For most of the postwar era, the Conservative Party prided itself on its ability to tell an economic story. Tories traditionally explained their right to govern in terms of an overarching economic vision for the country, a vision which was instantiated in policy and which often set the political agenda.
From Macmillan to Thatcher to Cameron, they presented themselves as the party of national prosperity, and of hard-nosed economic realities, and many people voted for them on this basis. But this no longer seems to be the case.
The last few years have witnessed what elsewhere we called the Strange Death of Tory Economic Thinking. In the years following the EU Referendum, Conservatives in Britain largely dropped the economy from the heart of their political story. This is not just a criticism of Mayism, with its Home Office view of the world; many who professed to be market liberals seemed to do so performatively, without serious consideration of what they wanted to deregulate or how.
The recent change of Prime Minister provides an opportunity to put this right. We hope that the new government will turn away from the trajectory of the last three years, and start taking economics seriously again. If it chooses not to, we would urge others on the centre-right to take up the challenge.
This paper is an attempt to sketch out some principles for a centre-right economic outlook, and some specific policies to focus on.
We begin by presenting a few important stylised facts about the contemporary British economy that should frame an economic narrative; we then set out some political principles for how to turn these into economic policy.
Finally, we conclude with some long-term actions that need to be taken to begin rebuilding an economic narrative for the Right.
This website was written by Sam Bowman and Stian Westlake. If you would like to discuss it, they can be contacted via Twitter (@s8mb and @stianwestlake respectively). If you would like a PDF of the whole website, you can find one here.
Here is the link.
What do we learn from reading through a list of top Patreon winners? That is the topic of my latest Bloomberg column, here is one excerpt:
Feel free to peruse the list yourself. My own browsing and clicking led me to a new conclusion: America’s culture war is not just left-wing vs. right-wing, or privileged vs. unfortunate, or even Trump vs. his critics. It is between those who believe in aspiring to something greater and those who do not.
You will note that your main criticisms already are covered in my text.
That is the new book by my colleague Virgil Storr and co-author Ginny Seung Choi. Here is a summary take on it, excerpt:
This book explores whether or not engaging in market activities is morally corrupting. Storr and Choi demonstrate that people in market societies are wealthier, healthier, happier and better connected than those in societies where markets are more restricted. More provocatively, they explain that successful markets require and produce virtuous participants. Markets serve as moral spaces that both rely on and reward their participants for being virtuous. Rather than harming individuals morally, the market is an arena where individuals are encouraged to be their best moral selves. Do Markets Corrupt Our Morals? invites us to reassess the claim that markets corrupt our morals.
Here is a Deirdre McCloskey blurb:
“Storr and Choi have brought economics and politics back to ethics, which should never have been left. Of course values matter. Of course markets smooth off the rough sides of humans. Of course ‘sweet commerce’ reigns, and should. Of course. But it took a brilliant book like this one to show it.”
You can order the book here.
The author is Garett Jones and the subtitle is Why You Should Trust Elites a Little More and the Masses A Little Less, coming soon to a theater near you, early 2020.
If you believe in judicial independence, you do not believe in complete democracy.
If you do not think we should elect judges, sheriffs, and dog catchers, you do not believe in complete democracy.
If you believe in those European proportional representation systems, with post-election bargaining, you do not believe in complete democracy.
If you are a fan of the EU…etc.
Here is an excerpt from Garett’s excellent book:
Some cities in California appoint their treasurers and others elect their treasurers. Cities can have elections to decide whether the city treasurer should be appointed by the city government; the default is that they’re elected. Whalley checks to see which kinds of cities have lower borrowing costs: ones with appointed treasurers or elected ones. The interest rate paid on a city’s debt is a useful index of how well the city is running its finances…So Whalley’s overall question is this: Do cities with appointed treasurers pay lower interest rates on their debt?
…Over the period Whalley examined, 1992 to 2008, forty-three cities held referenda to ask whether they should switch to appointed treasurers. He’s therefore able to look at the before-and-after differences of these elections…
[there is] an even bigger benefit of appointed treasurers: seven-tenths of a percent lower interest rates every year. The average city has $30 million in debt, so that comes out to a savings of $210,000 per year.
Do I hear eleven percent anybody? Though twenty percent I do not wish to hazard, not at all.
You can pre-order the book here.
Survey and experimental evidence documents discrimination against tattooed individuals in the labor market and in commercial transactions. Thus, individuals’ decision to get tattooed may reflect short-sighted time preferences. We show that, according to numerous measures, those with tattoos, especially visible ones, are more short-sighted and impulsive than the non-tattooed. Almost nothing mitigates these results, neither the motive for the tattoo, the time contemplated before getting tattooed nor the time elapsed since the last tattoo. Even the expressed intention to get a(nother) tattoo predicts increased short-sightedness and helps establish the direction of causality between tattoos and short-sightedness.
That is from a new paper by Bradley J. Ruffle and Anne E. Wilson, via the excellent Kevin Lewis.
Pessimists are happy dreamers. They make the world in their own image and so always manage to feel at home.
That is from Fernando Pessoa, The Book of Disquiet.
Russ was the interviewer, he and I both think it is the best discussion we have had of eleven (!) interactions. Here is the link. Recommended.
Dave is an actuary, super-talented, and one of my very favorite interviewers and best prepared interviewers in the whole wide world (do say yes if he offers to interview you for his podcast).
Here is the audio, most of the questions go well beyond the usual. It starts with my book Big Business but even gets into the Straussian side of things, globalization, the price of fame, and much more.
One of the more important things I’ve changed my mind about recently is the best cause to donate to. I now put the most credence on the possibility that the best option is donating to a fund that invests the money and disburses strategically in the future. I will refer to this as “giving later”, though I actually support giving now to a donor-advised fund set up to disburse in the future, for the value that donating now can have for encouraging others to donate (and because of the risk that even if one thinks one will donate later, one will at some point change one’s mind).
There are several reasons why I prefer a fund that disburses in the future. First, I believe people currently discount the future too much (see hyperbolic discounting, climate change). If people discount the future, that causes the rate of return on investments to always be higher than the growth rate (else people would not be willing to invest). In economics, the Ramsey equation is often used to determine how much a social planner should discount future consumption. It is specified by r=ηg+δ, where r is the real rate of return on investment, η is the extent to which marginal utility decreases with consumption, g is the growth rate, and δ represents pure time preferences. Unless one personally puts a particularly high value on δ, it makes sense to invest today and spend later to take advantage of the gap between the real rate of return on investment (~7%) and the growth rate (~3-4%).
…A second reason that I prefer a fund that disburses in the future is that I think we have very limited knowledge today and that our knowledge is increasing. I am concerned about the problem that research results do not generalize all that well, but with respect to economic development I am optimistic that the situation can improve. With respect to technological change which could bring huge benefits or risks, I think we know even less about the problems future generations will face and may be able to understand them better in the future. It seems unlikely to me that we are at the exact moment in time, out of all periods of time from here on out into the future, that we actually have the best opportunity to do good. We may not recognize the best moment when it comes, but that just pushes the argument back a step: I also think it unlikely that we are at the best moment, out of the whole foreseeable future, to have the best combination of knowledge and opportunity to do good.
Interesting throughout, here is the link, and in sum:
I think it appeals psychologically to many people – myself included – to think that we are living at a particularly important time. However, I recognize that people have thought this throughout history. As more time has passed, I have become increasingly confident that my gut antipathy to the idea that it’s better to “give later” is just a cognitive bias.
Here is the transcript and audio, here is the summary:
Masha joined Tyler in New York City to answer his many questions about Russia: why was Soviet mathematics so good? What was it like meeting with Putin? Why are Russian friendships so intense? Are Russian women as strong as the stereotype suggests — and why do they all have the same few names? Is Russia more hostile to LGBT rights than other autocracies? Why did Garry Kasparov fail to make a dent in Russian politics? What did The Americans get right that Chernobyl missed? And what’s a good place to eat Russian food in Manhattan?
Here is excerpt:
COWEN: Why has Russia basically never been a free country?
GESSEN: Most countries have a history of never having been free countries until they become free countries.
COWEN: But Russia has been next to some semifree countries. It’s a European nation, right? It’s been a part of European intellectual life for many centuries, and yet, with the possible exception of parts of the ’90s, it seems it’s never come very close to being an ongoing democracy with some version of free speech. Why isn’t it like, say, Sweden?
GESSEN: [laughs] Why isn’t Russia like . . . I tend to read Russian history a little bit differently in the sense that I don’t think it’s a continuous history of unfreedom. I think that Russia was like a lot of other countries, a lot of empires, in being a tyranny up until the early 20th century. Then Russia had something that no other country has had, which is the longest totalitarian experiment in history. That’s a 20th-century phenomenon that has a very specific set of conditions.
I don’t read Russian history as this history of Russians always want a strong hand, which is a very traditional way of looking at it. I think that Russia, at breaking points when it could have developed a democracy or a semidemocracy, actually started this totalitarian experiment. And what we’re looking at now is the aftermath of the totalitarian experiment.
GESSEN: …I thought Americans were absurd. They will say hello to you in the street for no reason. Yeah, I found them very unreasonably friendly.
I think that there’s a kind of grumpy and dark culture in Russia. Russians certainly have a lot of discernment in the fine shades of misery. If you ask a Russian how they are, they will not cheerfully respond by saying they’re great. If they’re miserable, they might actually share that with you in some detail.
There’s no shame in being miserable in Russia. There’s, in fact, a lot of validation. Read a Russian novel. You’ll find it all in there. We really are connoisseurs of depression.
Finally there was the segment starting with this:
COWEN: I have so many questions about Russia proper. Let me start with one. Why is it that Russians seem to purge their own friends so often? The standing joke being the Russian word for “friend” is “future enemy.” There’s a sense of loyalty cycles, where you have to reach a certain bar of being loyal or otherwise you’re purged.
Let’s say you want to read some books on Venice, maybe because you are traveling there, or you are just curious about the Renaissance, or about the history of the visual arts.
Maybe you will write me and ask: “Tyler, which books should I read on Venice?” Now, there are many fine books on Venice, but I actually would not approach the problem in that manner. In fact, I don’t know a single particular “must read” book on Venice that stands out above all others, nor do I know a book that necessarily will draw you in to the study of Venice if you are not already interested.
I instead suggest a “rabbit holes” strategy, a term coined in this context by Devon Zuegel. Come up with a bunch of questions about Venice you want answered, and then simply do whatever you must to pursue them. Here are a few such possible questions, drawn up by me:
How did Venetian architecture draw upon Byzantine styles?
How did the Venetian salt trade evolve? Glasswork? Publishing?
What were the origins of accounting in Venice?
Why did Gordon Tullock think the Venetians had the finest and wisest constitution of history? How much power did the Doge really have?
How did the different Bellinis reflect different eras of Venetian history, both artistic and otherwise?
How did oil painting come to Venice and why did it become so prominent there?
Why are late Titian paintings better than almost everything else in the visual arts?
What factors led to the decline of Venice in the seventeenth and eighteenth centuries? How did Napoleon treat Venice?
Now, those are just sample questions, obviously you could come up with your own and add to or alter that list. But here is the thing: simply pursue the list of questions. It may well induce you to buy books, such as this work on Venetian architecture and the East. Or it may lead you down Googled rabbit holes. Or it may lead you to…
Follow the questions, not the books per se. Don’t focus on which books to read, focus on which questions to ask. Then the books, and other sources, will follow almost automatically.
Read in clusters! Don’t obsess over titles. Obsess over questions. That is how to learn best about many historical areas, especially when there is not a dominant book or two which beat out all the others.
My question: Is it ever possible for an individual book to present and realize this very process for you? If not, why not?
Consider the right-wing, conservative, and libertarian movements — is there a good word for them as a general collective? For now I’ll use “conservative,” while recognizing that the lack of generally recognized standard bearers means that “conservative” and “radical” these days blur into each other, and furthermore conservative and libertarian views have areas of real and significant conflict.
Who is today the most influential conservative intellectual with other conservative and libertarian intellectuals? (I once said Jordan Peterson is the most influential intellectuals with the general public.)
It seems obvious to me that this is Peter Thiel (admittedly I am a biased observer, for a number of reasons, one being that the Thiel Foundation is a supporter of Emergent Ventures). Quite simply, if Peter gives a talk with new material in it, it gets discussed more than if anyone else does.
What else might his qualifications be for “most influential conservative intellectual”?
He has had a major hand in the tech revolution, and with his later view that technology is stagnating more generally.
He is the talent spotter par excellence, having had a hand in the rise of Mark Zuckerberg, Elon Musk, Reid Hoffman, Eric Weinstein, and others.
A major hand in Trump/populism/nationalism, or whatever it should be called. I should note that Peter is often highly influential with those who disagree with him about Trump.
Spoke/wrote/co-authored a bestselling book — Zero to One — which also was a huge hit in China. And the samizdat lecture notes, from Peter’s Stanford talks, were a big hit in advance of the book.
A major hand in the critique of political correctness, and the spread of that critique.
He foresaw that globalization might contract rather than keep on expanding. The final answer isn’t in yet on this one, but so far Peter is looking prescient.
A major hand in causing people to rethink higher education, through his Thiel Fellows program.
A major hand in stimulating the interest of others in Girard and Strauss, and maybe someday Christianity?
This point has nothing to do with how much you agree with Peter or not. It simply occurred to me that no one had said this before, or have they?
By the way, here is David Perell on Peter Thiel on Christianity.
Anthony Kronman, former Dean of the Yale Law school, writes in the WSJ:
The politically motivated and group-based form of diversity that dominates campus life today discourages students from breaking away, in thought or action, from the groups to which they belong. It invites them to think of themselves as representatives first and free agents second. And it makes heroes of those who put their individual interests aside for the sake of a larger cause. That is admirable in politics. It is antithetical to one of the signal goods of higher education.
…Grievance is the stuff of political life…Academic disagreements are different. Important ones are often inflamed by passion too. But the goal of those involved is to persuade their adversaries with better facts and arguments—not to bludgeon them into submission with complaints of abuse, injustice and disrespect to increase their share of power. Today, the spirit of grievance has been imported into the academy, where it undermines the common search for truth by permeating it with a sense of hurt and wrong on the part of minority students, and guilt on the part of those who are blamed for their suffering.
…For college students, the search for truth is important not because reaching it is guaranteed—there are no such guarantees—but as a discipline of character. It instills habits of self-criticism, modesty and objectivity. It strengthens their ability to subject their own opinions and feelings to higher and more durable measures of worth. It increases their self-reliance and their respect for the values and ideas of those far removed in time and circumstance. In all these ways, the search for truth promotes the habit of independent-mindedness that is a vital antidote to what Tocqueville called the “tyranny of majority opinion.”
…Tocqueville was an enthusiastic admirer of America’s democracy. He thought it the most just system of government the world had ever known. But he was also sensitive to its pathologies. Among these he identified the instinct to believe what others do in order to avoid the labor and risk of thinking for oneself. He worried that such conformism would itself become a breeding ground for despots.
As a partial antidote, Tocqueville stressed the importance of preserving, within the larger democratic order, islands of culture devoted to the undemocratic values of excellence and truth. These could be, he thought, enclaves for protecting the independence of mind that a democracy like ours especially needs.
Today our colleges and universities are doing a poor job of meeting this need, and the idea of diversity is at least partly to blame. It has become the basis of an illiberal and antirational academic cult—one that undermines the spirit of self-reliance and the commitment to truth on which not only higher education, but the whole of our democracy, depends.
Here is the audio and transcript. We covered Ghana, Africa more generally, cosmopolitanism and the resurgence of nationalism, philosophy and Karl Popper, Lee Kuan Yew, the repatriation of cultural objects, Paul Simon, the smarts of Jodie Foster, sheep farming in New Jersey, and the value of giving personal advice.
Here is one excerpt:
COWEN: Take Pan-Africanism. Do you think, in the broader course of history, this will go down as merely a 20th-century idea? Or is Pan-Africanism alive and well today?
APPIAH: Pan-Africanism involves two different big strands. One is the diasporic strand. The word Pan-Africanism and the Pan-African Congresses were invented in the diaspora by people like Sylvester Williams in Jamaica and W. E. B. Du Bois from the United States and Padmore.
That idea of a diasporic African identity seems pretty lively in the world today, though it doesn’t produce much actual politics or policy, but the sense of solidarity of people of African descent, of the African diaspora seems pretty strong to me.
COWEN: But strongest outside of Africa in a way, right?
APPIAH: Yes, where it began. In Africa, I think, on the one hand, that most contemporary sub-Saharan Africans do have a sense of themselves as belonging to a kind of Black African world. But if you ask them to do something practical about it, like take down borders or do more political integration, I don’t know that that is going to go anywhere anytime soon, which I regret because I think, for lots of reasons, it would be . . .
My sister and her husband live in Lagos. If they want to go to Accra by road, they have to cross the border between Nigeria and Benin, the border between Benin and Togo, the border between Togo and Ghana. And at each of those borders, they probably have to interact with people who are going to try and extract an illegal tax on them.
COWEN: Easier to fly to London, right?
APPIAH: Much easier to fly to London and back to Accra. That’s crazy. And we’ve had these weird things. On the one hand, there’s probably a million Ghanaians in Nigeria, living Ghanaian citizens.
COWEN: Is cosmopolitanism not only compatible with nationalism, but in a way quite parasitic upon it? And in a sense, the parasite is being ejected a bit? Think back to your boyhood in Kumasi. You have all these different groups, and you’re trading with them. You see them every day, and that works great, but there’s some central coherence to Ghana underlying that.
You go to Lebanon today — that central coherence seems to have been gone for some time. You could call Lebanon a cosmopolitan place, but it’s not really an advertisement for Lebanon the way it’s worked out. Are we just moving to a new equilibrium, where the parasitism of cosmopolitanism is now being recognized for what it really is?
APPIAH: I don’t like the metaphor of the parasite.
APPIAH: But yes, I do want to insist that cosmopolitanism . . . Look, cosmopolitanism, as I said, does not only require, or the right kind of cosmopolitan requires a kind of rootedness, but its point, precisely, is that we are celebrating connections among different places, each of which is rooted in its own something, each of which has its distinctive virtues and interest, each of which has its own history. And we’re making connections with people for whom that place is their first place, just as I am in a place which is my first place.
So yes, cosmopolitanism requires, I think, a national sense of solidarities that are not global. That’s why, as I say, you can be a cosmopolitan patriot. Now, if the nationalist says, “Okay, but why do we need anything beyond national citizenship?” The answer is, we have a world to manage. The economy works better if we integrate.
There is much, much more at the link, self-recommending…
Progress itself is understudied. By “progress,” we mean the combination of economic, technological, scientific, cultural, and organizational advancement that has transformed our lives and raised standards of living over the past couple of centuries. For a number of reasons, there is no broad-based intellectual movement focused on understanding the dynamics of progress, or targeting the deeper goal of speeding it up. We believe that it deserves a dedicated field of study. We suggest inaugurating the discipline of “Progress Studies.”
Plenty of existing scholarship touches on these topics, but it takes place in a highly fragmented fashion and fails to directly confront some of the most important practical questions.
Imagine you want to know how to most effectively select and train the most talented students. While this is an important challenge facing educators, policy makers, and philanthropists, knowledge about how best to do so is dispersed across a very long list of different fields. Psychometrics literature investigates which tests predict success. Sociologists consider how networks are used to find talent. Anthropologists investigate how talent depends on circumstances, and a historiometric literature studies clusters of artistic creativity. There’s a lively debate about when and whether “10,000 hours of practice” are required for truly excellent performance. The education literature studies talent-search programs such as the Center for Talented Youth. Personality psychologists investigate the extent to which openness or conscientiousness affect earnings. More recently, there’s work in sportometrics, looking at which numerical variables predict athletic success. In economics, Raj Chetty and his co-authors have examined the backgrounds and communities liable to best encourage innovators. Thinkers in these disciplines don’t necessarily attend the same conferences, publish in the same journals, or work together to solve shared problems.
You may have seen there is a small cottage industry on Twitter suggesting that we ignore antecedents to Progress Studies, but of course that is not the case, as evidenced by the paragraph above, not to mention claims like: “Progress Studies has antecedents, both within fields and institutions. The economics of innovation is a critical topic and should assume a much larger place within economics.” In fact we consider antecedents in at least nine different paragraphs of a relatively short piece.
The piece is interesting throughout, and I can assure you that Patrick is a very productive and diligent co-author.