Tuesday, November 01, 2011

Machan's Archives: Equality or diversity? Which one do Leftists want?
You can’t have both

by Tibor R. Machan

For the last couple or so decades the universities and colleges where I have taught–and by all accounts, most of them in the USA–have had two mutually exclusive social objectives. (Yes, Virginia, higher education is now mostly embarked upon pursuing social policies, not so much educating students.) These two are equality and diversity.

On the one hand there is a big push toward eliminating any kind of inequality in the way students are being regarded and treated. Everyone is equal, just as Barrack Obama’s Vice President Joseph Biden insisted in one of his rallying cries. As he put it in the course of a moving eulogy for his mother (according to the Associated Press), “My mother’s creed is the American creed: No one is better than you,” he said. “Everyone is your equal, and everyone is equal to you. My parents taught us to live our faith, and to treasure our families. We learned the dignity of work, and we were told that anyone can make it if they just try hard enough.”

Of course Mr. Biden didn’t mean we are all equal today or will be tomorrow. What he meant is that in a rightly ordered world, one ruled by him and his associates, there would be total equality among human beings, on the model of, say, ants in their colony (excepting the chief ant, of course, just as this would be and has been the case with any large scale egalitarian experiment). I am not exaggerating. Just go and read Vice President Biden’s comment in full (here) and check out the many very prominently published books on the issue denouncing such dastardly inequalities, among others, as being more beautiful than someone else. Take, for example, Naomi Wolff’s The Beauty Myth from the 1980s and the recently published work of Deborah L. Rhode, The Beauty Bias (2010).

But at the same time that the push for full equality among people is carried out with official support, we also find widespread academic support for the idea of diversity –an idea that assumes, of course, that people aren’t the same at all but quite different–so our various prominent institutions must be inclusive of widely different people.

The differences at issue tend, of course, to be controversial. Some support ideological or philosophical or religious differences, so that those with different ideas, faiths, convictions and the like need all to be included. Some focus upon diversity in racial or ethnic or gender membership. Some stress differences in socio-economic status.

Whatever is the sort of diversity being considered, it is evident beyond any reasonable doubt that people are not equal by a long shot and their unequal status needs to be taken account of in how the relevant institutions–universities, high schools, clubs, corporations, etc.–are being managed, administered or governed. This is not merely a fact of life but a celebrated fact of life, given how so much of educational policy and administration is devoted to doing it justice.

One need but take account of the demographics of the United States of America, let alone the globe, in order to apprehend the underlying basis of this fact. People are not only of the same species, homo sapiens, but are at the same time individuals and members of innumerable special groups, most of them entirely legitimate (unlike, say, membership in the Ku Klux Klan or the Mafia). As a favorite social philosopher of mine, Steve Martin the very inventive and funny actor and writer, put it in the novel, The Pleasure of My Company, “People, I thought. These are people. Their general uniformity was interrupted only by their individual variety.”

So, on the one hand the objective is supposed to be, as VP Biden suggests, to erase all differences and render everyone equal in all important respects. On the other hand, as much of educational administrative policy suggests, diversity is to be celebrated, and the homogeneity that would be part and parcel of an egalitarian world, is to be rejected.

So then which will it be? An acknowledgment of benign human diversity or an insistence of homogenization so as to fulfill the egalitarian dream? There is no doubt about it for me: diversity is not just a fact of human life but a highly welcome one at that.

Monday, October 31, 2011

Markets aren’t Zero Sum Games

Tibor R. Machan

The more I read about “Occupy Wall Street,” including the pundits who apologize for it, the more I find that people still believe that market exchanges are zero-sum games wherein for someone to gain, someone must lose. But this is plain bunk, as economists since Adam Smith have shown conclusively.

But consider--is a marathon race a zero-sum game? Does someone’s running really fast make all others run slow? Clearly not. How fast the winner runs doesn’t slow down or speed up the losers. When a person buys a watch at the mall, both the merchant and the costumer are getting what they want from the other, no one is being ripped off. And the same applies to all honest deals on Wall Street. I buy some shares in a company and it is doing well with its products or services and so the monetary value of the shares increases. Those who didn’t buy these shares do not make the gains I did but not because I prevented them from doing so, only because the purchasing public didn’t want the services or products of the companies in which they bought shares, unlike in the case of my choice of company.

Like marathon races, market processes do not involve what happens in a boxing ring--no one is knocked out so that another may be triumphant. Yet it seems nearly all those who sympathize with the people marching in the Occupy Wall Street parades, as well as the people who speak up for them in their midst, fail to see the difference.

Put bluntly, Bill Gates billions do not make me or anyone else poor. In fact, his billions make it possible for a lot of folks to improve on their economic circumstances. Bill goes out and buys a lot of stuff or just gives his money away in Africa and people will then go out and maker standard purchases with these funds. No one has lost anything, not a dime.

All the wealthy folks in my neighborhood who live on lakes in fancy homes and have yachts and Bentleys aren’t making anyone poor. So resenting them is nothing but sheer envy, a filthy vice! Like hating someone with a great voice when one cannot carry a tune! Or a tall basketball star when one is too short to play the game.

We are often very different from one another--indeed we are all individuals and then gather into groups--and some of this means that what we have stuff and opportunities that others do not, whether they badly want it and even need it. But those who have it aren’t guilty of any wrongdoing except in the fantasy world of egalitarians which is, being a fantasy world, a distortion of the real world in which problems need to be solved. This is, however, a welcome thing to most of us who give it but even a little thought. After all, since you aren’t like me, you will want different stuff from what I will and that way we can trade quite fruitfully, with both of us ahead once the trade is done. Yes, sometimes the market value of what you get from the trade is much lower than of that which I get from it. But so what? If I badly want to have your worn out gloves and am willing to give you my fabulous sunglasses for them, some will see this as a huge rip off but who are they to tell? In most cases they wouldn’t know and in any case they have no business butting in. (They may offer some advice but that’s all.)

Ever since I arrived on these shores many, many moons ago, I have had zero sympathy for people who insisted that we should all enjoy equal wealth, equal advantages, etc. Why? No reason. Maybe what such folks missed out in their education is the study of Orwell’s Animal Farm, Vonegut’s Harrison Bergeron, and Rand’s Anthem. I see get thee back to the classroom and off the streets, especially Wall Street.

Sunday, October 30, 2011

Column on Dyson's Nonsense

Tibor R. Machan

In a recent review essay Freeman Dyson flatly asserts that “social justice demands equality. Fair reward for enterprise and achievement demands inequality.” Well, neither of these is true but for soundbites in a publication like The New York Review of Books one could do much worse. Social justice is neither social, nor just. It is an excuse for some people to run everyone else’s life.

But Dyson doesn’t stop there and adds this:

Advocates on both sides of the debate have tended to take extreme positions. Numerous utopian communities have been founded to put egalitarian principles into practice. Few of them have lasted longer than one generation. Children have a regrettable tendency to rebel against their parents’ dreams. Meanwhile, advocates of extreme free market capitalism have been preaching the gospel of greed. They glorify greed as the driving force that creates new industries and in the end will make everyone wealthy. Unfortunately in many parts of the world where free market capitalism prevails, the rich are growing richer and the poor are growing poorer. [“The Case for Far-Out Possibilities,” Freeman Dyson, NYRB, 11/10/11, p. 27]

Much of this is simply wrong--no free market capitalist champion preaches any gospel of greed. The closest may be some economists who claim that each of us is motivated to make out well in life, a point so broad that it can mean nearly anything. As Milton Friedman put it, “. . . every individual serves his own private interest . . . . The great Saints of history have served their 'private interest' just as the most money grubbing miser has served his interest. The private interest is whatever it is that drives an individual.” ["The Line We Dare Not Cross," Encounter, 11/76:11] So being “greedy” is merely to want to do something, anything, one likes. Self-interest is just having some interest, some goals, never mind what they are. No gospel of greed here, none!

Will freedom produce industries? Well, that and also art and athletics and family life and whatever free men and women choose to pursue. Again, nothing here that should offend any sensibilities.

Does free market capitalism prevail anywhere? Not by a long shot. At best we have some welfare states, mixed economies that include a few elements of capitalism, such a moderate protection of the right to private property and some, fewer and fewer, voluntary contracts, in the midst of innumerable socialist features and fascistic political powers. And where capitalism has made some inroads, the poor are definitely not getting poorer but growing rich, though perhaps not as rapidly as those who focus mostly on wealth care.

So why then is a famous public intellectual saying such misleading things? Maybe because his fame comes from doing work in physics, not in political economy. And maybe also because the common sense account of making it rich still owes too much to the times when that goal was pursued through pilfering, murdering, robbing and otherwise depriving others of what they have. In short, for most of the history gaining wealth was a zero sum game, not the win win situation that modern economists have found far more productive. Peace, not ripping people off, is the road to riches.

Dyson is of course saying all this nonsense in a publication that tries every which way to discredit human economic liberty. He promotes some kind of middle way, between liberty and slavery, at least in the realm of economics. But it makes no sense. It rests on obsolete theory about what gets people to create and produce wealth and ignorance about economic history and reality.

Maybe Dr. Dyson should return to physics and leave economics be. Although quite a few so called economists get it wrong just as he does, especially the Keynesians who believe that one can make something out of nothing. That confusing idea ought to be offensive a physicist for sure.