words mean?

Prices convey information about relative scarcities and communicate to us the relative value of competing uses of a resource. They also economize on the acquisition of knowledge. When we see the price of a resource rise, market actors understand the need to use less of the resource. What they don’t know, however, is whether this rise is due to a disaster that destroyed some of the stock of that resource (an inward supply shift) or if a new, more valuable use for that resource has been discovered (an outward demand shift). These facts are irrelevant for a person who is currently using the resource, but from a societal level, her using less is necessary. If there is a disaster, we would want people to use less of it so that everyone else can still use some. If there is a new, more valuable use discovered, we would want the original users to use less so that more could be allocated towards this new use.

The Right to Exclude

Property rights refers not only to the right to use a resource, but also to the right to exclude others from its use. In this sense property rights provide the incentive to allocate the use of a resource efficiently across time, for example, to conserve it for later. With firmly established and enforced property rights, not only does the owner not have to worry about someone else taking his things but he also doesn’t have to rush out to gather the resources as quickly as he can. A situation where there are no property rights is susceptible to what is called the “tragedy of the commons,” where the resource gets depleted too quickly and never has a chance to replenish.

Profit (and loss) leads to innovation. Earning a profit is akin to being rewarded for doing something good. Suffering a loss is the opposite, a punishment for doing something wrong. In this case, the deed being done is the attempt to allocate scarce resources to where their will earn their highest return. People who successfully do this are rewarded with monetary gain, which we call “profit.” People who fail to do this experience what we call “loss.” In doing so, economic actors learn what works and what does not. Reducing the profitability of an activity through taxes or legislation or sheltering people from losses, therefore, acts to retard this learning process and stifles innovation.

This lesson is exemplified in early nineteenth-century Boston with the rise of the American natural ice trade. In 1806 Frederic Tudor sailed a ship full of ice from Boston to the Bahamas. Two years earlier Tudor had begun experimenting with insulation with the goal of bringing ice to the Bahamas.  When he was ready to set sail, he found that the ship captains refused to carry his cargo for fear of damaging their vessels. So he bought his own brig, the Favorite, and set sail February 10, 1806. He arrived in Martinique with a large quantity of ice still intact and began selling. The Bahamians loved the ice, which they had never seen before. Yet that first year Tudor lost a substantial sum of money, although he proved that ice could be shipped to the Bahamas. Now the objective became doing it at a profit.  Convinced his idea would be wildly successful, he continued his attempts to drive down costs and increase demand.

Higher Return

Meanwhile, as the price of the ice on the ponds rose, the people of Boston gained the information that the ice would bring a higher return in the Bahamas, thus they used less themselves and sold the ice to the Bahamians. In 1840 the ponds in the Boston area were explicitly divided, giving each person on the lake the right to exclude everyone else from harvesting any ice that wasn’t theirs. This allowed Tudor, for example, to invest in his ice and let it freeze longer so that it could better survive the long journey from Boston to India, which entailed crossing the equator twice and sailing around the tip of Africa. As Tudor earned profit from his venture, more people were attracted to the ice.

To continue to earn a profit, therefore, he had to find a way to outcompete everyone else. In 1825 Tudor enlisted the help of Nathaniel Wyeth, one of his suppliers. Tudor noticed that Wyeth’s ice was always significantly cheaper than everyone else’s and was cut in neater blocks which packed more easily. Wyeth had converted some old farm plows into ice-cutting plows and had fastened horseshoes with spikes to allow horses to pull these modified plows across the ice. By scoring the ice in such a fashion, Wyeth could break uniform sized blocks much quicker than his competitors, who were using hand saws that produced very rough and uneven edges.

These wouldn’t be the only contributions of Wyeth, as he went on to invent many other cost saving techniques. For example, Wyeth developed a conveyor-belt system that would haul the ice from the pond into the waiting icehouse.  He also invented bigger plows that could cut more blocks at once and poles that were used to guide the floating ice blocks onto the conveyor belt;  refined the above-ground icehouse, which allowed ice to be stored anywhere in the world for months on end without any external source of refrigeration.

New Insulation

Tudor and Wyeth also experimented with new means of insulating the ice from the heat, discovering that sawdust was not only a fantastic insulator but was also cheaply available from the sawmills around Boston. They also taught their customers new ways to use the ice, including making ice cream and storing the ice in iceboxes to preserve foods longer.

In short the three Ps lead to the three Is: Prices, property rights, and profit (and loss) lead to information, incentives, and innovation.  With these firmly in place, a free and prosperous society will follow.

David Hebert is a Ph.D. Fellow at the Mercatus Center at George Mason University.

This article was originally published by The Foundation for Economic Education.

Laissez-Faire Learning – Article by David Greenwald

Laissez-Faire Learning – Article by David Greenwald

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The New Renaissance Hat
David Greenwald
July 7, 2012
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As a teacher in a public high school, I am daily confronted with the lamentable realities of state-monopoly education. Student apathy, methodological stagnation, bureaucratic inefficiency, textbook-publishing cartels, obsessive preoccupation with grades, coercive relationships, and rigid, sanitized curricula are just a few of the more obvious problems, attended by the cold-shower disillusionment and gradual burnout among teachers to which they almost invariably lead.

While outcomes such as these are certainly tragic, the process that produces them is not exactly the stuff of Greek theater. There is no climactic battle, no cathartic denouement, no salvific moral lesson to be taken home when the curtain falls, and seldom are there any readily identifiable heroes or villains. It is not a single, epic calamity but a thousand trivial defeats a day, each too mundane and too quickly obscured by its successor to be considered noteworthy. Like a bad movie, public education somehow manages to be both tragic and boring. It is only its cumulative result that would have impressed Sophocles.

Oddly enough, although there is overwhelming public support for compulsory, tax-funded schooling, enthusiasm for what actually goes on in public schools is noticeably lacking. Not only are they generally acknowledged to be falling short in their efforts to produce an enlightened citizenry, but it is even conceded that they have failed in what is ostensibly their most exalted mission: the provision of equal opportunity for all via a standardized system of mass instruction in which all students receive the same basic set of knowledge and skills. Nor has this indictment originated solely from among the ranks of those opposed to egalitarianism on principle. To the contrary, it is largely the refrain of embittered progressives for whom “free” universal education has long been the desideratum of social justice, and who cannot understand how the behemoth they so vigorously midwifed into existence and then wet-nursed for a century could have so thoroughly betrayed their loftiest and most cherished ideal.

Yet ironically, it is the unassailable faith in the achievability of precisely this ideal of universal equality that immunizes public education against every reasonable argument advanced in opposition to it. Notwithstanding its manifest shortcomings, none of which has found a remedy despite decades of legislative reform, hardly anyone is prepared to see this system replaced by anything resembling a real market in education due to the deeply held conviction that that those of lesser material means either would not be able to afford market-based schooling or, in the very best case, would receive only substandard services inadequate to the task of ensuring equality of economic opportunity later in life. It is a further irony, though hardly surprising, that neither the economic knowledge nor the analytic discernment necessary for an examination of these claims has ever been or will ever be taught in a public school. No emperor willingly trains his own subjects to recognize nakedness when they see it.

Given this state of affairs, it devolves on individuals, both within and outside of the school system, to educate others about education. In what follows I will attempt to address what I see as the three primary objections raised against the idea of market-based education:

  1. that educational services on the market would be at a premium, with prices high enough to exclude at least the lowest-income strata of society;
  2. that even if the less affluent could afford some market-based education, it would be of a substantially inferior quality to that received by wealthier consumers of educational services; and
  3. that the lack of a universal curriculum and standardized criteria of achievement would render the market incapable of providing the equality of opportunity that public education, however unsatisfactorily, at least aims in principle to ensure.

We will examine each of these arguments in turn. As will be shown, the first two rest on a misunderstanding of markets, while the third stems from a grossly distorted concept of education from which, if they took the time to examine it closely, probably even most progressives would recoil in horror.

Argument 1: Affordability

In order to understand why educational services on a free market would as a rule be priced well within the reach of the vast majority of income earners, we must first ask why the market produces anything at all for such persons. Since it is obvious that the wealthiest few have far more purchasing power per capita than those in the middle- and lower-income strata, why does the market not produce only for the former group and leave the latter two homeless and starving? Why is sugar, once a luxury of the rich, today a household item so widely and cheaply available that the US government feels called on to impose tariffs on imports and buy up domestic surpluses to keep the price artificially high? Why is the same kilobyte of computer memory that cost around $45 twenty years ago today priced at a fraction of a cent?

The simple answer is this: competition. When a good first appears on the market, the supply of it is strictly limited. To the extent that consumers value it highly, they will bid against each other for the minimal stock available, causing the price to rise until all but the wealthiest consumers drop out of the market. As long as there is no expansion of supply, and assuming the consumers do not change their valuations, the good will remain a luxury of the rich.

However, it is precisely this condition that provides producers with the incentive to increase production of the product. The high price yields supernormal profits that draw venture capitalists and entrepreneurs into that line of production, thereby increasing the supply, lowering the price, and most importantly, bringing exponentially greater numbers of consumers into the market. This process continues until that portion of profits that exceeds the general rate prevailing in other industries disappears, bringing the expansion to a halt. But by that time, the good has long since ceased to be a toy for the rich. To paraphrase Mises, yesterday’s luxury has become today’s necessity.

Of course, while this process works in essentially the same way for all goods, some goods — diamonds, for example — tend to remain luxury items indefinitely due to the high cost of producing them. It is, after all, the consumers who, in the aggregate, must ultimately pay for any lasting expansion of industry. If the capital expenditures necessary for the production of a good exceed the willingness or ability of the consumers to offset them, no sustained increase in the supply of that good will be possible.

So how would this dynamic work on a market for education? Assuming that educational services as such would be given high priority on the value scales of most consumers, would the cost of producing them keep them priced beyond the means of the typical wage-earner? Here we must be particularly careful not to engage in what psychologists call static thinking. We must ask ourselves, not how much it would cost for private entrepreneurs to produce curricula and instruction as these are presently constituted, but rather to what extent and in what ways schooling in its current form squanders resources, and how it might be streamlined and otherwise improved in the crucible of free competition.

One point is clear: the greater and more numerous the inefficiencies of the current system, the more radical its transformation by the market would be. And just how inefficient is the present system? Well, who runs it? On what principles does it operate? Does it allow students the freedom, for example, to take courses in what they are most interested in and eschew subjects they do not wish to study? Or does it rather saddle them with a bloated, one-size-fits-all curriculum prodigiously crammed full of skills and information they neither need nor want, thereby creating artificial demand for teachers and administrative staff, stimulating construction of needlessly large (or simply needless) facilities, boosting energy consumption and capital maintenance costs, and so forth? To get an idea of the sorts of “practical competencies” students in today’s public and state-regulated high schools are expected to (pretend to) master and retain for use in later life,[1] here is a randomly-selected excerpt from the scintillating epistle “Texas Essential Knowledge and Skills for Mathematics,” issued by the Texas Education Agency:

§111.35. Precalculus (One-Half to One Credit).

  1. Knowledge and skills.
    1. The student defines functions, describes characteristics of functions, and translates among verbal, numerical, graphical, and symbolic representations of functions, including polynomial, rational, power (including radical), exponential, logarithmic, trigonometric, and piecewise-defined functions. The student is expected to:
      1. describe parent functions symbolically and graphically, including f(x) = x^n, f(x) = (1/n)^x, f(x) = log_a (x), f(x) = 1/x, f(x) = e^x, f(x) = |x|, f(x) = ax, f(x) = sin x, f(x) = arcsin x, etc.;
      2. determine the domain and range of functions using graphs, tables, and symbols;
      3. describe symmetry of graphs of even and odd functions;
      4. recognize and use connections among significant values of a function (zeros, maximum values, minimum values, etc.), points on the graph of a function, and the symbolic representation of a function; and
      5. investigate the concepts of continuity, end behavior, asymptotes, and limits and connect these characteristics to functions represented graphically and numerically.

Got all that?

Of course, administrative costs and restrictions on entry and labor-market flexibility also impact cost-efficiency. How do public schools hold up in these areas? Are their operational rules and procedures clear, concise, and easy to follow? Or does it take, say, 670 pages and whole cadres of lawyers, consultants, and administrative support staff just to implement a single program? Regarding entry, how easy is it to qualify as a member of the academy? Is anyone who demonstrates a potential aptitude for meeting the educational demands of students given the opportunity to try to do so? Or is club membership restricted by legal quotas and licensure requirements necessitating lengthy and expensive formal training?

And how flexible is the labor market? Can an underperforming or incompetent employee be readily replaced? Or does even a mere suspension require a hearing before a three-member commission?[2]

We do not have space here to speculate on all the optimizing innovations creative entrepreneurs might come up with, and to do so would be presumptuous in any case. As John Hasnas has pointed out, if we could forecast the future market accurately, our very ability to do this would be the greatest possible justification for central planning.[3] Suffice it to say that today’s public and government-regulated private schools dissipate resources with a profligacy that would have made Ludwig II blush. We can hardly claim, then, that these institutions — whose costs are externalized onto the whole society — are paragons of affordability. Yet education is not a capital-intensive industry, and market competition would surely eliminate most of this waste in short order, allowing educational entrepreneurs to reduce their costs, lower their prices, and take advantage of economies of scale. As for those few who might still be unable to pay, lower prices would mean that private scholarships, grants, and student loans would be available in greater abundance than they are today, and the latter would no longer require ten years of indentured servitude to pay off.

Just as with sugar, automobiles, civil aviation, and cell phones,[4] so too in education high initial profits would draw competition, increase supply, reduce cost, and multiply innovation. There is no reason for market-driven educational services tailored specifically to the desires of those who consume them to be prohibitively expensive.[5]

Argument 2: Quality

A second argument against leaving education to the market is that to do so would result in grave disparities in quality of service. The rich, it is said, would get steak, while the poor got rump roast. Of course, there is a kernel of truth in this. The more you are prepared to offer for something, the more quality you are in a position to demand. The market is indeed a place where the principle embodied in the cliché “You get what you pay for” prevails.

But what exactly do you pay for? The answer to this question is not necessarily obvious. To illustrate, I offer a personal example.

Many years ago, I worked at a tavern-style restaurant that was part of a nationwide chain. With its eclectic menu, modest prices, and dollar-a-mug draft beers, it was a place where families could go on a budget, and weekend drinkers could go on a binge. Not exactly Alain Ducasse, but we did offer a steak (T-bone, as I recall) for around $10. What is interesting about this is that right next door was a more upscale steakhouse that also served T-bone; only this one went for something like $22. Nothing unusual about that, but here’s the catch: both restaurants were owned by the same company and both served exactly the same T-bone steak.

At first blush, this seems absurd. Why would any company compete with itself? And why, for that matter, would anyone in his right mind pay $22 for a steak he could get for less than half that just by walking across the parking lot? Situations like this have led to calls for governments to step in and “protect” consumers from their own “irrationality.” But there is nothing irrational going on here. The two restaurants were not in competition, because they served different clientele, and patrons had definite reasons for the choices they made about which restaurant to patronize. Ours wanted to cut the frills, sit at the bar, and save money; theirs were willing to pay more than double the price for the plush seats, subdued ambience, and tuxedoed waiters. The essential thing, however, is that both were eating the same steak.

The relationship between price and quality is therefore not as straightforward as we might imagine. It is certainly true that you get what you pay for, but it is equally true that you pay for what you get. To be sure, on the education market, those with the wherewithal could attend schools equipped with indoor swimming pools, tennis courts, amphitheaters, and state-of-the-art IT. But this does not mean that everyone else could not make do with less extravagance and still get the same basic service.

Of course, all this in no way suggests that quality of educational services would be identical. Such a conclusion would be absurd. What we have demonstrated is simply the fallacious reasoning behind the common assumption that where price is low, product must be unsatisfactory. What does not satisfy is not profitable. Products and services that do not meet the needs of consumers — rich and poor — will soon have, not a low price, but no price.

Argument 3: Opportunity

We now turn to a final argument for public education that goes beyond economics, though even here there is a parallel. Deeply rooted in the belief that justice means equality and equality means identical circumstances, this view holds that educational standards and curricula must be essentially uniform for everyone if all students are to be given the same opportunity to succeed in life. Here, the anticipated failure of the market lies, not in its high prices or disparate quality, but in its presumably excessive flexibility and diversity. In essence, this argument is really nothing more than a special case of the more general socialist contempt for the division of labor. But what is the “division of labor” in education? What is its meaning, and why should we fear its emergence?

We are accustomed to conceiving of education, not as an abstraction, but as a “real thing” existing in the world outside; a commodity possessed by some people whom we call “teachers” and transferred, more or less mechanically, to other people called “students.” This habit of thought is reflected in our language: it is far more common to talk about getting an education than about becoming educated. Yet the greatest thinkers in this area have repeatedly emphasized that education is, in fact, a process of becoming. This is what Maria Montessori meant when she said that if our definition of education proceeds

along the same antiquated lines of a mere transmission of knowledge, there is little to be hoped from it in the bettering of man’s future. For what is the use of transmitting knowledge if the individual’s total development lags behind?

Montessori urged an approach to pedagogy that would “help toward the complete unfolding of life,” and “rigorously … avoid the arrest of spontaneous movements and the imposition of arbitrary tasks.”

John Dewey expressed similar views. In his seminal work Democracy and Education, Dewey places the onus of responsibility for education squarely on the shoulders of the individual student:

One is mentally an individual only as he has his own purpose and problem, and does his own thinking. The phrase “think for oneself” is a pleonasm. Unless one does it for oneself, it isn’t thinking. Only by a pupil’s own observations, reflections, framing and testing of suggestions can what he already knows be amplified and rectified. Thinking is as much an individual matter as is the digestion of food. [Moreover], there are variations of point of view, of appeal of objects, and of mode of attack, from person to person. When these variations are suppressed in the alleged interests of uniformity, and an attempt is made to have a single mold of method of study and recitation, mental confusion and artificiality inevitably result. Originality is gradually destroyed, confidence in one’s own quality of mental operation is undermined, and a docile subjection to the opinion of others is inculcated, or else ideas run wild. (p. 311–12)

For both Dewey and Montessori, education starts from the inside and moves outward.[6] Its purpose is to stimulate discovery and development of the personal resources latent within the self by allowing the student to experience the myriad possibilities for bringing them to bear creatively on the external world.

This means that becoming educated is not a matter of passively acquiring what is given, but of actively discovering what one has to give. It means that education does not create opportunity; opportunity creates education.

Regimentation and uniformity must therefore be jettisoned entirely; the individual must reign supreme within the sphere of his own development. The function of the school is to provide a stable environment rich in stimuli across a broad spectrum of disciplines, while the role of the teacher becomes primarily that of the observer who watches as closely — and intervenes as sparingly — as possible.

From this it follows that no two individuals would or could possibly educate themselves in exactly the same way. The self-directed intellectual, aesthetic, and spiritual explorations of millions of people simultaneously thus result in an unfathomable diversification of interests and activities that amounts to an educational “division of labor” — one that supports and enhances the division of labor of the market economy, and is in fact its logical precursor.

It must surely be obvious that such a philosophy is in every way wholly incompatible with systems of compulsory or universalized schooling aimed at “equalizing opportunity,” and moreover, that even to use the word opportunity in connection with compulsion or regimentation is to abuse language, otherwise we might just as well reinstate slavery in the name of providing equal “employment opportunity.”

Education, if it is to be worthy of the name, demands a method opposite to that of bureaucratic management and entirely irreconcilable with it. It requires flexibility, parsimony, innovation, and above all, a means of daily subjecting the producers of educational services to the competition of their peers and the approval or disapproval of their clients.

It requires, in other words, the free market.

Conclusion

In Slovenia where I teach, the verb “to learn” literally translates “to teach oneself.” If the truth behind this linguistic convention were widely recognized, it would discredit the very premise on which all systems of public education are founded. But, as the great economist Frédéric Bastiat warned more than a century and a half ago, there is a pronounced tendency when confronted with important questions to consider only what is seen and ignore that which is not seen. And this just as true in education as it is in economics. We see students go to school day after day for 12 years, do as they’re told, get their diplomas, and finally go on to do something with their lives. Perhaps from our vantage point it does not look so bad. But what we do not see is what they might have become had they been allowed to be the architects of their own fate from the beginning.

Notes

[1] Note that on the market, service providers do not “expect” anything from their customers except payment. It is rather the consumer who expects satisfactory performance from the provider.

[2] Block, Walter and Young, A. 1999. “Enterprising education: Doing away with the public school system.” International Journal of Value-Based Management, vol. 12, pp. 195–207.

[3] Hasnas, J. 1995. “The Myth of the Rule of Law.” In Stringham, E.P. (Ed.), Anarchy and the Law: The Political Economy of Choice, pp. 163–192. Oakland, CA: The Independent Institute.

[4] According to Ask.com, the first cell phones sold for around $4,000.

[5] Those still in doubt should visit the Mises Academy, which has put all of its summer courses on sale for tuition fees ranging from $59 to $79 per class. Ever heard of an accredited — that is, state-cartelized — university having a sale? Neither have I.

[6] One of the most salient insights of both Montessori and Dewey is the theory of concentrated attention, according to which the one indispensable prerequisite of education is that children be allowed to focus on an activity for as long as they are absorbed in it. Both philosophers agree that what we call education can only occur as a result of this absorption, and so, just as it is the first duty of the physician to do no harm, so it is the first task of the teacher not to interrupt. Of course, the modern school is set up to be nothing but an endless series of interruptions. Like the thought-disruption device planted in the ear of the protagonist in Kurt Vonnegut’s story “Harrison Bergeron,” the school day is broken up into a hodgepodge of unrelated subjects and types of activity, disrupted every 45 minutes by the Pavlovian ringing of a bell. Under these conditions, nothing resembling what Montessori and Dewey would call education can take place. For more on this, see Kirkpatrick, J. 2008. Montessori, Dewey, and Capitalism: Educational Theory for a Free Market in Education. Claremont, CA: TLJ Books.

David Greenwald received his BA in German from Hendrix College and his master’s in counseling studies from Capella University. He currently teaches high school English in Slovenia, where he conducts extracurricular projects on entry-level Austrian economics, banking and the business cycle, and the sociology of violence. He is also a lecturer at the Cato Institute’s Liberty Seminars. Send him mail. See David Greenwald’s article archives.

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Copyright © 2012 by the Ludwig von Mises Institute. Permission to reprint in whole or in part is hereby granted, provided full credit is given.

Prohibition: Bootleggers, Baptists, and Bandits – Article by Sanford Ikeda

Prohibition: Bootleggers, Baptists, and Bandits – Article by Sanford Ikeda

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Sanford Ikeda
July 7, 2012
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The political economist Bruce Yandle’s phrase “bootleggers and Baptists” captures the idea that special-interest groups with conflicting moral positions often find common cause in particular government interventions.  Many on the political left agree with crony capitalists that government should make taxpayers bailout some businesses that are “too big to fail”; some radical feminists agree with some Christian fundamentalists that government should ban pornography.  Their reasons are different but the policies they support are the same.

Bootleggers and Baptists

The inspiration for “bootleggers and Baptists” (pdf) comes directly from the diverse support that so-called “blue laws” have historically received.  According to Yandle,

Bootleggers . . . support Sunday closing laws that shut down all the local bars and liquor stores [because they increase the demand for illegal hooch].  Baptists support the same laws and lobby vigorously for them [because they believe drinking on Sunday is wrong].

Of course the story behind Prohibition era in the United States, marked by the passage of the Eighteenth Amendment to the U.S. Constitution (1920-33), is this lesson writ large.  Banning the sale of liquor, whatever it did to deter drinking, did wonders for promoting organized crime, which had (and still has) a comparative advantage over law-abiding people in supplying and demanding illegal goods. By clamping down on a product in such high demand, local and national governments (including the fledgling Federal Bureau of Investigation, which also prospered during Prohibition) spurred mob activity, intentionally or not, from Los Angeles to Chicago to New York.

Ken Burns: No Eighteenth Amendment without the Sixteenth

What I hadn’t realized until I saw Ken Burns’s excellent documentary “Prohibition” is that an important and, I think, less-known connection existed between the anti-liquor lobby–which included among others the Anti-Saloon League (ASL) and the Women’s Christian Temperance Union (WCTU)–and passage of the Sixteenth Amendment to the US Constitution.  That amendment gave Congress in 1913 the power

to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

(The Supreme Court had ruled an earlier income tax law unconstitutional in 1895.)

In an earlier FreemanOnline column, Don Boudreaux explained why Prohibition was repealed after only a dozen or so years.  In short the inability to tax liquor, now illegal, along with the onset of the Great Depression, had a devastating impact on government tax revenues.  My focus is on the alliance between anti-liquor forces on the right, pressing for prohibition, and Progressives on the left, pressing for an income tax.

Now, according to one source:

By 1868, the main source of Government revenue derived from liquor and tobacco taxes. . . . From 1868 to 1913, almost 90 percent of all revenue was collected from . . . excises.

That’s a significant source of taxes, without which the government could hardly operate, let alone grow to the size needed to implement the Progressives’ agenda: making government more efficient in order to run society along “rational” principles.  Government programs to improve schools, health care, and industry need a steady funding source, and without liquor taxes intervention could not go far enough.  So no matter how hard prohibitionists argued, marched, and lobbied, and no matter how sympathetic government officials may have been to their cause, they would never dream of sacrificing their cash cow on the alter of idealism–at least not without an equally reliable alternative.

And that of course led naturally to the social conservatives support of the progressive (in both senses of the word) income tax.  The Sixteenth Amendment passed in 1913, opening the way in 1919 for the Eighteenth Amendment.  The rest is history.

Baptists and Bandits

I’m not arguing that the alliance was primarily responsible for passage of the amendment, but rather that it’s clear the interests of social conservatives and the taxman were perfectly aligned.  “Baptists” on the one side, and on the other, those eager to expand the use of aggression to plunder wealth created by trade and to spend it to indulge their own preferences–that is, bandits.

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.

Is Serfdom an Executive Order Away? – Article by Sheldon Richman

Is Serfdom an Executive Order Away? – Article by Sheldon Richman

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Sheldon Richman
July 7, 2012
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Sometimes a step back helps to provide perspective on a matter. President Obama provided such a step with his March 16 Executive Order, National Defense Resources Preparedness. In it we see in detail how completely the government may control our lives—euphemistically called the “industrial and technological base”—if the president were to declare a national emergency. It is instructive, if tedious, reading.

President Obama claims this authority under the Constitution and, vaguely, “the laws of the United States,” but he specifically names the Defense Production Act of 1950. As Freeman columnist and Independent Institute Senior Fellow Robert Higgs observed, “Under this statute, the president has lawful authority to control virtually the whole of the U.S. economy whenever he chooses to do so and states that the national defense requires such a government takeover.”

We shouldn’t assume this is merely an academic exercise or that a third world war would need to break out. In the last decade, under circumstances representing no “existential threat” to our society, the executive branch has exercised extraordinary powers.

Reading the Executive Order, I was reminded of a quotation of Leonard Read’s: “[A]nyone who even presumes an interest in economic affairs cannot let the subject of war, or the moral breakdown which underlies it, go untouched. To do so would be as absurd—indeed, as dishonest—as a cleric to avoid the Commandment ‘Thou shalt not steal’ simply because his parishioners had legalized and were practicing theft.”

The Executive Order begins by authorizing executive-branch officers to “assess on an ongoing basis the capability of the domestic industrial and technological base to satisfy requirements in peacetime [!] and times of national emergency, specifically evaluating the availability of the most critical resource and production sources, including subcontractors and suppliers, materials, skilled labor, and professional and technical personnel.”

But these officials are to do more than assess. They are to be prepared to “ensure the availability of adequate resources and production capability,” to “improve the efficiency and responsiveness of the domestic industrial base to support national defense requirements,” and to “foster cooperation between the defense and commercial sectors. . . .”

Further, the President’s order notes his authority to “require acceptance and priority performance of contracts or orders (other than contracts of employment) to promote the national defense over performance of any other contracts or orders, and to allocate materials, services, and facilities as deemed necessary or appropriate to promote the national defense” (emphasis added).

That is, the executive branch is first in line for whatever it wants (except civilian labor—perhaps).

Under the section titled “EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY,” the heads of agencies engaged in procurement are authorized to “guarantee loans by private institutions,” “make loans,” and “make provision for purchases of, or commitments to purchase, an industrial resource or a critical technology item for Government use or resale, and to make provision for the development of production capabilities, and for the increased use of emerging technologies in security program applications, and to enable rapid transition of emerging technologies.”

Think of the potential for corporatist rent-seeking.

In the section on personnel we learn that the secretary of labor shall “collect and maintain data necessary to make a continuing appraisal of the Nation’s workforce needs for purposes of national defense and upon request by the Director of Selective Service, and in coordination with the Secretary of Defense, assist the Director of Selective Service in development of policies regulating the induction and deferment of persons for duty in the armed services.”

So along with the commandeering of private resources, there will be a draft, the commandeering of military (and other?) labor—that is, slavery by another name.

Advocates of the freedom philosophy have a dual concern: that the executive has virtually unchecked authority to declare an emergency and that in an emergency the private economy would be commandeered by government officers. The Executive Order is a breathtaking reminder that, as Higgs put it, “private control of economic life in the United States, to the extent that it survives, exists solely at the president’s pleasure and sufferance.”

Sheldon Richman is the editor of The Freeman and TheFreemanOnline.org, and a contributor to The Concise Encyclopedia of Economics. He is the author of Separating School and State: How to Liberate America’s Families.

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.

Are Immigration Laws Like Jim Crow? – Article by David Bier

Are Immigration Laws Like Jim Crow? – Article by David Bier

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David Bier
July 7, 2012
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Alabama Governor Robert Bentley was forced to defend his state’s harsh immigration law recently against charges that it amounts to a return to segregation-era racially biased policies.  “What took place in the civil rights era was a series of unlawful actions against lawful residents,” Bentley said in response to the charges. “It was a shameful chapter in our state’s history. The immigration issue of today is entirely different.”

Parallels to segregation might be slightly overdone, but to call immigration policies “entirely different” is disingenuous. America’s restrictive immigration system was invented by the Eugenics Research Institute’s future president, Rep. Albert Johnson (R-Washington), who wanted to protect America’s racial purity from, in the words he quoted from a State Department official, “unassimilable . . . filthy . . . and often dangerous” foreigners. While such laws are no longer justified on racial grounds, their impacts today are just as ethnically disparate—more than 80 percent of immigrants labeled “illegal” are Hispanic, and 97 percent (pdf) of deportees are Hispanic.

Nor was segregation “unlawful”—it was a bizarre system of legal controls. Although it’s best known as a system of social control, it was just as much a system of economic regulation. Jim Crow began humbly—with segregated streetcars in Georgia in 1891—but quickly escalated, imposing on southern businesses ever more burdensome requirements: twice the number of bathrooms, waiting rooms, ticket counters, phone booths, even cocktail lounges. The president of Southeastern Greyhound told the Wall Street Journal in 1957, “It frequently costs fifty percent more to build a terminal with segregated facilities.”

Businessmen Conscripted

Since laws that intend to control personal behavior are so rarely enforceable, governments conscript business people to act as de facto State agents. In this way social controls quickly morph into economic regulations. It is often forgotten that the railroad in the infamous Supreme Court case Plessy v. Ferguson (1896) actually helped fight  the “separate but equal” doctrine because it “saddled employers with the burden of becoming the state’s race policemen.” Immigration law, which began as a way to restrict the movement of foreigners into the United States, has followed exactly the same pattern. Today a vast portion of America’s immigration code targets businesses, not foreigners.

Jim Crow’s regulatory state only affected businesses that served both white and African American patrons. For most small businesses, the costs of the regime were simply too great. Similarly, for many businesses today, hiring migrant workers has just become too dangerous. “I always relate it to tax law,” labor law consultant Barlow Curran recently told the Tampa Tribune. “Federal tax law is so complicated that if the IRS audits you, regardless of how careful you’ve been, they’ll probably find something. The same thing is true of farm labor law.” No wonder Immigration and Customs Enforcement has imposed $100 million in fines in just the last three years alone—more than the Bush administration’s previous eight years.

Alabama has only added to these regulatory threats. The state’s HB 56—enacted a year ago—mandated that employers use E-Verify to check the work authorization for potential employees. Over 60,000 Alabama businesses missed the deadline. If employers are unable to comply, they face license suspensions and may even be given the “business death penalty,” permanent closing.

As Isabel Wilkerson documents in her Pulitzer Prize-winning The Warmth of Other Suns, more than six million African Americans fled the Jim Crow South and left many southern employers facing labor shortages. “Farmers . . . have [woken] up on mornings recently to find every Negro over 21 on his place gone,” editorialized the Macon Telegraph in 1916 as the Great Migration began. “And while our very solvency is being sucked out beneath us, we go about our affairs as usual.”

Fleeing the State

Alabama is discovering that harsh immigration laws can just as easily “suck the solvency out beneath” them. “From a business point of view, it’s a terrible piece of legislation,” Henry Hagood, CEO of Alabama Associated General Contractors, told Reuters. “My counterparts around the country are saying, ‘thanks for sending workers our way.’” Tens of thousands of workers have already fled the state. University of Alabama professor Samuel Addy found that losing these workers reduced the state’s GDP by between $2.3 billion and $10.8 billion.

Conservatives who profess a commitment to the free market must extend that commitment to the labor market. They must realize that harsh immigration laws have the same dire effects on business as other burdensome regulations. They limit not only the free movement of foreign workers but also the rights of American businesses to hire, transport, and associate freely. They need to go the same way as Jim Crow—into the dustbin of history.

David Bier is the immigration policy analyst at the Competitive Enterprise Institute.

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.

Independence from ACTA Day – July 4, 2012 – Video by G. Stolyarov II

Independence from ACTA Day – July 4, 2012 – Video by G. Stolyarov II

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July 4 now has a new meaning: it is the day European pro-liberty activists helped humankind declare independence from the powerful special interests that attempted to impose censorship, online surveillance, and draconian stifling of creativity via the misnamed Anti-Counterfeiting Trade Agreement (ACTA).

Following the rejection of ACTA in the European Union Parliament by a vote of 478 to 39, ACTA is effectively dead. A great threat to human civilization is averted.

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

Support these video-creation efforts by donating at The Rational Argumentator: http://rationalargumentator.com/index.html

References:
– “ACTA: The War on Progress, Freedom, and Human Civilization” – Essay by G. Stolyarov II
– “Victory! ACTA Suffers Final, Humiliating Defeat in European Parliament” – Rick Falkvinge
– “Anti-Counterfeiting Trade Agreement” – Wikipedia

More of Everything for Everyone – Article by Bradley Doucet

More of Everything for Everyone – Article by Bradley Doucet

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Bradley Doucet
July 4, 2012
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At any given time, I like to be reading one fiction and one non-fiction book. Rarely, though, do my choices dovetail as serendipitously as they did just recently when I was reading Abundance: The Future Is Better Than You Think (2012) by Peter H. Diamandis and Steven Kotler alongside The Diamond Age (1995) by Neal Stephenson. The former is a look at the world-changing technologies coming down the pipe in a variety of fields that promise a brighter future for all of humanity. The latter is a story set in such a future, where diamonds are cheaper than glass.If Stephenson’s world of inexpensive diamonds sounds farfetched to you, consider the entirely factual tale that Diamandis and Kotler use to kick off their book. Once upon a time, you see, aluminum was the world’s most precious metal. As late as the 1800s, aluminum utensils were reserved for the most honoured guests at royal banquets, the other guests having to make do with mere gold utensils. But in fact, aluminum is the third most abundant element in the Earth’s crust, behind oxygen and silicon. It makes up 8.3 percent of the mass of the planet. But it is never found in nature as a pure metal, and early procedures for separating it out of the claylike material called bauxite were prohibitively expensive. Modern procedures have made it so ubiquitous and cheap that we wrap our food in it and then discard it without so much as a second thought.

The moral of the story is that scarcity is often contextual. Technology, as the authors explain, is a “resource-liberating mechanism.” And the technologies being developed right now have the power to liberate enough resources to feed, clothe, educate, and free the world.

The Future Looks Bright

Peter Diamandis is the Chairman and CEO of the X PRIZE Foundation, best known for the $10-million Ansari X PRIZE that launched the private spaceflight industry. He conceived of the project back in 1993 after reading Charles Lindbergh’s The Spirit of St-Louis (1954) and learning about the $25,000 prize funded by Raymond Orteig that spurred Lindbergh to make the first ever non-stop flight from New York to Paris in 1927. Diamandis also holds degrees in molecular biology and aerospace engineering from MIT and a medical degree from Harvard.

Diamandis and his co-author, best-selling writer and journalist Steven Kotler, do not attempt to paper over the plight of the world’s poor, who still lack adequate clean water, food, energy, health care, and education. Still, there has been significant progress “at the bottom” in the past four decades. “During that stretch, the developing world has seen longer life expectancies, lower infant mortality rates, better access to information, communication, education, potential avenues out of poverty, quality health care, political freedoms, economic freedoms, sexual freedoms, human rights, and saved time.”

It is technology that has improved the lot of many of the world’s poor, and in Abundance, we get a quick tour of dozens of the latest exponential technologies that are poised to make serious dents in humanity’s remaining scarcity problems. There is the Lifesaver water purification system, the jerry can version of which can produce 25,000 litres of safe drinking water, enough for a family of four for three years, for only half a cent a day. There is aeroponic vertical farming—essentially a skyscraper filled with suspended plants on every floor being fed through a nutrient-rich mist—which requires 80 percent less land, 90 percent less water, and 100 percent fewer pesticides than current farming practices. There are advances that promise to make solar power more affordable and easier to store, which is going to be huge given that “[t]here is more energy in the sunlight that strikes the Earth’s surface in an hour than all the fossil energy consumed in one year.”

Stephenson’s The Diamond Age actually gets a mention in the chapter on education thanks to its depiction of what experts in artificial intelligence (AI) refer to as a “lifelong learning companion,” which has a central role to play in the novel. The Khan Academy has already shaken things up with its 2,000+ free online educational videos and two million visitors a month as of the summer of 2011. But things will be shaken up again soon enough by these AI tutors that “track learning over the course of one’s lifetime, both insuring a mastery-level education and making exquisitely personalized recommendations about what exactly a student should learn next.” With mobile telephony already sweeping the developing world and with smartphones getting cheaper and more powerful with each passing year, it won’t be long before there’s an AI tutor in every pocket.

Abundance, Freedom, and the Ultimate Resource

To sum up, in the world of the future, although there will be more humans on the planet, each one of us will be far wealthier on average than we are today. We will have more water, more food, more energy, more education, more health care, and make less of an impact on the natural environment to boot. And the healthy, educated, well-fed inhabitants of the world of tomorrow will be freer as well, no longer kept down by force of arms and blight of ignorance. We’ve already had a glimpse of what mobile phones and information technology can accomplish in last year’s Arab Spring, regardless of whether or not Egypt has made the most of the opportunity.

Not that we should be complacent, though. There are no guarantees, and any number of factors could derail us from the path we’re on. But there are powerful forces pushing us in a positive direction. The X PRIZE Foundation is doing its best to spur innovation with various prizes modelled after its initial success. Technophilanthropists like Bill Gates are also doing their part. And then there are the poor themselves, the bottom billions who are becoming the rising billions. As Diamandis and Kotler write, echoing the late Julian Simon, author of The Ultimate Resource:

[T]he greatest tool we have for tackling our grand challenges is the human mind. The information and communications revolution now underway is rapidly spreading across the planet. Over the next eight years, three billion new individuals will be coming online, joining the global conversation, and contributing to the global economy. Their ideas—ideas we’ve never before had access to—will result in new discoveries, products, and inventions that will benefit us all.

I still have a hundred pages or so to go in The Diamond Age, so I don’t know how that story turns out. But in the real world, all signs point to technology-fuelled increases in abundance and freedom in the poorest regions of the planet over the next couple of decades. Abundance encourages us to do everything we can to help those technologies develop and spread, to the benefit of the entire human race.

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.