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Fragile Reasoning in Nassim Taleb’s “Antifragile”: An Enlightenment Transhumanist Critique – Article by G. Stolyarov II

Fragile Reasoning in Nassim Taleb’s “Antifragile”: An Enlightenment Transhumanist Critique – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
January 10, 2013
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Never before have I set out to read a book with such high expectations, only to encounter such severe disappointment. As an admirer of Nassim Taleb’s earlier books, Fooled by Randomness and The Black Swan, I expected to find insight and wisdom along similar lines in Antifragile. While Taleb’s latest book does contain some valid observations and a few intriguing general strategies for living, the overwhelming thrust of the book is one of bitter distaste for modernity (and, to a significant extent, technological progress), as well as an abundance of insults for anyone who would disagree with not just with Taleb’s ideas, but with his personal esthetic preferences. While sensible in the realms of finance and (mostly) economics, Taleb’s prescriptions in other fields venture outside of his realms of mastery and, if embraced, would result in a relapse of the barbarisms of premodernity. Perhaps as the outcome of his own phenomenal success, Taleb has become set in his ways and has transitioned from offering some controversial, revolutionary, and genuinely insightful ideas to constructing a static, intolerant, totalistic worldview that rejects deviations in any field of life – and the persons who so deviate.

I am saddened to write this, but I am convinced that Nassim Taleb would find me to be personally repulsive. Not only am I a technology-embracing transhumanist ( a “neomaniac” per Taleb’s vocabulary), and a person who embraces the “nerdification” of society – but I am also an explicit representative and promoter of the legacies of the 18th-century Enlightenment – and a proud suit-and-tie wearer besides. Taleb seethes with contempt for the very trappings of modernity – even for modern formal wear – and repeatedly asserts that nothing valuable can be gleaned from those who wear neckties. As in many other areas, his conclusion-jumping pronouncements exclude the possibility of the world not fitting into his invented categories (with their associated normative spin). On the necktie question, he seems to rule out the very existence of persons like me, who wear neckties not out of any compulsion (my office dress code does not require them), but rather as an esthetic statement arising from sheer personal choice – including, not infrequently, on weekends.

After reading Antifragile, and finding so much of the content in need of a thorough refutation, I have vacillated between writing a book review and a more comprehensive treatise. A short review, I realized, would not do this book justice – but I also did not wish to run the risk of writing a refutation as long as the book itself. The result is this – one of my longest book reviews to date, but written as concisely as the subject matter allows. Here, I seek to comment on many of Taleb’s areas of focus in Antifragile, highlighting both the book’s strengths and its egregious errors.

Antifragile was one of the very few books I ever pre-ordered, as Taleb, until about a month ago, held a place among my most admired contemporary thinkers – along with such luminaries as Steven Pinker, Ray Kurzweil, Aubrey de Grey, Max More, and Ron Paul. Taleb’s writings on the fragility of the contemporary financial system were simply brilliant and highlighted the systemic weaknesses of a “house of cards” built upon highly sophisticated but over-optimized models that relied on the unrealistic stability of the status quo and the absence of extremely disruptive “black swan” events. I expected that Antifragile would discuss ways to survive and prosper in a black-swan-dominated world – a question that has been at the forefront of my mind since at least 2006, when I personally observed some “six-sigma” events on the stock market and – after reducing my losses to manageable levels – have refused to participate in that particular economy-wide casino since.  While Antifragile does provide skeletal discussions of some valuable approaches (such as the “barbell” strategy, on which I will comment more below), the majority of the book’s focus is negative: a harsh criticism of the institutions, ideas, and people whom Taleb considers insufficiently antifragile or “fragilizing”. One of Taleb’s favorite terms throughout the book is “fragilista” – used to describe financial modelers, politicians, and intellectuals of a rationalist frame of mind. The term – aside from creating vague and completely irrelevant associations with left-wing Nicaraguan terrorists – also poisons the metaphorical well with regard to the people and approaches criticized by Taleb.

More generally, the book is pervaded by an undercurrent of anti-intellectualism, mocking those who use structured, explicit knowledge to interpret the world. This is rather odd, because Taleb himself is clearly an intellectual and a “nerd” of the sort he derides; his philosophical and historical allusions – and his expertise in mathematical finance (despite his criticisms thereof) – give away that fact. Fat Tony of Brooklyn, Taleb’s fictional representative of the non-intellectual person who relies on “empirical” heuristics and is able to become rich by occasionally betting against “suckers,” would not have kept the company of people like Taleb. No matter how much rhetorical contempt Taleb shows for those who engage in abstract reasoning, he cannot escape being one of them – and no amount of insults directed at his own kind will get him an iota of respect from those whose character traits he glorifies.

An antifragile system or entity, per Taleb’s definition, is one that benefits from volatility instead of succumbing to it. Beyond mere robustness, which withstands volatility intact, antifragility is the derivation of advantage from volatility. The concept itself is an intriguing one, but Taleb makes a crucial error in assuming that most antifragility is normatively preferable. He does make an exception for “antifragility at others’ expense” – but only in a limited context. For instance, he is outraged at career intellectuals who do not have “skin in the game” and do not suffer for making wrong predictions or recommendations (more on this later) – but he explicitly praises the antifragility of biological evolution, a process that has resulted in the brutal deaths of most organisms and the extinction of about 99.9% of all species in history. Even within his premise that modernity contains “fragilizing” elements, Taleb presupposes that fragility is necessarily undesirable. Yet a beautiful vase is fragile – as is, for that matter, an individual organism. Fragility is no justification for dismissing or opposing an area of existence that has other intrinsic merits. Perhaps the proper response to certain kinds of fragility is extra care in the preservation of the fragile – as shown, for example, in the raising of children and small animals.

When Taleb argues that post-Enlightenment civilization is fragile, he may be partly right – at least in the sense that such civilization requires the steady, conscious application of human intellect to maintain. Every generation must master the scientific, technological, and ethical accomplishments of the generations before it and amplify these accomplishments; this is the essence of progress. This mastery of civilization entails precisely the “nerdification” (i.e., sophisticated, refined, self-aware intellectualism) that Taleb scorns in favor of “empirical” heuristics that may have arisen out of premodern superstition in as great (or greater) a proportion as out of practical wisdom passed down throughout the ages. Steven Pinker, whose magnum opus The Better Angels of Our Nature I would glowingly recommend (and whose work Taleb has unfairly maligned, though Pinker’s response to Taleb is worth reading), illustrates convincingly that not only peacefulness but virtually every other characteristic of civilized human beings has improved dramatically over the past several centuries – and most remarkably over the past several decades. Nothing suggests that this improvement is an inexorable law of history, however; it is possible for anti-civilizing influences to take hold and for humanity to degenerate into the barbarism that characterized much of its past. In that sense, civilization may be considered fragile – but so eminently worth preserving and expanding, for it makes possible the good life for good individuals.

Unfortunately, Taleb has included himself among the influences that would undo many of the essential gains that humanity has achieved since the 18th-century Enlightenment. Taleb repeatedly references the “wisdom of the ancients” (the stoic Seneca is his favorite) and conflates the “natural” (a term from which he excludes human design and technology) with the desirable. Taleb praises the heuristics he sees in traditional religious systems (e.g., elaborate Greek Orthodox fasting rituals) while completely overlooking the massive horrors many traditional (i.e., premodern) religious systems perpetrated when persecuting dissenters, inspiring bloody wars of conquest, and establishing totalitarian regimes when combined with secular authority. The Enlightenment brought about a conscious questioning of religious (and all authority-based) traditions and commandments and resulted in the adoption of rigorous scientific inquiry in the pursuit of discovery and innovation. Taleb is wary of modern medicine because of possible “iatrogenic” effects (where the treatment itself causes most of the harm), and he even questions the genuineness and desirability of massive rises in life expectancy during the 20th and early 21st centuries. While there is some merit to balancing the anticipated benefits and possible side effects of medical treatments – and while Taleb may be right that certain fields may take treatment too far, especially as regards overprescription of psychotropic drugs to children – Taleb’s discussion of “iatrogenics” is mostly anecdotal and reliant on studies from much earlier periods in medicine (e.g., the death of George Washington in 1799 and a study on children in 1930).  The virtual eradication of smallpox, polio, tuberculosis, cholera, and the bubonic plague from the Western world by scientific medicine are utterly ignored by Taleb – as are the substantial declines in cancer death rates over the past 50 years, and the accomplishments of the Green Agricultural Revolution in averting the starvation of billions, which would have occurred if only “natural” agricultural techniques (i.e., techniques employed before some arbitrary historical cutoff date) had been utilized.

There may be some merit to Taleb’s advice of avoiding medical treatment for minor conditions (where the iatrogenic effects of treatment allegedly predominate) and letting the body heal itself, while being willing to undertake radical treatments for extreme, life-threatening conditions. However, context in medical care matters too greatly to make sweeping generalizations. A fairly small skin lesion, which does not interfere with day-to-day functioning, may, after all, be the beginning of a deadly cancer, for which no self-healing mechanism exists. In medicine especially, the “empirical” heuristics championed by Taleb must give way to careful and systematic scientific study. After all, most premodern cultures relied on “traditional” heuristics for millennia, with disastrous results; such reliance can be called folk medicine. One only needs to consider the “traditional” Eastern “remedies” based on the superstition that one will become like the creature one eats – or “traditional” Western Medieval bleeding and surgical practices – to realize how much progress modern scientific medicine has actually made.

While a reader of Fooled by Randomness and The Black Swan might have inferred libertarian and individualist tendencies in Taleb’s writing, Antifragile, unfortunately, sets the record straight: Taleb opposes “too much” individual flourishing and freedom. He reserves his bitterest venom for transhumanism, which is the logical outcome of a libertarian society in which technological progress is given free rein. Taleb’s reverence for “nature” and “the ancients” trumps his skepticism of centralized regimentation – as his ideas on life extension and freedom of speech illustrate. He writes, “I felt some deep disgust – as would any ancient – at the efforts of ‘singularity’ thinkers (such as Ray Kurzweil) who believe in humans’ potential to live forever. Note that if I had to find the anti-me, the person with diametrically opposite ideas and lifestyle on the planet, it would be that Ray Kurzweil fellow. It is not just neomania. While I propose removing offensive elements from people’s diets (and lives), he works by adding, popping close to two hundred pills daily. Beyond that, these attempts at immortality leave me with deep moral revulsion.” Taleb says little of substance to support this “deep moral revulsion” – beyond repeating the same tired, hackneyed old arguments about “making room for others” by dying – as if the life of the individual had no inherent value and could be justifiably expended for an alleged greater good. Taleb does not address Kurzweil’s arguments about the exponential progress of computing and other technologies, and the logical extrapolation of such progress within the coming decades. In short, he says nothing about why he would consider Kurzweil to be mistaken, or what about Kurzweil’s lifestyle and ambitions he considers destructive. Taleb’s rudely expressed opposition to transhumanism seems to be primarily driven by emotional revulsion or, to be more charitable, a conflict of values. Additionally, Taleb does not seem to understand the movement that he criticizes. He assumes that extended longevity would be accompanied by extended frailty and senescence, whereas true radical life extension would only be possible if biological youth could be prolonged through periodic rejuvenation of the organism. Moreover, Taleb is, at heart, a collectivist who embraces the sacrifice of the individual to the tribe. He writes, “I am not here to live forever, as a sick animal. Recall that the antifragility of a system comes from the mortality of its components – and I am part of that larger population called humans. I am here to die a heroic death for the sake of the collective, to produce offspring (and prepare them for life and provide for them), or eventually, books – my information, that is, my genes, the antifragile in me, should be the ones seeking immortality, not me.”

The biggest disappointment I experienced when reading Antifragile was the realization I came to upon reading the above-quoted passage. This book was never about helping make the individual antifragile. The preservation of a human being in a volatile and uncertain world – and the attempt to equip a human being to flourish in the face of such volatility and uncertainty – were never Taleb’s key aims. Taleb’s views on antifragility are, indeed, not particularly helpful to me in my goal to discover strategies that would preserve, fortify, and enrich the individual in an often hostile, and, in many ways, fundamentally unpredictable world which lacks any manner of built-in justice outside of what humans, through their ingenuity and will, can implement. Taleb would have both of us (and everyone else) be sacrificed for the sake of an unspecified “collective” – as if some abstraction, be it “nature”, evolution, or “the whole”, has value in and of itself, apart from its constituent individuals. Yet it is precisely this sort of collectivism that enables inhuman atrocities, from mass executions of “the other” to suicide bombings for a “greater cause”. Taleb does not intend to advocate armed violence, but his rhetoric on heroism, “dying heroically”, and self-sacrifice eerily resembles the pronouncements of many a totalitarian regime, inquisitorial sect, or band of nationalistic or religious terrorists. The good life – the comfortable life of peace, productive work, and self-fulfillment – does not seem to be his objective.

In several sections devoted to having “doxastic commitment” or “soul in the game”, Taleb glorifies the idea of leaving no way out in the event of one’s failure – forgetting that much true learning is iterative and often occurs through a trial-and-error process. If one is not allowed to recover from failure and change one’s approach (without crippling personal cost), then this learning will be preempted, and the individual will be destroyed instead. Taleb glorifies, for instance, the poet Almutanabbi, who died senselessly in the attempt to realize the ideals about which he wrote. But it is far more impressive to live in furtherance of one’s ideals than to die for them – particularly since living requires one to reevaluate one’s views in light of emerging evidence and continual reflection.

Taleb is no more a friend of individual liberty than of technological progress. As a consequence of his view that intellectuals should have “skin in the game”, he insists that they should personally suffer the adverse consequences of their recommendations. Indeed, he would implement his scheme of penalties to the detriment of legal protections for freedom of speech. While criticizing the financial rating agencies’ misclassification of toxic assets as “AAA” securities, he remarks that “they benefit from the protection of free speech – the ‘First Amendment’ so ingrained in American habits. My humble proposal: one should say whatever he wants, but one’s portfolio needs to line up with it.” Elsewhere, Taleb proposes that individuals be held legally liable for the damage that their predictions and recommendations result in if followed by others. He ignores that not all individuals have the assets to even invest in a portfolio. Are the poor and middle class to be deprived of the ability to express their opinions or speculate about the economic future (even if such speculation is without much basis), simply because they do not have much “skin” to put into the “game”? Furthermore, establishing any legal liability for expression of opinion would have a chilling effect on legitimate and valuable ideas – since the very threat or prospect of a lawsuit may serve as a deterrent to publishing or even verbal expression in front of someone who disagrees. For someone so insistent on individual moral responsibility, Taleb ignores the responsibility of the recipient of ideas to actively judge and interpret them. Just as there exist sleazy marketers, so there exist peddlers of philosophical falsehoods, and sometimes those falsehoods result in personal gains for their advocates. Yet the responsibility of the sensible, rational individual is to filter out truth from falsehood using his own mind. No prohibition, no regime of penalties, no prior restraint can protect people from themselves. Such restrictions can only prevent people from cultivating the habits of autonomous thought which are the surest safeguards against charlatans and demagogues of every stripe. Taleb is too concerned about punishing the false prophets, and insufficiently concerned about elevating the general level of reasoning and discourse by means of positive persuasion, dissemination of true information, and technological innovation that alters people’s incentives and the balance of power.

Taleb even departs from the libertarian advocacy of free trade and (genuine) globalization. While he acknowledges the theoretical validity of some specialization and the law of comparative advantage, he sees the global division of labor as vulnerable to volatility in the system. He argues that a change in conditions in one part of the world now has a far greater ability to adversely impact all other parts of the world – because the division of labor is so finely tuned. This is a fair argument for redundancy in economic systems – e.g., having “backup” institutions which could supply a good or service if the original supplier is unavailable due to an unexpected disruption. However, Taleb errs when assuming that businesses pursuing their rational self-interests under a truly free arrangement of global commerce would not already attempt to implement such redundancies. Supply-chain risk, for instance, is commonly discussed by representatives of multinational businesses and their insurers, who have a stake in preventing supply disruptions. Overreliance on any one economic partnership may indeed be imprudent – but does Taleb believe that businessmen with true “skin in the game” – billions of their own dollars – would be oblivious to the need for redundancy? Taleb makes no case for why free trade – in essence, the voluntary exchange of goods and services among individuals without regard for national origins or boundaries – would create a systemic lack of redundancy. A stronger argument could be made for how the current politicized environment of trade – a mixture of freedom and elaborate controls achieved by means of treaties and retaliatory protectionism – would produce insufficient redundancy and overdependence on those precious channels of international trade that remain permitted. But the solution to this problem would be more options – more channels for foreign trade – not fewer. Autarky certainly will not do, as it brings about its own massive vulnerabilities. One only need consider the consequences of a famine in a region which is not allowed to import food from abroad. Trade creates redundancy by allowing access to goods and services from all over the world, instead of just one minor segment thereof.

The nonlinear responses to volatility described in Antifragile are valid in principle. A system responds in a concave fashion if the harm to the system from a change in conditions is more than linear relative to that change (i.e., an accelerating harm). A system responds in a convex fashion if it is able to reap benefits from volatility in a more-than-linear accumulation. Taleb proposes that it is possible for certain systems to be concave or convex in both directions – being harmed by or benefiting from a shift in conditions either way. It is also possible for systems to be convex over some regions of inputs, and concave over others – e.g., a human immune system or a body engaging in exercise. Taleb does not, however, provide many tools to actually determine the inflection points within any particular system. Although he praises “empirical” heuristics for doing so – especially heuristics passed down through the ages – he provides absolutely no support to conclude that those heuristics do not overshoot the desirable levels of any given characteristics. To use the example he provides of religious fasting customs, even if one can be generous and suppose some benefit to the fasting (of which I am not altogether convinced), what evidence is there that the specific schedule and duration of fasts is optimal? Could not scientific investigation uncover a better way, and explain its workings in a rational, evidence-based manner, without recourse to superstition or ancestral hand-waving?  Furthermore, Taleb does not consider that the “wisdom of the ancients” may not have developed through the careful evolutionary process he describes – but rather comes to us as a warped reflection of some very recent generation’s interpretation of ancient practices – which themselves were altered by numerous political authorities, ideological movements, and idiosyncratic historical events in order to fulfill some very context-specific (and not necessarily virtuous or life-affirming) aim. To get a sense of how this has happened to distort prevailing conceptions of the past, one needs only to consider the early history of Christianity – where doctrine was often promoted or suppressed based on the temporal interest of Roman and Byzantine emperors and their officials – or the extensive revisionism performed by the 19th-century Romantics with regard to the Middle Ages. Taleb himself romanticizes antiquity (including the ancient Middle East), overlooking the incessant wars, disease, filth, vulgarity, persecution, and ideological totalism that characterized many pre-Enlightenment societies (e.g., the totalitarianism of Ancient Sparta or Calvin’s Geneva – which made even the USSR seem like a paragon of liberty and progress by comparison).

Taleb’s contempt for wealth, and praise for attitudes that part with wealth lightly, betray the fact that he has never been in danger of losing his material comfort. Growing up in a prosperous , respected, and intellectual Lebanese family, Taleb moved to the United States and made a fortune as a trader, which he later magnified by selling his books. If he expresses contempt for the material well-being he sees around him, and a nostalgic longing for an idealized past, it is because he cannot truly envision what premodernity was actually like. Perhaps, because he greatly underrates the transformative effects of technological progress, Taleb’s image of premodernity is of a slightly rustic incarnation of our present world – except one in which people mostly avoid doctors and editors, walk on rocky landscapes in foot-shaped shoes, eat “paleo” diets, quote from Seneca’s dialogues, and occasionally engage in bloody contests over fine points of poetry, philosophy, and theology – just to show how much “skin in the game” they have with regard to their beliefs. Taleb neglects the possibility that only recently has life become remotely comfortable and quasi-meritocratic, while premodernity was a mostly uninterrupted stretch of miseries, cruelties, superstitions, prejudicial hatreds, and filth (punctuated by a few refined characters like Aristotle – whom Taleb maligns – and Seneca – people who were remarkable for their time and are remembered precisely because they stood out so far above their contemporaries). A small elite has always been super-wealthy (by the standards of their time) in every era and in every society, but it is an all-too-common mistake to imagine oneself in the position of a historical member of the elite (e.g., someone who would have read Seneca, or Seneca himself) rather than a common peasant or slave – which is the far more probable fate for a randomly chosen premodern person. The casual dismissal of wealth as not particularly important would not have been articulated by people toiling from sunrise to sunset in order to grow crops for their feudal overlords and be given a small fraction of the resulting harvest in order not to starve. Nor is this attitude particularly helpful to people who might have been interested in cultivating personal antifragility so as to prevent themselves from becoming poor.

The most useful personal advice in Antifragile concerns the so-called “barbell strategy” for minimizing the downside of volatility while benefiting from the upside. The strategy involves putting most of one’s resources into an ultra-safe, ultra-conservative course of action, while devoting the rest to a diversified speculation, but in such a manner that the entire speculative amount can be lost without significant harm. An example of this approach would be keeping 90% of one’s money as cash or gold, and investing the remaining 10% into five different startup companies; each startup firm could fail – and many do – but it is also possible for a startup company to succeed tremendously and bring orders of magnitude of profit. If all the startup firms fail, then one has had a 10% loss – but this does not have to be ruinous if one is not hyper-leveraged. Taleb is also correct about the highly fragilizing effects of debt and recommends avoidance of indebtedness where possible. This is sound advice, greatly needed in a country where everything from everyday consumption to the purchase of big-ticket items to intangible “investments” such as formal education is often purchased on credit. Debt introduces fragility by amplifying the financial pain of volatility. A marginal drop in income could be endured by a debt-free person with savings, but would result in a leveraged person losing everything. Taleb’s advice here may not always be perfectly realizable – as not every person can afford to invest any percentage of his assets with the ability to continue living well if those assets were lost. Furthermore, mortgage debt is extremely difficult to avoid for a person without sizable initial wealth; other debt, however, is generally avoidable.

While Antifragile has some virtues, Taleb should not have dismissed or derided his editors. If carefully confined to the realms of finance and economics, Antifragile might have been an illuminating and positive book on net. As matters stand, however, Taleb has managed to gratuitously insult practically everybody who might have been sympathetic to his previously articulated views – including the libertarians, transhumanists, and rationalist natural-law thinkers who would have found much to agree with in Fooled by Randomness and The Black Swan. Taleb even classifies Friedrich Hayek among the rationalists whom he dismisses: “We may be drawn to think that Friedrich Hayek would be in that antifragile, antirationalist category. […] But Hayek missed the notion of optionality as a substitute for the social planner. In a way, he believed in intelligence, but as a distributed or collective intelligence – not in optionality as a replacement for intelligence. […] Finally, John Gray, the contemporary political philosopher and essayist who stands against human hubris and has been fighting the prevailing ideas that the Enlightenment is a panacea – treating a certain category of thinkers as Enlightenment fundamentalists. […] Gray worked in an office next to Hayek and told me that Hayek was quite a dull fellow, lacking playfulness – hence optionality.” And there was the gratuitous insult again. Very well. We Enlightenment rationalists and technoprogressives will be happy to accept Hayek as one of us – along with Socrates, Aristotle, and Ayn Rand (for whose fan Taleb should not be mistaken, as he tells us in a footnote). Taleb can have Seneca, Almutanabbi, John Gray, and Fat Tony. We remain in good company without them.

Review of Gary Wolfram’s “A Capitalist Manifesto” – Article by G. Stolyarov II

Review of Gary Wolfram’s “A Capitalist Manifesto” – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
January 5, 2013
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While Dr. Gary Wolfram’s A Capitalist Manifesto is more an introduction to economics and economic history than a manifesto, it communicates economic concepts in a clear and entertaining manner and does so from a market-friendly point of view. Wolfram’s strengths as an educator stand out in this book, which could serve as an excellent text for teaching basic microeconomics and political economy to all audiences. Wolfram is a professor of economics at Hillsdale College, whose course in public-choice economics I attended. The book’s narration greatly resembles my experience of Wolfram’s classroom teaching, which focuses on the essence of an idea and its real-world relevance and applications, often utilizing entertaining concrete examples.

The book begins with several chapters on introductory microeconomics – marginal analysis, supply, demand, market equilibrium, opportunity cost, and the effects of policies that artificially prevent markets from clearing. The middle of the book focuses on economic history and political economy – commenting on the development of Western markets from the autarkic, manorial system of the feudal Middle Ages, through the rise of commerce during the Early Modern period, the Industrial Revolution, the emergence of corporations, and the rise in the 20th century of economic regimentation by national governments. One of the strengths of this book is its treatment of the benefits of free trade, from its role in progress throughout history to the theoretical groundwork of Ricardian comparative advantage. Enlightening discussions of constitutionalism and the classical idea of negative liberty are also provided. Wolfram introduces the insights of Ludwig von Mises regarding the infeasibility of central planning in solving the problem of economic calculation, as well as Friedrich Hayek’s famous “knowledge problem” – the dispersion of information among all the individuals in an economy and the impossibility of a central planner assembling all the information needed to make appropriate decisions. Wolfram further articulates the key insights of Frederic Bastiat: the seen versus the unseen in economic policy, the perils of coercive redistribution of wealth, the immorality of using the law to commit acts which would have been unacceptable if done by private individuals acting alone, and the perverse incentives created by a system where the government is able to dispense special privileges to a select few.

The latter third of the book focuses on such areas as money, inflation, and macroeconomics – including an exposition of the Keynesian model and its assumptions. Wolfram is able to explain Keynesian economics in a more coherent and understandable manner than most Keynesians; he thoroughly understands the theories he critiques, and he presents them with fairness and objectivity. I do, however, wish that the book had delved more thoroughly into a critique of Keynesianism. The discussion therein of the Keynesian model’s questionable assumptions is a good start, and perhaps a gateway to more comprehensive critiques, such as those of Murray Rothbard and Robert Murphy. A layperson reading A Capitalist Manifesto would be able to come out with a fundamental understanding of Keynes’s central idea and its assumptions – but he would not, solely as a result of this book, necessarily be able to refute the arguments of Keynes’s contemporary followers, such as Joseph Stiglitz and Paul Krugman. Wolfram mentions critiques of Keynesianism by Milton Friedman and the monetarist school, the concept of rational expectations precipitating a move away from Keynesianism in the late 1970s, and the “supply-side” interpretations of the Keynesian model from the 1980s. However, those viewpoints are not discussed in the same level of detail as the basic Keynesian model.

More generally, my only significant critique of A Capitalist Manifesto is that it is too brief in certain respects. It offers promising introductions to a variety of economic ideas, but leaves some significant questions arising from those areas unanswered. Wolfram introduces the history and function of the corporation but does not discuss the principal-agent problem in large, publicly traded firms with highly dispersed ownership. To anticipate and answer (and perhaps partially acknowledge the validity of) criticisms of the contemporary corporate form of organization, commentary on how this problem might be overcome is essential. Wolfram explains the components and computation of Gross Domestic Product and the Consumer Price Index but devotes only a small discussion to critiques of these measures – critiques that are particularly relevant in an electronic age, when an increasing proportion of valuable content – from art to music to writing to games – is delivered online at no monetary cost to the final consumer. How can economic output and inflation be measured and meaningfully interpreted in an economy characterized partially by traditional money-for-goods/services transactions and partially by the “free” content model that is funded through external sources (e.g., donations or the creators’ independent income and wealth)? Moreover, does Wolfram’s statement that the absence of profit (sufficient to cover the opportunity cost) would result in the eventual decline of an enterprise need to be qualified to account for new models of delivering content? For instance, if an individual or firm uses one income stream to support a different activity that is not itself revenue- or profit-generating, there is a possibility for this arrangement to be sustainable in the long term if it is also justified by perceived non-monetary value.

Wolfram’s discussion of inflation is correct and forms a strong link between inflation and the quantity of money (government-issued fiat money these days) – but I would have wished to see a more thorough focus on Ludwig von Mises’s insight that new money does not enter the economy to equally raise everybody’s incomes simultaneously; rather, the distortion due to inflation comes precisely from the fact that some (the politically favored) receive the new money and can benefit from using it while prices have not yet fully adjusted. (This can be logically inferred from Wolfram’s discussion of some of the “tools” of the Federal Reserve, which directly affect the incomes of politically connected banks – but I wish the connection to Mises’s insight had been made more explicit.) Wolfram does mention that inflation can be a convenient tool for national governments to reduce their debt burdens, and he also discusses the inflationary role of fractional-reserve banking and “tools” available to central banks such as the Federal Reserve. However, Wolfram’s proposed solutions to the problems of inflation remain unclear from the text. Does he support Milton Friedman’s proposal for a fixed rate of growth in the fiat-money supply, or does he advocate a return to a classical gold standard – or perhaps to a system of market-originated competing currencies, as proposed by Hayek? It would also have been interesting to read Wolfram’s thoughts on the prospects and viability of peer-to-peer and digital currencies, such as Bitcoin, and whether these could mitigate some of the deleterious effects of central-bank-generated inflation.

Wolfram does discuss in some detail the sometimes non-meritocratic outcomes of markets – stating, for instance, that “boxers may make millions of dollars while poets make very little.” Indeed, it is possible to produce far more extreme comparisons of this sort – e.g., a popular “star” with no talent or sense earning millions of dollars for recording-studio-hackneyed “music” while genuinely talented classical musicians and composers might earn relatively little, or even have their own work remain a personal hobby pursued for enjoyment alone. To some critics of markets, this may well be the reason to oppose them and seek some manner of non-market compensation for people of merit. For a defender of the unhampered market economy, a crucial endeavor should be to demonstrate that truly free markets (unlike the heavily politicized markets of our time) can tend toward meritocracy in the long run, or at least offer people of merit a much greater range of possibilities for success than exists under any other system. Another possible avenue of exploration might be the manner in which a highly regimented political system (especially in the areas of education) might result in a “dumbed-down” culture which neglects and sometimes outright opposes intellectual and esthetic sophistication and the ethic of personal productivity which is indispensable to a culture that prizes merit. Furthermore, defenders of markets should continually seek out ways to make the existing society more meritocratic, even in the face of systemic distortions of outcomes. Technology and competition – both of which Wolfram correctly praises – should be utilized by liberty-friendly entrepreneurs to provide more opportunities for talented individuals to demonstrate their value and be rewarded thereby.

Wolfram’s engaging style and many valid and enlightening insights led me to desire more along the same lines from him. Perhaps A Capitalist Manifesto will inspire other readers to ask similar questions and seek more market-friendly answers. Wolfram provides a glossary of common economic terms and famous historical figures, as well as some helpful references to economic classics within the endnotes of each chapter.  A Capitalist Manifesto will have its most powerful impact if readers see it as the beginning of their intellectual journey and utilize the gateways it offers to other writings in economics and political economy.

Disclosure: I received a free copy of the book for the purposes of creating a review.

Philosophy Lives – Contra Stephen Hawking – Video by G. Stolyarov II

Philosophy Lives – Contra Stephen Hawking – Video by G. Stolyarov II

Mr. Stolyarov’s refutation of Stephen Hawking’s statement that “philosophy is dead.”

In his 2010 book The Grand Design, cosmologist and theoretical physicist Stephen Hawking writes that science has displaced philosophy in the enterprise of discovering truth. While I have great respect for Hawking both in his capacities as a physicist and in his personal qualities — his advocacy of technological progress and his determination and drive to achieve in spite of his debilitating illness — the assertion that the physical sciences can wholly replace philosophy is mistaken. Not only is philosophy able to address questions outside the scope of the physical sciences, but the coherence and validity of scientific approaches itself rests on a philosophical foundation that was not always taken for granted — and still is not in many circles.

References
– “Philosophy Lives – Contra Stephen Hawking” – Essay by G. Stolyarov II
– “The Grand Design (book)” – Wikipedia
– “Stephen Hawking” – Wikipedia

Against Gun Control, Media Sensationalism, and Political Exploitation of Sandy Hook – Video by G. Stolyarov II

Against Gun Control, Media Sensationalism, and Political Exploitation of Sandy Hook – Video by G. Stolyarov II

A senseless tragedy should not be used to justify the deprivation of the liberties of millions of innocent people. Media sensationalism, oriented toward jarring negative events – as well as ulterior political agendas – have utilized the tragic Sandy Hook massacre to justify proposals that damage innocent people and do not solve any problems. From gun control to religious fundamentalism to attacks on video games and gamers – the Sandy Hook tragedy, because of the irrational climate of public opinion it has invited, has the potential to damage even more innocent lives.

References
– “Crime in the United States” – Wikipedia
– “Mike Huckabee Explains Bizarre Claim That God’s Absence From Sandy Hook Led To Massacre” – The Huffington Post – December 17, 2012

Philosophy Lives – Contra Stephen Hawking – Article by G. Stolyarov II

Philosophy Lives – Contra Stephen Hawking – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
January 1, 2013
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In his 2010 book The Grand Design, cosmologist and theoretical physicist Stephen Hawking writes that science has displaced philosophy in the enterprise of discovering truth. While I have great respect for Hawking both in his capacities as a physicist and in his personal qualities – his advocacy of technological progress and his determination and drive to achieve in spite of his debilitating illness – the assertion that the physical sciences can wholly replace philosophy is mistaken. Not only is philosophy able to address questions outside the scope of the physical sciences, but the coherence and validity of scientific approaches itself rests on a philosophical foundation that was not always taken for granted – and still is not in many circles.

Hawking writes, “Living in this vast world that is by turns kind and cruel, and gazing at the immense heavens above, people have always asked a multitude of questions: How can we understand the world in which we find ourselves? How does the universe behave? What is the nature of reality? Where did all this come from? Did the universe need a creator? Most of us do not spend most of our time worrying about these questions, but almost all of us worry about them some of the time. Traditionally these are questions for philosophy, but philosophy is dead. Philosophy has not kept up with modern developments in science, particularly physics. Scientists have become the bearers of the torch of discovery in our quest for knowledge.

I hesitate to speculate why Hawking considers philosophy to be “dead” – but perhaps this view partly arises from frustration at the non-reality-oriented teachings of many postmodernist philosophers who still prevail in many academic and journalistic circles. Surely, those who deny the comprehensibility of reality and allege that it is entirely a societal construction do not aid in the quest for discovery and understanding of what really exists. Likewise, our knowledge cannot be enhanced by those who deny that there exist systematic and specific methods that are graspable by human reason and that can be harnessed for the purposes of discovery. It is saddening indeed that prominent philosophical figures have embraced anti-realist positions in metaphysics and anti-rational, anti-empirical positions in epistemology. Physicists, in their everyday practice, necessarily rely on external observational evidence and on logical deductions from the empirical data. In this way, and to the extent that they provide valid explanations of natural phenomena, they are surely more reality-oriented than most postmodernist philosophers. Yet philosophy does not need to be this way – and, indeed, philosophical schools of thought throughout history and in the present day are not only compatible with the scientific approach to reality, but indispensable to it.

Contrary to the pronouncements of prominent postmodernists, a venerable strain of thought – dating back to at least Aristotle and extending all the way to today’s transhumanists, Objectivists, and natural-law thinkers – holds that an objective reality exists, that it can be understood through systematic observation and reason, and that its understanding should be pursued by all of us. This is the philosophical strain responsible for the accomplishments of Classical Antiquity and the progress made during the Renaissance, the Enlightenment, the Industrial Revolution, and the Information Revolution. While such philosophy is not the same as the physical sciences, the physical sciences rely on it to the extent that they embrace the approach known as the scientific method, which itself rests on philosophical premises. These premises include the existence of an external reality independent of the wishes and imagination of any observer, the existence of a definite identity of any given entity at any given time, the reliance on identical conditions producing identical outcomes, the principles of causation and non-contradiction, and the ability of human beings to systematically alter outcomes in the physical world by understanding its workings and modifying physical systems accordingly. This latter principle – that, in Francis Bacon’s words, “Nature, to be commanded, must be obeyed” – was the starting point for the Scientific Revolution of the 17th Century, which inaugurated subsequent massive advances in technology, standards of living, and human understanding of the universe.  Even those scientists who do not acknowledge or explicitly reject the importance of philosophy nonetheless implicitly rely on these premises in the very conduct of their scientific work – to the extent that such work accurately describes reality. These premises are not the only ones possible – but they are the only ones that are fully right. Alternatives – including reliance on alleged supernatural revelation, wishful thinking, and unconditional deference to authority – have been tried time and again, only to result in stagnation and mental traps that prevented substantive improvements to the human condition.

But there is more. Not only are the physical sciences without a foundation if philosophy is to be ignored, but the very reason for pursuing them remains unaddressed without the branch of philosophy that focuses on what we ought to do: ethics. Contrary to those who would posit an insurmountable “is-ought” gap, ethics can indeed be derived from the facts of reality, but not solely by the tools of physics, chemistry, biology, or any others of the “hard” physical sciences. An additional element is required: the fact that we ourselves exist as rational, conscious beings, who are capable of introspection and of analysis of external data. From the physical sciences we can derive ways to sustain and improve our material well-being – sometimes our very survival. But only ethics can tell us that we ought to pursue such survival – a conclusion we reach through introspection and logical reasoning. No experiment, no test is needed to tell us that we ought to keep living. This conclusion arises as antecedent to a consistent pursuit of any action at all; to achieve any goal, we must be alive. To pursue death, the opposite of life, contradicts the very notion of acting, which has life as a prerequisite.  Once we have accepted that premise, an entire system of logical deductions follows with regard to how we ought to approach the external world – the pursuit of knowledge, interactions with others, improvement of living conditions, protection against danger. The physical sciences can provide many of the empirical data and regularities needed to assess alternative ways of living and to develop optimal solutions to human challenges. But ethics is needed to keep the goals of scientific study in mind. The goals should ultimately relate to ways to enhance human well-being. If the pursuit of human well-being – consistent with the imperative of each individual to continue living – is abandoned, then the physical sciences alone cannot provide adequate guidance. Indeed, they can be utilized to produce horrors – as the development of nuclear weapons in the 20th century exemplified. Geopolitical considerations of coercive power and nationalism were permitted to overshadow humanistic considerations of life and peace, and hundreds of thousands of innocents perished due to a massive government-sponsored science project, while the fate of human civilization hung in the balance for over four decades.

The questions cited by Hawking are indeed philosophical questions, at least in part. Aspects of these questions, while they are broadly reliant on the existence of an objective reality, do not require specific experiments to answer. Rather, like many of the everyday questions of our existence, they rely only on the ubiquitous inputs of our day-to-day experience, generalized within our minds and formulated as starting premises for a logical deductive process. The question “How can we understand the world in which we find ourselves? has different answers based on the realm of focus and endeavor. Are we looking to understand the function of a mechanism, or the origin of a star? Different tools are required for each, but systematic experimentation and observation would be required in each case. This is an opening for the physical sciences and the scientific method. There are, however, ubiquitous observations about our everyday world that can be used as inputs into our decision-making – a process we engage in regularly as we navigate a room, eat a meal, engage in conversation or deliberation, or transport any object whatsoever. Simply as a byproduct of routine living, these observations provide us with ample data for a series of logical deductions and inferences which do not strictly belong to any scientific branch, even though specific parts of our world could be better understood from closer scientific observation.

The questionHow does the universe behave?actually arises in part from a philosophical presupposition that “the universe” is a single entity with any sort of coordinated behavior whatsoever. An alternative view – which I hold – is that the word “universe” is simply convenient mental shorthand for describing the totality of every single entity that exists, in lieu of actually enumerating them all. Thus, while each entity has its own definite nature, “the universe” may not have a single nature or behavior. Perhaps a more accurate framing of that question would be, “What attributes or behaviors are common to all entities that exist?” To answer that question, a combination of ubiquitous observation and scientific experimentation is required. Ubiquitous observation tells us that all entities are material, but only scientific experimentation can tell us what the “building blocks” of matter are. Philosophy alone cannot recommend any model of the atom or of subatomic particles, among multiple competing non-contradictory models. Philosophy can, however, rightly serve to check the logical coherence of any particular model and to reject erroneous interpretations of data which produce internally contradictory answers. Such rejection does not mean that the data are inaccurate, or even that a particular scientific theory cannot predict the behavior of entities – but rather that any verbal understanding of the accurate data and predictive models should also be consistent with logic, causation, and everyday human experience. At the very least, if a coherent verbal understanding is beyond our best efforts at present, philosophy should be vigilant against the promulgation of incoherent verbal understandings. It is better to leave certain scientific models as systems of mathematical equations, uncommented on, than to posit evidently false interpretations that undermine laypeople’s view of the validity of our very existence and reasoning.

After all – to return to the ethical purpose of science – one major goal of scientific inquiry is to understand and explain the world we live in and experience on a daily basis. If any scientific model is said to result in the conclusion that our world does not ‘really’ exist or that our entire experience is illusory (rather than just occasional quirks in our biology, such as those which produce optical illusions, misleading us, in an avoidable manner, under specific unusual circumstances), then it is the philosophical articulation of that model that is flawed. The model itself may be retained in another form – such as mathematical notation – that can be used to predict and study phenomena which continue to defy verbal understanding, with the hope that someday a satisfactory verbal understanding will be attained. Without this philosophic vigilance, scientific breakthroughs may be abused by charlatans for the purpose of misleading people into ruining their lives. As a prominent example of this, multiple strains of mysticism have arisen out of bad philosophical interpretations of quantum mechanics – for instance, the belief, articulated in such pseudo-self-help books as The Secret, that people can mold reality with their thoughts alone and that, instead of working hard and thinking rationally, they can become immensely wealthy and cure themselves of cancer just by wanting it enough. Without a rigorous philosophical defense of reason and objective reality, either by scientists themselves or by their philosopher allies, this mystical nonsense will render scientific enterprises increasingly misunderstood by and isolated from large segments of the public, who will become increasingly superstitious, anti-intellectual, and reliant on wishful thinking.

The question “What is the nature of reality?” is a partly philosophical and partly scientific one. The philosophical dimension – metaphysics – is needed to posit that an objective, understandable reality exists at all. The scientific dimension comes into play in comprehending specific real entities, from stars to biological organisms – relying on the axioms and derivations of metaphysics for the experimental study of such entities to even make sense or promise to produce reliable results. Philosophy cannot tell you what the biological structure of a given organism is like, but it can tell you that there is one, and that praying or wishing really hard to understand it will not reveal its identity to you. Philosophy can also tell you that, in the absence of external conditions that would dramatically affect that biological structure, it will not magically change into a dramatically different structure.

The questions “Where did all this come from? Did the universe need a creator?” are scientific only to a point. When exploring the origin of a particular planet or star – or of life on Earth – they are perfectly amenable to experimentation and to extrapolation from historical evidence. Hence, the birth of the solar system, abiogenesis, and biological evolution are all appropriate subjects of study for the hard sciences. Moreover, scientific study can address the question of whether a particular object needed to have a creator and can, for instance, conclude that a mechanical watch needed to have a watchmaker, but no analogous maker needed to exist to bring about the structure of a complex biological organism. However, if the question arises as to whether existence itself had an origin or needed a creator, this is a matter for philosophy. Indeed, rational philosophy can point out the contradiction in the view that existence itself could ever not have existed, or that a creator outside of existence (and, by definition, non-existent at that time) could have brought existence into being.

Interestingly enough, Hawking comes to a similar conclusion – that cosmological history can be understood by a model that not include a sentient creator. I am glad that Hawking holds this view, but this specific conclusion does not require theoretical or experimental physics to validate; it simply requires a coherent understanding of terms such as “existence”, “universe”, and “creator”. Causation and non-contradiction both preclude the possibility of any ex nihilo creation. As for the question of whether there exist beings capable of vast cosmic manipulations and even the design of life forms – that is an empirical matter. Perhaps someday such beings will be discovered; perhaps someday humans will themselves become such beings through mastery of science and technology. The first steps have already been taken – for instance, with Craig Venter’s design of a synthetic living bacterium. Ethics suggests to me that this mastery of life is a worthwhile goal and that its proponents – transhumanists – should work to persuade those philosophers and laypeople who disagree.

More constructive dialogue between rational scientists and rational philosophers is in order, for the benefit of both disciplines. Philosophy can serve as a check on erroneous verbal interpretations of scientific discoveries, as well as an ethical guide for the beneficial application of those discoveries. Science can serve to provide observations and regularities which assist in the achievement of philosophically motivated goals. Furthermore, science can serve to disconfirm erroneous philosophical positions, in cases where philosophy ventures too far into specific empirical predictions which experimentation and targeted observation might falsify. To advance such fruitful interactions, it is certainly not productive to proclaim that one discipline or another is “dead”. I will be the first to admit that contemporary philosophy, especially of the kind that enjoys high academic prestige, is badly in need of reform. But such reform is only possible after widespread acknowledgment that philosophy does have a legitimate and significant role, and that it can do a much better job in fulfilling it.

Non-Apocalypse, Existential Risk, and Why Humanity Will Prevail – Video by G. Stolyarov II

Non-Apocalypse, Existential Risk, and Why Humanity Will Prevail – Video by G. Stolyarov II

Doomsday predictions are not only silly but bring about harmful ways of approaching life and the world. Mr. Stolyarov expresses his view that there will never be an end of the world, an end of humanity, or an end of civilization. While some genuine existential risks do exist, most of them are not man-made, and even the man-made risks are largely in the past.

References

– “Transhumanism and the 2nd Law of Thermodynamics” – Video by G. Stolyarov II

Iterative Learning versus the Student-Debt Trap – Video by G. Stolyarov II

Iterative Learning versus the Student-Debt Trap – Video by G. Stolyarov II

Mr. Stolyarov explains why the structure of formal schooling does not teach the ways in which real achievements are attained. The worst obstacle to true, iterative learning is student debt that locks people into a particular path for most of their lives.

References
– “Iterative Learning versus the Student-Debt Trap” – Essay by G. Stolyarov II – The Rational Argumentator. This essay was originally published on the as a guest post on the “Education Bubble and Scam Report” website.
– “Reasons Not to Pursue a PhD” – Video by G. Stolyarov II
– “Advice for Most Recent High-School and College Graduates” – Video by G. Stolyarov II
– “Commonly Misunderstood Concepts: Education” – Video by G. Stolyarov II

“What Did Not Have To Be” – Science-Fiction Short Story By Mr. Stolyarov, Published on Transhumanity.net

“What Did Not Have To Be” – Science-Fiction Short Story By Mr. Stolyarov, Published on Transhumanity.net

My new short science-fiction story, “What Did Not Have to Be”, has been published an entry in Transhumanity.net’s 2033 Immortality Fiction Contest. The short story focuses on indefinite life extension and those who resist it. I invite you to read it and offer your thoughts.

Winners of the contest will be announced on January 10, 2013. I applaud Transhumanity.net’s efforts to promote the cause of indefinite life extension by encouraging the writing of fiction on the topic.

Iterative Learning versus the Student-Debt Trap – Article by G. Stolyarov II

Iterative Learning versus the Student-Debt Trap – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
December 18, 2012
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This article was originally published as a guest post on the “Education Bubble and Scam Report” website.
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Contemporary formal schooling inculcates a counterproductive and often stressful fallacy into millions of young people – particularly the best and brightest. The fallacy, which undermines the lives of many, is that, when it comes to learning, productivity, and achievement, you have to get it absolutely right the first time. Consider how grades are assigned in school. You complete an assignment or sit for a test – and if your work product is deficient in the teacher’s eyes, or you answer some questions incorrectly, your grade suffers. It does not matter if you learn from your mistakes afterward; the grade cannot be undone. The best you can do is hope that, on future assignments and tests, you do well enough that your average grade will remain sufficiently high. If it does not – if it takes you longer than usual to learn the material – then a poor grade will be a permanent blot on your academic record, if you care about such records. If you are below the age of majority and prohibited from owning substantial property or working for a living, grades may be a major measure of achievement in your eyes. Too many hits to your grades might discourage you or lead you to think that your future prospects are not as bright as you would wish.
***
But this is not how the real world works. This is not how learning works. This is not how great achievements are attained. It took me years to figure this out. I was one of those students who insisted on always attaining the highest grades in everything. I graduated first in my class in high school (while taking honors and Advanced Placement courses whenever they were offered) and second in college – with three majors. In high school especially, I sometimes found the grading criteria to be rather arbitrary and subjective, but I spent considerable time preparing my work and myself to meet them. While I did engage in prolific learning during my high-school years, the majority of that learning occurred outside the scope of my classes and was the result of self-study using books and the Internet. Unfortunately, my autonomous learning endeavors needed to be crammed into the precious little free time I had, because most of my time was occupied by attempting to conform my schoolwork to the demanding and often unforgiving expectations that needed to be met in order to earn the highest grades. I succeeded at that – but only through living by a regimen that would have been unsustainable in the long term: little sleep, little leisure, constant tension, and apprehension about the possibility of a single academic misstep. Yet now I realize that, whether I had succeeded or failed at the game of perfect grades, my post-academic achievements would have probably been unaffected.
***
How does real learning occur? It is not an all-or-nothing game. It is not about trying some task once and advancing if you succeed, or being shamed and despondent if you do not. Real learning is an iterative process. By a multitude of repetitions and attempts – each aiming to master the subject or make progress on a goal – one gradually learns what works and what does not, what is true and what is false. In many areas of life, the first principles are not immediately apparent or even known by anybody. The solution to a problem in those areas, instead of emerging by a straightforward (if sometimes time-consuming) deductive process from those first principles, can only be arrived at by induction, trial and error, and periodic adjustment to changing circumstances. Failure is an expected part of learning how to approach these areas, and no learning would occur in them if every failure were punished with either material deprivation or social condemnation.
***
Of course, not all failures are of the same sort. A failure to solve a math problem, while heavily penalized in school, is not at all detrimental in the real world. If you need to solve the problem, you just try, try again – as long as you recognize the difference between success and failure and have the free time and material comfort to make the attempts. On the other hand, a failure to yield to oncoming traffic when making a left turn could be irreversible and devastating. The key in approaching failure is to distinguish between safe failure and dangerous failure. A safe failure is one that allows numerous other iterations to get to the correct answer, behavior, or goal. A dangerous failure is one that closes doors, removes opportunities, and – worst of all – damages life. Learning occurs best when you can fail hundreds, even thousands, of times in rapid succession – at no harm or minimal harm to yourself and others. In such situations, failure is to be welcomed as a step along the way to success. On the other hand, if a failure can take away years of your life – either by shortening your life or wasting colossal amounts of time – then the very approach that might result in the failure should be avoided, unless there is no other way to achieve comparable goals. As a general principle, it is not the possibility of success or failure one should evaluate when choosing one’s pursuits, but rather the consequences of failure if it occurs.
***
Many contemporary societal institutions, unfortunately, are structured in a manner hostile to iterative learning. They rather encourage “all-in” investment into one or a few lines of endeavor – with uncertain success and devastating material and emotional consequences of failure. These institutions do not give second chances, except at considerable cost, and sometimes do not even give first chances because of protectionist barriers to entry. Higher education especially is pervaded by this problem.
***
At a cost of tens of thousands of dollars per year, college is an enormous bet. Many think that, by choosing the right major and the right courses of study within it, they could greatly increase their future earning potential. For some, this works out – though they are a diminishing fraction of college students. If a major turns out not to be remunerative, there may be some satisfaction from having learned the material, and this may be fine – as long as it is understood that this is a costly satisfaction indeed. Some will switch majors during their time in college, but this is often in itself an extremely expensive decision, as it prolongs the time over which one must pay tuition. For those who can afford either non-remunerative or serial college majors out of pocket, there is the opportunity cost of their time – but that is not the worst that can happen.
***
The worst fate certainly befalls those who finance their college education through student debt. This was a fate I happily avoided. I graduated college without having undertaken a penny of debt – ever – largely as a result of merit scholarships (and my choice of an institution that gave merit scholarships – a rarity these days). Millions of my contemporaries, however, are not so fortunate. For years hereafter, they will bear a recurring financial burden that will restrict their opportunities and push them along certain often stressful and unsustainable paths in life.
***
Student debt is the great disruptor of iterative learning. Such debt is assumed on the basis of the tremendously failure-prone expectation of a certain future monetary return capable of paying off the debt. Especially in post-2008 Western economies, this expectation is unfounded – no matter who one is or how knowledgeable, accomplished, or productive one might be. Well-paying jobs are hard to come by; well-paying jobs in one’s own field of study are even scarcer. The field narrows further when one considers that employment should not only be remunerative, but also accompanied by decent working conditions and compatible with a comfortable standard of living that reflects one’s values and goals.
***
Money is ultimately a means to life, not an end for its own sake. To pursue work that requires constant privation in other areas of life is not optimal, to say the least – but debt leaves one with no choice. There is no escape from student debt. Bankruptcy cannot annul it. One must keep paying it, to avoid being overwhelmed by the accumulated interest. Paying it off takes years for most, decades for some. By the time it is paid off (if it is), a lot of youth, energy, and vitality are lost. It follows some to the grave. If one pays it off as fast as possible, then one might still enjoy a sliver of that precious time window between formal education and senescence – but the intense rush and effort needed to achieve this goal limits one’s options for experimenting with how to solve problems, engage in creative achievement, and explore diverse avenues for material gain.
***
If you are in heavy debt, you take what income you can get, and you do not complain; you put all of your energy into one career path, one field, one narrow facet of existence – in the hope that the immediate returns are enough to get by and the long-term returns will be greater. If you wish to practice law or medicine, or obtain a PhD, your reliance on this mode of living and its hoped-for ultimate consequences is even greater. You may defer the payoff of the debt for a bit, but the ultimate burden will be even greater. Many lawyers do not start to have positive financial net worth until their thirties; many doctors do not reach this condition until their forties – and this is the reality for those who graduated before the financial crisis and its widespread unemployment fallout. The prospects of today’s young people are even dimmer, and perhaps the very expectation of long-term financial reward arising from educational debt (or any years-long expensive formal education) is no longer realistic. This mode of life is not only stressful and uncertain; it comes at the expense of family relationships, material comfort, leisure time, and experimentation with diverse income streams. Moreover, any serious illness, accident, or other life crisis can derail the expectation of a steady income and therefore render the debt a true destroyer of life. Failure is costly indeed on this conventional track of post-undergraduate formal schooling.
***
It may be difficult for many to understand that the conventionally perceived pathway to success is in fact one that exposes a person to the most dangerous sorts of failure. The best way forward is one of sustainable iterative work – a way that offers incremental benefits in the present without relying on huge payoffs in the future, all the while allowing enough time and comfort to experiment with life-improving possibilities at one’s discretion. Diversification is the natural companion of iteration. The more you try, the more you experiment, the more you learn and the more you can apply in a variety of contexts.
***
Having avoided the student-debt trap, I can personally attest to how liberating the experience of post-academic learning can be. Instead of pursuing graduate or professional school, I decided to take actuarial and other insurance-related examinations, where the cost of each exam is modest compared to a semester of college – and one can always try again if one fails. In the 3.5 years after graduating from college, I was able to obtain seven professional insurance designations, at a net profit to myself. I have ample time to try for more designations still. My employment offers me the opportunity to engage in creative work in a variety of capacities, and I focus on maximizing my rate of productivity on the job so as to achieve the benefits of iterative learning and avoid the stress of an accumulated workload. I could choose where I wanted to live, and had the resources to purchase a house with a sizable down payment. Other than a mortgage, which I am paying ahead of schedule, I have no debt of any sort. Even the mortgage makes me somewhat uncomfortable – hence my desire to pay it off as rapidly as possible – but every payment gets me closer to fully owning a large, tangible asset that I use every day. In the meantime, I already have a decent amount of time for leisure, exercise, independent study, intellectual activism, and family interactions.
***
My life, no doubt, has its own challenges and stresses; anyone’s situation could be better, and I can certainly conceive of improvements for my own – but I have the discretionary time needed to plan for and pursue such improvements. Moreover, the way of iterative learning is not fully realizable in all aspects of today’s world. Comparatively, I have fewer vulnerabilities than debt-ridden post-undergraduate students of my age, but I am not immune to the ubiquitous stressors of contemporary life. We continue to be surrounded by dangers and tasks where it is truly necessary not to fail the first time. As technology advances and we come to life in a safer, healthier world, the sources for life-threatening failure will diminish, and the realm of beneficial trial-and-error failure will broaden. The key in the meantime is to keep the failure points in one’s own life to a minimum. Yes, automobile accidents, crime, and serious illnesses always have a non-zero probability of damaging one’s life – but even that probability can be diminished through vigilance, care, and technology. To avoid introducing vulnerability into one’s life, one should always live within one’s present means – not expectations of future income – and leave oneself with a margin of time and flexibility for the achievement of any goal, financial or not. Productivity, efficiency, and skill are all welcome assets, if they are used to prevent, rather than invite, stress, anxiety, and physical discomfort.
***
Learning absolutely anything of interest and value is desirable, as long as the cost in time and money – including the opportunity cost – is known and can be absorbed using present resources. This principle applies to any kind of formal schooling – or to the purchase of cars, major articles of furniture, and electronic equipment. If you enjoy it, can afford it out of pocket, and can think of no better way to use your time and money – then by all means pursue it with a clear conscience. If you cannot afford it, or you need the money for something more important, then wait until you have the means, and find other ways to use and enjoy your time in the interim. With the Internet, it is possible to learn many skills and concepts at no monetary cost at all. It is also possible to pursue relatively low-cost professional designation programs in fields where sitting in a classroom is not a requirement for entry.
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Remember that success is attained through many iterations of a variety of endeavors. Try to make each iteration as inexpensive as possible in terms of time and money. Except in times of acute crisis where there are no other options, avoid all forms of debt – with the possible exception of a mortgage, since it is preferable to the alternative of renting and giving all of the rent away to another party. Do not put all of your time and energy into a single field, a single path, a single expectation. You are a multifaceted human being, and your job in life is to develop a functional approach to the totality of existence – not just one sub-specialty therein. Remember, above all, never to lose your individuality, favored way of living, and constructive relationships with others in the pursuit of any educational or career path. You should be the master of your work and learning – not the other way around.
Defeating the Special Interests Behind Draconian Copyright Laws – Article by G. Stolyarov II

Defeating the Special Interests Behind Draconian Copyright Laws – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
December 14, 2012
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In November 2012, it appeared for a day that some influential Republicans in the U.S. House of Representatives, chastened by their party’s defeat in the 2012 elections, were actually looking for innovative ways to reform the American political system and their own tainted image. Yet, in the area of copyright reform, Mike Massnick of Techdirt writes that it took these same Republicans a mere day to cave into the usual special-interest pressures from recording-industry and film-industry lobbying associations.

Although the Republican Study Committee (RSC) initially produced a promising report on copyright reform (fortunately saved on an external site prior to its prompt removal from the RSC website), its retraction was far more revealing than the report itself. If anything, this episode seems to show how beholden the Republican Party is (as is the Democratic Party) to Hollywood lobbyists, which are possibly the most pernicious and damaging lobbyists in the US, if not the world, today (in close competition with the “security” lobby of the military-industrial complex). To pull a report after it has already been released smacks of behind-the-scenes lobbying influence of the greatest impropriety – the same backroom machinations that brought us one failed attempt after another at draconian Internet censorship: COICA, SOPA, PROTECT IP, ACTA, and surely more to come.

It is possible that both major parties might marginally improve if certain lobbying blocs were weakened or disregarded. However, I doubt that these effects are possible to achieve by politicians. Rather, civil society needs to exert pressure on the lobbyists and expose their machinations to the sunlight of transparency. Even the retracted report can be used to spread an understanding among the general public that the politicians themselves recognize the absurd and repressive nature of the current system of copyright law – if they are allowed a moment to think for themselves without being lied to, threatened, and cajoled by the Recording Industry Association of America (RIAA) and Motion Picture Association of America (MPAA). Furthermore, technological changes and institutional innovations need to occur so as to disempower the traditional lobbying blocs – particularly Hollywood (RIAA, MPAA, et al.) and the military-industrial-security complex.

Public sentiment against draconian copyright laws has indeed been heightened by the recent movements against SOPA and the PROTECT IP Act in the United States and against ACTA in Europe. But it is also likely that the majority of people in the Western world who use the Internet have long considered current copyright law to be unreasonable – hence the extent of online piracy that otherwise law-abiding persons engage in. If politicians were responsive to broader public opinion (as opposed to special-interest influence), then the proposals to reform copyright law would have been seen as no-brainers. Indeed, copyright terms would never have been lengthened in the first place, and copyright terms would have probably remained close to the original 14 years, while prosecution and litigation for non-commercial use of copyrighted works would never have occurred. The key challenge in the copyright wars is to dislodge the power of the special-interest lobbies, which exert undue pressure on the politicians and lead politicians to largely ignore public opinion – with the recent exception of massive campaigns of outrage at attempts to censor the Internet in the name of copyright protection.

So, while public pressure on politicians should certainly continue (especially acute pressure that derails pernicious legislation or achieves incremental improvements), the long-term solution  must work to undermine the very influence of the special interests that push for longer copyright terms. This should be done not just through spreading improved information and arguments on the subject, but also through a change in consumption patterns away from the “traditional” 20th-century forms of media and toward the more decentralized, participatory media available via the Internet – as well as away from the creations of large recording and movie studios and toward works by much smaller-scale independent creators who are roughly equal with their consumers in terms of bargaining power.  These independent creators are much more likely to market their works under a “copyleft” (e.g., Creative Commons) license or even to release them into the public domain. They are also much less likely to viciously persecute their consumers, and are thus appealing enough to enable people to want to pay them.

In order for this cultural and consumption shift to occur, many more people must begin to use the Internet for much of their entertainment. This is the key behavior that many in the younger generations have already adopted – but, unfortunately, too much aversion to computers and the Internet still persists among many older Americans (of course, exceptions abound, but the statistical generational divide is nonetheless vast), whose consumption of the obsolete 20th-century media supports the special-interest lobbies. If all of these people were to become proficient with the Internet overnight, then the agenda of the draconian pro-copyright lobbies would instantly become a non-starter. This thought offers another promising way forward: for every one of our acquaintances, friends, and relatives whom we persuade to use the Internet extensively for the first time – and to like it – we make the special-interest lobbies incrementally weaker, gradually sapping the financial resources available to them for combating common-sense liberalizations of copyright law.