(Austrian) Economics

This post is excerpted and adapted from the concluding chapter of my dissertation (so I suppose it might qualify as part of my college essays series), wherein I addressed two related objections to libertarianism in general and to my account of Aristotelian liberalism in particular: utopianism and gnosticism, the latter being sort of a theological version of the former. Does the theory of virtue ethics and natural rights described in my dissertation represent an impossibly high standard of ethical excellence? On a related note, is it foolishly impractical given the current shoddy state of the world? And is the ideal society suggested by my nonstatist conception of politics and severe critique of the state an impossible goal? Even if it is achieved, will it ring in a perfect world of peace, love, and happiness without violence, misfortune, and suffering? Naturally, my short answer to all of these questions is “No.”

First, I wish to answer the charge of gnosticism that might be leveled by followers of the political philosopher Eric Voegelin. Voegelin is very popular in certain conservative and communitarian circles, particularly those averse to philosophical systems and principled, as opposed to practical or pragmatic or “realist,” politics. I should know; I studied political science and philosophy at Louisiana State University where Voegelin had been a prominent professor. Indeed, LSU is home to the Eric Voegelin Institute for American Renaissance Studies. I was introduced to the work of Voegelin by Professor Ellis Sandoz, a student of Voegelin himself and the director of the institute.

Gnosticism, as Voegelin uses the term, essentially means a “type of thinking that claims absolute cognitive mastery of reality. Relying as it does on a claim to gnosis, gnosticism considers its knowledge not subject to criticism. As a religious or quasi-religious movement, gnosticism may take transcendentalizing (as in the case of the Gnostic movement of late antiquity) or immanentizing forms (as in the case of Marxism).” Now, does that sound like it applies to libertarianism, much less Austro-libertarianism? Rather, it makes me think in particular of the constructivist rationalism, criticized incisively by Friedrich Hayek, that arose out of the Enlightenment and pervades various forms of modern statism.

In his political analysis, Voegelin uses the term to refer to a certain kind of mass movement, particularly mass political movements. As examples, he gives “progressivism, positivism, Marxism, psychoanalysis, communism, fascism, and national socialism.” In his view, the consequences wrought by these movements have been disastrous. With few and only partial qualifications, I do not disagree. What makes them gnostic are certain similar characteristics they share with the original Gnostic religious movement of antiquity. Before listing the main characteristics, it first bears pointing out that even the broad libertarian movement as a whole might not yet qualify as a mass movement. However, as Voegelin points out, “none of the movements cited began as a mass movement; all derived from intellectuals and small groups,” so contemporary libertarianism and Aristotelian liberalism are not off the hook yet! With regard to the following list, Voegelin cautions that the six characteristics, “taken together, reveal the nature of the gnostic attitude.”

[Keep reading…]

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The song was written in 1971 by Clarence “Gatemouth” Brown, a long-time resident of Slidell, Louisiana.

Live 04/16/83 in Hamburg, Germany: Clarence “Gatemouth” Brown (guitar/vocals), Homer Brown (tenorsax), Bill Samuell (tenorsax), Joe Sunseri (baritonesax), Craig Wroten (piano), Miles Wright (bass), Robert Shipley (drums).

HT Dick Clark for bringing this to my attention.

~*~

Cross-posted at The Libertarian Standard.

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That was to be the subtitle for my chapter in Open Court‘s recent addition to their Popular Culture and Philosophy series, Transformers and Philosophy: More Than Meets the Mind. Alas, no subtitles made it into the book.

I have received official permission to provide a pdf copy of my chapter, “Freedom Is the Right of All Sentient Beings,” on my website. Technically, I don’t think I really need legal permission; I don’t recall signing over to Open Court the copyright that federal law automatically vests in me as the author. Anyway, download it from that link and enjoy!

The chapter title comes from a quote by Optimus Prime in the first of the recent live action movies. The chapter itself is kind of a condensed and lite version of the Aristotelian-liberal theory of virtue ethics and natural rights explained in more detail in my dissertation, applied to the transformers and to artificial intelligences more generally.

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At least one science fiction author has a pretty sound grasp of economic theory and history, and of the current financial crisis.

Ludwig von Mises over half a century ago proved, beyond a shadow of doubt, that a little intervention in one sector of the economy creates an incentive for a lot of intervention in ever larger sections of the economy; and the government must forswear either the goals it has set as policy or the means selected to pursue them to resist, if ever, that incentive, and suffer the humiliation and financial loss of reversing long-standing policy. (A nice summary of his argument can be read here: http://mises.org/midroad.asp. A complete study of the underlying logic and epistemology can be read here: http://mises.org/resources/3250.)

Read the rest. He even mentions Bastiat.

There are two things he says that jumped out at me that I must disagree with, however.

Sadly, one cannot run a free market republic in a land where the citizens are ignorant of the basic scientific laws governing the market relations.

I agree wholeheartedly with this, except for the part about running a republic. We don’t need anyone to be running any kind of republic. The state itself is an evil. We shouldn’t settle for a free market republic. And no free market republic could ever remain free market for long anyway.

The other point of disagreement is that he seems to blame the financial crisis on the wealth-transferring “Dems,” as in Democrats I assume, but the Republicans are guilty of wealth transfer from Main Street to Wall Street too. Precious few Republican politicians give more than lip service to the free market. McCain is no small government, free market man.

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"The most stupid fool is better off than those who think they are wise when they are not."

January 31, 2008 @ 11:55 pm

I added a new quote to my Favorite Quotes page. I hope it is not too pretentious of me, as it is one of my own, albeit but a modification of a great Rothbard quote on ignorance of economics. Here they are for comparison: “It is no crime to be ignorant of economics, which is, [...]

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Arthur C. Clarke must never have read Mises and Rothbard…

January 15, 2008 @ 9:20 pm

[Updated version at Prometheus Unbound and The Libertarian Standard.] …because according to this quote cited by Gregory Benford in his happy-birthday letter in Locus Magazine (January 2008), he claims that “there are some general laws governing scientific extrapolation, as there are not (pace Marx) in the case of politics and economics.” Well, far be it [...]

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