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Why Do Economists Sympathize with the Right?

Saturday, April 11th, 2009

This is a legitimate question even though it doesn’t necessarily imply that economists (American such, at least) in general are Republicans. But it is a fact that economists in general tend to be to the “right” (according to the common understanding of the political right) of e.g. sociologists and political scientists. It is also a fact that you will find more libertarians in this discipline than in virtually any other such in academia. Why is this so?

The general leftist might not find this question troubling, since the “obvious” answer is that economists work with money and capital and therefore have a natural and benefiting relationship with capital owners in our capitalist economy. This may be an answer that explains some individuals’ actions and convictions, but it is hardly the reason economists in general – theoretically or in reality – tend to have free market ideals. But it may be an easy way of avoiding over-simplifying and over-politicizing the issue.

Some may argue the other side of the simplified leftist coin: that there is a “selection bias” and therefore that people who like money and capital(ism) are more likely to choose to work with and study money and capital. This too may explain why some of the individuals in economics feel they belong on the right. But it doesn’t explain why virtually a whole discipline identify with the “right” side of the political spectrum.

The real answer should be based in simple economic theory: the theory of incentives, or, rather, the assumption that people do what they have an incentive to do. This is a core understanding in economics of the true nature of human action. People do what they have an incentive to do, and understanding this may lead the individual economist researcher to the solution to many a problem. Understanding that people do what they have an incentive to do explains virtually any social standards or institutions.

What this means here is that economists think this way and therefore necessarily think this way also with respect to politics and the organization of government. Seeing that individuals in government are acting on their incentives means seeing all the possible problems with government. For instance, take any democratically elected parliament taking the proposed budget to a vote. If the members of parliament would pay whatever is spent themselves they would have a great incentive of minimize the budget, make sure that it is spent and distributed efficiently, that only projects with great chances of success and with real benefits would see the light of day. But this is not the case; politicians choose what to spend other people’s money on.

Imagine what this screwed up set of incentives would mean in another setting, e.g. a common grocery store. We know that the owner or manager of the store makes sure to hire those he can trust to sell (and not steal) the groceries and he will only buy those groceries he knows people will buy. Why? Because his ass is on the line – if he spends most of the budget on groceries nobody wants he will lose customers and therefore his own money…and perhaps the whole store. 

Now imagine the same situation but where the owner or manager can decide how much money he gets to spend through simply taking other people’s money. Whoever lives in the area has to pay whatever percentage of his income to the owner of the grocery store so that the grocerer can buy goods to offer his customers. Now what are the incentives for him to buy only good products, only products people will like, and hire people he can trust? It makes more sense to buy the cheapest groceries, no matter if people like them, and hire the people he likes or people he feels sorry for or people he wants to do a favor. 

It is not necessary to ask which grocery store will be of greater utility for the customer, even if some of the groceries in the “political” grocery store are for free. 

This is how any political parliament works: politicians claim they are limited by their budgets, but they get to decide the size of the budget (and take the money necessary) and even if they should stay within the budget. It is often the case that they spend way more than they take from people, thereby not only spending people’s earned incomes but also the money they will earn in the future. So any political organization is, in terms of incentives, totaly screwed up. Or, to translate it into economic lingo, the incentives between the principal (voter) and agents (politicians) are misaligned.

So it makes sense for economists to identify with whatever politician that seems to understand more (read: seems to be less ignorant) about these things. And these people, at least rhetorically, are often found in the political right. I say rhetorically, since it is pretty obvious to whoever understands politics that in the choice between Bush and Obama neither one understands the first thing about economics. But Bush was able to make it sound like he had a fraction of a clue. 

The interesting point is not really that economists identify with the political right, but rather why they do not follow their theoretical understanding all the way through and demolish the State – at least in their thinking. Some of them clearly do (I am one), but not very many. 

So what we have here is really a whole academic discipline that understands, or supposedly understands, economics and therefore can identify the lack of aligned incentives in political organization – but don’t do so all the way. Economists either do not fully believe economic theory or they do not believe government is what it is (and claims to be). Which is it?

Some clearly do not understand and do not wish to understand economic theory nor apply it on other things than their precious formulas and functions. Such economists will never find any truth and will not produce anything of value to anyone. But what about the rest? It is clear that many economists live in symbiosis with the State and therefore do not wish to think about it in less positive terms. After all, the government employs a lot of economists and economists find it very prestigeous to work for the people with political power. So they simply neglect to apply their economic understanding on the organization they wish to serve.

So how about the rest, i.e. economists who do understand economic theory and wo do not find it necessary to lie to themselves in what regards the State? The answer to this question is what is very sad. It should be the case that economists who end up identifying with the political “right” while supporting government simply do so because they are as brainwashed as most people. Despite being scholars in economics they have learned throughout their lifetimes that there is no way to survive without government.

Economists (many of them) may not like government, but they accept it and even support it. And they use their sound theories to make government more efficient and effective – simply because they have been taught that there is no other way. To a free-thinking individual with economic understanding this is of course the same as saying that a certain industry “must” function like the “statist” grocery store mentioned above – but that we need to make its wasteful operations as efficient and effective as possible not to get “too much waste.”

Anyone understanding the competitive market understands that waste is not acceptable, that waste is minimized automatically through the profit motive and the pressure from competition. The problem here is not only that government is a monopoly and that the profit motive is nonexistent. The problem is also that it is an organization that can “legitimately” force its customers (and non-customers) to pay for its costs while it can supply whatever it wishes at whatever cost it finds most appropriate. 

Government, in other words, is an organization that is much much worse than any monopoly mentioned in economic theory – it is a monopoly cubed, judging from the weird incentives it creates and the effect it has on the market. There is therefore no way of understanding economists’ support for government other than that they have given up in the sense not applying what they know to it. Brainwashing works, even on those who have dedicated your whole professional lives to learning the truth – and when the truth speaks out clearly against government.

Posted in Economics, Political Economy | No Comments »

My View of Advanced Studies and Science

Thursday, September 18th, 2008

I’ve at the time of writing this post spent over a year in an American graduate program (doctorate) and there are some things I want to share with you. It is of course the case that most things taught are so-called mainstream science and as such it is as blindly fixed on empiricism and technical details as it is ignorant of the unreasonableness of the often contradictory underlying assumptions and premises. It has also, at least in my case as a graduate student in economics, evident that the science itself have to a large extent adopted statism in order to “fit” in the overall government command of education and research.

But it is not these problems, however important, that I want to discuss in this post. Instead, I want to discuss the structure of the education I’m getting and what it seems to focus. Herein lies an important lesson to be learned about education in general and especially how students are treated. It is obvious that many professors seem to struggle with understanding how to treat graduate students, which means they sometimes fall into the “undergrad trap” and talk to us like were we at the very beginning of our studies on a higher level.

An even more obvious fact is that professors seem to lack an understanding for the greater issues. Someone has told me that students tend to focus on theory and theoretical reasoning because “it is easier” than “real” empirical research. I strongly disagree with this view; I find it ignorant and, frankly, stupid. It is not easier to develop a good theory than, as is supposedly “more difficult,” to grab a data set, run [standardized] regressions and then claim to have found The Truth. Such a statement makes me lose whatever respect I had for the person making it; they deserve no respect – rather, they deserve to be despised.

Even though most professors do not share (or at least not state) this view, misunderstanding or non-understanding is common. Often the problems I identify with premises for published papers that we’re reading are ignored, probably because they require a philosophical mindset. I’m not saying I’m a prodigy or hyper-intelligent and that “all professors” are stupid; on the contrary, my experience in both the Swedish master programs and the American PhD program is that the professors are usually highly intelligent people. However, they are not scholars and therefore cannot grasp the essence of discussions on a purely conceptual or theoretical level. There are, of course, exceptions to this rule, but they are not many.

Professors have chosen to (in some cases been forced to) focus on details for so long that they have more or less forgotten what they’re doing is all about. They no longer have an interest in finding Knoledge or Truth (if this ever was the case), but are more interested in specific “cool” details of theoretical-empirical papers that have, for some reason, become famous. It is no doubt the case that details can be interesting – and even very interesting – but a detail or sub-reasoning can only be interesting if the overall theoretical framework is a reasonable construct upon a basis of sound premises. This is, I’m afraid, not often the case. Papers are very often empirical or try to develop a theory from a semi-inductive approach to knowledging, and as such it seems the authors have not spent much time thinking through the foundation of the theory developed.

It is a sad truth that even academic researchers doing theoretical work have been so “empiricized” by the pressure of mainstream that have lost touch with the real world as well as interest in and understanding for the importance of premises and assumptions.

This brain washing (to use my adviser’s words) begins early in people’s academic careers. Graduate school is supposed to create a basis of knowledge while teaching the student how to think critically, but the real nature of the programs is that they aim for the streamlining of thought rather than encouragement for individual, unique, pioneering thought. It is true that all programs pay lip service to the dogma that students must learn critical thinking and that they must engage in research on their own even if they are taking a heavy course load. But the truth is that as little time as possible is left for the student to actually engage in such activities.

My own experience is that advanced studies are not very difficult; there are of course problems of notation, language and concepts one has never encountered before, but the level of difficulty is not unsurmountable. It appears to be difficult simply because there is so much work involved with learning what is taught in the course, but the work is not primarily time and effort spent tryting to wrestle complex concepts or advanced reasoning. Most courses cover fairly intuitive concepts.

I realize that I sound like someone who believes he is a Nietzschean übermensch, but that is not at all what I try to say. I have struggled quite a bit with the courses I’ve taken; it is only after finishing the course work that I have realized that the level of difficulty was not as high as I thought. And it has nothing to do with my “understanding what I [now] know.” The problem i have with the structure of the courses is that they seem to focus so much on details and technicalities that students cannot grasp what the professor is trying to say.

Take, for instance, a course I took in advanced micro economic theory. The theory itself, and especially the concepts behind it, is relatively simple – if you know anything about economics you should understand what make actors demand or supply goods and services on the market. But that is not what the course is about. Instead, the course barges into a jungle of calculus where the student struggles with finding first and second order conditions of abstract functions supposedly symbolizing a person’s “utility function” or a firm’s “production function.”

Of course, in the real world there is no such thing as a production function – a firm has assets and produces output using the resources and assets at hand in the best way possible. They are not making a generic function of their business processes and then taking derivatives to find the “optimal point.” And there is even less of a utility function (a somewhat humorous concept, I might add).

The details and technicalities are what is important and the understanding for what is really going on – or why the discipline ended up with these functions and conditions in the first place – is not only left out, it is ignored, dismissed, and considered “unimportant.”

As an analogy, imagine an automobile manufacturer where the engineers are hired to focus on making components as efficiently as possible without thinking of their use in the whole. If no one thinks of what the automobile is supposed to do – or how to put it together – there will be no automobile. Just like experts in economics (which is my field) can talk of “properties” of functions for ages without ever mentioning or even considering what the functions are for, where they come from, or what they try to explain.

What is the importance of the generic, differentiable, mathematical function to how people act in a market?

Academia is so consumed by discussing the details that nobody has time for or ever considers the so-called “whole picture.” Even in “softer” courses it is the case that students need to read as many articles as possible on certain details and technical matters that there simply is no time for reflection. After reading a couple of dozen articles – in a short time period – that all discuss the same technicality, how many students would you think are able to take a step back and reflect on the importance of the technicality qua technicality? Not very many.

It is therefore the case that academic education of today bears no resemblance whatsoever with the classical education of Ancient Athens (such as Plato’s Academy or Aristotle’s Lyceum) or even the education in the modern era. For instance, when German philosopher Immanuel Kant taught courses he discussed problems of morality and let the students consider his own theory and comment on it. I am not saying that the education of that time was unstructured or that it was some kind of dopey discourse post-modern style, but that there was a fundamental interest in ideas.

It may be unfair to compare the modern “hard” science of economics with the soft philosophies of Plato, Aristotle, and Kant. But the thing is that Aristotle, for example, spent a lot of time on explaining natural phenomena and did so systematically and in an as structured and scientific way possible in that time and age. Yet his aim was not to dissect a detail of a small part of that which he found – he strived to understand and explain the world around him.

A criticism to my comparison of modern economics and the natural science research of Aristotle is that today’s society – as well as our knowledge – is way too advanced to use Aristotles methods. This may be true to some degree, but do not kid yourself – we are not as advanced compared to previous times as you would like to think. In terms of knowledge, we’re to a large extent in the process of rediscovering what scientists hundreds of years before us discovered, described, explained, and understood.

As a matter of fact, we have forgotten the reason for doing scientific work and research. We have to rediscover the purpose of what we are doing, but so far we are so focused on the details and technicalities that we haven’t even started acknowledging that we’re missing the whole picture and even parts of it through staring at one stroke of the pen.

Science is literally worthless if we cannot allow us to reflect on it and make it useful on a higher level of  abstraction; we are so busy doing scientific research that we have forgotten what the research is for.

So it is not surprising that that the [few] questions I [find it worthwhile to] ask aren’t understood. I am no Cicero, so perhaps my questions could be much more clearly articulated. But I doubt that the problem is primarily my inability to phrase the questions clearly enough – the problem, I maintain, is that they are of another nature than what science is thought to be all about. I cannot help finding similarities between theories, conflicts in implicit underlying assumptions, and problems in the questions being asked (rather in how they are answered). I am not interested in the technicalities or detailed answers; I am interested in the questions.

Perhaps you say that it is sad that I was not born a few hundred years ago, in a time where people still thought the way I think and were interested in the kind of things I am interested in. That is, in a time before the sciences were divided into separate disciplines and before the quantification of knowledge-seeking. And you may be right – I was born too late.

But on the other hand, science has lost its way and is maundering without compass or aim. I am certain that we will soon discover that we are not asking the right questions – and that we aren’t really asking questions at all. The recent interest for so-called “interdisciplinary research” is definitely a step in the right direction, even though it is a very small step. Science, I believe, will once again find a way back to the path of knowledge discovery; it is a matter of when not if.

From this perspective, I’d like to think that I was not born a few hundred years too late. Rather, I was born too soon. Or perhaps I can help science find its way back to its roots and purpose; that is, find the way home.

Posted in Academics, Economics, Philosophy | 7 Comments »

The Tragedy of Wikipedia

Wednesday, April 30th, 2008

A well-known problem in philosophy and political economy since the time of Thucydides and Aristotle, and in modern economics since 1968, is what Garrett Hardin termed the “tragedy of the commons.” The classic example is that of an “open” village pasture equally available to shepherds. It is, unless the villagers somehow agree to regulate the use for the sake of their common good, inevitable that the pasture will be destroyed and that the destruction process will begin almost immediately.

The reason for this is that each herder will recognize that the cost of adding one more animal to the pasture is zero to the individual herder, whereas the benefit is great. He will also realize that if he does not take the opportunity to put the additional animal on the pasture someone else will. The benefit will thus be reaped by someone, the question is but by whom.

So in order not to be beaten to it by the others, each herder will rush to maximize their benefits through adding as many animals as possible to the pasture. This will soon degrade the land and make it unusable due to the excessive overuse caused by the rational benefit-seeking herders. The more obvious the profit, the faster and more devastating will be the overuse.

The same type of problem is haunting the Internet, since the Internet technology makes a number of activities almost or totally free. The very structure of Internet builds on the free transmission of data on any suppliers’ networks, which means it is an easy target for anyone who can make a profit out of its use.

Spamming is the most obvious “tragedy of the commons” problem. Since e-mailing is virtually free, anyone can contact anyone else with an e-mail account at no cost – and it does not cost more to send one million e-mails than it costs to send only one or two. Radically increasing the volume is therefore “free,” which means that anyone who can make money out of sending e-mails will tend to do so. This is why so many spend hours of their potentially productive time clearing their inboxes of numerous unsolicited and anonymous e-mails with misspelled offers of Viagra, penis enlargements, and women “for sale.”

The problem of spamming is further increased by the Internet making it possible – indeed, even easy – to send such e-mails anonymously. The structure of the Internet allows for far-reaching privacy through hiding one’s whereabouts, and it is also an open system, which makes it easy to pretend to be someone else. The result of a commons that allows its users anonymity is obvious: it will suffer from hyper overuse.

Another problem on the Internet, which is not as commonly identified, is so-called trolling. This phenomenon is often described as people using commons such as Internet discussion forums to post irrelevant, offensive, and possibly harmful messages in great quantities. The obvious reason for such anti-social behavior is to disrupt and destroy the discussions (or the web site), but it is also the case that these so-called “trolls” find pleasure in being seen (however anonymously so).

Trolls haunt practically any setting on the Internet that supplies a costless framework for discussion or sharing, and since the Internet is built on the principles of freedom, gratis, and anonymity it has proven very difficult to be successful in charging for such services. Thus: discussion forums and other such “collective” free services develop different methods to keep trolls in check and minimize their damage. Such methods include anything from moderating and surveillance to blocking of IP addresses and users. But since it is easy for a troll to, e.g., simply create a free e-mail account and re-register, most measures taken to get rid of trolls are rather ineffective.

The trolling problem is increasing all over the Internet and it has lately become a rather great problem with the world’s largest encyclopedia: Wikipedia. With its success it has become increasingly important for the organizations and people with “articles” on Wikipedia to make sure they look good and that the articles do not give them bad will. In other words, it has been noted that e.g. the CIA has routinely edited articles that are of interest for the United States government – the government wants to keep sensitive information (about its illegal and oppressive policies) out of the Wikipedia and far from common people’s knowledge. Also, it has been discovered that the Vatican is also editing Wikipedia entries in order to hide not-so-beneficial details of its past and present.

Of course, big business has also recognized that they can lose a lot of the goodwill they might have in the market place through letting people write “anything” in “their” Wikipedia entries.

Part of the negative information added to the Wikipedia articles might not be true and some might even be slanderous. Since the Wikipedia allows anyone to update and edit articles, one would think that the positive and negative extremes would even out so that most information in the articles are true or mostly true. This is however not the case, partly because of the commons problem, which is why the Wikipedia has appointed volunteer editors and even hired people to check the quality of entries.

But the problem with Wikipedia is greater than a lack of quality. It is easily targeted for campaigns due to its nature of being a “commons.” There are a great many trolls out there, and they seem to have a lot of time on their hands.

For instance, it has been noted that pro-global warming trolls are very active in changing Wikipedia entries on scientists who are skeptical towards the “imminent man-made catastrophe” scenarios. They therefore edit entries as part of their campaigns or even delete entries they are not very fond of. The National Post wrote about the scientist Fred Singer who, the Wikipedia entry said, believed in Martians.

The NP writes, for example, on U.K. scientist Benny Peiser:

Wikipedia refused to accept Peiser’s critique, or his interpretation ofhis own views, or an account of his views that he had provided to me, or an account of his views published in a peer-reviewed journal, or an account of his views published in The Wall Street Journal, or an account of his views published by the U.S. Senate committee on environment and public works.

Instead, the Wikipedia trollers insisted that all of the above sources were disqualified or irrelevant under Wikipedia rules, and that the trollers’ own understanding of Peiser’s views trumped all others.

The trolls are numerous and they are always there, which makes it very difficult to make sure the truth is kept for long in the articles. This is a problem for a great many people who are slandered on Wikipedia and cannot seem to have the slanderous remarks removed. Others have entries added only to see them be deleted over and over again even though they seem to comply with Wikipedia policies.

In this case, scientifically proven truths are tested by popular vote. If a sufficient number of people editing Wikipedia consider it important to have only one view on global warming on Wikipedia, then it seems this will be the case. But scientific truths aren’t subject to popular vote; on the contrary, it is science that is supposed to challenge our faulty world views through offering new theories and empirical proof that we are, indeed, wrong.

After all, if science was subject to popular vote, then we still wouldn’t have begun using the wheel and we certainly wouldn’t have adopted the view that the Earth is round – not flat. Popular belief 500 years ago was that the world was the center of the universe and that it was flat – that one could fall off if traveling too far in one direction. Was the discovery that the earth is indeed round a step forward, or would we be better off with the popular view?

I am myself a victim for such a trolls’ campaign on Wikipedia as described above. The last few years there has been an article on me emphasizing my anarchist views and political writings. But beginning the summer of 2007 there were constant “flags” on the article stating that it was up for deletion. The reason? I’m not “notable” enough. This may be true, I don’t know, but it seems strange to me that I was notable for three years or so before anyone questioned my notability – and that notability became an issue only after I had become somewhat known for my writings. Or was it an issue because I had become “notable”?

I tend to think the latter, since my views are hardly respected by most – and I have even received quite a few death threats, which would prove that some people aren’t too accepting of my views.

I’m personally not very interested in whether I’m on Wikipedia, but it was fun to see how the article evolved. It is not allowed for the person to edit articles on him-/herself, so I stayed away – but I checked it a little now and then and was amazed about how people could keep track of my views, my background, my whereabouts, and my ideological evolution. Most of it, I must say, was absolutely correct – even dates and places were correctly noted in the article.

An article was also added on the web site I started back in 1999 (or was it 1998?), Anarchism.net. But as soon as the article on Per Bylund was flagged or deletion, so was the article on Anarchism.net. A debate followed on the Wikitalk pages, and it was repeatedly decided that the article on me should not be deleted. But just like it isn’t possible to keep politicians at bay through clearly advising them against their wishes in a referendum (have you noticed how they always seem to hold another referendum soon after the first one if they aren’t pleased with the outcome?), one cannot beat trolls in a democratic vote.

The article on Per Bylund was kept the first, the second, and – I think – the third times it was up for deletion. Between each “flagging” it was updated by people who had more references and information, so the article quickly grew. This was not enough, however. The trolls finally won the battle through being more persistent than the anti-trollers, and both the articles on Per Bylund and Anarchism.net are now deleted from Wikipedia.

The interesting thing in this “war” on Wikipedia was that as soon as a deletion “flag” had been removed, another one was added. And there were only two or three people adding the deletion flags every time, at least one of them being a Wikipedia editor (with rights to make the final call to delete or keep). They obviously had a strong interest in not having these articles on Wikipedia. One would think nobody should think it important whether there would be an article on Per Bylund on Wikipedia, but obviously a couple of people thought it extremely important not to have it there.

I was continuously updated on what was going on by people with an interest in editing articles on Wikipedia. It was an interesting experience, to see how some people so eagerly invest such enormous amounts of time into having an article on someone so insignificant as myself removed from a free, online encyclopedia. I hope their gain, which I suspect is at best “feel-good,” was worth the trouble.

These are just a couple of examples, on that I experienced first-hand, of the tragedy of the commons problems on Wikipedia. The solution for Wikipedia is of course the same as for any such problem: adding cost to the use (and especially abuse) of the resource. Paying as little as 1/10 cent for editing a page would keep all or almost all trolls away. They are, after all, only doing it because it is at the expense solely of others.

In a sense, these trolls are unsuccessful politicians. Whereas politicians manage to get their hands on power and enrich themselves through making use of the that great [force-based] commons called the State, the trolls on Wikipedia and elsewhere don’t get further than their personal computer. But they have a lot in common – both thrive off the use of commons and eagerly invest in other people’s misery.

Posted in Economics, Philosophy, Political Economy | 4 Comments »

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