Theme: Incentives

  • The world is just too short of good criticism. Why? Because its expensive. And p

    The world is just too short of good criticism.

    Why? Because its expensive.

    And production of uncritical argument is cheap.


    Source date (UTC): 2015-01-05 14:11:00 UTC

  • QUESTION: CURT: WHAT IS YOUR DEFINITION OF ‘ECONOMICS’?” (from elsewhere) (good

    QUESTION: CURT: WHAT IS YOUR DEFINITION OF ‘ECONOMICS’?”

    (from elsewhere) (good piece)

    —“Hi Curt…I can relate to your comments. Perhaps you mentioned it and I missed it, but what in your definition of “Economics”. Is it sociological? A physical science? Something else?”—Lee Roesner

    Lee,

    Great question. Thanks.

    I think, that the scope of the term Economics is an interesting question, because we can discuss the etymological, normative, technical, and ‘necessary’ properties of the discipline. And by ‘necessary’, those properties that distinguish the discipline from other fields of inquiry.

    If we look at the etymology, the term evolved from running the household, then the nation, then an abstract discipline that studies the behavior mankind’s production, distribution and trade, chiefly by studying demonstrated preferences recorded as monetary transactions.

    If we look at how it is practiced, I think that today it is practiced as a social science, and that accusations of ‘economic imperialism’ in social science are probably justified: that economics has evolved into the dominant social science, and that experimental psychology and cognitive science, together have evolved as the dominant individual science. This appears to be the current state of affairs, where experimental psychology and cognitive science focus on our biases and limits, while economics focuses on the effect of those behaviors in the aggregate. And I think that the people in both disciplines expect to meet in the middle with a theory of mankind. (The problem is, that this merely justifies intervention – how to fool people.)

    Now, I tend to look at disciplines by necessary properties, and I view economics as the study of institutional (both formal and informal) means by which we facilitate human cooperation in pursuit of prosperity. This is traditionally called political economy.

    So the problem is that if we study it as how we can manipulate man’s biases, I think that is immoral on objective grounds, because it violates the principle of voluntary exchange (imposition of costs). Whereas if we study it as political economy, then we retain the moral constraint that all exchanges must be voluntary. We don’t try to fool people, we try to create transparency – to reduce friction, not to fool them that risk is lower than it appears.

    This is why I try to stay on message with the statement “Every forced involuntary transfer is a lost opportunity for mutually beneficial exchange.” Because I prefer that economics be constructed and performed as an analysis of moral and voluntary cooperation in the western tradition, rather than an immoral and involuntary analysis in the eastern tradition. And also, because I agree with the Austrian theory of the business cycle: that all attempts to cushion the rate of reorganization of the economy, merely exacerbate the problem by funding the existing (exhausted) order.

    So, I define economics as the study of morality: the study of the means of human cooperation in pursuit of the production of informal and formal institutions that assist us in cooperating. And as such I see law – the capture of normative constraints on involuntary transfer – as a subset of economics. And in practice I see the purpose of economics as little more than the justification of common, polycentric, organically evolved, law.

    And I see economics as dependent upon experimental psychology, and cognitive science for the study of man’s actions. This is because these disciplines have proven extremely fruitful in exposing the numerous and extensive limitations to human reason.

    I think this framing of the disciplines and the scope of the terms, is difficult to argue with – honestly that is.

    Thanks for the great question.

    Curt Doolittle

    The Propertarian Institute

    L’viv, Ukraine.


    Source date (UTC): 2015-01-04 06:23:00 UTC

  • seek the role of breadwinner. Seek personal fulfilment and experience. :). Is th

    https://dalrock.wordpress.com/2015/01/01/how-to-close-the-gender-pay-gap-once-and-for-all/Don’t seek the role of breadwinner. Seek personal fulfilment and experience. :).

    Is there anything truly better than living with other men and spending your free time enjoying the world? 😉

    Genocide.


    Source date (UTC): 2015-01-03 09:00:00 UTC

  • “Wrong. It takes volunteers. But if there are no volunteers, it takes a capitali

    “Wrong. It takes volunteers. But if there are no volunteers, it takes a capitalist to incentivize the people to change the bulb. At which point the bulb gets changed and the worker earns money for doing it.” — Greg Bowman


    Source date (UTC): 2015-01-02 07:17:00 UTC

  • People don’t want wealth, they want status. Wealth is only useful if it gains yo

    People don’t want wealth, they want status. Wealth is only useful if it gains you status. If you cannot compete in wealth production then you must compete in gossip or violence production. Those are the only two possible means of competing with it.


    Source date (UTC): 2014-12-31 07:46:00 UTC

  • wealthy Americans live: near financial centers. Where the money is

    http://www.forbes.com/sites/abrambrown/2013/02/12/where-the-rich-live-in-america-conneticut-california-and-virginia-top-the-list/Where wealthy Americans live: near financial centers.

    Where the money is.


    Source date (UTC): 2014-12-30 03:33:00 UTC

  • EVERY REDISTRIBUTED DOLLAR IS A LOST OPPORTUNITY FOR MUTUALLY BENEFICIAL EXCHANG

    EVERY REDISTRIBUTED DOLLAR IS A LOST OPPORTUNITY FOR MUTUALLY BENEFICIAL EXCHANGE

    The central argument that I have against Social Democracy (Keynesian economics or dishonest socialism) is not the exacerbation of the business cycle, nor even redistribution, but that it is a means of violating a voluntary exchange between the productive and unproductive classes. Every forcibly redistributed dollar is a lost opportunity for mutually beneficial and productive exchange. And what the productive classes would prefer in exchange, is largely respect for norms, respect for commons, and status signaling. Conservatives certainly don’t disfavor redistribution, they disfavor funding immorality. Most of us would be very happy to directly pay people who behave well, and not pay people who don’t, and to avoid the entire bureaucratic expansion caused by redistribution in services rather than income.


    Source date (UTC): 2014-12-28 14:07:00 UTC

  • OUR WEALTH OF VIOLENCE –“We invest our violence in the corporation, where the a

    OUR WEALTH OF VIOLENCE

    –“We invest our violence in the corporation, where the anticipated return is higher than it would be otherwise. If that return is negative, then we liquidate our investment and use it to create a superior state of affairs.”–


    Source date (UTC): 2014-12-26 00:00:00 UTC

  • ELI ON LIBERTY Asking people to forego parasitism (if they’re weak) or predation

    ELI ON LIBERTY

    Asking people to forego parasitism (if they’re weak) or predation (if they’re strong) is asking them to bear a substantial opportunity cost. They will only do so if someone stands ready to impose a higher actual cost for choosing to engage in them.

    Liberty must be manufactured by violence.

    Libertarians love to sing liberty’s praises, and there is much to be said in its favor. But it does not follow from this that liberty is always in everyone’s best interests. There are many people who stand to lose more from liberty than they would stand to gain. (And not just because they misperceive the situation.) There are still more people for whom the uncertainty over what they would stand to gain or lose would make desiring liberty irrational.

    The incentives that favor liberty do not exist by default, they must be proactively created. And in order for this to happen there must be people likely to benefit from liberty, people who can make good use of it, strong people, capable people, wise people, intelligent people, responsible people, farsighted people; in short, aristocrats. And they must organize to impose liberty on the remainder by force, and in many cases, to their detriment, or to their enduring resentment.

    – Northman


    Source date (UTC): 2014-12-24 16:53:00 UTC

  • THAT HUMAN ACTION IS PURPOSEFUL TELLS US PRECISELY NOTHING NON-OBVIOUS That peop

    THAT HUMAN ACTION IS PURPOSEFUL TELLS US PRECISELY NOTHING NON-OBVIOUS

    That people do things for reasons tells us precisely nothing about the emergent effects of economic phenomenon, nor how to manipulate the economic information system such that we shift production and consumption forward.

    That people do things for reasons tells us precisely nothing about the temporal relations between cause and effect, and whether we can manipulate conditions to mitigate effects or change time.

    That people do things for reasons tells us precisely nothing about how to deduce emergent phenomenon. Scientists were borne out and praxeology abandoned: praxeology was unfruitful as a means of exploration. And it was unfruitful because the information necessary to perform a deduction (which what a deduction requires) does not exist in the axioms. THIS IS NON ESCAPABLE DEFECT OF AXIOMATIC PRAXEOLOGY – which is why Mises and Rothbard both had to admit that economics was both rational and empirical. One cannot deduce true conclusions from false premises. And incomplete premises provide insufficient information for the construction of deductive truths.

    So what is more likely? That instrumentalism empiricism, operational definitions and intuitionistic testing are necessary in economics just as they are in all fields? Or that economics is somehow “unique”, and that rationalism is just another authoritarian program with a deceptive hidden agenda masked by obscurantist language?

    Even if both propositions were demonstrably equally fruitful, which one is warrantable? In other words, if you will be put to death for being wrong, in a choice between a rationally deduced justification and a ratio empirically criticized definition, which do you choose to bet your life upon? It is one thing to make a statement of faith, another to review the history of rationalist thought, and particularly of cosmopolitan rationalism, and concluding that it has been and remains a failed enterprise.

    Mises only wants to ban government interference in the economy so that he can persist in non-contribution to the commons, and systemic parasitism. All his work is a justification of that separatist ambition.

    Mises suggests we create a model out of economic laws, but admits that we must use empirical evidence to identify those laws. So just as we create a model of physical reality without nowing first principles, we create a model of cooperative economic reality knowing first principles. But just as we may never deduce the full compliment of permutations and emergent phenomenon from simple physical rules (see Fractal logic) we may never deduce the full compliment of permutations and emergent phenomenon from simple behavioral rules. This is the nature of complexity. As such, while we can explain emergent phenomenon we cannot deduce it. And without instrumentation we cannot observe it.

    I think the entire intellectual world has explained sufficiently that the promise of praxeology is nonsense. I think that we now understand the anglo, german and cosmopolitan errors. I think it is obvious that praxeology is a defense of cosmopolitan separatism – an attempt to prohibit the production of an economic commons that is inescapable by free riders.

    I think the whole intellectual world has demonstrated convincingly that economics is practiced as a science, and must be practiced as a science, and that all insights of the German Austrians were added to mainstream economics, and the jewish Austrian movement was abandoned as unscientific (untrue). It is only recently that we know the motivations for creating an untrue proposition – or at least an unproductive pseudoscientific resistance movement. Just as marx, cantor, and freud were cosmopolitan pseudoscientific reactionaries, mises and rothbard were cosmopolitan pseudoscientific reactionaries.

    I am trying only to demonstrate the libertine movement, like all three cosmopolitan movements, is catastrophically flawed, so that in the future others can outlaw all cosmopolitan and rationalist attacks on civilization by rationalist and pseudoscientific means.

    I meant only to take down postmodernism, until I understood that socialism, postmodernism, libertinism, and neo-conservatism had the same objective – the destruction of the western high trust ethic, and the western competitive advantage of creating commons.

    As such, all libertine arguments are either lies or vectors for lies.

    Curt Doolittle

    The Propertarian Institute

    Kiev, Ukraine


    Source date (UTC): 2014-12-24 12:16:00 UTC