Category Archives: History

Happy 90th Birthday to Nobel Laureate James Buchanan

buchanan

James Buchanan was one of the founding fathers of public choice theory, along with Gordon Tullock and some others (Bill Niskanen, Mancur Olson, et al). Public choice, despite the obscure name, is quite simple. It says that market behavior does not end where government begins. Politicians and other government actors are not angels. They are just as self-interested as you or I. Public choices are subject to the same incentives as private choices.

Buchanan’s simple, powerful insight won him the economics Nobel in 1986. Don Boudreaux made some brief remarks at Buchanan’s recent 90th birthday celebration. They’re worth reading, especially if you aren’t familiar with Buchanan and his very distinguished place in the history of economic thought. Also worth reading is his Nobel lecture.

Geographical Determinism?

The FT interviews Jared Diamond.

Twenty Years since Tiananmen Square

China is a very different place than it was twenty years ago. It was on this day in 1989 that one anonymous, brave soul halted those tanks in their tracks during the Tiananmen Square protests.

Slow but steady economic liberalization has lifted as many as half a billion people out of poverty in China since Mao’s death. Most of that progress has happened since the Tiananmen massacre. And the process has accelerated in recent years.

Economist Alex Tabarrok, speaking at a TED conference, described China’s new economic freedom as “the world’s greatest antipoverty program of the past three decades.”

But not everything has changed since Tiananmen. China still does not have a free press. There is no freedom of speech or religion. In many ways, the Chinese government is as repressive as ever. If China is to be a great nation again, it must be free. If the Chinese people follow the peaceful example of the Tiananmen Tank Man, it will happen.

Happy 203rd Birthday, John Stuart Mill

John Stuart Mill was born on this day in 1806. He is best known for classical liberal writings like On Liberty and The Subjection of Women. College students today also learn about his philosophy of utilitarianism, inherited from father James Mill and family friend Jeremy Bentham.

Mill had an unusual life story, told in one of the most compelling autobiographies in literature. John’s father gave him an intensive education that, for example, had him reading ancient Greek at age three. John never had any formal schooling, and the only children with whom he was allowed contact were his siblings.

His father’s pedagogical experiment worked in that it gave John one of the most formidable intellects of his age. But it failed in other ways. His strict upbringing resulted in a nervous breakdown at age 20 that set him back years. He was always socially awkward, and didn’t marry until age 45 — itself an interesting story.

Mill made important contributions to economics, political science, and philosophy. A deep love of liberty runs through them all. I don’t personally agree with everything he wrote (utilitarianism leads to absurd conclusions when taken too far), but he remains one of brightest lights in the classical liberal pantheon. Happy birthday, John Stuart Mill.

(Cross-posted at Open Market)

Power, Always Power

Tonight I picked up a book that has been sitting on my shelf for some time, taunting me: Peter Heather’s The Fall of the Roman Empire. Heather has a crisp, easy to read prose style, lightened by occasional flashes of dry wit. The subject matter is of interest, at least to this old history major. Good book.

There’s a sentence early on (p. 19) that made my mind wander to the stimulus package currently before our own Senate.

Disclaimer: I have a dim view of the stimulus. But I don’t see it as an existential threat to society. Thousands of years from now, when some future historian writes The Fall of the American Empire, I doubt that the word “stimulus” will appear in its pages.

All Congress and the President are doing is slowing down the economy temporarily. A bad thing, yes. The decline of our civilization? No.

Why the connection to Rome’s decline, then? Heather speaks to something that doesn’t change a whole lot across time or space: human decency. His simple, profound sentence reads, “Ancient Roman society held that you should not attempt to control others until you could control yourself.”

Ignore that “Ancient Roman society” part. It doesn’t much matter. The bit about control does. At heart, the stimulus is an assertion of control. That’s why it came to mind so readily. Congress is saying, “we know how to run the economy better than the people do. Therefore we will.”

Yet Congress cannot control itself. President Obama’s hopes for a clean bill have proven futile. Billions of dollars in pork projects are making the stimulus even worse for the economy than a clean version.

Congress really must learn to control itself before it attempts to control others. Decency demands it.

Make-Work Bias

Politicians always talk about creating jobs. It is a borderline obsession, especially in these troubled times. Their fixation is an old one – a really old one.

How old? The Roman historian Suetonius wrote of the emperor Vespasian in 117 A.D.(!):

To a mechanical engineer, who promised to transport some heavy columns to the Capitol at small expense, he gave no mean reward for his inventions, but refused to make use of it, saying: “You must let me feed my poor commons.” (Lives of the Caesars, Book VIII, Chapter XVIII)

Vespasian made a common mistake. Had he used the labor saving device, he would have had his columns and another project besides. Instead, he got only the columns. Saving labor doesn’t reduce employment. It creates new employment opportunities.

Today’s politicians are getting set to make the same old mistake with their own public works programs.

So it goes.

The Things People Do to Each Other

My girlfriend and I just finished watching Schindler’s List. I hadn’t seen it before.

I really don’t know what to say, except that we should all be glad we live in better times.