After studying economics for 6 years, which availed me of the merits of free markets, I have circled back to the conclusion that, overall, Democrats will benefit most people in the long run far more than Republicans. I chronicle my observations in this blog.
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Friday, June 29, 2007
How We Got Through the Bush Years...
Now that the final nails in the coffin of the Bush Administration are just about in, I feel like its time for a retrospective, or tribute, to those elements of culture (mostly the web) that got us through the past 7 years.
1. Daily Show with Jon Stewart
(and OnLisasRadar....Lisa Rein kept the best clips available back in the day)
And now its going to be annoying as he takes on the Democrats ever more and more. The knife cuts both ways, alas. But I will always be grateful for Jon Stewart between 2001 and 2007.
2. Get Your War On
www.mnftiu.cc
Frigging brilliant!
3. This Modern World
www.thismodernworld.com
I'm so grateful that Salon kept providing this, as well.
4. The Onion
www.theonion.com
Ok, they got me through stuff even before 2000, but thank God for the stance they took on things afterwords. Note: Personally, I think the writing has taken a dive recently, but either it will be like Saturday Night Live in its lifespan, with cycles of brilliance and failure, or it is the long term consequence of their move to NYC a few years back finally setting in.
5. WhiteHouse.Org
Especially those WWII-esque POSTERS!!
Got me through the first term, especially.
6. Dan Froomkin (originally White House Briefing)
Froomkin on the Washington Post Web
Especially as the years went on and Blogs came to the fore, he was an essential aggregator.
Wednesday, June 27, 2007
The (Bayesian) Advantage of Youth
May 19, 2007
The (Bayesian) Advantage of Youth
Posted by Clay Shirky
A couple of weeks ago, Fred Wilson wrote, in The Mid Life Entrepreneur Crisis “…prime time entrepreneurship is 30s. And its possibly getting younger as web technology meets youth culture.” After some followup from Valleywag, he addressed the question at greater length in The Age Question (continued), saying “I don’t totally buy that age matters. I think, as I said in my original post, that age is a mind set.”
This is a relief for people like me — you’re as young as you feel, and all that — or rather it would be a relief but for one little problem: Fred was right before, and he’s wrong now. Young entrepreneurs have an advantage over older ones (and by older I mean over 30), and contra Fred’s second post, age isn’t in fact a mindset. Young people have an advantage that older people don’t have and can’t fake, and it isn’t about vigor or hunger — it’s a mental advantage. The principal asset a young tech entrepreneur has is that they don’t know a lot of things.
In almost every other circumstance, this would be a disadvantage, but not here, and not now. The reason this is so (and the reason smart old people can’t fake their way into this asset) has everything to do with our innate ability to cement past experience into knowledge.
Probability and the Crisis of Novelty
The classic illustration for learning outcomes based on probability uses a bag of colored balls. Imagine that you can take out one ball, record its color, put it back, and draw again. How long does it take you to form an opinion about the contents of the bag, and how correct is that opinion?
Imagine a bag of black and white balls, with a slight majority of white. Drawing out a single ball would provide little information beyond “There is at least one white (or black) ball in this bag.” If you drew out ten balls in a row, you might guess that there are a similar number of black and white balls. A hundred would make you relatively certain of that, and might give you an inkling that white slightly outnumbers black. By a thousand draws, you could put a rough percentage on that imbalance, and by ten thousand draws, you could say something like “53% white to 47% black” with some confidence.
This is the world most of us live in, most of the time; the people with the most experience know the most.
But what would happen if the contents of the bag changed overnight? What if the bag suddenly started yielding balls of all colors and patterns — black and white but also green and blue, striped and spotted? The next day, when the expert draws a striped ball, he might well regard it as a mere anomaly. After all, his considerable experience has revealed a predictable and stable distribution over tens of thousands of draws, so no need to throw out the old theory because of just one anomaly. (To put it in Bayesian terms, the prior beliefs of the expert are valuable precisely because they have been strengthened through repetition, which repetition makes the expert confident in them even in the face of a small number of challenging cases.)
But the expert keeps drawing odd colors, and so after a while, he is forced to throw out the ‘this is an anomaly, and the bag is otherwise as it was’ theory, and start on a new one, which is that some novel variability has indeed entered the system. Now, the expert thinks, we have a world of mostly black and white, but with some new colors as well.
But the expert is still wrong. The bag changed overnight, and the new degree of variation is huge compared to the older black-and-white world. Critically, any attempt to rescue the older theory will cause the expert to misunderstand the world, and the more carefully the expert relies on the very knowledge that constitutes his expertise, the worse his misunderstanding will be.
Meanwhile, on the morning after the contents of the bag turn technicolor, someone who just showed up five minutes ago would say “Hey, this bag has lots of colors and patterns in it.” While the expert is still trying to explain away or minimize the change as a fluke, or as a slight adjustment to an otherwise stable situation, the novice, who has no prior theory to throw out, understands exactly what’s going on.
What our expert should have done, the minute he saw the first odd ball, is to say “I must abandon everything I have ever thought about how this bag works, and start from scratch.” He should, in other words, start behaving like a novice.
Which is exactly the thing he — we — cannot do. We are wired to learn from experience. This is, in almost all cases, absolutely the right strategy, because most things in life benefit from mental continuity. Again, today, gravity pulls things downwards. Again, today, I get hungry and need to eat something in the middle of the day. Again, today, my wife will be happier if I put my socks in the hamper than on the floor. We don’t need to re-learn things like this; once we get the pattern, we can internalize it and move on.
A Lot of Knowledge Is A Dangerous Thing
This is where Fred’s earlier argument comes in. In 999,999 cases, learning from experience is a good idea, but what entrepreneurs do is look for the one in a million shot. When the world really has changed overnight, when wild new things are possible if you don’t have any sense of how things used to be, then it is the people who got here five minutes ago who understand that new possibility, and they understand it precisely because, to them, it isn’t new.
These cases, let it be said, are rare. The mistakes novices make come from a lack of experience. They overestimate mere fads, seeing revolution everywhere, and they make this kind of mistake a thousand times before they learn better. But the experts make the opposite mistake, so that when a real once-in-a-lifetime change comes along, they are at risk of regarding it as a fad. As a result of this asymmetry, the novice makes their one good call during an actual revolution, at exactly the same time the expert makes their one big mistake, but at that moment, that’s all that is needed to give the newcomer a considerable edge.
Here’s a tech history question: Which went mainstream first, the PC or the VCR?
People over 35 have a hard time even understanding why you’d even ask — VCRs obviously pre-date PCs for general adoption.
Here’s another: Which went mainstream first, the radio or the telephone?
The same people often have to think about this question, even though the practical demonstration of radio came almost two decades after the practical demonstration of the telephone. We have to think about that second question because, to us, radio and the telephone arrived at the same time, which is to say the day we were born. And for college students today, that is true of the VCR and the PC.
People who think of the VCR as old and stable, and the PC as a newer invention, are not the kind of people who think up Tivo. It’s people who are presented with two storage choices, tape or disk, without historical bias making tape seem more normal and disk more provisional, who do that kind of work, and those people are, overwhelmingly, young.
This is sad for a lot of us, but its also true, and Fred’s kind lies about age being a mind set won’t reverse that.
The Uses of Experience
I’m old enough to know a lot of things, just from life experience. I know that music comes from stores. I know that you have to try on pants before you buy them. I know that newspapers are where you get your political news and how you look for a job. I know that if you want to have a conversation with someone, you call them on the phone. I know that the library is the most important building on a college campus. I know that if you need to take a trip, you visit a travel agent.
In the last 15 years or so, I’ve had to unlearn every one of those things and a million others. This makes me a not-bad analyst, because I have to explain new technology to myself first — I’m too old to understand it natively. But it makes me a lousy entrepreneur.
Ten years ago, I was the CTO of a web company we built and sold in what seemed like an eon but what was in retrospect an eyeblink. Looking back, I’m embarrassed at how little I knew, but I was a better entrepreneur because of it.
I can take some comfort in the fact that people much more successful than I succumb to the same fate. IBM learned, from decades of experience, that competitive advantage lay in the hardware; Bill Gates had never had those experiences, and didn’t have to unlearn them. Jerry and David at Yahoo learned, after a few short years, that search was a commodity. Sergey and Larry never knew that. Mark Cuban learned that the infrastructure required for online video made the economics of web video look a lot like TV. That memo was never circulated at YouTube.
So what can you do when you get kicked out of the club? My answer has been to do the things older and wiser people do. I teach, I write, I consult, and when I work with startups, it’s as an advisor, not as a founder.
And the hardest discipline, whether talking to my students or the companies I work with, is to hold back from offering too much advice, too definitively. When I see students or startups thinking up something crazy, and I want to explain why that won’t work, couldn’t possibly work, why this recapitulates the very argument that led to RFC 939 back in the day, I have to remind myself to shut up for a minute and just watch, because it may be me who will be surprised when I see what color comes out of the bag next.
Src: http://many.corante.com/archives/2007/05/19/the_bayesian_advantage_of_youth.php
Democracy: The God That Failed
Theory and History
On the most abstract level, I want to show how theory is indispensible in correctly interpreting history. History – the sequence of events unfolding in time – is "blind." It reveals nothing about causes and effects. We may agree, for instance, that feudal Europe was poor, that monarchical Europe was wealthier, and that democratic Europe is wealthier still, or that nineteenth-century America with its low taxes and few regulations was poor, while contemporary America with its high taxes and many regulations is rich. Yet was Europe poor because of feudalism, and did it grow richer because of monarchy and democracy? Or did Europe grow richer in spite of monarchy and democracy? Or are these phenomena unrelated?
Likewise, is contemporary America wealthier because of higher taxes and more regulations or in spite of them? That is, would America be even more prosperous if taxes and regulations had remained at their nineteenth-century levels? Historians qua historians cannot answer such questions, and no amount of statistical data manipulation can change this fact. Every sequence of empirical events is compatible with any of a number of rival, mutually incompatible interpretations.
To make a decision regarding such incompatible interpretations, we need a theory. By theory I mean a proposition whose validity does not depend on further experience but can be established a priori. This is not to say that one can do without experience altogether in establishing a theoretical proposition. However, it is to say that even if experience is necessary, theoretical insights extend and transcend logically beyond a particular historical experience. Theoretical propositions are about necessary facts and relations and, by implication, about impossibilities. Experience may thus illustrate a theory. But historical experience can neither establish a theorem nor refute it.
The Austrian School
Economic and political theory, especially of the Austrian variety, is a treasure trove of such propositions. For instance, a larger quantity of a good is preferred to a smaller amount of the same good; production must precede consumption; what is consumed now cannot be consumed again in the future; prices fixed below market-clearing prices will lead to lasting shortages; without private property in production factors there can be no factor prices, and without factor prices cost-accounting is impossible; an increase in the supply of paper money cannot increase total social wealth but can only redistribute existing wealth; monopoly (the absence of free entry) leads to higher prices and lower product quality than competition; no thing or part of a thing can be owned exclusively by more than one party at a time; democracy (majority rule) and private property are incompatible.
Theory is no substitute for history, of course, yet without a firm grasp of theory serious errors in the interpretation of historical data are unavoidable. For instance, the outstanding historian Carroll Quigley claims that the invention of fractional reserve banking has been a major cause of the unprecedented expansion of wealth associated with the Industrial Revolution, and countless historians have associated the economic plight of Soviet-style socialism with the absence of democracy.
From a theoretical viewpoint, such interpretations must be rejected categorically. An increase in the paper money supply cannot lead to greater prosperity but only to wealth redistribution. The explosion of wealth during the Industrial Revolution took place despite fractional reserve banking. Similarly, the economic plight of socialism cannot be due to the absence of democracy. Instead, it is caused by the absence of private property in factors of production. "Received history" is full of such misinterpretations. Theory allows us to rule out certain historical reports as impossible and incompatible with the nature of things. By the same token, it allows us to uphold certain other things as historical possibilities, even if they have not yet been tried.
Revisionist History
More interestingly, armed with elementary economic and political theory, I present in my book a revisionist reconstruction of modern Western history: of the rise of absolute monarchical states out of state-less feudal orders, and the transformation, beginning with the French Revolution and essentially completed with the end of World War I, of the Western world from monarchical to democratic States, and the rise of the US to the rank of "universal empire." Neo-conservative writers such as Francis Fukuyama have interpreted this development as civilizational progress, and they proclaim the "End of History" to have arrived with the triumph of Western – US – democracy and its globalization (making the world safe for democracy).
Myth One
My theoretical interpretation is entirely different. It involves the shattering of three historical myths. The first and most fundamental is the myth that the emergence of states out of a prior, non-statist order has caused subsequent economic and civilizational progress. In fact, theory dictates that any progress must have occurred in spite – not because – of the institution of a state.
A state is defined conventionally as an agency that exercises a compulsory territorial monopoly of ultimate decison-making (jurisdiction) and of taxation. By definition then, every state, regardless of its particular constitution, is economically and ethically deficient. Every monopolist is "bad" from the viewpoint of consumers. Monopoly is hereby understood as the absence of free entry into a particular line of production: only one agency, A, may produce X.
Any monopoly is "bad" for consumers because, shielded from potential new entrants into its line of production, the price for its product will be higher and the quality lower than with free entry. And a monopolist with ultimate decison-making powers is particularly bad. While other monopolists produce inferior goods, a monopolist judge, besides producing inferior goods, will produce bads, because he who is the ultimate judge in every case of conflict also has the last word in each conflict involving himself. Consequently, instead of preventing and resolving conflict, a monopolist of ultimate decision-making will cause and provoke conflict in order to settle it to his own advantage.
Not only would no one accept such a monopoly judge provision, but no one would ever agree to a provision that allowed this judge to determine the price to be paid for his "service" unilaterally. Predictably, such a monopolist would use up ever more resources (tax revenue) to produce fewer goods and perpetrate more bads. This is not a prescription for protection but for oppression and exploitation. The result of a state, then, is not peaceful cooperation and social order, but conflict, provocation, aggression, oppression, and impoverishment, i.e., de-civilization. This, above all, is what the history of states illustrates. It is first and foremost the history of countless millions of innocent state victims.
Myth Two
The second myth concerns the historic transition from absolute monarchies to democratic states. Not only do neoconservatives interpret this development as progress; there is near-universal agreement that democracy represents an advance over monarchy and is the cause of economic and moral progress. This interpretation is curious in light of the fact that democracy has been the fountainhead of every form of socialism: of (European) democratic socialism and (American) liberalism and neo-conservatism as well as of international (Soviet) socialism, (Italian) fascism, and national (Nazi) socialism. More importantly, however, theory contradicts this interpretation; whereas both monarchies and democracies are deficient as states, democracy is worse than monarchy.
Theoretically speaking, the transition from monarchy to democracy involves no more or less than a hereditary monopoly "owner" – the prince or king – being replaced by temporary and interchangeable – monopoly "caretakers" – presidents, prime ministers, and members of parliament. Both kings and presidents will produce bads, yet a king, because he "owns" the monopoly and may sell or bequeath it, will care about the repercussions of his actions on capital values. As the owner of the capital stock on "his" territory, the king will be comparatively future-oriented. In order to preserve or enhance the value of his property, he will exploit only moderately and calculatingly. In contrast, a temporary and interchangeable democratic caretaker does not own the country, but as long as he is in office he is permitted to use it to his advantage. He owns its current use but not its capital stock. This does not eliminate exploitation. Instead, it makes exploitation shortsighted (present-oriented) and uncalculated, i.e., carried out without regard for the value of the capital stock.
Nor is it an advantage of democracy that free entry into every state position exists (whereas under monarchy entry is restricted by the king's discretion). To the contrary, only competition in the production of goods is a good thing. Competition in the production of bads is not good; in fact, it is sheer evil. Kings, coming into their position by virtue of birth, might be harmless dilettantes or decent men (and if they are "madmen," they will be quickly restrained or if need be, killed, by close relatives concerned with the possessions of the dynasty). In sharp contrast, the selection of government rulers by means of popular elections makes it essentially impossible for a harmless or decent person to ever rise to the top. Presidents and prime ministers come into their position as a result of their efficiency as morally uninhibited demagogues. Hence, democracy virtually assures that only dangerous men will rise to the top of government.
In particular, democracy is seen as promoting an increase in the social rate of time preference (present-orientation) or the "infantilization" of society. It results in continually increased taxes, paper money and paper money inflation, an unending flood of legislation, and a steadily growing "public" debt. By the same token, democracy leads to lower savings, increased legal uncertainty, moral relativism, lawlessness, and crime. Further, democracy is a tool for wealth and income confiscation and redistribution. It involves the legislative "taking" of the property of some – the haves of something – and the "giving" of it to others – the have-nots of things. And since it is presumably something valuable that is being redistributed – of which the haves have too much and the have-nots too little – any such redistribution implies that the incentive to be of value or produce something valuable is systematically reduced. In other words, the proportion of not-so-good people and not-so-good personal traits, habits, and forms of conduct and appearance will increase, and life in society will become increasingly unpleasant.
Last but not least, democracy is described as resulting in a radical change in the conduct of war. Because they can externalize the costs of their own aggression onto others (via taxes), both kings and presidents will be more than 'normally' aggressive and warlike. However, a king's motive for war is typically an ownership-inheritance dispute. The objective of his war is tangible and territorial: to gain control over some piece of real estate and its inhabitants. And to reach this objective it is in his interest to distinguish between combatants (his enemies and targets of attack) and non-combatants and their property (to be left out of the war and undamaged). Democracy has transformed the limited wars of kings into total wars. The motive for war has become ideological – democracy, liberty, civilization, humanity. The objectives are intangible and elusive: the ideological "conversion" of the losers preceded by their "unconditional" surrender (which, because one can never be certain about the sincerity of conversion, may require such means as the mass murder of civilians). And the distinction between combatants and non-combatants becomes fuzzy and ultimately disappears under democracy, and mass war involvement – the draft and popular war rallies – as well as "collateral damage" become part of war strategy.
Myth Three
Finally, the third myth shattered is the belief that there is no alternative to Western welfare-democracies a la US. Again, theory demonstrates otherwise. First, this belief is false because the modern welfare-state is not a "stable" economic system. It is bound to collapse under its own parasitic weight, much like Russian-style socialism imploded a decade ago. More importantly, however, an economically stable alternative to democracy exists. The term I propose for this alternative is "natural order."
In a natural order every scarce resource, including all land, is owned privately, every enterprise is funded by voluntarily paying customers or private donors, and entry into every line of production, including that of property protection, conflict arbitration, and peacemaking, is free. A large part of my book concerns the explanation of the workings – the logic – of a natural order and the requirements for the transformation from democracy to a natural order.
Whereas states disarm their citizens so as to be able to rob them more surely (thereby rendering them more vulnerable also to criminal and terrorist attack), a natural order is characterized by an armed citizenry. This feature is furthered by insurance companies, which play a prominent role as providers of security and protection in a natural order. Insurers will encourage gun ownership by offering lower premiums to armed (and weapons-trained) clients. By their nature insurers are defensive agencies. Only "accidental" – not: self-inflicted, caused or provoked – damage is "insurable." Aggressors and provocateurs will be denied insurance coverage and are thus weak. And because insurers must indemnify their clients in case of victimization, they must be concerned constantly about the prevention of criminal aggression, the recovery of misappropriated property, and the apprehension of those liable for the damage in question.
Furthermore, the relationship between insurer and client is contractual. The rules of the game are mutually accepted and fixed. An insurer cannot "legislate," or unilaterally change the terms of the contract. In particular, if an insurer wants to attract a voluntarily paying clientele, it must provide for the foreseeable contingency of conflict in its contracts, not only between its own clients but especially with clients of other insurers. The only provision satisfactorily covering the latter contingency is for an insurer to bind itself contractually to independent third-party arbitration. However, not just any arbitration will do. The conflicting insurers must agree on the arbitrator or arbitration agency, and in order to be agreeable to insurers, an arbitrator must produce a product (of legal procedure and substantive judgment) that embodies the widest possible moral consensus among insurers and clients alike. Thus, contrary to statist conditions, a natural order is characterized by stable and predictable law and increased legal harmony.
Moreover, insurance companies promote the development of another "security feature." States have not just disarmed their citizens by taking away their weapons, democratic states in particular have also done so in stripping their citizens of the right to exclusion and by promoting instead – through various non-discrimination, affirmative action, and multiculturalist policies – forced integration. In a natural order, the right to exclusion inherent in the very idea of private property is restored to private property owners.
Accordingly, to lower the production cost of security and improve its quality, a natural order is characterized by increased discrimination, segregation, spatial separation, uniculturalism (cultural homogeneity), exclusivity, and exclusion. In addition, whereas states have undermined intermediating social institutions (family households, churches, covenants, communities, and clubs) and the associated ranks and layers of authority so as to increase their own power vis-a-vis equal and isolated individuals, a natural order is distinctly un-egalitarian: "elitist," "hierarchical," "proprietarian," "patriarchical," and "authoritorian," and its stability depends essentially on the existence of a self-conscious natural – voluntarily acknowledged – aristocracy.
Strategy
Finally, I discuss strategic matters and questions. How can a natural order arise out of democracy? I explain the role of ideas, intellectuals, elites, and public opinion in the legitimation and de-legitimation of state power. In particular, I discuss the role of secession – and the proliferation of independent political entities – as an important step toward the goal of natural order, and I explain how to properly privatize "socialized" and "public" property.
The book grew out of speeches I presented at various Mises Institute and CLS conferences during the 1990s. These conferences, organized by Lew Rockwell, Burt Blumert, and, until his death in 1995, Murray Rothbard, had the purpose of advancing libertarianism by locating and anchoring abstract libertarian theory historically, sociologically, and culturally and thereby creating what has become known in the meantime as paleo-libertarianism (in contrast to left-countercultural-libertarianism and cold-and-hot-war "new" and "neo"-conservatism). The Rothbard-Rockwell Report, the precusor to LRC, was the first and most immediate expression and reflection of this intellectual movement. Others included The Costs of War, Reassessing the Presidency, and The Irrepressible Rothbard. Democracy the God That Failed is my attempt to define and give expression to the paleo-libertarian movement.
November 12, 2001
Src: http://www.lewrockwell.com/hoppe/hoppe4.html
Monday, June 27, 2005
Darwin's Influence on Ruthless Laissez-Faire Capitalism
by Jerry Bergman, Ph.D
Introduction
The Darwinian worldview was critical, not only in influencing the development of Nazism and communism, but also in the rise of the ruthless capitalists that flourished in the late 1800s and early 1900s (Morris and Morris, 1996). A key aspect of this brand of capitalism was its extreme individualism which indicated that other persons count for little, and that it is both natural and proper to exploit "weaker" companies. The socalled robber barons often concluded that their behavior was justified by natural law and was the inevitable outcome of history (Josephson, 1934). Many were raised as Christians, but rejected their Christianity or modified it to include their socialist/Darwinian ideas. Gertrude Himmelfarb noted that Darwinism may have been accepted in England in part because it justified the greed of certain people.
The theory of natural selection, it is said, could only have originated in England, because only laissezfaire England provided the atomistic, egotistic mentality necessary to its conception. Only there could Darwin have blandly assumed that the basic unit was the individual, the basic instinct selfinterest, and the basic activity struggle. Spengler, describing the Origin as: "the application of economics to biology," said that it reeked of the atmosphere of the English factory . . . natural selection arose . . . in England because it was a perfect expression of Victorian "greed-philosophy" of the capitalist ethic and Manchester economics (1962, p. 418). Rachels noted that "the survival of the fittest" theory in biology was quickly interpreted by capitalists as "an ethical precept that sanctioned cutthroat economic competition" (1990, p. 63, see also Hsü, 1986, p. 10). Julian Huxley and H. B. D. Kittlewell even concluded that social Darwinism "led to the glorification of free enterprise, laissez-faire economics and war, to an unscientific eugenics and racism, and eventually to Hitler and Nazi ideology" (in Huxley and Kittlewell, 1965, p. 81).
Ruthless Capitalism
Darwinism helped to justify not only the ruthless exploits of the communists, but also the ruthless practices of capitalist monopolists such as Andrew Carnegie and John D. Rockefeller. Kenneth Hsü (1986, p. 534) noted:
Darwinism was also used in a defense of competitive individualism and its economic corollary of laissezfaire capitalism in England and in America. Like Stalin, Marx, Lenin, and Hitler, Carnegie also once accepted Christianity, but abandoned it for Darwinism and became a close friend of the famous social Darwinist, Herbert Spencer. Carnegie stated in his autobiography that when he and several of his friends came to doubt the teachings of Christianity,
. . . including the supernatural element, and indeed the whole scheme of salvation through vicarious atonement and all the fabric built upon it, I came fortunately upon Darwin's and Spencer's works. . . . I remember that light came as in a flood and all was clear. Not only had I got rid of theology and the supernatural, but I had found the truth of evolution. "All is well since all grows better" became my motto, my true source of comfort. Man was not created with an instinct for his own degradation, but from the lower he had risen to the higher forms. Nor is there any conceivable end to his march to perfection (1920, p. 327). Carnegie's conclusions were best summarized when he said:
the law of competition, be it benign or not, is here; we cannot evade it; no substitutes for it have been found; and while the law may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department (quoted in Hsü, 1986, p. 10). John D. Rockefeller reportedly once said that the "growth of a large business is merely a survival of the fittest . . . the working out of a law of nature . . ." (Ghent, 1902, p. 29). The Rockefellers, while maintaining a Christian front, fully embraced evolution and dismissed the Bible's early books as mythology (Taylor, 1991, p. 386). When a philanthropist pledged $10,000 to help found a university named after William Jennings Bryan, John D. Rockefeller Jr. retaliated the very same day with a $1,000,000 donation to the openly anticreationist University of Chicago Divinity School (Larson, 1997, p. 183). Morris and Morris noted that the philosophy expressed by Rockefeller also was embraced not only by railroad magnate James Hill, but probably most other capitalists of his day (1996, p. 87). Morris and Morris have suggested that many modern evolutionists:
. . . deplore the excess of the social Darwinism. The fact is, however, that it [Darwinism] became very popular among the laissezfaire capitalists of the 19th century because it did, indeed, seem to give scientific sanction to ruthless competition in both business and politics (p. 83). Morris and Morris also noted that both the left wing Marxist-Leninism and the right wing ruthless capitalists were anticreationists and "even when they fight with each other, they remain united in opposition to creationism . . ." (p. 82). Many capitalists did not discard their Christianity, but instead tried to blend it with Darwinism. The result was a compromise somewhat like theistic evolution. Although most American businessmen were probably not consciously social Darwinists,
. . . they attributed such success as they had to their industry and virtue, rather than their achievement in trampling on their less successful competitors. After all, most of them saw themselves as Christians, adhering to the rules of "love thy neighbor" and "do as you would be done by." So, even though they sought to achieve the impossible by serving God and Mammon simultaneously, they found no difficulty in accommodating Christianity to the Darwinian ideas of struggle for existence and survival of the fittest, and by no means all of them consciously thought of themselves as being in a state of economic warfare with their fellow manufacturers (Oldroyd, 1980, p. 216). Several studies have documented the important contribution of Darwin to laissezfaire capitalism: An analysis of the Anthracite Coal Strike Commission (1902_1903) hearings found:
". . . the coal trust preached a social Darwinist ideology, conflating `survival of the fittest' with freedom and individual rights" (Doukas, 1997, p. 367). This study concluded that "the popularity of social Darwinism in the US national ideology should be comprehended as an innovation of corporate capitalism" (Doukas, 1997, p. 367). Rosenthal (1997) showed that, historically, biogenetic doctrines had the effect of promoting an attitude of acceptance of the problems of racism, sexism, war, and capitalism. The field of biogenetics has offered no new scientific evidence that human social behavior has a biogenetic basis, or that business/social competition, male dominance, aggression, territoriality, xenophobia, and even patriotism, warfare, and genocide are genetically based human universals. Yet biogenetic doctrines have occupied a prominent place throughout most of American sociological history. Rosenthal noted that Cooley, Sorokin, Sumner, Ross, and even Park adhered to biological racist doctrines that in the past have signaled and encouraged reactionary social policy.
Darwinism Persists Today in Business
The Darwinian concept, applied to business, still is very much with us today. Robert Blake and his coauthors in their 1996 book, Corporate Darwinism, attempted to apply modern Darwinism to business. They concluded that business evolves in very predictable ways, specifically in defined stages very much like the stages of human evolution. This "business evolution" is natural; business in keeping with Darwinian principles either swallows the competition, or finds that it will be swallowed by that competition.
Summary
Darwin's ideas played a critically important role in the development and growth, not only of Nazism and communism, but also of the ruthless form of capitalism as best illustrated by the robber barons. While it is difficult to conclude confidently that ruthless capitalism would not have blossomed as it did if Darwin had not developed his evolution theory, it is clear that if Carnegie, Rockefeller, and others had continued to embrace the unadulterated JudeoChristian worldview of their youth and had not become Darwinists, capitalism would not have become as ruthless as it did in the late 1800s and early 1900s. Morris and Morris (p. 84) have suggested that other motivations (including greed, ambition, even a type of a missionary zeal) stimulated the fierce, unprincipled robber baron business practices long before Darwin. Darwinism, however, gave capitalism an apparent scientific rationale that allowed it to be taken to the extremes that were so evident in the early parts of last century.
Acknowledgments: I want to thank Bert Thompson, Ph.D., Wayne Frair, Ph.D., and John Woodmorappe, M.A., for their comments on an earlier draft of this article.
References
Blake, Robert, Warren Avis and Jane Mouton. 1966. Corporate Darwinism. Houston, TX: Gulf Pub.
Carnegie, Andrew. 1920. Autobiography of Andrew Carnegie, ed. John C. Van Dyke. 1986; reprint, Boston: Northeastern University Press.
Doukas, Dimitra. 1997. "Corporate Capitalism on Trial: The Hearings of the Anthracite Coal Strike Commission, 1902_1903." Identities: Global Studies in Culture and Power, 3(3):367_398.
Ghent, William. 1902. Our Benevolent Feudalism. New York: Macmillan.
Himmelfarb, Gertrude. 1962. Darwin and the Darwinian Revolution. New York: W.W. Norton.
Hsü, Kenneth. June 1986. "Darwin's Three Mistakes," Geology, (vol. 14),p. 532-534.
Hsü, Kenneth. 1986. The Great Dying: Cosmic Catastrophe, Dinosaurs and the Theory of Evolution. NY: Harcourt, Brace, Jovanovich.
Huxley, Julian and H.B.D. Kittlewell. 1965. Charles Darwin and His World. New York: Viking Press.
Josephson, Matthew. 1934. The Robber Barons. New York: Harcourt and Brace.
Larson, Edward J. 1997. Summer for the Gods: The Scopes Trial and America's Continuing Debate Over Science and Religion. New York: Basic Books.
Morris, Henry and John D. Morris. 1996. The Modern Creation Trilogy. vol. 3. Society and Creation. Green Forrest, AR: Master Books.
Oldroyd, D.R. 1980. Darwinian Impacts. Atlantic Highlands, NJ: Humanities Press.
Rachels, James. 1990. Created from Animals: The Moral Implications of Darwinism. New York: Oxford University Press.
Rosenthal, Steven J. 1977. Sociobiology: New Synthesis or Old Ideology? American Sociological Association.
Taylor, Ian T. 1991. In the Minds of Men: Darwin and the New World Order. Minneapolis: TFE Publishing. *Dr. Bergman is on the Biology faculty at Northwest State College in Ohio
One of the enduring myths in both the common and elite perceptions of history is that the Robber Baron era was the culmination of Northeastern Protestant (Puritan) culture. There is, according to this myth, a logical progression from the Puritans' "city on a hill" to the Robber Barons' pursuit of wealth without regard to moral scruples. As this article points out, there was a specific rejection of the Biblical worldview for a materialist one (Andrew Carnegie) or an a synthesis of elements of Christianity and social Darwinism (John D. Rockefeller). Not mentioned in this article, but also significant, were the effects of both the philosophies of William James and John Dewey in the academic community and modernism and higher Biblical criticism in the mainline Protestant churches. Despite the outward piety and prudishness in American society during the Victorian Era and the early 20th Century, the underlying foundation was shifting radically.
(In fairness to Darwin, I am not aware that he was a Social Darwinist or a white supremacist. The views of Herbert Spencer or the "scientific" racists were not, to my knowledge, endorsed by the English scientist.)
Saturday, October 30, 2004
Bush Looked Into the Eyes of Chalabi and Saw His Soul
Remember the Tim Russert interview when he asked Bush how he was so sure that a democratic Iraq would not elect for an Islamic governement? Chalabi assured him. Yes, that was CHALABI.
washingtonpost.com
Religious Leaders Ahead in Iraq Poll U.S.-Supported Government Is Losing Ground
By Robin WrightWashington Post Staff WriterFriday, October 22, 2004; Page A01
Leaders of Iraq's religious parties have emerged as the country's most popular politicians and would win the largest share of votes if an election were held today, while the U.S.-backed government of interim Prime Minister Ayad Allawi is losing serious ground, according to a U.S.-financed poll by the International Republican Institute.
More than 45 percent of Iraqis also believe that their country is heading in the wrong direction, and 41 percent say it is moving in the right direction.
Within the Bush administration, a victory by Iraq's religious parties is viewed as the worst-case scenario. Washington has hoped that Allawi and the current team, which was selected by U.S. and U.N. envoys, would win or do well in Iraq's first democratic election, in January. U.S. officials believe a secular government led by moderates is critical, in part because the new government will oversee writing a new Iraqi constitution.
"The picture it paints is that, after all the blood and treasure we've spent and despite the [U.S.-led] occupation's democracy efforts, we're in a position now that the moderates would not win if an election were held today," said a U.S. official who requested anonymity because the poll has not been released.
U.S. officials acknowledge that the political honeymoon after the handover of political power on June 28 ended much earlier than anticipated. The new poll, based on 2,000 face-to-face interviews conducted among all ethnic and religious groups nationwide between Sept. 24 and Oct. 4, shows that Iraqi support for the government has plummeted to about 43 percent who believe it is effective, down from 62 percent in a late-summer poll.
A senior State Department official played down the results. "When the interim government took over, the [poll] numbers were artificially high. It's very difficult to meet expectations when they're sky-high," he said on the condition of anonymity because the data are still being analyzed.
But in another blow, one out of three Iraqis blames the U.S.-led multinational force for Iraq's security problems, slightly more than the 32 percent who blame foreign terrorists, the poll shows. Only 8 percent blame members of the former government.
"We had convinced everyone -- Americans and Iraqis -- that things might change with the return of sovereignty, but, in fact, things went the other way," a congressional staff member said. "What's particularly damning is that the multinational force gets more blame than the terrorists for the problems in Iraq. It's all trending in the wrong way . . . and it's not likely we'll be able to change public sentiment much before the election. "
In positive news for the administration, the poll found that 85 percent of Iraqis want to vote in the January election.
Despite the current strife, about two-thirds of Iraqis do not believe civil war is imminent, the poll found. Asked if their households had been hurt by violence, injuries, death or monetary loss over the past year, only 22 percent of those questioned said yes -- a figure that surprised pollsters and U.S. officials.
With voter registration due to begin Nov. 1, the poll found that 64 percent of Iraqis are still unwilling to align with any party, which U.S. officials attribute to the legacy of the Baath Party. The most valuable indicators, officials say, may be the data on Iraq's politicians.
The poll found the most popular politician is Abdel Aziz Hakim, leader of the Supreme Council for the Islamic Revolution in Iraq (SCIRI). The group was part of the U.S.-backed opposition to Saddam Hussein and is now receiving millions of dollars in aid from Iran, U.S. officials say.
Hakim had 80 percent name recognition among Iraqis, with more than 51 percent wanting to see him in the national assembly, which will pick a new government.
Allawi had the greatest name recognition of any politician, with 47 percent of Iraqis supporting him for a seat in the new parliament. But rebel Shiite cleric Moqtada Sadr came in a very close third, with 46 percent backing him for an assembly seat.
Ahmed Chalabi, once favored in Washington as a possible successor to Hussein, had wide national recognition, but only 15 percent want him in parliament -- and more than half oppose him.
The one factor that skews the poll, analysts said, is that Ibrahim Jafari, the Dawa Party chief and current vice president, was not included. He had the highest popularity rating in previous polls.
That may still be the case, since almost 18 percent of Iraqis surveyed by IRI said they were most likely to vote for Dawa candidates -- the largest backing among the top 11 parties listed. Dawa is another former U.S.-backed group supported by aid from Iran, U.S. officials say.
U.S. officials and Iraqi analysts believe candidates aligned with the Supreme Council and with Dawa are likely to capture the highest percentage of votes, giving religious parties an edge in forming a new government.
Iraqi President Ghazi Yawar, a Sunni leader of the country's largest tribe, was also omitted from the poll.
In an interview with Abu Dhabi television, Secretary of State Colin L. Powell said yesterday that Iraqis want democracy and are unlikely to go "from one form of totalitarian state to another form of totalitarian state." Both U.S. officials and Iraq experts note that the rise of Islamic parties does not necessarily mean creation of an Islamic government or theocracy such as Iran's.
President Bush said Tuesday that he would be "disappointed" if free and fair elections in Iraq led to the seating of an Islamic government, but that the United States would accept the results. "Democracy is democracy," he said. "If that's what people choose, that's what the people choose."
The IRI, founded in 1983, is a private, nonprofit organization that has worked in more than 60 countries to advance democracy worldwide. With U.S. grants, it has been in charge of public opinion polls in advance of the election.
source:http://www.washingtonpost.com/ac2/wp-dyn/A52674-2004Oct21?language=printer
Friday, October 29, 2004
Bush Threatens to Veto $87 Billion Iraq Bill
Bush counts on his supporters having no memory
White House Groans Over LoanWASHINGTON, Oct. 21, 2003The Bush administration threatened for the first time Tuesday to veto an $87 billion package for Iraq and Afghanistan if Congress converts any Iraqi rebuilding money into loans. White House officials issued the warning even though many lawmakers agree that the bill's final version is likely to bow to President Bush and omit any loans. By underscoring Mr. Bush's opposition to loans, the administration threat could make it easier for congressional Republican leaders to nail down enough votes to help the president prevail. The House bill included $18.6 to help Iraq rebuild its water supplies, health clinics and Army, and made the money a grant that country would not have to repay. The Senate included $18.4 billion but would require Iraq to repay about half — unless Saudi Arabia, Russia and other countries forgave 90 percent of the debt Baghdad ran up under Saddam Hussein's regime. Mr. Bush and a host of administration officials had repeatedly expressed their opposition to loans in recent weeks, but had not issued a veto threat before. A letter written Tuesday reiterated White House arguments, but contained the first such veto warning. "If this provision is not removed, the president's senior advisers would recommend that he veto the bill," wrote White House budget director Joshua Bolten. "Including a loan mechanism slows efforts to stabilize the region and to relieve pressure on our troops, raises questions about our commitment to building a democratic and self-governing Iraq, and impairs our ability to encourage other nations to provide badly needed assistance without saddling Iraq with additional debt," the letter said. Later this week, U.S. officials are hoping to get billions in pledges from foreign countries at an Iraq donors' conference in Madrid. So far, according to The New York Times, Japan has pledged $1.5 billion for next year and more in the future, Britain said it would donate $800 million, Spain nearly $300 million and Canada $260 million. The Pentagon estimates Iraqi reconstruction will require $55 billion. Were Congress to pass the Senate version of the reconstruction bill, countries could follow the U.S. example and provide loans rather than grants. In addition, U.S. officials are hoping to steer the donors' conference away from debt relief and toward grants. If the U.S. reconstruction plan links America aid to debt relief, it might be difficult to get donors to focus on new aid. Loan supporters say that with some of the world's richest oil reserves, Iraq should be required to eventually repay some U.S. aid. That is especially true with the United States facing record federal deficits, and many members of Congress hearing requests from their home districts for more funds for local roads and other projects. House-Senate bargainers hope to reach compromise on a final version of the bill next week. Both houses overwhelmingly approved similar bills Friday providing most of the $87 billion that Mr. Bush requested for U.S. military operations in Iraq and Afghanistan and for rebuilding the two countries. The House vote was 303-125, while the Senate roll call was 87-12. The loans-vs.-grants debate concerns only a portion of the massive bill, which provide nearly $66 billion for U.S. troops in the field. Both chambers chopped nearly $2 billion off the $20.3 billion he requested for retooling Iraq's oil industry, its court system and the rest of its economy and government. Minutes before final passage, the Senate voted by voice to strip nearly $1.9 billion from that part of the bill, erasing money for ZIP codes, sanitation trucks and other items that some lawmakers had derided as frivolous. The House had already killed most of those same items. Senators also voted to add $1.3 billion for veterans' health care programs. The bills also contained rebuilding aid for Afghanistan; assistance for Pakistan, Jordan, and other U.S. allies; and cash for rewards for the capture of Saddam and Osama bin Laden.
As part of the $87 billion request for operations in Iraq and Afghanistan, President Bush's $20.3 billion proposal for rebuilding Iraq includes:
$2.9 billion to repair the electrical system
$150 million for emergency communications system
$150 million for a new children's hospital in Basra.
$130 million for irrigation projects.
$125 million for railroads.
$100 million to protect witnesses
$100 million for war crimes experts
$100 million for housing
$99 million for prisons
$67 million for guards
$55 million for an oil pipeline repair team
$30 million for English classes
$9 million to modernize Iraq's postal system
$1 million for a museum on atrocities by Saddam's regime. AP
Reuters version
Tue October 21, 2003 01:01 PM ET By Vicki Allen
WASHINGTON (Reuters) - The White House on Tuesday threatened to veto an $87 billion bill for military operations and reconstruction in Iraq if Congress keeps a Senate-passed provision to convert $10 billion of the package into loans.
The chairman of the House of Representatives Appropriations Committee meanwhile said he was confident the loan provision would be eliminated when a House-Senate conference meets to reconcile differences in their two versions, enabling a final measure to be sent to President Bush.
"I believe the House position will prevail. We are determined to support the president," said Rep. Bill Young, a Florida Republican.
But sentiment remained strong among lawmakers in both chambers to make Iraq repay a portion of the $20 billion Bush wants for Iraq's reconstruction from its future oil revenues.
White House budget director Joshua Bolten in a letter to the House and Senate appropriations committees said the president's senior advisers would recommend a veto if the loan was not dropped from the final bill.
"Including a loan mechanism slows efforts to stabilize the region and to relieve pressure on our troops, raises questions about our commitment to building a democratic and self-governing Iraq, and impairs our ability to encourage other nations to provide badly needed assistance without saddling Iraq with additional debt," Bolten said.
The Senate last week narrowly voted to make $10 billion of the package into loans, while the House narrowly defeated a similar measure pushed by Democrats. House Republican leaders had maneuvered to prevent a vote on a Republican loan plan.
The House later Tuesday was to take a nonbinding vote that Republicans acknowledged could put a majority on the record in support of the loans, as well as additional money for veterans' health care and improvements in the quality of life for U.S. troops in Iraq.
John Feehery, spokesman for House Speaker Dennis Hastert, an Illinois Republican, said he did not feel that vote would be significant. "We're not going to send the president a bill he's going to veto," he said.
Young said he expected a final bill will be ready later this month to send to Bush, and said conferees will meet on next Tuesday on the bill.
While the bill could not be completed as hoped in time for international donors conference for Iraq on Thursday and Friday in Madrid, he said, the strong House and Senate votes last week for somewhat different measures demonstrate the United States will offer at least half of rebuilding money in grants and should encourage other donor countries.
"The United States is committed. Both houses have passed one version or another for a construction grant," said Young.
source:
Thursday, October 28, 2004
Bush Looked Into Eyes of Chalabi
From Feb 8 Meet the Press interview with Bush (Tim Russert the interviewer):
Russert: If the Iraqis choose, however, an Islamic extremist regime, would you accept that, and would that be better for the United States than Saddam Hussein?
President Bush: They're not going to develop that. And the reason I can say that is because I'm very aware of this basic law they're writing. They're not going to develop that because right here in the Oval Office I sat down with Mr. Pachachi and Chalabi and al-Hakim, people from different parts of the country that have made the firm commitment, that they want a constitution eventually written that recognizes minority rights and freedom of religion.
I remember speaking to Mr. al-Hakim here, who is a fellow who has lost 63 family members during the Saddam reign. His brother was one of the people that was assassinated early on in this past year. I expected to see a very bitter person. If 63 members of your family had been killed by a group of people, you’d be a little bitter. He obviously was concerned, but he -- I said, you know, "I'm a Methodist, what are my chances of success in your country and your vision?" And he said, "It's going to be a free society where you can worship freely." This is a Shiia fellow.
And my only point to you is these people are committed to a pluralistic society. And it's not going to be easy. The road to democracy is bumpy. It's bumpy particularly because these are folks that have been terrorized, tortured, brutalized by Saddam Hussein.
source:http://www.msnbc.msn.com/id/4179618