Rational Philosophy

The Invisible Hand

Ah, the invisible hand, what a fine, dark metaphor to match these dark times. Adam Smith in The Wealth of Nations: The individual who “intends only his own gain is led by an invisible hand to promote an end which was no part of his intention.”

Wednesday’s New York Times editorial “Mr. McCain and the Economy” criticizes McCain on several fronts. 1. His claim that the economy is fundamentally sound, despite the latest cataclysms. 2. His clarification that what he meant by “fundamentally sound” was that he “believed in American workers.” and 3. His broadside that any blame that could fall fell surely on Wall Street’s “unbridled corruption and greed.”

“The crisis on Wall Street is fundamentally a failure to do the things that temper, detect and punish corruption and greed. It was a failure to police the markets, to enforce rules, to heed and sound warnings and expose questionable products and practices,” says the editorial, and with a flick of the wrist ends with a call to McCain to proffer new solutions or approaches that might correct the problems.

McCain, we’ve heard and he admits, suffers from a fundamental lack of interest in things financial (he doesn’t recall how many properties he and his wife own — eight). This is an unfortunate quality in the prospective leader of a country, especially during economic upheavals.

Record Profits in 2007 $1,300 per second

The invisible hand has another meaning here, too. McCain, intent on gaining the presidency is led by the invisible hand of greed in the Republican power-makers. It is no part of McCain’s intention to lead the country into financial disarray, to risk further dismantling of what was, prior to Bush’s presidency, a remarkably strong economy.

Economics is a complex subject. Even the experts don’t understand how economies really work. They are too vast, multi-faceted and irrational.

This last is an incredibly important point. Emotion, fear, mania, addiction, overoptimism all play significant roles in the way the economy heaves and rolls. The concept and model of a completely free market fails in the real world on this basis alone.

Subprime mortgage rescue plan (Simplified Diagram)

Subprime mortgages and the resulting current woes illustrate the second point about the illusion of the completely free market. A free market, a market without restraint, is free to collapse. If we want to prevent this (and who would argue that it’s not in the nation’s best interests to prevent occasional collapse of the economy) someone outside the market needs to be monitoring, reviewing and, if necessary, regulating such things as new financial instruments.

The last problem with the notion of a completely free market is the dangerous relationship with the seat of government. Large, wealthy corporations have deep pockets with which to influence government policy. And, worse yet, if agents of those corporations influence government thinking, policy and strategy (think Rove and Cheney) the power of government will exert an ultimately skewed and even destabilizing influence on the market.

This is exactly what has been happening, as the Times editorial points out: “The disconnect between work and reward has been especially acute during the Bush years, as workers’ incomes fell while corporate profits, which flow to investors and company executives, ballooned. For workers, that is a fundamental flaw in today’s economy. It is grounded in policies like a chronically inadequate minimum wage and an increasingly unprogressive tax system, for which Mr. McCain offers no alternatives.”

The free market is a nice idea, a useful model to illustrate one of the forces at work in an economy. But we should not forget that the invisible hand bends and shapes the market according to the will that wields it.

Related posts from around the Web:

Senate Democrats Discuss Bush-McCain Economic Policies - Senators Boxer, Stabenow, and Menendez discuss how the turmoil on Wall Street is a direct legacy of Bush-McCain economic policies that have failed this nation for eight years. Refusing to police lenders and neglecting to protect …

McCain’s Economic Solution: Hemorrhage More Money - … GOP nominee for his statement this morning — which they asserted was an announcement of support for $25 billion in government loans to the auto industry. So there we have it. McCain’s solution to our terrifyingly failing economy? …

McCain Follows Obama With Direct Economic Ad (VIDEO) - “You, the American workers, are the best in the world,” says McCain. “But your economic security has been put at risk by the greed of Wall Street. That’s unacceptable. My opponent’s only solutions are talk and taxes. …

“False words are not only evil in themselves, but they infect the soul with evil,” Socrates

According to the American Heritage Dictionary, a lie is 1. A false statement deliberately presented as being true, or 2. Something meant to deceive or give a wrong impression. This, ironically, makes lies a lot more concrete than the truth, philosophically speaking, which is a much harder quantity to pin down.

McCain Campaign Lies

Why has John McCain, the self-annointed “straight talker,” resorted to lying? It’s a simple question and one that’s impossible to answer without some inside information. But if we’re to have any hope of understanding McCain and guessing his future actions it’s worth trying to figure it out.

If you’re interested in knowing what McCain is accused of lying about, the Democratic Party has established “Count the Lies” a chronicle of “independent, nonpartisan” fact checks “debunking John McCain’s lies and distortions.” Even some conservatives have tutted at McCain’s recent stoops. Even Karl Rove (!!), as reported in the Christian Science Monitor, of all places, has said that “McCain has gone, in some of his ads, similarly one step too far in sort of attributing to Obama things that are, you know, beyond the 100 percent truth test.” If you’re a Republican presidential candidate and Karl Rove is accusing you of distorting the truth, you know you’re a big fat liar… or a pawn in another one of Rove’s despicable schemes.

John McCain with President Bush

(This is a bit of a digression, but the Salon published a very interesting piece back in January asking why in all of the election coverage of John McCain’s losing primary bid in 2000 no journalist had mentioned who it was that smeared John McCain so successfully that he lost. The answer, of course, George Bush and Karl Rove…)

Perhaps we can find in our children the unadulterated origin of the impulse to lie. My son, now 4-years old, has just begun to lie. His reasons are transparent: He lies either to get something he wants (usually cookies, candy, or toys), or to avoid something he doesn’t want (typically to take responsibility for a transgression). McCain’s lies seem to fall squarely in the first category. As a “maverick, outsider” it suited him to talk straight. But as an establishment insider, it’s much more effective for him to lie. He’s always wanted power and success, and now that lying seems to offer the best path to victory, he’s adopted it with the same zeal he once reserved for honesty. The tactic is all the more successful because, in Obama, he seems to be up against a candidate who has some genuine integrity — a terrible handicap against smear tactics.

What does this tell us about the kind of president McCain would make?

Politicians the world over resort to lies, many of them relatively successful leaders. Lying in itself isn’t a guarantee of poor government and lousy leadership. Although Bush has overused and abused this privilege, the security of a country, for instance, relies to some extent on the ability of its government to keep secrets from its enemies, which also means keeping secrets from its people.

In order to understand the degree of concern we should have about McCain’s lies, we really need to consider what his goals will be as president. We can then assume that he will lie to achieve them.

And given that McCain has dropped most if not all of his firmly held political beliefs in order to gain the highest office, one can only assume that his primary goal as president will be to consolidate his power and popularity — in other words, he’ll lie in order to keep the conservative political base as happy as possible. That’s a scary thought.

Footnote - What about Palin?

What about Palin? She’s a big fat liar, too, and a scary character in her own right. The Times has an extensive piece on her political MO. Not a pretty picture. Here’s a quote from Laura Chase who was Palin’s campaign manager during her first bid for mayor:

“I’m still proud of Sarah,” she says, “but she scares the bejeebers out of me.”

Related posts from around the web:

McCain Lies Again - But McCain is still airing ads telling the same lie. He has also still not retracted his lie on The View when he point blank said that Palin has refused all earmarks as governor. I cannot remember a candidate for president telling such …

Romney: McCain Lies - So Rove has declared McCain’s campaign overly harsh and Romney has declared it deceitful. I honestly have no idea how that sort of criticism from those people is possible to recover from.

Obama Campaign Launches Ad Hitting McCain’s Lies As “Dishonorable” - We’ve been waiting for it, and here it is: The Obama campaign launches its first ad hitting McCain for his lying and his mendacious adver-sleazements and slamming his campaign as “disgraceful” and “dishonorable”: …

McCain Lies About Obama’s Health Plan- JUST THE FACTS! - In our ongoing efforts to expose Senator McCain’s lies about Senator Obama’s policies, we need to look at the McCain campaigns lies and then provide some “straight talk” about the facts. McCain claimed that Obama’s health care plan …

John McCain on The Daily Show with John Stewart

Last night, as I watched a TiVo’d John Stewart skewering delegates on the last day of the Republican convention, I wondered what it is about small town values that the Republicans love (but can’t define) and that seems to keep America stuck in the mire of bad politics.

If you didn’t see it, Stewart’s convention crew walked around with microphones asking Republican delegates what ’small town values’ meant to them. With big smiles on their faces and earnest willingness to answer the delegates came up with such laughable answers as “real people, real values,” “traditional marriage,” “fishing,” “church.” (The video is posted on the Daily Show website - highly recommended.)

But even those of us who distrust and disagree with the sentiment with which republicans freight the term, we all seem to understand that the essence of ’small town values’ might mean something genuinely appealing and good. So what is this essence, and how has it become distorted and misused.

Block Island, Rhode Island

I spent the bulk of the summer on Block Island with my family. Block Island is essentially a small town with a lot of tourists. (And these are mostly east-coast tourists from New York and Connecticut.) It’s easy to distinguish the tourists from the islanders. The tourists are in a hurry. They’re often nervous and rude. They lock their cars. They expect to get screwed over. They complain about stuff. The islanders understand that there aren’t that many places to go on the island, and everywhere is pretty close. You can trust people because for the most part, there’s nowhere for them to escape to. You couldn’t steal a car and get it off the island (which is car-accessible only by ferry.)

Block Island is a great lens through which to observe that the essence of small town values means enforced responsibility through enforced community.

It’s a lot easier to be rude or unfair to someone if you don’t know them and if you’ll never see them again and don’t have to rely upon their personal contribution to the community you live in. In a small town, people do know one another and rely upon one another and society functions very much as it has done for millions of years. The inherent rules of small social groups therefore tend to operate without the need for too much overt oversight and enforcement. What’s not to like about that?

But this is the problem: The rest of the country is made up of places where that kind of reinforcement can’t be relied upon. And this is the other part of the problem: Conservative Republicans wrap a whole lot of crap into the concept of small town values that has nothing to do with the core function of a mutually-reliant community (such as traditional marriage, fishing and church.)

And this is why ’small town values’ have become the political ruin of America. So much hog-swill passes for the reasonable subject of informed debate under the auspices of what small town folk care about. Every Republican candidate dives in or gets sucked in to the vortex of endless political distraction of the conservative agenda. And this means the every Democratic candidate gets sucked in, too, for fear of committing political suicide.

Other advanced Western nations don’t waste political time endlessly rehashing abortion statutes, gun control, separation of church and state, the teaching of creationism. ‘Small town values’ are the concrete boots of American politics, and until we lose them we won’t have an effective political process that will allow the nation to move forward and solve the very real problems of war, alternative fuel sources, and climate change.

Related Posts from Around the Web:

Small Town Values? I Gotz ‘Em - I’m from a small town in New Jersey, and I’m politically progressive in every possible way. Watch this clip from The Daily Show, in which people attending the Republican National Convention spoke about their views on small-town values. …

The Small-Town Values Palin Didn’t Mention - From The Seattle PI By John Kelso Republican vice presidential nominee Sarah Palin’s touting of the wonders of small-town values in her acceptance speech reminded me of my ride in a red convertible a few weeks ago while serving as the …

Small Town Values? - You can’t cherry pick values. If you claim to be the party of small town values, you have to take the good and the bad.

Britney Spears accepts the award for Best Pop Video for “Piece of Me” at the MTV Video Music Awards. (Mario Anzuoni/Reuters)

On Sunday evening, my 15-year old daughter, typically guileless, made a bid to watch MTV’s video music awards. “No way,” was the answer, “You have school tomorrow.” (She’s in tenth grade, and supposed to be making a strong start in a new school.) “But we watched it last year,” she replied, “Remember we saw Britney Spears…”

This sent me to the computer because I knew I’d blogged about Britney’s woeful performance at last year’s VMAs. With the help of the blog and my wife’s clam-like mind we recalled that we’d TiVo’d Britney’s debacle instead of watching it live. All of which is to say that my daughter went to bed on time and that this is a blog post about comebacks.

Charles Austin - Atlanta Olympic Gold

I’m back from the time vortex of school vacation. It feels strange to be blogging again. Having been out of the mix for a few weeks, I’m afraid that I’ve lost something or that some essential capacity has become stunted. The “me” of then seems more capable than the “me” of now. I feel a little bit like I imagine Charles Austin feels. Austin won the gold medal for the high jump at the Atlanta Olympics. When we couldn’t watch the VMAs last night (alas, our TiVo attempt this year resulted in two and a half hours of silent gray screen; don’t ask me how that happened) we watched a TiVo’d Austin trying to break the world high jump record for a 40-year old on the David Letterman show. We were all rooting for him as his shirt tipped the bar off its stays. “Tuck your shirt in!” I shouted at the screen.

Britney apparently made a successful return to popstardom on Sunday night, winning three awards. And while I cared momentarily about Austin’s high jump attempt, the objective distance I have about Britney’s success or failure as a pop star (I could care less) allows me to burrow in to the philosophical aspects of success and redemption.

Put simply, in and of itself it ultimately doesn’t matter whether we succeed or fail, whether we make a successful comeback or not. If Austin had broken the high jump record for a 40-year old, someone eventually would have outjumped him, or not. Austin will eventually pass on and those who know him will pass on. Britney will stop making music videos. And this blog post will get archived off to tape, never to be read again.

Ambitions, successes, failures, comebacks are all idealized narratives that we create or consume to accompany events that fill time. They exist in conceptual space, but not as real objects. The most obvious example of a counter-narrative is this: If someone prevails in a competition, others must lose. Letterman asked Austin about his three Olympic bids — gold in one, and what about the other two? “Not so good.” Not so good for Austin, but great for the guys who won golds in those competitions, and not so good for the other competitors the time Austin won.

This perspective can have a very freeing impact. Today I can sit down and write what I want to write because ultimately it won’t matter what I write. And even today right now it doesn’t matter.

Socrates - The Unexamined Life Is Not Worth Living

But inner and outer narratives often keep us going. More so it seems in modern life we care about the narrative of life and experience life less in itself and more in the abstract. Which brings us back to Socrates, and, for once, it brings me strangely into apparent opposition with Socrates, who said “The unexamined life is not worth living.”

However, onto this I would like to paste the narrative that Socrates had in mind the kind of reflection that brings us deeper into reality rather than further from it…