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Monday, September 22, 2014

Vaccinations, Freedom, Opting-Out, and the travails of Pet Ownership

This month, Ronald Bailey, writing in Reason Magazine contrasted suburban Los Angeles vaccination participation with that of the third world, raising questions of prudent family health decision-making and how to balance choice and responsibility in a free society. Earlier in the year, Reason offered contrasting viewpoints on this subject here, and it is primarily to the latter piece that I wish to reply. One reason I wanted to reply here is because I would reject both an absolute right or an absolute prohibition - I think I agree with all 3 authors that the issue is not so cut and dry. In reply, I'd like to make two points.

Surprisingly, all of the contributors seem sympathetic to allowing opt-outs, and while I join them in that regard, I have to take issue with the basis. Bailey, the one that would like to strengthen the level of public encouragement, says the following:
For the sake of social peace, vaccine opt-out loopholes based on religious and philosophical objections should be maintained. States should, however, amend their vaccine exemption laws ... This could potentially expose vaccine objectors to legal liability, should their decisions lead to infections that could have been prevented.
I concur wholeheartedly with how Jeffrey Singer deals with Bailey's "free-rider" argument, but to Bailey's credit, he relies on this justification for state requirement/inducement of vaccination much less than on the "herd immunity" argument, which is not quite the same. He informs his readers that it is often not simply the case that immunized children receive a benefit from which free-riding kids may attain the benefit of less risk of exposure, because inoculation really only probabilistically decreases exposure. We're all different physiologically, and for some of us it won't take, so the only thing we can all receive is a social network in which we encounter fewer carriers.

While I recognize this is a cogent explanation for a community interest in a critical mass of inoculated citizens, it does not follow that one's contributory obligation should depend on one's rationale for opting out. Putting the factual and legal questions aside for the moment, why should it matter if my reason is "I take issue with the medical community's findings," "I think you're injecting the Devil into my veins," or "nah, it's not for me." The last one is flimsy, but any reason is likely to depart from the prevailing consensus. I understand that limiting the reasons to religious & philosophical might at least stem the demand for exemptions, but (a) we have no reason to think it is sufficient limiting principle, and (b) it seems absurd to say, in order to better secure individual freedom, we're going to be arbitrary in selecting who can exercise more of it. 

If the basis for a legal requirement is that we need a 92% participation rate, why not just sell opt-outs. If you want to indulge your belief - nutty or informed, we won't pronounce judgment - then give up enough other wants to pay for it. If there is a social cost, you've offset it. I think this compares to another public requirement currently in abeyance: the military draft. Why should it be that someone with a conscientious objection they can document to the courts gets a pass, but someone who just plain doesn't want to give up his/her life on the battlefield should not be able to opt-out? Before you say, "a draft wouldn't work if you could opt-out", history would seem to disagree. During the civil war, a draft was for a person, who for the draftee himself, and the recipient was free to pay for a substitute. I oppose a draft, but I think if there are any circumstances in which it should be allowed, this opt-out proviso should be retained.

Of course, there was the objection - as there can be in so many policy areas - that this favors the rich, but it also provides a legally equal chance to all for that opt out, and leaves the individual free to find the way to afford it. (Who knows, in the current age, maybe you could finance it.) When we get back to vaccinations, though, we see that really isn't a problem. In the more recent article, remember that Bailey is more concerned with opt-out trends in "affluent" quarters of society. An implication is that the benefit principle and ability-to-pay principle of public finance may be in alignment.

Furthermore, I think Sandy Reider does a superb job of pointing out the idea of herd immunity is an empirical door that swings both ways: since vaccination can also weaken immunity, you could make a case to forbid people from getting certain inoculations on the same theoretical argument. Ultimately, it is a judgment call, and the real question boils down to who gets to make it, but legally part of answering this question involves considering who can be responsible. I join Reider and Singer in finding Bailey's Holmes-inspired analogy of a non-vaccinated person to a person claiming the right to walk down the street swinging his fists wholly inadequate and over-simplistic. Singer makes a teleological distinction, and Reider reminds us that the empirical ambiguity implies that "those who choose to opt in can also, as Bailey puts it, 'swing their microbes.'

My second claim is that a better analogy would be to community requirements for pet owners. We recognize the following:
  • People enjoy owning pets, and gain utility from their companionship, but
  • pets can cause others harm, through behavior or as a disease carrier.
  • Pet-owners have imperfect control over their pets - pets are not swinging fists.
So, I ask, are microbes pets? Think about the practical implications of treating them this way for legal purposes. We make legal prescriptions in urban areas that don't apply to rural areas (i.e. chickens in the countryside = fine, chickens in Highland Park = not fine), because urban density creates different demands. Urbanites remain free to have some animals under restrictions that work for that community. These standards are imposed with the knowledge that you can escape to the countryside or less restrictive locales, and they sometimes vary by fee. For example, in my city, registering a cat that has not been spayed or neutered is more expensive than the alternative. Additionally, if your pet does something to another human, we don't just hit you with civil (or criminal) liability straight away, we look to the circumstances. Were you negligent? Did you meet ordinances and/or meet norms and customs of ownership? Was it foreseeable?

Enforcement and ascertainment of culpability presents major challenges, but think looking at microbes as pets might be a fruitful legal analogy, and I think it's certainly more useful than some maniac swinging his/her fists. It's also less biased - instead of portraying opt-out parents as fringe loons, we simply acknowledge they are taking on a responsibility. Open is the question of whether this is always like owning an untrained pit bull, or whether it can be like a leashed, trained border collie. 

Thursday, September 11, 2014

High Divorce Rates are Not Feminist, they're Patriarchal Malinvestment Clearing

I came across an article by Gina Luttrell recently posted on Association of Libertarian Feminists facebook that suggested we shouldn't bemoan the increase in the divorce rate. I knew I would take issue with it - to be both a libertarian and a feminist we should think it a tragedy when anyone of any gender sees a contract collapse - but I did go back and give it a read. There is one area in which I agree with her argument: to be true to feminism, we cannot wish to roll back to lower divorce rates by reinforcing the old notion that women should return to the (legal and social) subservience that artificially propped up many previous marriages. Why, though, might we not wish for lower divorce rates as a result of happier, more egalitarian marriages?

She and I are both the product of divorces, and as such recognize the emotional strain it puts on the family. She contrasts this with the anguish of staying in a stultifying marriage, and suggests that ultimately divorce may have less cost.but my question is, why doesn't she make like an Austrian Economist and consider the alternative investments that might have been made in a more egalitarian environment: marriages starting on stronger foundations. She's saying the bridge of no-fault divorce cost less than the potholed roads of rocky marriages, but what about the road not taken in an alternative reality that encouraged partnerships on equal footing, with both members taught to embrace each others' talents and see each other as contributing members of a loving union?

Indeed, I wish she would give the society to which feminism aspires a bit more credit. She says:
If we assume that there was equal marriage satisfaction in the 50s and 60s as there is today (and I see no reason to assume otherwise), you have an incredibly low divorce rate, but half of married people—most likely women—were miserable. 
She then goes on to says feminism may have busted up families by freeing women (creative destruction), but that it doesn't follow there was less happiness. True enough, but this is like a Keynesian analysis that obscures a distinction she gave strong foundation earlier in her article: the marriages unfortunately were cultivated and matured in a society that didn't just tolerate, nay actually encouraged inequality in the home. She cites a counselor telling a woman lamenting spousal abuse in public the equivalent of grit and bear it.

Why should feminism be billed the cost of the divorces, and celebrate its post-break happiness as if salvation? Lets put the blame where it belongs - in a patriarchal society, it was acceptable to stoke family creation on a bad footing, which is the social equivalent of malinvestment. It's their tragedy of overinvestment - not that of any libertarian movement - and both the man and woman after a divorced are robbed of the life they might have led otherwise.

In fact, consider not just the jaundiced "morality" of a society with thick gender rolls, consider the economic backdrop as well. In a 2010 speech, Jeffrey A. Tucker mentions how monetary pump-priming precipitates a present-mindedness. I'm not indulging in the absurdity that gold standards prevent unhappy homes, but in a post-World War II era with a baby boom, suburbanization, relative splendor thanks to global competitors decimating themselves, and a FHA all combining to make individuality more affordable but retained alongside antiquated mores that shame waiting for family formation, the result of a lot of families on unsustainable psychosocial footings really isn't surprising.

The point is that we shouldn't celebrate divorce in some warped, liberationist feminism that only sees the happy post-judgment lives, but should aim for what Libertarianism and Feminism jointly imply: better informed individuals under an equal law learning and evolving ways to form better contractual arrangements, which includes better marriages that they want to keep whether they must or not. We may not like debtors prisons, and see bankruptcy law as prudent, but, the magnificence created in the aftermath of successful bankruptcy doesn't stop us from wishing artificial booms hadn't necessitated so many in the first place!

Sunday, September 7, 2014

When The Economist Lacks Faith in Markets

I was reading an online article of The Economist discussing market responses to the prospect of a divorce between Scotland and England resulting from this month's referendum. Long story short: markets place a premium on uncertainty. Who knew? They're basically pointing out that this political question will have economic consequences, as there is no free lunch. Right-o!

Still, I detect the implication that a political division is inherently more costly. While it may appear that way in the run-up to making the decision, when it comes to risk and efficiency, that depends on how the distinct government of the U.K. and the new government of Scotland would perform on average in the long run relative to the alternative of staying, well, United. Yes, there would be a hiccup, but on a grave question, that's immaterial. Like with marriage, you estimate your future gains of staying versus leaving - psychic and/or moral, not just financial - and act accordingly. To suggest otherwise is to advise a middle class couple contemplating divorce to hesitate on the absurd basis of court fees.

Now, such a couple should consider that rancor, heavy bargaining, and/or delayed proceedings will needlessly make the transaction costs much more dire, and the article rightly points out there could be some of that over such matters as debt allocation, currency, and bank regulation. I wish a magazine with an appreciation for free market functioning would put more stock in them. They suggest that even if England & Scotland could agree how to split the national debt, that the transition could really roil markets. They say:
Rating agencies have indicated that Scotland would have a lower credit rating than the UK, requiring a higher yield. BNP reckons the spread would be 150 basis points (1.5%) putting 10 year yields at around 4%. Say the debt was split 16 to 1, with Scotland taking £100 billion of the UK's £1.7 trillion total (this seems to be the Yes camp's case). So would an investor with £17m in UK bonds, get £1m of Scottish debt or would they have a choice? You can see that some investors might not want the lower-rated paper so there could be a bit of turmoil. 
Wouldn't this basically just be a big refi? With two key premises granted, (a) the parties have agreed a split, and (b) the agreement was struck with an expectation/preparedness to pay a higher yield, shouldn't allocation be easy? Offer a coupon to increase the yield until enough investors voluntarily exchange U.K. bonds for Scottish national ones that the ratio struck at the bargaining table is achieved. The Economist asks the right question - choice or assignment - but they portray too much ambivalence. Also, surely "turmoil" is too strong of a word. It's not as if a reasonable top-up couldn't achieve the necessary ratio. If France tried to get investors to voluntarily swap into new Free Republic of Guyana bonds after a separation of this colony, that might be a real question, but if Greece can find buyers, Scotland can.

This might seem an overreach, but this is the same magazine that agonizes over Brexit and Grexit to the point of (elsewhere - I'm not going to find a source but they've done it multiple times) advocating some level of debt mutualization at the European Union level. Too big to fail hasn't wrought enough carnage to warn off any market proponents from enshrining this policy even more? True, palpable uncertainty can smother markets, but remember Hayek's argument that not only is its polar opposite of certainty unattainable, but it'd make markets superfluous. Stop chasing it, and let markets allocate risk!

Saturday, September 6, 2014

Hayek, Privilege, and the Roundabout Self

In a recent guest post on the blog of Cathy Reisenwitz, Mr. Brendan Moore drew attention to conservative and libertarian's habit of saying, "check your privilege" as an means of lampooning a caricatured form of identity politics. Nobly, the purpose of his post is to suggest a misunderstanding arising from the failure of the Right to go beyond in-camp conversation and confront the postmodern critique of the autonomous individual. It is correct that such an omission would hold back libertarian thought's growth, and we should appreciate that his post takes public debate more seriously than a defensive piece dripping with implied cries of "Oh yeah?!" Still, might his coverage of the Right suffer from the same flattening and truncated coverage that he sees in its treatment of privilege?

The Contextual Contingency of Privilege


First, he suggests that the Right's misunderstanding of privilege is manifest in their discussion of "intersectionality" of its various types as if they've discovered a new way to deflect the concern. Except where I take specific issue, the reader would do well to read his coverage of this concept, and examples of its (mis-)use in commentary. Correctly, he points out that privilege is a quality that one either "has" in full or loses completely by suffering one chink in its armor. One cannot say, hey, I clearly have no advantage by being a white, upper-income resident of Georgetown that dines with members of Congress regularly, because I'm a woman. One source of social disadvantage doesn't some how clear the scorecard, and I think any of us, Right or Left, would readily concur.

Further, he thinks many mistakenly assume "identity politics" deals exclusively with the groups with which voters self-identify. Regarding privilege, he reminds readers that when one's view of him/herself contrasts with a pervasive view held and/or promoted by dominant social forces, it is really only the latter that is relevant. You see yourself as just an "American" - great, glad for the camaraderie - but if you're also of an ethnic minority, the empirical social reality may be that, as you execute your life plans, you meet frictions that your privileged peers seamlessly do not encounter. Protesting, "I'm just a fellow American" will not change that fact.

Now, he ignores that many do not dispute these social barriers, but rather believe 1) they'll always exist, and 2) for all of us, at one time or another, depending on context. His piece isn't proposing an action agenda, just that we stop talking past one another, so we can leave discussion of the first retort for another day. He does address the suggestion that we all would stand amid those who are privileged over us if we are in social subgroups in which they have a "knowledge differential". Unfortunately, he really doesn't address this with more than an epistemological "duh", because he claims - in lexicographical fashion - that subgroup privilege is always going to be subordinate to political privilege. It is not a right-wing retort to suggest knowledge taking a backseat to power ignores the instances in which knowledge is power (Foucault 2000). My suspicion is he is thinking that mere social discomfiture doesn't compare to not being able to meet one's primary needs (i.e. find employment, maintain equal political dignity), but the second order problem of social awkwardness and confusion can quickly impact those primary needs. The person rapidly and tragically brought low may be accustomed to social fluidity, and now find the swift escalation they must hike is not merely a source of psychic consternation, but actually hinders their ability to find economic opportunity.

Jumping ahead, it may actually be that their human capital was always contingent on their "cultural capital" (Bourdieu 2002), and in the new cultural milieu their lack of cultural capital concomitantly diminishes the marginal product of their labor.  Illustratively, think of an elite citizen of a political community that experienced diaspora, perhaps due to natural disaster. Arriving in safe harbor in a neighboring port, they may largely need to "start over", yet what if a large part of their skill-set involved communication and/or organization. It's not enough to speak the language - what of the dialect? It's not enough to know the denotation, what of the mannerisms and mores that drive behavior? How does one not appear strange? Indeed, Mr. Moore grants this predicament when he talks of the post-structural rebuke of understanding a pairing of a particular semiotic element in relation to its concept outside of the full network and relation of concepts.

"Wait a second," you may implore, exasperated that I've gone to extreme circumstances to dethrone politics. After all, though Foucault (2000) would encourage us to look for points of discontinuity to find the limits of "political technologies", that doesn't change the fact that the Right betrays its interdiction against false relativism when it takes a "call it even" attitude to the degree of restricted opportunities wrought by privilege. After all, the economically well-off can take steps to guard against this threat, and are much less likely to even face it. There are two big problems with such a quick dismissal. One is that Libertarians are always the ones reminding us that we tend to underestimate systemic fragility, and encouraging us not to bailout the well-connected when their Tower of Babel comes crashing down at the end of the monetary Jenga game. In fact, here all seem to grant that elite privilege is inextricably bound with "the system", and Libertarians are the ones holding open the door to the TARP-free alternative reality on which we turned our backs. Poignantly, Moore suggests a link with Bastiat's unseen.

Escaping a Rigged Game: Identity & Secession


What I consider the larger reason, though, is that Moore seems to prioritize the impact of the political even over economic, probably precisely because he acknowledges finance proves more dependent. He downplays subsuming this within "wealth", but recall the preeminence that he gave the larger, political community over subgroups. How fickle, then, is his deplorable invocation of "secessionist" as a derogatory term. In federal political systems, competing jurisdictions offer real political power to subgroups, and secession provides a safety valve whereby a group that no longer trusts that hierarchical subordination is mutually gratifying or reliable can exit (Buchanan and Faith 1987). Theoretically, the American Right has a better track record of embracing this safety valve he mockingly connects with Cliven Bundy. Practically, his emphasis on hierarchical dominance undervalues the ability to politically transfigure privilege over time without having to resign ourselves to separatism - safety valves let you live your life securing gains from knowing you could use it but without constantly doing so.

Historically, I would remind this étudiant du français who deploys secession as an insult to look beyond the American experience. As recently as the late 1970s, a new canton formed in Switzerland for the French minority in the Canton of Berne (Eschet-Schwartz 1989). This followed "terrorist" activity unusual for modern Helvetica, possibly voicing the exasperation of an ethnic group feeling underprivileged, never having voluntarily joined the bund (Keech 1972). Similarly, before the extreme of the LFQ, the Quebecois experience was one of feeling economically shut out due to entrenched cultural experiences (Pettinicchio 2012). He may live in a place where opinion favors those who would dismiss those whose alienation leads them to speak of a North Colorado that would favor their rural lifestyle, but here, especially if he wants more on the Right than Mark Levin's applauding seals to take his missive seriously, he should check his privilege.[1]

Maybe you think I'm making too much of a pithy comment, but, though true this Southerner[2] will admit to being perturbed when secession is wedded to all matter of unconscionable causes (i.e., racism), but could this not be emblematic that the author is doing exactly what he asks his audience not to do: looking at a caricature of the right honorable opposition, rather than the Real McCoy? He suggests that Libertarians have spent too much time in the echo chamber, citing among their catachism the "tomes of Hayek". This brings us to the more important point - the question of whether there is an undetermined, self capable of exercising free will. He suggests we've not dealt with the postmodern critique that would fruitfully galvanize those who take it seriously to see the interconnection between a subject and his/her social environment. Actually, it has been acknowledged - and from my own readings of more of Hayek's work than merely The Road to Serfdom[3] - that there is a postmodern strain (albeit limited) to Hayek's work.

F.A. Hayek's Treatment of the Social Self


Bruce Caldwell (1994; Postrel 2004) and Gary Dempsey (1996a, 1996b) point primarily to Hayek's work in The Sensory Order as a basis for portraying Hayek as ahead of the modernist curve. As early as 1982, John N. Gray supportively summarized Hayek's view on free will as "compatibilist", because the latter fully recognized that we may be totally materially-determined beings, but that our inability to fully learn with predictive capacity forces the law to treat humans as if we have free will. Surely, the socially contingent nature of cosmopolitan man as expressed in The Fatal Conceit, supplanting his/her "atavistic" tendencies with a heady mix of rationality and learned behavior, is also relevant. Though Caldwell hedges a bit on the extent of Hayek's postmodernism, C.R. McCann Jr., writing in The Review of Austrian Economics, sees Hayek's view of the mind and society as more truly locked in symbiosis. He says (2002, 5):
Yet at the heart of Hayek’s social philosophy is a regard for the socially-constituted nature of man: the individual is not taken to be asocial or pre-social, but rather it is recognized that society defines the individual.
In contrasting the methodologies of the lights of the Austrian School of Economics, Richard N. Langlois (1985) portrays Hayek as neither an empiricist nor a rationalist in the full sense, but rather embracing aspects of both. Like a Kantian, Hayek held that "all we know, we know through our own mind" (1948), but Langlois notes that he saw the categories in a "creative" form in which they were amenable to modification. This confirms McCann above. Further, even where he focuses on three broad motives - instinct, reason, and tradition (Hayek 1991) - it bears repeating that he clearly doesn't see the weights placed on each as static. One's context does factor into our view, not merely a frame rigidly cast in the fires of "human nature." We can learn and put into practice all that we do because of the global order in which we all find ourselves.

Further, some traditions compress ways of  understanding sufficiently as to promote the propagation of their adherents, propelling themselves into the future (Hayek 1991; 1960). Here, we see a utilitarian view of religion one would not expect for un homme de la droite, though of course he protested he never was such a "bogeyman" (Hayek 1960). It's not that he singles religion out, but that he treats all cultural mores and conventions alike from the standpoint of cultural evolution (1991; 1960), going so far as to claim: 
All that we can know is that the ultimate decision about what is good or bad will be made not by individual human wisdom but by the decline of the groups that have adhered to the "wrong" beliefs. (1960, 36).
Significantly, Hayek even takes care to treat what libertarianism often considers most vile - coercion - in such a way as to make room for abuse of entrenched privilege, by providing a caveat for use of social positioning. In so doing, it is not the "national greatness" conservative who heaps scorn his way, but rather those seeking more stark delineation of the confines of the state, or advocating its removal (Rothbard 2007; Hoppe 2012). Hans-Hermane Hoppe sees as too murky and broad the Hayekian view that a water monopolist in the desert could coerce by in-action, as well as that a spouse's nagging or sulking could constitute "coercion". How ironic that the Right would suggest spousal emotional performances can be easily escaped, because you can leave. Can you?

From a political standpoint, yes, unilateral no-fault is a reality, but if you believe in your vows, is that option available to that "self" as constituted? What if one lacks such ethical qualms or metaphysical accoutrements, but lives in a social milieu where a stigma still attaches to those who exercise that option? Is that person free? However one alters vows - I personally oppose "obey" - there must be a behavioral aspect. If someone is to pledge to forego a secular safety valve (divorce), then does this not entail a duty to not act in ways intended to cause emotional anguish to your partner? Connectedness is inherently an emotionally trying arrangement, if ultimately gratifying, part of the human condition (Brown 2012) - commitment's value has little meaning otherwise - but I'm not referring to acts like purposeful manipulation.[4]

The Socially Precarious Applicant


Before closing, let us return to more practical matters and see how libertarianism raises questions of privilege, even if it doesn't necessarily address it on those terms. Certainly relevant just after Labor Day is Wage Theory, Jeffrey Tucker has an amusing book filled with lots of anecdotes, but also offering a few distilled wisdom nuggets with a light delivery. Consistently, rather than portraying wages as representing the marginal product of labor, as neoclassical economics likely would, he understands wages in investment terms, with all the future outlook and speculation of any other investment. He states:
An employer often pays wages in advance of productivity, hoping that he is making some kind of investment in the future. It is only later that you become productive enough to make it worth it for him, at which point he has to raise your wage in the anticipation of future productivity. (2010, 76).
With all the ruckus in favor of raising the minimum wage, many of us on the Right are concerned that many are being priced out of the labor market. Empirically, some try to show this isn't the case, but they often don't capture changes in the structure of human capital that don't necessarily decrease its number. Like privilege, here we can be concerned with the steepness of the slope one must walk. When the steps of the ladder are further apart, the obstacle to amount of potential promise you have to indicate beyond what history demonstrates is that much steeper. Maybe you stay in school longer to accrue signalling devices of your potential[5]; however, if you look at most job search advice, you hit upon the "confidence" racket. By this, I mean encouraging confidence completely irrespective of the underlying bases (i.e. performance, competence, belief).

Two relevant points here. First, the smaller but more direct claim, is that clearly this is less of an encumbrance to those with privilege. Again, the advice already acknowledges social privilege when it ballyhoos networking, and treats it as purely an act of will. Without denying the tenuousness of that view of social capital, what I find the larger concern is that altering the variegation of the structure of human capital almost puts a tax on the accumulation of genuine confidence, and encourages posing and bluster.[6]

Lets suppose something that should not be much of a stretch what we call "confidence" is not something one either has or does not, but is open to degrees, and impacted by performance. Lets further suggest that the marginal importance of its outward projection is highest precisely where past performance is less abundant. One can try to traverse this "gap" by signalling (i.e., degrees, references), but all these sources are susceptible to the laws of diminishing marginal returns. Additionally, their initial value is market contingent. How much signal does a Bachelor degree provide future employers if more people are getting them. We can set aside the reasons (i.e. demand-pumping, standard lowering, changing parental beliefs, or even prudent decision-making), and just see this can be like seeing a cash crop as a great investment at the same time as 10 other countries come to the same conclusion: You better be first to market or you have a big problem!

So, how to you jump the gap? I would suggest that, whatever the solution for "real" confidence,  this can raise the opportunity costs of what we'll call "false" confidence. By false confidence, I mean the ability to project confidence to others without regard to whether you, yourself, are convinced. When one tries to relay on real confidence exclusively - for ethical, psychological, or performance reasons - one has the opportunity costs of not (developing the ability to) avail oneself of false confidence. As this value rises, cet. par., the temptation to change strategy (or stance, or training focus) also increases. The applicant is hit with this prospective calculus first; however, consider the long term impact from the entrepreneur's point of view. Now, signal devices are less valuable, and more applicants than usual are likely to endeavor to overproject confidence[7]. When this is discovered, the wedge between demand and supply for employment increases, resulting in the forced caching of labor.

The Austrian School and Socially-Contingent Qualities of L'Individu


Above, the focus on the wage earner highlights not only his/her decision-making, but how macroeconomic conditions warp that behavior. This focus, usually thought structural, appears to comport well with Austrian analysis, and we see this not only by considering wage theory, but also the challenge faced by the would-be borrower. In more independent economic activity, one often needs to take on debt, precisely because of the forward-looking activity of entrepreneurs just discussed. Henry Hazlitt, in eschewing government loans, reminds us of a point languishes in our collective memory the further we get from the Building & Loan of It's a Wonderful Life: how trust is enmeshed in finance.
There is a strange idea abroad, held by all monetary cranks, that credit is something a banker gives to a man. Credit, on the contrary, is something a man already has. He has it, perhaps, because he already has marketable assets of a greater cash value than the loan for which he is asking. Or he has it because his character and past record have earned it. (1979, 43, emphasis added).
In this quote, we see the intermingling of a distinction that Moore makes between "having" privilege, and it being more a quality, whether ascribed, inherited, or developed. Here, we see how credit brings together both. Also, the invocation of reputation - a characteristic of one's performance that is social in nature - clearly invites privilege to come into play. At least the Austrians would make the banker own the exclusivity in which s/he indulges, in competition with others.

The question of how the Great Recession impacts confidence was raised for selfish reasons, but also because clearly it connects to a Rightist position (keep wages unregulated) that does involve a certain awareness of social structures, it just uses a different language. My hope is that it is evident that this helps confirm the author's overall thesis of the bounty that awaits from cross-ideological intellectual engagement. By deconstructing advice often portrayed as purely a voluntary choice - "be confident" - into a social function laborers confront within the constraints of current political economy, the attempt here was to take up that task. As the potential problem was raised within existing Austrian-Libertarian perspectives, this should also buttress the counter-assertion that, indeed, even if under-emphasized, that perspective already does take social analysis seriously, including individuation.
    
Notes:

[1] Another blog posits (here) that "Anglo privilege" explains the incredulity of English Canadians at not being addressed in English by Québecois while making little to no effort to accommodate francophones in other provinces. 

[2] If you view the political world through humanitarian, but Constitutionally "unreconstructed" eyes, or merely speak with too much of a regional dialect, you will experience the estrangement and barrier to reception that meets those not privileged to be on the winning side of the battlefield. Calhoun (1851) would lament the subjugation of the South, and though we must admit the boldfaced irony from one who defended slaverys, that does not change that in doing so, the South "othered" itself and made it easier for industrialists to catalyze the subjugation of the free trade supporting South and chain its poor (of either race) to the higher prices for basic subsistence that come from taxing the imports of 19th century, agrarian Dixie. Gillman (2001, 44-45) quotes Eric Fomer as suggesting the abolitionist sentiment was stoked not merely on humanitarian grounds, but on the same basis that colors WTO protests: unfair labor competition. 

[3] Not surprisingly, a Nobel Laureate's most astute scholastic contributions will not be fully compressed into the work most oriented to a popular audience (Postrel 2004), nor should one expect the latter to be the most representative pieces.  

[4] Lets avoid the weighty subject of whether a spouse cannot offer water in a desert, and merely suggest the classic "guilt trip" or goading, often drawing on social strictures like gender roles, could constitute marital coercion. Our inability to externally distinguish coercion from genuine communication on a weighty concern doesn't create an epistemological question of non-existence!

[5] Bourdieu (2002, 245-246) does address this somewhat from a sociological perspective, though his emphasis is on how the state can effect the "conversion rate" of "academic capital" into the kind that can be monetized in the marketplace, bundling cultural trappings and acting as a gatekeeper. Without disputing that phenomenon, here we are referring to the more stripped down pursuit of human capital with an imprimatur. Other sources not included well establish this behavior as well.

[6] Austrian Theory suggests tinkering with the interest rate ultimately results in "forced savings" when the bust comes (Garrison 2001). Further theoretical rigor is necessary to make this symmetry, but the conjecture comports with existing Austrian Business Cycle Theory to proffer without trepidation.

[7] Or even outright deceive with false signals. Is there a difference, though, between claiming you can do more than you believe you can, and claiming you have two degrees instead of one?.

References:

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