Why Some Economists Are Better Remembered than Others

In this interview, Russ Roberts talks about the Keynes vs. Hayek rap videos he made with John Papola. His best quote:

Keynes seemed immortal—no matter how many times the economics profession buried him, the politicians would bring him back from the dead.

Most likely because he said exactly the things politicians wanted to hear. Had Keynes come to different normative conclusions, he would not be so fondly remembered in Washington.

How Trade Restrictions Hurt America

This new video does a great job of explaining why anti-dumping duties intended to protect American industry from foreign competition have backfired. Badly. Click here if the embedded video doesn’t work.

Packers 45, Chargers 38

Earlier today, a rec league softball team I play for won both games of a doubleheader. We finished our regular season 8-0. Minutes ago, the Packers just topped the Chargers in cardiac fashion. They’re 8-0, too.

Coincidence? Definitely.

Regulation Roundup

A fresh batch of regulatory bloopers:

  • Rochester, New York prohibits children from walking on tight-ropes.
  • Police officers in Maine are not allowed to arrest dead people.
  • If you’re in Helena, Montana, never tie a horse to a fire hydrant. It’s against the law.
  • Massachusetts law forbids frightening pigeons.
  • It is Alaskan state policy that “emergencies are held to a minimum and rarely found to exist.”
  • If you don’t return your books to Salt Lake City, Utah public libraries within a month, hide. You can be arrested.
  • You need police approval to own a burglar alarm in Pinecrest, Florida.
  • Bees may not enter Kentucky without certificates of health.

Libertarianism.org Launches

Cato has held the libertarianism.org domain name for a long time. They used it to promote David Boaz’s Libertarianism: A Primer and The Libertarian Reader, both published in 1997. But the site has been dormant for many years.

After much hard work, libertarianism.org relaunched yesterday as an all-encompassing resource on classical liberalism. It has reading lists of classic libertarian books — as well as the best books critical of liberalism. It has short and long videos of thinkers like Hayek, Friedman, and Rothbard. It has articles on everything from rights theory to the history of liberalism. There is also a blog.

I’m at work right now, so I can’t browse through it as much as I’d like. But something tells me I will be spending a fair amount of time there when I’m not at the office. In the meantime, take a look for yourself if you like.

Hayek and Conservatives

F.A. Hayek is an unlikely conservative hero. After all, this is a man who titled one of his most famous essays “Why I Am Not a Conservative.” He self-identified as a liberal – in the original sense of the word, which more or less means what we would today call libertarian. Since liberalism took on an entirely different meaning during the 20th century, Hayek wrote that he would settle for being called an Old Whig. But he could not stand to be called a conservative.

For one, he believed that “the conservative does not object to coercion or arbitrary power so long as it is used for what he regards as the right purposes. He believes that if government is in the hands of decent men, it ought not be too much restricted by rigid rules.”* Sounds an awful lot like the Bush years.

Sure, No Child Left Behind will radically grow federal involvement in education, which is properly a state and local issue. But we have good intentions! Sure, the PATRIOT Act could easily be abused. But it’s ok, because our guys are in charge! They’d never overstep their boundaries.

Conservatism, Hayek argued, is not a rigorous philosophy. It is “essentially opportunist and lacks principles.”**

That’s why I was surprised to see that the Heritage Foundation, a proudly conservative think tank, published an abridged edition of Hayek’s classic 1944 book The Road to Serfdom. Heritage’s economic policies are reasonably free-market, at least when Democrats are in power. So it makes sense that they would be Hayek fans, even though they aren’t ideological soulmates. But I am wary that they are promoting him as a conservative thinker; he was not.

Still, popularization is one of the most important tasks a think tank can perform. It is also one of the most neglected. Kudos, then.

The heart of The Road to Serfdom is Hayek’s version of a slippery slope argument. It is an easy charge to level at the current administration, which could be another motivation for Heritage.

Hayek and Heritage would agree: government intervention tends not to get the results it seeks; intentions are not results. Frustrated economic planners believe the only solution is more intervention. When that fails, still more meddling ensues. And on, and on. Then one day the people wake up to find they have lost their freedom.

The lesson is to not give in to the urge to use the hammer of government to drive home the nails of social problems. There are better ways, and less destructive hammers with more precise aim.

That’s the popular understanding of The Road to Serfdom. But Hayek pointed out in 1973 that there is more nuance to his book:

What I meant to argue in The Road to Serfdom was certainly not that whenever we depart, however slightly, from what I regard as the principles of a free society, we shall ineluctably be driven to go the whole way to a totalitarian system.  It was rather what in more homely language is expressed when we say:  “If you do not mend your principles you will go to the devil.”

The Bush and Obama administrations have joined together to double the size of government in one short decade. Their spending and regulating has driven debt through the roof, slowed economic growth, and kept millions of jobs from being created.

Worse, this bipartisan binge of government activism is showing no signs of slowing down. Many people think we’re already well down the road to serfdom. It looks bleak. But it isn’t really. It is reversible; the road to serfdom is a two-way street. We can go back, so long as we remember the principles of a free society.

The trouble is that conservatives seem to forget the libertarian portions of their philosophy every time they win an election. That’s why I’m glad that Heritage is popularizing Hayek with an abridged, easy-to-read version of The Road to Serfdom. I just hope they don’t portray him as a symbol of an ideology he publicly rejected.

More people of all political stripes need to read Hayek and be exposed to his arguments. More people need to learn why government does harm, even when it tries to do good. More people need to learn how easy it is to go down the road to serfdom — and that our cars can go in reverse, too.

The more people realize this, the higher the odds that they will keep conservative politicians in check post-election. If the Bush-Obama disaster has taught us anything, it’s that the seduction of power makes even good men go to the devil.

I hope Heritage’s popularization of Hayek sends that important lesson far and wide — while acknowledging that he doesn’t fit into the progressive/conservative spectrum; Hayek was nothing if not an independent thinker.

*F.A. Hayek, The Constitution of Liberty, p.401.

**Ibid.

CEI Podcast for November 3, 2011: Scary Makeup

Have a listen here.

Senior Fellow Angela Logomasini debunks scare stories that chemicals in makeup and other household products cause cancer, neurological disorders, birth defects, and other health problems. The cardinal rule of toxicology is that the does makes the poison. That dose just isn’t there in cosmetics, no matter how loud the shouts of some activists. For more information, see the new CEI study, “The True Story of Cosmetics: Exposing the Risks of the Smear Campaign,” by Dana Joel Gattuso.

Advice for Legislators – and Economists

Wise words:

“Whether one is made happy or unhappy by the conclusions of economics does not affect the validity of these conclusions. And these scientific conclusions should not be presented in a manner that might suggest that they did make the economist happy (or otherwise).”

-Israel Kirzner, Ludwig von Mises: The Man and His Economics, p. 165.

J.B. Bury on Freedom of Thought

A noble sentiment:

“If the history of civilization has any lesson to teach it is this: there is one supreme condition of mental and moral progress which it is completely within the power of man himself to secure, and that is perfect liberty of thought and discussion. The establishment of this liberty may be considered the most valuable achievement of modern civilization, and as a condition of social progress it should be deemed fundamental.”

-J.B. Bury, A History of Freedom of Thought, p. 182.

Seven Billion People

Sometime today, the UN estimates that world population will hit 7 billion people. Some people are worried about how those 7 billion mouths will be fed. Here’s Paul Ehrlich in 1968’s The Population Bomb, when world population was not yet 4 billion:

The battle to feed all of humanity is over. In the 1970s the world will undergo famines – hundreds of millions of people are going to starve to death in spite of any crash program embarked upon now.

Not so much, thankfully. Ehrlich and other people who live in bed-wetting fear of their fellow man forget that people are more than stomachs; they are also brains. And brains have an increasing return to scale. The more of them there are, and the more they can interact and exchange with one another, the faster they can quiet rumbling stomachs.

That’s why real world per capita GDP is 16 times higher than it was before the Industrial Revolution — even without correcting for the increased quality of goods. Including that omission would bring the increase to something like 100-fold, according to the economist Deirdre McCloskey. And this is per capita; remember, world population has increased about 7-fold since 1800.

The data are simply astonishing. 7 times as many of us are each at least 16 times and as much as 100 times better off than our great-great-great-great grandparents. This is the single most important event in human history since the Agricultural Revolution. It is so important that McCloskey calls it the Great Fact.

And the data show no signs of the Great Fact reversing itself, or even slowing down. if anything, China and India’s recent partial embrace of liberalism has quickened the brain’s still-incomplete conquest over the stomach.

Former CEI Warren Brookes Fellow Ron Bailey has more at Reason. Elsewhere, Steven Landsburg thinks that current human population might be too small.