Wednesday, January 27, 2021

On Nassim Taleb's Principia Politica

 I just finished Taleb's Pricipia Politca.  This is my reveiw. 


This is an academic work and as such the language is not very accessible. The first page of the first chapter uses the term "tangible fractal gradations" and say these lie between "the concrete individual and the abstract collective". Page two says "Scalability is a simple property of an object that has a concave or convex response. For instance an elephant has more fragility than a mouse for an equivalent proportional random shock." and that's about it as far as explaining what a "concave or convex response" means.  

It isn't even a book about localism as such. I say this without malice, as the first chapter admits it when he says, "The main aim is to fit the dynamics to the proper scale. Hence this is not a discussion on localism but rather one on scalability." So there you go. It isn't a matter of whether his book is better or mine are, but rather what your desires are. If you want to read accessible books on localism, I suggest you read one or both of the books I wrote (see bottom of page). If you want a difficult read on scalability, then his is the better choice. 

Green-centric localists will love his assertion that, "Many modelers fail to realize that model uncertainty and disagreements about, say, a certain policy, is itself potent information that command the maximally prudent route. As an application to climate change: the most contradictory the models, and the wider the gap between their results, the more uncertainty in the system which calls for precaution, even if one disagrees with the models." 

That's a recipe to lose localism when you have a ruling class which is willing to brazenly politicize science and have an SOP of "never letting a crisis go to waste." It is a very short step from there to those with a vested interest in a crisis as a means to centralize power simply using the tools at their disposal to manufacture one which requires global solution, It isn't a default setting that a localist should follow. A more consistently localist idea would be something like "necessity, not uncertainty, should be the standard by which localities should cede power to the center."

That said, I found a lot to agree with and value in his short chapter on Scalability. I don't disagree with him on scalability, it is just that this is an aspect of localism and not a broader approach to establishing a society which can avoid the gravity-like pull of centralization over time. When it comes to scalability, he knows what he is talking about. It's just too narrow to thought of as a stand-in for localism. 

In international relations he suggests that nations reject the golden rule in favor of the sliver rule, which he describes as  "golden rules (a la neocons). Golden rules ("treat others the way you’d like to be treated") invite busybodies to change other people’s lives, while silver rules ("don’t treat others the way you wouldn’t like to be treated") is more robust. Silver rules require skin in the game..., "

I agree with him that neocons and imperial foreign policies are bad, it isn't enough to trade one idea of how to treat people in favor of a slightly different one. People who want power will twist any idea or principle around into a need for them to run other people's lives. The problem isn't the wording of what rule the profess, but rather than they are sinful and defective personalities even by normal human standards. Rather than rely on a slight verbal change in professed rules, a rigorous set of boundaries whereby such would-be God-men are not even capable of pulling off forever-war is needed. We cannot count on good intentions, but rather clearly defined boundaries which shut all thirteen doors centralizers have historically used. I don't talk about scalability much, but I do talk about how to shut every door the neocons have used to turn our Republic into an Empire. 

Another of his principles is that "Precautionary decisions do not scale. Collective safety may require excessive individual risk avoidance, even if it conflicts with an individual’s own interests and benefits. It may require an individual to worry about risks that are comparatively insignificant."

The example he gives is of a virus which in the early stages causes a relatively low risk. We now have an example of how that works in real life. He specifies what he means by saying these things "do not scale"...

The risk for an individual to catch the virus is very low, lower than other ailments. It is therefore "irrational" to panic (re-act immediately and as a priority). But if she or he does not panic and act in an ultra-conservative manner, they will contribute to the spread of the virus and it will become a severe source of systemic harm,,,,,operate in a convex way for cross-dependent small idiosyncratic risks that end up dynamically extremely large at the end. avoid systemic problems,.....even where the immediate individual payoff does not appear to warrant it. 

In light of how the corona virus saga is playing out, giving place to this "principle" ends localism. He is saying such problems "do not scale" in the sense that they don't scale down to the individual. But a localist isn't claiming that anyway, that would be an anarchist. On the other hand, masks and mandates and quarantines' can and should still be a local decision, not a state or federal one. Decisions which take away freedom even for those who mean no harm should be made at the lowest level of government possible, so that if the decision makers go to far people can escape their over-reach, or more easily replace them. He does through the word "local" in there but he doesn't spend any time describing why a centralized response would be wrong. Not even as many words as I spend here. It is all about why it should not be an individual decision and none about why it should not be a central-state one. Where is the balance, the moderate center that localism truly is compared to the disorder of anarchy or the crush of the central state?

His principle of practical Roman tinkering with government vs. Greek over-reliance on platitudes and theoretical frameworks is a good point, but there are plenty of things which seem to work in the short run but in the end are a trap. Debt-based fiat currency is a prime example, Plus, while with this principle he favors "practicality" over ideology the rest of what he writes is very ideological. 

This sort of conflicting view repeats in his chapter on how liberty is scale invariant and the chapter speaking about how morality is not aggregate. The former is at odds with what he said earlier about how it is possible for a man to be a libertarian at the national scale, a Republican at the state scale, and a Democrat at the community scale and a socialist or communist in the family. And he is right about that but then he must be wrong about liberty being scale invariant. It is ok for communities to place infringements on liberty that national governments should not be allowed, or even capable, of doing. 

This is because it is much easier to pick your own, or escape your own, community than it is to escape or pick your own nation state. The "transaction costs" of exiting bad government are lower and thus market forces on government at that scale are much stronger. That is what protects liberty even though local governments can have more leeway- localism does not rely on the good intentions of rulers at any scale of civil government. It seems like he is trying to say that some things about libertarianism are OK and some are not, and he isn't wrong about that. It is just that finding a sub-set of libertarianism which applies universally isn't what localism is about. 

His 8th chapter is called "Non-naïve Universalism". When it comes to the rules under which people from various backgrounds should live, there is no such thing. That's why the attempt to shoe-horn some libertarian ideas into "localist" principles falls flat. And I say that as someone who voted straight Libertarian ticket in the last election. If it is right, let one local space at a time discover that for themselves. The only systemic rules should be the ones which are necessary to keep power divided. His 8th principle is "Never conflate localism with monolithic, absorbing nationalism." and I have no objection to that. Nationalism is the second-worst form of government, unfortunately we are headed toward the worst- corporate-rule globalism.

I thought his ninth chapter on racism et al made some good points but he fell down again by chapter ten "Neither the minority nor the majority should be able to impose their preferences on others." He made this statemen irrespective of scale and therefore not only does it fly in the face of his claim that his work is about scale but it also flies in the face of localist premises. Local people should be able to put more restrictions on their neighbors than they can on someone they have never met in a city they have never been to. That's because those near do have some impact on one another's lives while those in distant places know their own business better than we do. 

The rest of the material through the end of part II could be called "helpful hints for better living and governing." They were good, not bad, but they really had very little to do with localism. They would not serve to stop power from being drawn to the center over time. Especially since they were expressed as principles, not suggestions for specific laws or rules to keep power from being vacuumed up. 

I did not read the final part, which were answering a series of question which seemed again to be mostly irrelevant to the subject I am interested in- how do we stop defective personalities in government from manipulating things so that more and more control of our lives winds up in their hands in the imperial center? 

That's what my books are about. Please see below. Thank you. 

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Saturday, January 2, 2021

Yellen's $7 Million: High-Stakes Regulators Will Always Be Bribed. Do Away With Them!

  Janet Yellen is about to cycle back into power in the Biden Administration. Yellen, the former Chairman of the Federal Reserve Bank who served the global banks (if not the American People) very well during her tenure, has made over seven million dollars in speaking fees from these same banks in the two years since she stepped down. 

Call me a cynic, but I am going to say that she didn't get that seven million dollars because she is a spellbinding public orator. Rather, speaking fees have become a legal way to bribe politicians and top-level government regulators. It is a way to pay off people who have served a particular special interest well. Making them rich sends the signal to the next bunch of regulators that if they keep the money flowing then they too will be rewarded for their treachery. And rewarded in a way that is not only legal, but if they try hard enough they can even delude themselves into thinking that it is legitimate. That people really value their views on things enough to pay six figures for a forty minute speech. 

If we ban such a practice, many people who are insightful and great communicators will refuse to enter public service. It will block out just the kind of people we need to go in! Additionally, the bad actors will find another way. Companies will hire their spouse ala Barbara Boxer, or their children ala Hunter Biden and work the bribes in that way. They may buy large number of copies of their books, or hire them for product endorsements. "Consulting fees" is a popular way to legally bribe politicians as well.

I don't want to be defeatist. Even though you can never stop corruption, there are things that you can do in order to prevent the wholesale purchase of your government which has occurred in the United States. But in order to do this you must give up one thing. You must give up centralization. You must give up the idea that inserting your preferred person at the top of the pyramid will alter the laws of human nature and self-interest. You must buy-in to doing government smarter, and the way that the Founding Fathers of the United States intended. 

That is, a government where the powers of the central government are few and defined, and those of the states (and preferably the localities as in what they called "Town Rule") are numerous and indefinite. To continue to support the vast central government we have now is a choice to continue to support gross corruption. De-centralized government is the only kind of government where market forces can act the other way- to encourage clean government rather than empower corruption as our current system does.

You must remove high-stakes regulators, administrators, and politicians in order to make the costs of corruption so high that it is no longer rational to pay them. If there are hundreds of small agencies and offices scattered everywhere each under the watchful eye of local people instead of one huge one with a giant staff insulated in the national capitol then the costs and risks of buying them off becomes unworkable. In some cases, the entire function must be removed. For example, you cannot have central banking and decentralized government. You must choose one or the other. And since you cannot have true political freedom without decentralization, you cannot have central banking for any length of time and expect any other outcome than the one we have- giant corporations buying off banking regulators in order to loot the rest of us who suffer under a progressive loss of freedom and local choice as all decisions are increasingly made in the national capitol. 

When I say we should support the changes necessary to return and sustain this method of governance I mean several things. This includes buying in to the changes necessary to keep the system of checks and balances they set up from being eroded over time. And a necessary part of that is a commitment to a diversity of political parties, including state-only parties with no national head-quarters. Just cheering for team red or team blue, as if giving either one of those crime-families a monopoly of power would make anything better, must be rejected as part of the problem, not part of the solution. It it no longer intellectually defensible as the act of a patriot. 

There are thirteen doorways to centralization of power. If all thirteen are not kept shut, then each generation will grow up in a nation with a more centralized government than the last, no matter how people vote or otherwise choose to live. Those doorways, and how to shut them, are described in "Localism, a philosophy of government". The case for localism as a political ideal verses the two extremes of centralization or anarchy is made in "Localism Defended". 

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