A General Theory of Society

I’ve had in my head for some time a general theory of society, that I’ve been meaning to put down in writing. Here goes:

Society – any society – consists of three essential elements: a State, a Market and a Community. Let’s take each in turn.

The State is, in its essence, the monopoly on physical force. The weaker the State is in a given society, the more physical force is dispersed between different actors. The stronger the State, the more physical force is concentrated in the State itself. A hallmark of a strong State is, therefore, laws which prohibit any form of violence, up to and even including self-defense.

It follows from this definition of the State that everything it does in some way relates to its monopoly on violence. For example, the State spends money on infrastructure. But in order to do so, that money must come from taxes. These in turn are collected from taxpayers who, if they refuse to pay, will have the money taken from them. If they resist, the State will not hesitate to use physical force to compel them out of their possessions and into prison.

Next comes the Market. The Market is the free exchange of value between actors. It reposes on the assumption that exchange is mutually beneficial. In its purest form, the Market knows neither altruism nor compulsion. Each actor enters the Market to further his own self-interest, and finds that agreement with other actors is the best way of doing this.

The final pillar of society is Community. Community is all voluntary interactions of social actors that are neither transactional nor subject to compulsion under threat of physical force, So anything that is non-State or non-Market is by definition Community. Examples of Community are families, friendships, bowling clubs, religions and board game meetups.

A key feature of Community is that it has the power of banishment or exclusion, but no other power. Another key feature is that interactions within a Community tend to be highly altruistic. Community members ‘care’ about one another, and in fact are often willing to suspend their own self-interest in pursuit of Community-defined goals and in adherence to Community-defined values.

Now comes my core hypothesis about the ideal organisation of a society:

A society can be said to be well-organised when the Community, the Market and the State all have equal weight. This is because each of these three mechanisms represents an important check on the other two. The State provides order and peace, the Community provides values and morals, and the Market provides economic rationality and innovation.

A society that has a strong State, but a weak Market and a weak Community, will tend towards Communism. The lack of (Community) moral compass will allow the State’s leadership to abuse its monopoly on power, while the lack of (Market) pressure will lead to bad economic-decision making and undermining of democracy, because consumers and businesses exert a democratising influence.

A society with a strong Market, but a weak State and a weak Community, will tend towards Corporatism, a consolidation of economic power in the hands of wealthy oligarchy, who will lack morals and fly to space with Captain Kirk in a giant dick, while their workers have to pee in bottles. Likewise, enforcement of contracts will be impossible, because that requires either the compulsion of the State or the moral impetus of the Community. Ultimately, even basic transactions will be burdened with additional costs of self-enforcement, and entire markets will collapse under that cost.

It’s rather hard to find examples of a society characterised by strong Community, but weak State and a weak Market. However, tribal societies exactly fitted this description. And while they may be marked by a degree of stability, I would argue that this comes at a high price: investment is next to impossible, nothing is there to drive human progress and innovation.

In modern political discourse it is conventional to consider society along a ‘left-right’ axis, in which two of the three essential societal elements are considered as opposing poles of a spectrum. My hypothesis suggests that in fact there is no place along this spectrum that can deliver a healthy, well-functioning society, because the third element – Community – is not represented.

That is why it is best to illustrate politics not with a left-right spectrum, but with a Social Triangle

And in fact, much of the imbalance in modern society is related to a steady erosion of the influence of Community on our daily lives. Church attendance has plummeted, people have fewer meaningful friendships and participate in fewer activities. Families are smaller and more fragmented than ever before. Indeed, we have drifted down the Social Triangle, and landed somewhere along the axis between State and Market.

That is why when the Left and the Right complain about the other side, they are both right and both wrong. A good example is around Hate Speech. New laws are being rushed upon us by well-meaning, but wrong-headed Leftists to outlaw saying ‘mean things’. These laws are incredibly stupid – at best they won’t work, and at worst they will. But the question is, why is this happening? Simply put, the power of the Community to check the behaviour of society’s members is increasingly absent. We now find ourselves trying to criminalise the sort of behaviour that used to cost you friendships, club memberships and a place at your cousin’s dinner table.

Markets are also malfunctioning in ways that Right-wingers find hard to explain away. It turns out that excessive greed and amorality are themselves a form of market failure, because any asymmetry between market participants creates an opportunity for sharp practice – information is imperfect, bargaining power is lopsided. Absent Community, the only way to check those immoral excesses is ever-more costly regulation. That in turn creates opportunities for regulatory capture and barriers to entry for new market participants. We find ourselves in a social market economy that is neither very social nor very market.

What is the solution? Clearly, it is to restore some sense of Community – common values, a common purpose, a clear set of religious dogma and a shared moral code. Adam Smith understood the importance of this intuitively, (even if Karl Marx was less perspicacious in this regard).

Now, this is all well and good, but do I have any more practical suggestions or is this just another ‘everything is awful’ blogpost? Here’s my three step plan:

  1. Awareness. Stop pretending like our Community doesn’t matter. Restart a conversation about what our values are, what we can agree on, and how we can come together to pray and play – knowing that is every bit as important as who our State leaders are or how our economy is working.
  2. Subsidiarity. An interesting result that comes out of the social triangle is the question of scale. It turns out the Market works ever better at scale, and the State too seems pretty able to work at scale. But Communities don’t seem to work very well at scale at all. Insofar as altruism is a key ingredient, it’s really not possible to have empathy with a million other people, much less 8 billion. In other words, today’s society is too big for real Community to exist. Not only is globalism a terrible idea, in fact, we need to break nations down into pieces that are well proportioned for Community to prosper. This suggests devolving more of the Market and the State to smaller scales – local government and buy local goods.
  3. Stop uncontrolled immigration. Yes, there I said it. Immigration is very bad for Community, for the obvious reason that immigrants are least likely to share the common values that bind people together in voluntary ways. Immigration erodes Community and splinters society.
  4. God. That’s right. The big guy. Flowing white beard. Turns out, not only is He almighty, but He’s also quite good for creating the conditions under which Communities can flourish. He sort of works as a rallying point and an anchor for common values and beliefs.
  5. Get the hell offline. I don’t believe the internet is the cause of failing Community. After all, the excellent book Bowling Alone came out when the internet was still in diapers. But I also don’t think the internet can be part of the solution. If you want real Community, you should get off this damn computer, go outside and meet people. Join a choir. Or a rugby team. Or take a pottery class.

Eye-catching, provocative headline, tangental to subject

Opening premise that is sweeping and, if you ponder it for any length of time, probably questionable. Next, a flurry of facts the reader already knows to be true which seem to support the premise, omitting the ones that refute it or provide nuance. An appeal to the reader’s desire to feel ‘included’ in the group by mocking someone outside the group, who is too stupid to get the point here.

Construction of false dichotomy, with one pole being the conclusion you want the reader to reach, and the other being a ridiculous straw man argument. Elaboration on this straw man in great detail, in order to make it clear how ridiculous it is. Shoved-in call-back reference to the idiots you already mocked in paragraph one, who of course would also make the straw man argument. Now steel man any real argument against your premise, before smacking these down with more hyperbole and carefully curated facts.

A paragraph’s worth of accepted and true statements that have little to do with your main point, but with which the reader and any reasonable person would agree. Implication that the outsider idiot from above would probably also disagree with all of this.

Concluding quote from a famous and long-dead person that fits the general direction of argumentation, adding to it the heft of history and tradition.

Subliminal messaging – a novel conspiracy theory

A plandemic or a spamdemic?

I am still recovering from Covid. I think most of us are. By this, I certainly do not mean the effects of the SARS-2 virus on my body. That is not what ‘Covid’ is. Covid was and is a social construct. A state of mind that has variously been described by fellow critical thinkers as the result of mass psychosis, religious zealotry or the nefarious actions of a highly organised conspiracy.

Indeed, there is a lively debate in the community as to the extent to which many of the terrible outcomes were centrally planned, or were the result of an organic, systemic failure of our society to cope with a stress factor. Eugyppius, the German critical thinker whose substack is something of an authority on all matters covidian, flies the flag for system failure – pinning the blame squarely on the ineptitude of the technocratic managerial class that holds the real power in Western countries. Others point to damning evidence of the involvement of globalist elites, aligned to the World Economic Forum, in planning a so-called Great Reset.

Conspiracy theorists have more time on their hands than conspiracists

Personally, I have always aired closer to Eugyppius’ scepticism regarding the utility of tin foil hats. My own experience in proximity to ‘power’ has taught me that those who are thought to hold its reigns spend most of their time chasing after their own manic agendas. They barely have time to read the briefings that are shoved at them as they board airplanes – much less to craft the narratives that inform those briefings, in service of some conspiratorial purpose.

And yet, it cannot be denied that certain actors within the technocracy are motivated to play a key role in steering outcomes. Laura Dodsworth’s excellent ‘A State of Fear’ details how the UK government did exactly that, (though it stops short of providing a smoking gun motive for their actions – leaving open the possibility that the fear-inducing psy-ops perpetrated against the civilian populations were motivated by a misplaced yet well-intentioned belief in their necessity). Likewise, the Fauci emails and the Twitter Files clearly show deep and hidden linkages between the scientific
establishment, government and Big Tech, all acting in a way that shores up their respective power positions and bottom lines – the very essence of a conspiracy.

A novel conspiracy hypothesis

In this post, I would like to veer a little further away from Eugyppius’ position and down the rabbit hole of conspiracy theorising, with what I believe is a novel contribution to the saturated market of tin foil headwear. As the great Sherlock Holmes once remarked, we can sometimes learn more from a dog that does not bark in the night, than from listening to the ones who do. I say this because when I was a boy in the early 1980s, the talk was all about the use of subliminal messaging in advertising, spurred on by a 1970s book called Subliminal Seduction. Advertisers had discovered that they could splice in a single still frame into the middle of a video image – say, a nice refreshing bottle of Coke. The result would be that the conscious eye and mind did not perceive the embedded image or the ‘Drink Coke’ slogan. However, tests showed that when this was done, it had a very strong impact on the subconscious desires of those subjects exposed to the subliminal image. Those who had ‘seen’ the spliced-up video expressed a much greater preference for Coke.

The subliminal messaging was found to be so effective precisely because it did not register a conscious response. The subject’s usual mental defences against the effects of overt advertising did not kick in.

Naturally, there was no small degree of uproar. Advertisers rushed to assure a worried public that they would never engage in such underhand tactics, the FCC intervened in the public interest, and soon the story faded from the public eye. It was understood that whatever short term gains a product could achieve in this way would be more than undermined by the reputational damage of getting caught doing it. And because the same subliminal image would be diffused millions of times to TV sets across the country, it was sure that they would in fact get caught doing it.

Mind tricks in the digital age

That was then. Now imagine the same technology being used on tech platforms. Imagine the ability to splice in a single message into a gif or video clip on Facebook, YouTube, Twitter or TikTok. Now imagine that the efficacy of that message was powered not just by generic 1980s Madison Ave advertising trickery, but by custom-generated user data and algorithms that allowed the messenger to craft ‘the perfect’ subliminal message for each and every user. For example, imagine the cute cat video you just watched had, cut into it, a 1:24 frame image of a Covid virus and the words ‘Stay home or you will die the way your mother died last August’, when in fact your mother had died last
August. What chances would you have of not being scared to death of Covid?

Big Brother isn’t watching you, you’re watching him

There is absolutely no doubt that this technology exists and that it could be deployed. Since the release of the Twitter Files, there is also little doubt that the government – or at least that part of it Glenn Greenwald refers to as the US Security State – has infiltrated Big Tech platforms to a sufficient degree to be able to undertake such an operation.

Of course, I will take my tin foil hat off long enough to admit that I have not a shred of evidence for any of this. But given how effective we knew it to be even without customisation, what are the chances that subliminal messaging is not being used in the Tech Age? And to return to Holmes’ dictum, if it is being used, why have we not heard more night-time barking from this particular dog?

The ‘pandemic’ of overeducation

You can never been overdressed or overeducated’

It is a widely held tenet of modern liberal thinking that there is a strictly positive relationship between the amount of education in a society, and the health of its politics and economy. When I say ‘widely held’, I mean to include my former self in that particular bubble of groupthink. I have a couple of masters degrees and a BA – achievements of which I have always been proud – and so perhaps it was out of pure ego that I always imagined that with more education, would come better public accountability for our representative democracies, greater labour productivity and a more effiicent use of public resources for the benefit of all. I must have thought: if more people were like me, how much better a world we would have!

Houston, we have a problem

Then along came SARS-2, wafting out of a wet market and certainly not the virology lab across the road (pay no attention to that bat lady behind the curtain!). In a flash of media madness, decades of established wisdom on public health was thrown out the window – on the efficacy of community masking to prevent respiratory virus transmission, on pandemic planning, and on the correct way to approve and make available novel pharmaceutical products. Basic facts that were immediately and publicly available were ignored and labelled misinformation or conspiracy-think – such as the fact that SARS-2 had an infection fatality rate of 0.3% (lower in age-adjusted terms), and was therefore not that deadly. Bizarre doctrines like Zero Covid emerged in the teeth of common sense and all available evidence. ‘Long Covid’ became an article of faith, a gospel reading in the Church of ‘The Science’.

Was it simply panic? Perhaps in the early weeks. But as the hysteria wore on and the masks literally muffled any dissenting voices, I noticed a strange pattern among the Covid Zealots I knew – they were, with few exceptions, those who had the most higher education. Whereas the received wisdom on the benefits of higher education suggested they should be most able to critically dissect what was happening and make sense of it, they in fact proved to be least able to do so.

Saving grandma and a nasty commute, both at the same time

Many critical thinkers I know attributed this to simple self-interest. The laptop class was, after all, able to comfortably telework throughout the lockdowns. Many even relished the reprieve from painful commutes into crowded office buildings. They were certainly not the waiters, shopkeepers or small business owners most immediately impacted by closures. To borrow a phrase – it’s hard to make a soy-infused Guardianista understand something, when continued enjoyment of they/their home office depends on them/they/they’re/their not understanding it.

But this doesn’t explain the more extreme manifestations of Covid Zealotry, such as the willingness to subject oneself and one’s own children to an experimental treatment with no obvious benefits and unknown risks. Data shows that higher education levels are correlated with higher ‘vaccine’ uptake. Likewise: mask wearing was nowhere as ubiquitous as in the ivy-clad enclaves of New England’s educational elites. There can be no doubt – the well-educated actually believed this worm-infested horse crap.

Some readers might shrug this off as an obvious conclusion. The fact that college-smarties lack common sense is nothing new to the working classes who fix their leaky roofs, service their cars and install their ergonomic workspaces.

I think I thought I saw you try…to think

But perhaps there is a deeper point to be made about the nature of cognition and how it has changed in the age of mass higher education. In general, when we learn something new, we go through an inductive process of reasoning. A leads to B leads to C … which leads to a result. For example, if I want to learn how to fix the clogged drain in my bathroom sink, I need to understand how the u-bend works, what seals are there to stop leaks. Where the water will flow when I open the plumbing, etc. then I can figure out what to do first. I create a mindmap of understanding.

Now imagine I attempt to ‘learn’ something that is complex beyond my ability to construct the relevant mindmap. Imagine, for example, that I simply cannot follow all the threads of thought that allow for a complete understanding of the quantitative theory of money. Of imagine I am unable to prove from first principles the power rule in differential calculus. What becomes of me?

In a world where these respective tenets of economics and mathematics are kept as the preserve of a true intellectual elite, the answer would be: I am told by my professor that I don’t grasp the thing, I am handed a failing note and I go back to unclogging u-bends under bathroom sinks.

The democatisation of education ensures we get the graduates we deserve

But in the age of mass higher education, this is very much not what happens. The greater the number of intellectually average people admitted into the halls of knowledge, the more fails a professor would have to hand out, and that isn’t good for business. And so instead, a short cut solution is provided. I might not ‘get’ monetary theory, but I can accept as dogma that M x V = P x T. I might not ‘get’ calculus, but I can accept as dogma that f'(x) = r*x^(r-1) and dumbly apply this rule to enough problems on my term exam to get a passing grade.

The problem isn’t just that I graduate with no real understanding of maths or economics. It’s that by trying to educate myself beyond the limits of my own cognitive capacity, my brain becomes trained to accept a dogmatic link between premise and conclusion. The only thing I have really learned from four (or nine!) years of this charade is that there exists this sacred black box in which intellectual ‘things’ happen, and that is not to be questioned. Forever after, because my status as an educated person depends on the sanctity of that black box, I become a militant defender of whatever it might output. In other words, I become a zealous believer in ‘The Science’. Follow it. Follow it right off a cliff.

I have also reduced my ability to create even those mindmaps that would otherwise be within my cognitive scope. University trains me not only to stupidly absorb the conclusions of others’ learning, but to deny myself the ability to engage in any of my own. I would be much better served by puzzling over how to put up fenceposts for free range chickens, at which I would succeed with my own two hands; rather than puzzling over, and ultimately failing, to understand fluid dynamics or molecular biology.

Then when a novel problem comes along, I am lost, for there is no equation for me to follow. Intellectually lost, I take to Twitter in a confused play for answers from the hashtags of authority I trust and identify with. How easy it becomes for they/them who wield these hashtags to guide me towards whatever dogma serves their/they’re interests. How stupidly will I cling to this dogma, with all the strength of my ‘education’. How heavily will I beat down dissent, with all the heft of my bourgeois status.

We need to stop educating people beyond their intellectual limits.

Trawling Netflix for hidden Covid truth

Escaping the vaccine immune escape

Over the weekend, the weight of current events got to me. It drove me to seek distraction. More accurately, I promised my wife I’d take a break from reading Covid news and from futile debates online with Covid zealots. And so I took to Netflix and sought out some pre-2020 viewing I was convinced would be as far away from Emergency Use Authorisations, monoclonal antibodies and vaccine passports as possible. This took the form of one movie and one series: a rewatch of the excellent film “The Big Short”, and a new-ish series about a magician doing street tricks on randomers, called “Magic for Humans”.

Though highly entertaining, both titles failed to provide an escape from the ‘Rona Blues. To my utter surprise, I’d picked two offerings that struck closer to the heart of the Covid debate than any Joe Rogan podcast or John Campbell Youtube Clip could.

Blame it on the algorithm.

Herd immunity versus herd mentality

Of course, both are set in a world that existed before the corona crisis was even a twinkle in Klaus Schwab’s eye. The Big Short was made in 2015, but it describes events leading up to the financial crash of 2008. More specifically, it details how the mortgage bond market was manipulated through the creation of financial instruments (called collateralised debt obligations) that encouraged ever riskier subprime lending. I’d seen it all before, but in the rearview mirror of media-induced virus hysteria, the underlying theme really comes into focus.

The film lays bare that the 2008 crisis was not only likely, but in fact inevitable. The fascinating part of the story is not how a handful of finance guys figured this out (and therefore made millions), it is how everyone else didn’t. After all, nothing they discovered was in any way hidden. The only thing these guys did differently was look. They literally walked into housing estates in Florida and talked to mortgage brokers, homeowners and real estate agents and quickly understood that the loans backing the bonds were garbage. Which meant the bonds were garbage, which meant the banks holding the bonds were garbage.

How did Alan Greenspan and his successor Ben Bernanke not see this coming? How did the shareholders of the banks, who lost their life savings, not see it? How did the legislators and the President not see it? For those of us who still believe in rationality, it is a humbling reminder that the wisdom of the masses is based on nothing more than the wool of the sheep standing next to you. Just because something is posted on a billboard, a government website, or comes blasting out of your neighbour’s mouth, doesn’t make it true.

The other lesson from The Big Short, even more worrying, is that when this kind of mass delusion takes root, it takes a hard and painful crash in order for everyone to snap out of their hypnosis. That was what I stewed on as the closing credits rolled.

It’s a kinda magic

So I shook my head and turned to the magician Justin Willman doing tricks on the mask-free streets of a 2018 Los Angeles. “Magic for Humans” sounded both magical and, well, …human. Surely the widening of children’s eyes as a blob of water defies gravity would succeed where global financial mismanagement had failed to distract my Covid-addled brain. And the first few of Willman’s tricks did not disappoint – artful slights of hand; fun gimmicks to please passer-bys. That is, until he got to the internet influencers.

This segment came in episode 2, and it made my blood run cold. Three young internet personalities were brought into a sort of ‘fun house’ and given a diverse box of props. After a short introduction by the magician, they were asked to go around the various rooms with their phones, separately, and take selfies with whatever props they thought would make the best Instagram post. Afterwards, Willman asked them to each separately select the single best picture and give it a hashtag. Without any consultation, all three had chosen the same spot in the house – a watermelon themed swing; the same prop – an ice tray; and the same hashtag – #TrayCool. Then Willman revealed the picture he had already pre-cooked of himself with exactly the same details, the one he knew they would do too.

Influencing the influencers is scary-easy – “Magic for Humans” Episode 2 (Netflix)

Plus ca change, plus on demeure aussi idiot qu’avant

The point was that his ‘short intro’ was so full of suggestive images that they had been steered into making what they thought were independent choices, but were in fact pre-programmed by the magician himself. Of course, when you see a trick like that play out, it is almost impossible not to draw the parallels to what has been happening over the past 21 months. If one TV magician can manipulate people so completely in the space of five minutes, just think what a team of ‘nudgers’ in a government department could do, with the resources of the State, the complicity of the mainstream media, and the cooperation of all the Big Tech platforms.

Could they do enough to get people to take an experimental vaccine they don’t need and could possibly harm them? Enough to get them to give it to their children? Enough to get them to surrender all their civil liberties and cower from life, triple-masked, in a bubble of fear? Enough to get them to agree to show a medical record to access their local pub or supermarket, forever, with no sunset clause? Enough to get them to hate… yes HATE … anyone who opposes the prevailing narrative – even close friends, even loved ones?

Maybe so. We’ll have to wait for the Netflix documentary to find out.

Nineties-stalgia: why the Golden Decade is due for a comeback

From Dust cover til Red Dawn

Those of us old enough to remember life in the 1980s will no doubt recall the very real fear of thermonuclear annihilation. We tried to make light of it at the time, with movies like Rocky IV or off-the-cuff black humour – how it was better to be close to ground zero than to suffer the slow, cancerous demise occasioned by a nuclear winter. Still, it haunted us at night. As children, we awoke in cold war sweats, to stare out our bedroom windows and watch imaginary mushroom clouds dominating the night sky.

But as the 80s drew to a close, the fear ended too. David Hasselhoff stood on the Berlin Wall wearing piano keys. And as every non-German marvelled at the fact that Knight Rider could kinda sing, the conflict and angst that defined two generations crumbled into legend. The mighty Soviet Union was reduced to an alcoholic Russian joke, in the person of Boris Yeltsin.

Mr Gorbachev, tear down this wall!

Thus were born the 1990s. A decade when any remaining questions the world had asked about Western dominance seemed to be answered. The slow progression of liberal values looked inevitable. Sure the Third World was still a mess, but give us a bit of time and we’d sort that out too. Bob Geldof was, after all, recording a second version of Band Aid, and after U2’s musical death in a custom-graffittied Trabant, Bono was soon to reveal himself at Emmaus.

Image result for dawsons creek
Only a decade with the confidence of the 1990s could have given us something as deliciously bad as Dawson’s Creek.

And so slipped by the Golden Decade. Our thoughts turned to home affairs perhaps, with only a distracting glance in Dan Rather’s direction, to see if the glove fitted on OJ’s hand, or if the cigar fitted into Monika Lewinsky’s … version of events. The news had become a light distraction, a welcome interruption from the humdrum of our civilisation’s happy ending.

As you undermine our security, we undermine yours

And with a whiff of not-too-genuine concern about the Y2K bug, we set about partying like it’s 1999. But the Golden Decade had a little more to give. Which is why we failed to brace for impact when, 20 months later, it all came crashing down in a heap of dust and debris, and a new shadow swept over the West – the spectre of Islamic terrorism. Like the current crisis, the reality of terrorist threats was nothing near as deadly as our overreaction to it – in this sense the terrorists succeeded in every goal they had. With a couple of box cutters, they got us to submit to any and all kinds of security checks, extraordinary rendition or the waging of reckless, endless war on petty despots and the civilians they oppressed. The enduring impact of 9/11 was not the bullets of Kalishnikov-wielding theocrats, but the subtle abandonment of our liberal values; the precedent that when our fear is great enough, we will throw away everything we pretended to hold dear.

Rohan, my lord, is ready to fall

After this traumatic early childhood, the Millenium’s awakening into teenagerdom was little better. There was no single drama that defined the crappiness of the 2010s, rather we were caught in an emotional pinser movement by three slow-moving threats: Immigration, Climate Angst and the inequality which followed the Great Recession. What belief we might once have had in our own civilisation was just about thoroughly beaten down, and as any casual glimpse at the Netflix catalogue will reveal, by mid-decade we could hardly imagine any kind of fiction that didn’t sport the adjective ‘dystopian’. We valued our democracies as little as we valued our data, all to be given away for trinkets in the clouds. We were ready for something like Donald Trump’s tweets. Oh and we got them. We got Rachel Maddow in ‘literal’ [sic.] hysterics over imagined Russian collusion. We got slick, Youtube-ready comedians dispensing sanatised, corporatist Identity Politics by the sound bite. And we kept giving away our privacy to enjoy more of the show.

This background helps us make sense of the madness that is 2020 – how a seemingly mighty tree can topple with only a slight gust of wind, once its core has been allowed to rot away for twenty years. How three hundred years of enlightment principles could be uprooted in a single storm.

Rediscovering the lost decade

And it’s also why, looking back on them now, the 1990s seem so damn appealing. It’s why Nineties-stalgia is the way to go. I defy anyone to tune in to the first few seasons of Friends and not find themselves longing for a time when music sucked but we still had public payphones. Your job might have been a joke, you might have been broke, but if you were young in the 1990s, Western Civilisation was there for you.

Even better than Friends is Dawson’s Creek. Not actually ‘better’. The scripting is at times painfully bad, the accoustic underscores are suburban coffee-shop cringeworthy and the teenagers are, even by the standards of the Golden Decade, implausibly articulate and self-confident. But it is the most perfect encapsulation of the optimism that came to those who grew up in the long Indian summer of a victorious empire.

One that did not yet see its downfall coming.

Take me back

Take me back somehow

To when I dreamed I’d have

A better now than now.

 

Return me in place and mind

To those fledgling times when we were lax and preened,

So small we lodged ourselves between the cracks

Of that and this unchanged machine

In which we now have risen to be full-fledged cogs.

 

Take me back

To when my back impressed upon the chain-linked wire

Dangled legs all splayed, tired out

From too much tennis played,

And spent this one forgetless hour

Before a shower and off to watch a movie.

 

Return me even to those since-forgotten fears,

To the stoney months and years

Of want and doubt and grit and scree,

From which Nostalgia – liar that she is –

Pans out her precious golddust memories.

 

Take me back

And if you say it can’t be done

For pity’s sake,

Give my back the strength to carry on.

Aragorn’s Law: Of kings good and powerful

This post is an attempt to come up with a Law on the fundamental nature of power, which I call ‘Aragorn’s Law’. To begin with, we state three propositions.

Proposition One: That Power is about control

It’s possible to define the concept of power in a few different ways, but for the most part, when we think of someone who is powerful, we think of a person who has control, meaning they can make choices. A horse remains a ‘strong’ animal even with a rider on its back, but it is no longer powerful, when it is wholly under the control of the rider. That’s because the rider can steer the animal, bending its force to his human will. In a sense, a skilled rider assumes the strength of the beast he controls, taking from it its power.

The same principle holds in human relationships too. Powerful people are those who have control over others, who can make choices and enforce their will upon their subordinates. The boss of a company, the mother of a child, the leader of a country, the dominant spouse in a marriage – these are all clear examples of people who have control over other people and are thus powerful. For simplicity’s sake, let’s just call them kings.

Proposition Two: That Goodness exists and means doing good

What we’ve said so far is nothing very earth shattering. In fact, it’s pretty close to tautological. Ditto for what I’m about to say concerning a ‘good’ person: A ‘good’ person is one who tries to do good. This is pretty uncontroversial, unless you take the position that goodness is something innate – i.e. that you simply are (or are not) good or else the nihilist position, that good does not really exist, and that there is only subjective self-interest.

Tolkien's fictional king Aragorn was the archetype of the powerless ruler - slave to his desire to do good.
Tolkien’s fictional king Aragorn is the archetype of the powerless ruler – slave to his desire to do good.

But if you accept – as I do – that there is such a thing as free will, and that there is such a thing as objective ‘goodness’, then it follows pretty logically that a good person is one who makes the choice to do good things; and a good king is a king who chooses to do good. The boss can do good by paying his workers fairly, setting an example of industry and honesty and settling disputes in a tough but equitable way. The mother can give to her children equal shares of love and attention, care for their needs and protect them from harm. The political leader can attempt to reform his country, restrain the power of the oligarchs and promote the prosperity of his people. Even the dominant spouse can do good, by refraining from using her power over her partner in an adverse way and by guiding him to be a stronger, better individual.

Proposition Three: That the Best Path exists

Now follows the final proposition in the argument: If there exists such a thing as good, then there exists its logical extreme, ‘best’. Insofar as achieving ‘best’ requires choices, there is one path (though often unknown) which is always the Best Path to achieving it. This is a little more tenuous, I’ll admit. You might argue that there could be two equally good outcomes, in which case there might be two separate paths to get us there. But in general, I believe the proposition to hold in most cases, if not in all. It is ‘good’ for the people to be enfranchised, educated, live in peace and pursue their own goals, and there is one ‘best’ outcome for them, their families and society. Even if a king is benevolent, he might not know exactly what the path is to achieve these goals, but he knows that among all the choices he could make, there is one unique set of choices which will guide him and his people as close to this goal as is possible.

In a world free of morality, a king might have infinitely man choices, but Proposition Three reduces his choices to two: Either he follows, to the best of his ability, the path of good, the Best Path, or he does not.

The Return of the King

Now we can put these three propositions together to formulate our law, which I name after Tolkien’s fictional King of Gondor, Aragorn. Aragorn’s Law states that:

“There are good kings, and there are powerful kings. But there is no such thing as a good king who is also powerful.”

This is so because in order to do good, a king is infinitely constrained in his actions. Every choice he faces is, in effect, a choice between staying on the Best Path, or deviating from it. As long as he always remains on the Best Path, he has no control whatsoever and is, according to Proposition One, effectively powerless.

A restatement of Aragorn’s Law is instructive in how we view the role of a leader. If power and good leadership are contradictory, then anyone who seeks to have power, cannot be good. This gets us to the fundamental problem with politics, which is that we are ruled by the powerful. It is worthwhile for all of us – and particular those of us in positions of authority, to reflect on what it means to be a good king, a good boss, a good parent or even a good friend. You are never free to do what you want, if freedom to choose means the freedom to deviate.

 

 

 

Of car alarms, ugly facades & first aid courses – the wonderful world of ‘compound externalities’

Jargon is a nerd’s best friend

Economists love to talk about ‘externalities’. ‘Externality’ is a wonderfully complex-sounding word that makes you feel more intelligent just by saying it. It is especially useful when trying to pull the wool over the eyes of a non-economist, as in:

Community activist: “We’re outraged that our organisation has had its budget cut so the government can bail out irresponsible banks!”

Economist: “I understand completely your feelings, but your analysis of the cost of financial sector repair fails to take into account the growth-enhancing effects of the associated positive externalities resulting from the smooth operation of financial markets.”

Community activist: “I… well… uh… what?”

Economist: *smiles imperceptibly and adjusts knot on his silk tie*

Keep your market transaction to yourself, buddy

Yet the actual meaning of the word ‘externality’ is in fact quite simple. Here it is in a nutshell: For any transaction, there is a buyer and a seller. An ‘externality’ can be thought of as the effect of the transaction on someone who is not the buyer and not the seller.

exhaust
Pollution is a classic externality – a cost on someone outside the market which occurs through the operation of the market

So for example, if John buys a car from Volkswagen, this transaction has effects on both John and Volkswagen (John gets a new Golf in exchange for €30,000; Volkswagen gets €30,000 in exchange for a Golf). Because the transaction was voluntary, we can assume both John and Volkswagen are both strictly better off from having made the trade (otherwise, they probably wouldn’t do it).

But what happens when John tools down the road in his new Golf, kicking carbon emissions and particulates into the air, taking up public space and potentially running over grannies and cats? In that case, there is a cost born by someone who was not party to that transaction, arising from the transaction (pollution, traffic congestion, increased risk of an accident). This cost is a ‘negative externality’. There are many examples of negative externalities, but pollution is perhaps the most common one. In general, economists accept that the government should sometimes intervene in markets in order to correct for these negative externalities (through regulation or taxation, for instance).

There’s no such thing as a free ride…or is there?

We can also think of ‘positive externalities’, i.e. when the operation of a market has a positive effect on someone outside it. The pleasant smell of freshly baked bread on a street outside a bakery can bring joy to passers-by, even if they do not actually enter and pay for the bread. And if a person with a contagious disease pays to have himself treated privately, this is a benefit to all the people he has protected from potential infection, even if he was only acting selfishly.

But don’t let the name deceive you: positive externalities are not always a good thing. Sometimes they can stop markets from operating effectively. For example, if I invent a brilliant new machine and try to sell it, the ‘idea’ can simply be copied by someone who does not actually pay for my machine, leaving me with only a small reward for all the midnight oil I burned while getting to my eureka moment. Without some kind of protection, this risk might prevent me from bothering to invent the machine in the first place. This is why, just as in the case of negative externalities, the risk which positive externalities pose to production is a justification for the government to intervene, by granting patents and other forms of intellectual property rights.

Compound externalities – where markets depend on failure in order to succeed

There is a certain class of externality which I find quite interesting and which, to my knowledge, has not been written about by economists yet. It is the ‘compound externality’, which can be defined as the effect on someone outside a market arising from the operation of a market which only has value to the buyer and seller because of this negative effect. This sounds confusing, but it’s quite simple when we break it down: As before, we have a transaction, so we have a buyer and a seller. In addition, there is an effect from the transaction on a third party AND – here’s the catch – the only reason the transaction is valuable to the buyer / seller is because of this effect on the third party.

The most obvious example of a compound externality is noisy alarms. In this case there is a negative cost imposed on you when your neighbour’s house alarm goes off at 3 in the morning, even though you didn’t sell him the alarm and you sure didn’t buy it. But here’s the catch: the only reason he wanted the alarm is so that it would annoy and wake you, his neighbour, up, so that you would then look out the window at his house and – in this way – spot the burglar breaking in through the window (hence deterring the burglar!). If it didn’t create the noise pollution, the alarm would have no value.

Another example is the ‘ugliest façade’ project. Imagine you live on a historic square full of old houses with lovely façades. Your obnoxious neighbour from the above example – not content with his cacophonous alarm – has torn down his house and is building anew. He has an incentive to build the façade as ugly as he possibly can. Why? Because by doing so, he destroys the perfect appearance of the square as viewed from your house and from every other building… every building that is, except his own. All of the sudden he possesses the only piece of real estate with an unsullied view of the historic old square!

Quick, is there a positive compound externality in the house?

What about positive ‘compound externalities’? Are there any examples of markets which, in order to operate, depend on a positive effect occurring on someone outside the market in order for the market to exist? The only one I can think of is the market for first-aid training. Here, the only value to you in paying for a first-aid training course is that, should the occasion arise, you will be able to apply the Heimlich Manoeuvre to dislodge a chicken dumpling from the oesophagus of a third party (while attending a party…).

I’ll stop now because I can’t think of any other examples. Perhaps someone else can?

 

Things aren’t so bad … so let’s not make them worse

The People think they want change

Ok, there is a lot of anger out there. Some are angry because they fear the ‘other’ taking away what they have; others are angry because they want more redistribution and fairness. Some blame benefit-scrounging immigrants, others blame the global elites. But while the grumbles might be diverse, there is a common sense that the system is somehow ‘broken’ in a way it wasn’t before. Whether it means Trump, Brexit or someone like Bernie Sanders, a large number of people who previously would have been moderates now want – or at very least expect – to see fundamental change to the societies and political systems they consider have failed. Alarmingly, they seem prepared to topple long-established systems and political traditions in order to see this change happen.

And maybe they’re right. Who knows? The consequences of disruptive change are hard to predict in the short run, and ultimately may take a very long time to play out fully. When Nixon visited Beijing in 1972, he asked the witty and influential Chinese mandarin Zhou Enlai his opinion on what impact the 1789 French Revolution had had on history, to which Enlai is said to have replied that it was “too early to say”.

Nature red in tooth and claw

But it seems to me the risks are very much on the downside. To paraphrase John Lennon, if disruptive change means destruction, you can count me out . Our system may not be perfect, but it is a hell of a lot better than nothing. To see how, consider what things would be like in the complete absence of society. Imagine an invisible hand picked any one of us up from his current desk, couch, bed, airplane seat … and carried him out of his man-made environment and place him, naked, in a

Without us around, Nature would reclaim cities within a few hundred years. Romantic? Or just plain brutal?
Without civilisation, Nature would reclaim cities within a few hundred years. Romantic? Or brutal and hostile?

theoretical primeval forest where other humans simply did not exist. This is the total absence of society. How well would he fare? He might last a week before getting eaten. A summer, perhaps, if he is particularly crafty and in good health. But come winter, he would freeze, starve or get eaten by wolves. The first major injury or illness would likely finish him off. And even if, by some miracle, he managed to carve out a niche (most likely literally) for himself, would his quality of life be even a fraction of what it is now? I remember an excellent article written by Alan Weisman in Discover Magazine back in 2005 which explored the world without humans. It was a romantic vision, full of evocative prose of species flourishing and cities crumbling. The descriptions made it clear a little bit of the author’s heart longed for such a thing to take place. Yet where is Mr Weisman now? Living in one of the few remaining wildernesses in Alaska or Russia which closely approximate his vision? I’m guessing not. Especially as he was sending pre-apocalyptic tweets as recently as 2014.

Creature comforts are better than creatures

This thought exercise is designed to remind us of just what a good job society does at shielding us from what is, in reality, a hostile physical environment. Such a good job, in fact, that we forget we are being shielded. Unlike the current political system, Nature isn’t just guilty of neglecting our interests and selling us a bit of Fake News. Nature actively wants us to die. It wants to dispatch predators to eat us, it wants to release diseases to sicken us, or else simply deny us food and watch us starve. The system, far from being broken, does an absolutely remarkable job of taming Nature and providing us with far more than what we could have on our own. What’s more, it is better at doing this now, than at any point in human history.

If we allow this system to be torn down, perhaps a better one will rise from the ashes and we will achieve some kind of Utopia. But that seems like a bad bet, given what we know from history and observing the physical world around us. Disruptive change is more likely to give Nature the opening she has been seeking for centuries. She might rub her hands in glee while we starve in our billions. Animals or bacteria could so easily overwhelm us, and in the ensuring mayhem we would likely turn on each other. Then, somewhere in the mud and mess, those among the living who were old enough to remember would regret that they so cheaply threw away a system they thought was broken, but in reality was only a little bit flawed.