Let’s Play Political Philosopher! (Part I)

2008 November 17
by Matt Deaton

What does ethics generally demand amongst strangers? What do citizens owe one another (if anything) simply by virtue of being fellow citizens? That’s the question of social justice—what we’ll attempt to figure out in the coming weeks. Rather than just telling you what the “experts” say, I’ll place the softball on the tee and see what happens. Time to work that noodle!

Think carefully, then answer this question: If you were making up rules for society to live by from scratch, but didn’t know who you were—your sex, intelligence, race, religion, political allegiances, sexual orientation, handicaps, talents, income, tastes, etc—what sorts of general rules would you choose to guide laws and institutions?

Set aside the impossibility of actually blocking knowledge of your sex, intelligence, race etc. for the moment. Embrace the experiment. And think hard about the implications of choosing rules to live by when you really don’t know who you are. What laws would you definitely NOT endorse? What laws would you definitely endorse? Why?

Here are some options to get you thinking. “The state should own all industry.” “Private citizens should own all industry.” “Taxes should only be collected for the purposes of police and military protection.” “Everyone should have the freedom to peaceuflly assemble.” “Islam should be the official religion.” “Everyone should have an equal opportunity to pursue their life plans.” “No one should make over $1 mil annually.” “No one should make less than $30k annually.” “Homosexuality should be prohibited.” “Weed should be legal.”

A famous political philosopher thinks he/she knows how this sort of person—blocked from all knowledge of their personal biases—would reason. (If you’re familiar with that philosopher and his/her argument, please abstain from answering for now.) I’ll reveal his/her answer in due time, as well as the implications (why we should even care what this ideal reasoner would think). For now, think through it yourself, and share your thoughts in progress.

—Matt Deaton—

20 Comments leave one →
2008 November 19
Mindy permalink

I’m afraid that this one is a little out of my league but I did give it a whirl.
In order to exempt sex, race and such it would be like taking society itself back to an infantile state. Otherwise I can not imagine not realizing I pee sitting down versus standing up. So I finally came to the conclusion that based on the “Lack” of information you would have on yourself the only rule that one could follow would be that every person would be of equal value. All else would be based solely on this. All would make the same amount of money, regardless of race, sex etc. All would pay the same amount of taxes. There would be no rules based on homosexuality b/c no one knows what sex they are anyway. All would be of average intelligence or lower due to lack of education. Mainly because if you are going to make the same amount of money who is going to bother attending college for 4-8 years. Society would never really develop past a certain point. Eventually under this idea, it would become stagnant and die.
I do not think that i answered your question but I just do not see how “certain” rules could even be acknowledged in a society that would be based on “Lack of information” rather than the one we live in now.

I did the best I could. Thanks for making my brain shake some of the dust off.

2008 November 19
Matt permalink

Mindy—that’s a great start! In fact, the famous philosopher who originally ran this argument predicted that someone blocked from knowing anything about themselves would initially think just the way you suggest: that everyone should have equal worth, equal income, etc.

But he also predicts that they’ll immediately see what you saw—that a society where strict equality was achieved by force would lack an incentive to excel (or even contribute), which would lead to stagnation and eventual collapse. Citizens in this sort of system would reason, “Hey, if I’m going to make $45,000/yr NO MATTER WHAT I DO—cure cancer, bust my butt at the factory or surf all day—why not just surf all day?”

So that’s one option off the table. We can see that it wouldn’t work, even from our position of ignorance.

Option 1: Forced Equality

How about the principle that society “maximize overall welfare”? That is, one that would have us write a constitution and enact laws that would maximize overall happiness and minimize overall pain. Would a person from this special position endorse that? Why? Why not? (Don’t mean to put you on the spot, Mindy. Everyone’s free to jump in.)

—Matt—

2008 November 19
Mindy permalink

Okay, after much pondering, My answer is this. We would still end up in basically the same place we are now with a lot of the same societal “rules”.
I came to this conclusion like this…..
This “special” person has no prejudices as far as gender and race etc. but there would still be a basic survival instinct. With that would come prejudices over home, land and food. That would then cause a government to be implemented, a constitution to be written and more prejudices to arise. So if you follow the pattern of events in your head, you will eventually end up where we are now. With government becoming larger with each new issue and therefore causing new “rules” to be written.
So a “me” with no bias whatsoever in any given direction would eventually be forced to choose sides and would still end up thinking as I do.
I do not even know if that made since..My brain hurts.
And this answer gets me out of thinking up “rules” LOL. Just kidding at least I am reading something that is making my brain work.

2008 November 20
Matt permalink

Though you’re taking the thought experiment in an unanticipated direction, your initial points are as predicted.

The thought experiment only lasts as long as it takes to formulate the basic “meta” rules (general rules that govern the constitution and subsequent laws). Once you’ve decided what rules you’d want, BAM, your identity is restored, you’re back in the real world, living in the sort of society you designed when you didn’t know you were actually Bill Gates or Fred the homeless guy or Mindy the artist or Dann the gay actor or Steve the quadriplegic. Biases would indeed cloud their judgment once back in the real world, but what else could they conclude while still reasoning from this position of identity ignorance?

“This ‘special’ person has no prejudices as far as gender and race ect. but there would still be a basic survival instinct,” which would make them concerned about shelter, food—basic necessities.

Exactly! So, assuming that this special person cares whether they live or die, apart from the specifics of their identity, they’re not going to accept any general rules that would allow them to starve or freeze to death. Even though they don’t know who the heck they are, they know they’ll need food, shelter, and even healthcare, so any society they’re willing to accept must guarantee those things at a bare minimum.

On those grounds, hard-core free market “let the lazy poor bastards starve to death—it’ll purify the gene pool!” libertarianism would be unacceptable.

Option 2: Libertarianism

Interesting how self-interest—the core assumption of libertarians—leads to the theory’s downfall within this bias-blocking thought experiment :)

So we’ve ruled out two extremes—strictly enforced equality (because it lacks an incentive for citizens to meaningfully participate in the economy) and libertarianism (because it lacks the social safety net our special reasoner would demand out of self-interest).

There’s another system the original argument considers (and eventually rejects)—one I hinted at before. (In fact, the thought experiment is best used as a decision procedure. Competing meta-rules are examined, rejected and revised, with each step along the way hopefully leading us closer to an option that will pass. I should have made that clear up front.)

Option 3: Society ought to be organized such that overall happiness is maximized.

Is this a satisfactory option, or would a special reasoner with the survival instinct reject it as well? Why?

—Matt—

2008 November 20
Mindy permalink

Okay question to help me out here…..Am I the only ” special reasoner” or is all of society “special reasoners” That is where I am getting confused.
If I am the only “special reasoner” then I would say I would reject a society where overall happiness is maximized because in the end my “survival instinct” would only care about my happiness. Yes, I believe that a dictatorship would be the only option for the “special reasoner” in order to maintain control of his/her own needs.

2008 November 20

ok matt, i’m at work, so you can give me a lecture on business ethics later… and cypress is very busy inspecting a sun-warmed boxelder beetle and i’m on google talk with mindy and i sort of put my finger on what i’m having trouble with in this exercise. i get that i need to objective; more omnipotent than ignorant. removed, not devolved. but my perceptions are still based on my experiences and that will no doubt color any answer i come up with. also, in being objective, i am not as sure how to relate to the theoretical people in my theoretical country – i still have empathy, of course. i think that i know what is fair and what is not fair. i am secular, which does not mean amoral, just that the morals i uphold have moral value rather than religious merit. i need a fair tax rather than one that benefits rich or poor – if i am responsible for providing infrastructure and sanitation and healthcare and transportation and communication (which i should be), then it makes sense to have only use or consumption taxes rather than income taxes to pay for the things i’d provide. i should encourage private businesses to provide these things and keep competition alive by making them bid for contracts. i should encourage doctors to move to areas where available medical care is lacking. doctors should be free to treat their patients without government interference and treatments should be between the patient and professional only – medical privacy. people should be able to refuse treatment if things are grim and doctors should be able to provide them with a comfortable and dignified alternative to inhumane suffering. i should encourage farmers to grow healthy food to feed my populace, so i should pay them subsidies, but i should make sure not to tax basic food goods so that even the poor can eat (perhaps processed foods should be taxed as high as tobacco and alcohol). i would be responsible for regulating the quality of all of these things. i would need to ensure housing, but allow them property rights maybe by regulating the market so that housing remains affordable everywhere. i need to provide for the whole populace in case they can’t provide for themselves, to make sure that everyone receives the same advantages in life, to make sure that they have decent enough lives that they can pursue individual happiness – public education including higher education or vocation with standardized regulations and cooperation with corporations to provide employment for my smart little citizens. i should provide for their safety while encouraging them to protect themselves. maybe i want to let them tote guns, but can i trust them not to endanger the rest of my people? i need to evaluate them, mentally and physically for situational safety before they get that privilege (not right). i want them to earn their own livings so i should ensure minimum wages rather than giving them welfare when the companies they work for fail to give them living wages. i want them to start businesses and build things. i want them to create art (tax credits for starving artists!). if they are unable to work, i should make sure that they can stay alive. the trouble is that i don’t know how far out to zoom the lens. i am outside the flock and in charge of herding. i am kicked back in a blue sky, plotting the courses of streams and rivers leading to oceans and i am not taking into consideration that each drop of water is an individual and may want to go uphill… how can i choose otherwise for it?! just because they were born in my stream or fell from the sky, that doesn’t mean that they’ll agree with my rules. they should be free to leave at any time and in the same free flowing thought, i should allow anyone in as long as they agree to obey my rules and not cause a ruckus. if they break my rules i should punish them in the name of a peaceful society, but truly attempt rehabilitation for those other than real sociopaths. i couldn’t support state sanctioned murder either. it’s clear that every nation should defend itself, but i’d try very hard to be protective while diplomatic and never aggressive or domineering while still attempting to better the world for all of her citizens by discouraging human rights violations. it’s just a very hard thing differentiating between a world full of individual humans and all of humanity as a whole entity and making rules which would not restrict their freedoms while still giving them civil rights… ok, time to go home, i’ll be looking forward to future installments of this discussion.

2008 November 20

i should add that my drops of water should be free to wash me right out of my seat of power at any time, hopefully ensuring that i remain my special reasoning un-biased self.
and reading the comments now, it seems that i’ve followed model #1 and i’d end up making too many restrictions = fail.
i just thunk away and hour of my life and now my brain hurts almost as much as my rear which has been sitting for as long…

2008 November 20

“Option 3: Society ought to be organized such that overall happiness is maximized.

Is this a satisfactory option, or would a special reasoner with the survival instinct reject it as well? Why?”

ok, maybe my model is more like option #3, but i think in the end it’s going to become too restrictive in an attempt to be fair and instead of making everyone happy, they will end up with a mediocre, monotone existence with no special reasons to be inventive or adventurous. but would a special reasoner with only survival instincts support maximized happiness? i think so. it serves the end well enough that if the populace is happy they have fewer motives to kill one another or steal from one another, resulting in easier survival.
the implications are that life is not fair and that happiness cannot be guaranteed, but we should attempt to reason and decide what is truly just and we should strive for that?
i dunno, i’m still me.

2008 November 20
Mindy permalink

Okay, now to put Matt on the spot. Do you not find it interesting that the one who generally relinquishes control to others (ME) is the one who would choose to have complete control and worry only how “rules” could benefit themselves while the one who usually demands control of issues in her life (LILL) would choose to attempt a more fair way of government? So I guess me and lill Both are either wrong b/c we in some “back room of the brain” way are relying on our now to answer or we are both right and the way to answer is complete opposite of the now. BLAH! Give me the name of the Philosopher already. LOL

2008 November 23

I’m not sure that I’m even allowed to comment on this thread since Matt outlawed all of us who would recognize the philosopher, but his comments on Libertarianism brought me right out of the woodwork. I’m sure he knew that would happen, too. Sneaky bastard.

Matt wrote: “Interesting how self-interest—the core assumption of libertarians—leads to the theory’s downfall within this bias-blocking thought experiment. ”

While it might be true that Libertarians assume self-interested agents, so does the philosopher that you are talking about. That’s the very reason that we “should” want to have a governmental structure that provides some things for us. Libertarians just think that they shouldn’t provide everything for us, and generally that the government shouldn’t take my hard-earned cash to provide for those who are unwilling to provide for themselves.

So, how does Liberty fit in to this thought experiment? Well, I don’t think it’s as simple or as vicious as you make it out to be, Matt. It’s not true that L’s want people to starve the poor or “cleanse the gene pool.” That’s kinda offensive. Libertarianism does not have self-interest at the heart of the theory. It has liberty as the fundamental value. That’s why it’s Libertarianism and not (Ayn Rand’s) Objectivism.

What is generally true is that L’s want everyone’s right to Liberty to be respected. Bias here is in favor of Liberty and not in terms of sex/orientation/color/what-have-you. The rules that are made up by me would respect each person’s Liberty. That is, as long as what you do does not restrict/harm others in ways that they have not agreed to* you may do as you like. Some governmental structure should exist to care for those who are unable to care for themselves, but not for those who are unwilling to care for themselves. Public services (fire/police/medical) should exist and so should courts. Aside from that, it’s up to individuals to make their way through life. If you want to be powerful then you should work for it. If you are happy with less then work less hard. I would be the free-riding surfer if I could, but as it is I have to do some work to have a good life. That seems right to me.

*There’s some philosophical stuff to be done here with regard to what a person may agree to and what hand coercion has in the mix, but the common sense version of this statement means “agreed to” = “freely agreed to” in some loose way.

2008 November 23
Matt permalink

Lots and lots of great points! Cool exercise, huh?

First, Mindy, if the original author’s correct (John Rawls—there, I said it!), it doesn’t matter whether we’ve got one special reasoner, or a group reasoning together. In both cases, nobody knows who they’ll be once they’re back in the real world, living by the rules they’ve created in the abstract. Since the special reasoner doesn’t know who they’ll be in that society, they probably wouldn’t endorse a dictatorship, since chances are low they’ll wind up the dictator, and high that they’ll wind up a minion. But you knew that the moment I clarified the exercise.

Lil—dude, you really put some effort into this beast! Made me consider all sorts of paths I hadn’t before. The hypothetical social contract—what Rawls calls the “Original Position”—was intended to only produce general principles that would guide the formation of a constitution, and oversee subsequent legislation from a distance (not every single rule has to be in line with the principles, but the overall system does). You’ve went beyond that and settled on lots of very specific stuff, and actually prompted me to think through those conclusions myself. But the more specific we get, the more our personal biases cloud our judgments (not that you’ve said anything unreasonable), and the less objective our conclusions are. So I’ll set aside most of your concrete suggestions for now and focus on the broader picture.

About 3/4 of the way through your long post you wrote “the trouble is that i don’t know how far out to zoom the lens. i am outside the flock and in charge of herding. i am kicked back in a blue sky, plotting the courses of streams and rivers leading to oceans and i am not taking into consideration that each drop of water is an individual and may want to go uphill… how can i choose otherwise for it?!”

Very insightful. If I’m reading you correctly, you’re worried about accommodating the inevitable mix of life plans and lifestyles citizens will hold dear—what Rawls calls “the fact of reasonable pluralism.” The answer lies in this comment: “i am secular, which does not mean amoral, just that the morals i uphold have moral value rather than religious merit.”

I think you were a little confused on the exercise—playing philosopher king dictator—but that’s OK. Adjusting your answers to fit the model, why would someone in this special position insist on a secular government? Serious about ethics, but not tied to any particular religion? Because they don’t know who the heck they’ll be once what Rawls calls the “Veil of Ignorance” (that which blinds the “Original Position Agents” from their personal attributes) is lifted. For all they know, they’re Muslim, Hindu, Christian, Agnostic, Atheist, or Castrated Space Alien Cultists. So while they can assume that, being a person, they’ll be concerned with right and wrong, they can’t endorse any particular religion, and instead will want their government to allow the free practice or religion, but not endorse any particular religion.

From this, what can we more generally do for each drop of water? Well, Rawls thinks that we can provide a framework for individual flourishing, within which anyone and everyone can pursue their personal life plans. In simpler terms, he thinks the special reasoner (or a group of special reasoners, reasoning together) would demand that their government guarantee:

1) basic liberties like the freedom of speech, movement, religion, etc.
2) equal opportunity to attain high office (includes offices in private sector)
3) that inequalities in wealth always structurally benefitted the least well off

Option 4: Political Liberalism — cha ching!

These three principles of justice (originally two—#2 and #3 being parts a & b of the second) would allow citizens to pursue whatever life plans they might have—pastor, teacher, actor, secretary, whatever.

Principle #1 would protect everyone’s “liberty of conscience”—to believe whatever they wanted, and to do most whatever they wanted, so long as it didn’t infringe on someone else’s liberties.

Since meaningful equal opportunity requires more than simple nondiscrimination laws—it requires adequate healthcare, education, nourishment, housing, clean water, etc—principle #2 wouldn’t guarantee that everyone would actually live their dream, but it does guarantee everyone a fair shot.

And principle #3 would give Bill Gates an incentive to excel, but would ensure Homeless Bob wasn’t homeless anymore. Any tax structure that achieved the demands of principle #3 (ensured that inequalities structurally benefitted those at the bottom) would be fine. So while a progressive income tax and an estate tax might seem natural candidates, a consumption tax might work too—would just depend on how it panned out in the real world.

There’s of course more to Rawls, but I think I’ve got the important stuff out there for our present purposes. Glad your brain hurt a bit. Good for ya!

Oh, and you mentioned the third option as well: that society ought to be organized such that overall happiness is maximized. Your points are good, but here’s why an OP agent would reject it too (along with forced equality and libertarianism). Endowed with that wonderful survival instinct Mindy brought to the surface, he/she would be worried about his/her personal welfare, and wouldn’t be willing to take the risk that overall social happiness might be maximized at their expense. Theoretically, it could be the case that enslaving our Irish immigrant population would indeed maximize overall happiness. The Irish immigrants would be miserable though, and since our special reasoner is blocked from knowing whether they’re an Irish immigrant, no way are they willing to take that risk in the name of abstract allegiance to “the public good”.

Option 3: Utilitarianism

Yes Mindy, that is interesting. Your true selves shining through?

Matteson, foiled again! Saw through my ploy… berated me with his reason… Ok, so I’m melodramatically anti-libertarian sometimes. I self-identified as one for a while, so maybe I’m overcompensating. No offense, dude. On with the reasoning.

“Some governmental structure should exist to care for those who are unable to care for themselves, but not for those who are unwilling to care for themselves. Public services (fire/police/medical) should exist and so should courts. Aside from that, it’s up to individuals to make their way through life. If you want to be powerful then you should work for it. If you are happy with less then work less hard. ”

Two things. First, you’re a much more reasonable libertarian than I’ve come across. Many are just plain anarcho-capitalists—want the market to take care of EVERYTHING, which means no public roads, parks, utilities, let alone police, fire, care for the sick/handicapped, etc. So kudos on embracing some semblance of social responsibility, though I’m not sure it’s consistent with any philosophically defended version of libertarianism.

Second though, you essentially say that healthy people should be left to fend for themselves—that they deserve exactly whatever they’re able to get in this world, based on the decisions they make and the effort they put into them.

I agree that much of what we make of our lives is up to us. At 31, I can look back on a few key decisions that have led to where I am now, and I accept responsibility for them. (Luckily, I’m pretty happy with the way things are turing out.) But surely I can’t take credit (or blame) for everything that’s led to where I am today—surely we’re not responsible for our natural talents or handicaps. I put a lot of time into becoming the best philosopher I can be, but my success wouldn’t be possible at all if not for my natural intelligence. And I didn’t do a darn thing to deserve it—random DNA orderings just happened to code for this brain, and my parents happened to provide adequate nourishment and stimulation. Had I been born with a third of my natural intelligence, no amount of reading and writing and blogging would get me where I am today.

The same can be said for everyone. We’re born with talents and hindrances for which we can take no credit, for which we deserve no blame. Michael Jordan busted his butt to become the best basketball player ever, but even if I worked twice as hard, I’d never be that good. He certainly could have done something less rewarding with his life, but the fact that he had the opportunity to succeed in the first pace is due to his natural physical gifts. Since we think people ought to be rewarded and punished based on things within their control, leaving us completely at the mercy of the market can’t be a just option.

The same can be said for terrible failures. No doubt all deserve some responsibility for their situation, but it’s just as sure that factors beyond their control—personality ticks, bad upbringing, socio-economic disadvantages, health problems—had much influence as well. For every person born with the natural charisma, intelligence, good looks, rich and loving parents, great schools, advantageous race and sex, etc, there’s at least one person born into the opposite end of the spectrum.

In light of the fact that we don’t deserve our natural talents or social advantages (initial class, race, sex), I agree with Rawls that inequalities in wealth ought to be contingent on the betterment of the least well off, and something must be done to assist those starting life at the bottom of the ladder. Everyone ought to have a meaningful equal opportunity to pursue their life plans, but since we can’t compensate for our inequalities in natural talents (and I’m not sure we’d want to if we could), the world’s winners ought to give a little monetary love to the less fortunate.

And so it was written, in SocratesVotes.com’s 100th comment (yeah!!!).

—Matt—

2008 November 24
Mindy permalink

well,i am bummed that i suck so bad playing amateur philosopher but I am damn proud that I just threw myself out there and tried. That was a big wall for me to climb believe it or not. In the end, i was over thinking way too much but had fun. Can’t wait for the next round.

101

2008 November 24
Matt permalink

Mindy! You by no means sucked. You made lots of great points! I was a little confusing in the instructions, which means your thoughts didn’t fit into the neat pre-destined package I envisioned. But that doesn’t mean we didn’t learn anything from your rabbit chase.

And with this sort of stuff, there’s no such thing as “over” thinking. Really.

—Matt—

2008 November 24

Well, I don’t think that I’m really that far off from a Nozick. The sort of radical libertarian that you’re talking about is more like a Narveson, and he’s really an anarchist.

Surely there are some things that we are not responsible for, and that’s part of the moral luck problem for desert. It’s a tough one, but I don’t think that it requires that everyone in a society be cared for regardless of their effort. Effort should translate into rewards. It’s true that luck is a fundamental part of life, but that’s the way it is.

As I said before, those who cannot help themselves shouldn’t be shoved to the wayside. There should be some form of assistance for them. I don’t know if this must necessarily be government assistance. It could be private assistance. I suspect that most of the Market-Libertarians that you’re thinking of would demand that it be provided through private programs who do it for profit of some sort, but I’m not that concerned with it. The government shouldn’t do it with my money if there is some other means available.

Grats on 100 posts! If only I were as popular as you!

2008 November 24
Matt permalink

Matteson, indeed, if you’re able but not willing to participate in the economy, I don’t think you’re owed much. But if you’re moderately able and earnestly trying, then the requirements of the third principle should kick in (making Gates’s extravagant wealth contingent on your betterment).

But more importantly, all those equal opportunity requirements would go beyond the minimalist state. Meaningful equal opportunity would probably require primary education, access to secondary education (including vocational schools for those uninterested in college), healthcare, basic shelter and sustenance. If you’re for all that, we don’t have much to argue about! But I don’t think Nozick can justify all that from his self-ownership argument. Not sure which libertarian philosopher can. (I bet there’s promise within some of the liberty-based arguments, though I’m not nearly as familiar with those.)

Thanks. I’d say you’re responsible for at least a third of those hundred. So get a gravatar, for goodness’ sake!

—Matt—

2008 November 24

I got a gravatar. I can never find the “sign in” button on this blog though, so I don’t know that it’ll work. It’s quite the mystery.

Nozick can actually justify a good bit more than he really wants to, I think. His Super State structure at the end of AS&U leaves room for all sorts of crazy things.

I do have a bit of a strange conception of Libertarianism, but perhaps that’s where I’ll strike my philosophical gold. I surely do prefer a minimal State that keeps it’s nose out of my business as much as possible and leaves my stack of cash the heck alone. The moral luck concerns that you pointed to worry me enough to say that there are some things that should be done in one way or another. Police and fire and military and such are too big and too complicated to be privatized, so government will probably have to do that for us. Education could be privatized (and perhaps loosely regulated by the State) as long as it meets some standard. In general it looks like private schools are tons better than public ones so the only real problem here is cash and convincing parents to pay for their kid’s future. Other public services might follow this model too, but details need to be worked out.

Basically, I think that the government should cover those services that the private sector can’t cover or hasn’t yet covered. As the private sector gets more powerful and capable the State should reduce its size until we’re left with a minimal State. I realize that this can’t be done over night and I really doubt that deregulation would be a smart thing to do at the present time or in the near future. In a nutshell my view is that liberty should be primary, but things are too screwed up right now for people to fend for themselves in an ideal marketplace and so a lot of structure is needed.

I don’t think that the current financial situation indicates that we can’t trust people to behave when things are deregulated. I think that it shows that for deregulation to be a good thing we need to have a nation of educated people who don’t take loans that they can’t handle because they don’t understand what they’re signing up for. Education is super-important before the masses are ready to fend for themselves in the ideal deregulated market.

2008 November 26

Matteson,

I agree with you 100% on the need for basic education, etc. to keep people from taking mortgages that are way beyond their means.

But education clearly isn’t sufficient. The big multiplier in the financial meltdown is that the subprime mortgages got repackaged, mis-rated, and sold across the world as “safe” securities. (Under exactly the same logic as the 1980s junk bond meltdown, where pooling poor securities was supposed to magically produce a less risky security out of thin air.)

So what about the bankers? We have a profession whose entire goal is to loan money while minimizing risk. Yet they as an industry knowingly packaged and sold toxic subprime-mortgage-backed securities (and many other derivatives, for that matter) for years, despite people like Warren Buffett pointing out clearly and loudly that these securities were risky beyond belief.

They’re educated. Their entire job is to create a stable financial industry. So they have the right qualifications and the right job. They just didn’t do it. They pursued short-term greed instead of prudent financial decision-making.

We can argue that there’s an incentive mismatch. Perhaps if their bonuses and commissions were contingent on the 30-year performance of the mortgage-backed securities, they would have been more prudent. But the employment market allowed their bonuses and commissions to be based on the initial sale, not on the actual performance of their product.

So… Here’s a case where the private banking industry, with educated actors, has done things that are tanking *my* personal net worth quite dramatically, while I’ve taken all the reasonable steps to care for myself, plan for my future retirement, etc. Now, I’m wiped out, and they’re getting bailed out.

How would you think about this situation? I do the financially prudent thing, even though it’s not my job, and I get screwed. The executives at CITI put together a portfolio of trillions of dollars of crap, bankrupt the company, and they get to keep their bonuses and get bailed out because they’re “too big to fail.”

Help me understand how Libertarians would believe this outcome–which came about through market forces combined with self-interested motivation and a disregard for anyone else–is a positive outcome for society?

2008 November 28

Ahhh… Rawls’ Veil of Ignorance. I have often found this a useful intellectual tool when contemplating difficult issues.

If I may, I would like to apply this notion to a specific application: California’s Prop 8 (and more generally, equal rights for sexual minorities). For the sake of this argument, let us accept two premises. First, the very notion of the veil of ignorance itself. Second, that homosexuality is biologically determined. As citizens covered by the veil – in this case, not knowing what their sexuality would be once they exit – how would they determine marriage rights? With the understanding that one could be naturally attracted to the same sex as easily as one might be attracted to the opposite sex, can one justify differentiating laws based on sexual orientation?

A response might be found in Nozick, who is often contrasted (not compared) with Rawls. A libertarian position would justify non-preference by the state on this topic. The state may not support same-sex marriage, but would not take action against it in order to value the individual right of choice. This indifference might support the decisions made under the veil.

2008 November 28

Hmm… Let me go one step deeper. Sexual orientation might be caused by:
(a) biology
(b) psychological factors too complex to understand
(c) conscious and deliberate choice

I’m pretty sure it isn’t (c), at least in a great majority of the cases. I know very few people who made a conscious choice to be straight/gay/trans/whatever. At best, they recognized their desires and chose whether to act on them or not.

So it’s most likely (a), (b), or a combination of both.

But I’d like to know why it matters *at all*? So someone chooses to be gay, why is that any less legitimate than choosing to be straight? This is one case where even the introduction of conscious choice doesn’t help me understand the moral or ethical underpinnings of the positions people take on prop 8.

2008 December 2
Matt permalink

Excellent points, as always, Matteson. Nozick does indeed get weird towards the end of Anarchy State and Utopia, but if I remember correctly, all that’s contingent on democratic endorsement (he argues that the minimalist state is naturally just, but it could devolve into bizarro land if everyone willed it so). I hear what you’re saying about leaving people the heck alone, but again, I press Rawls’s point that our natural talents are undeserved. A minimalist state (ultra-low taxes, but ultra-slim services) would leave people too much at the mercy of the genetic lottery. Everyone getting a fair shot a life probably requires loads of state-guaranteed services, which means lots of those dreaded taxes. Such is the price we pay for justice!

Welcome, Stever! (Everyone—if you care anything about real world productivity (and you should), check out this guy’s podcast: The Get it Done Guy’s Quick and Dirty Tips to Work Less and Do More. This subscriber highly recommends it!) In your reply to Matteson, you’ve hit on a classic complaint against libertarianism—the problem of externalities. You and I may freely agree to some contract without intending to harm Liam, but our actions may injure Liam nonetheless (I sell you a lot next to Liam, and you put a trailer on it, devaluing his property and ruining his view). Even if the chain of events leading to that harm are several, and the impact looks less direct, Liam’s still harmed. Thus, what was thought to be an agreement amongst consenting adults didn’t account for everyone effected after all. Such is one problem with libertarian arguments that purport to base state legitimacy purely on free assent. Your market example is right on point, but the critique runs deeper.

Good to hear from you again, Liam. Yes, the Veil is a wonderful reasoning tool. Rawls apparently thought it should only be used to settle on basic principles of justice, but I’m unconvinced it can’t be used elsewhere just as well. So I don’t think we need to appeal to Nozick to figure out what Original Position Agents (disembodied reasoners behind the Veil) would say about gay marriage. Just using the OP exercise would deliver a nondiscriminatory stance, I would think—one in which state-sanctioned unions are treated equally under the law, and probably named equally as well (either all marriages or all civil unions). That seems consistent with reasoners who are blocked from knowing their sexual orientation. For their purposes, would it matter why gays are gay? Read on…

And last, I too, Stever, can’t think of any reason someone would consciously choose to be gay, if that’s even possible. Naturally attracted to women and naturally repulsed by men, I had no choice in either disposition, and don’t think I could make a 180 even if I had good reason to try. Since there’s little advantage to being gay, and a whole host of disadvantages, while there may be a few willing homosexuals out there somewhere, I’d say they’re the exception by far, not the rule. But even if it were a matter of choice, why the heck would it matter? Excellent question! As far as I can tell, it only matters if we already think homosexuality is wrong. (I argued in a previous article that no secular argument can show that it is.) But even if it were wrong, and on secular grounds that we could all accept, this would have little bearing on whether it should be legal. Nobody thinks we should allow kleptomaniacs to steal or pyromaniacs to commit arson just because they have no voluntary control over their impulses. The same would go for homosexuality, or gay marriage, if it truly were wrong on publicly recognizable grounds. So that conversation seems pretty pointless all around, especially in the public legal forum (though it does have some interest in theological contexts for sure!).

What a great conversation this has turned out to be! Some of these issues have pushed over into democratic legitimacy, so tune in for part II!

—Matt—

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