Naomi Klein

Is an angry fish, wondering where her water went. Naomi Klein is a Catholic without a Pope. Naomi Klein cannot believe it all turned out this way. Naomi Klein wants to sell you a better buggy whip. Naomi Klein is brought to you by the objects of her confused contempt. Naomi Klein “believes her own bullshit.”

On the topic of Naomi Klein’s recent contribution to human ignorance, Brad DeLong offers Keynes’ retort to Trotsky. Let’s freshen this up a bit and ask Klein to consider the thoughts of another disappointed hereditary communist. Here is the late Richard Rorty in “The End of Leninism and History as Comic Frame” speaking to Naomi Klein and her comrades:

The events of 1989 have convinced those who were trying to hold on to Marxism that we need a way of holding our time in thought, and a plan for making the future better than the present, which drops reference to capitalism, bourgeois ways of life, bourgeois ideology, or the working class. We must give up on the Marxist blur, as Marx and Dewey gave up on the Hegelian blur. We can no longer use the term “capitalism” to mean both “a market economy” and “the source of all contemporary injustice.” We can no longer tolerate the ambiguity between capitalism as a way of financing industrial production and capitalism as The Great Bad Thing that accounts for most contemporary human misery. Nor can we use the term “bourgeois ideology” to mean “beliefs suited for societies centered around market economies” and “everything in our language and habits of thought which, if replaced, would make human happiness and freedom more easily realizable.”

Rorty, regretfully agreeing with Alan Ryan and Jurgen Habermas that market economies appear to be part of the best we can hope for, suggests other dissappointed Marxists should just go ahead and drop their jargon, which turns out to be good for little more than signaling to one another. “It would be a good idea,” Rorty argues “to stop talking about ‘the anticapitalist struggle’ and to substitute something banal and untheoretical — something like ‘the struggle against against avoidable human misery.’”

Naomi Klein did not get this memo, or she burned it. Naomi Klein took 1989 with less honesty and grace than did Richard Rorty. Indeed, a yearning for the restoration of 1988 rises from every page of Naomi Klein oeuvre. Indeed, that’s a decent account of her project: to restore, in the early 21st Century, the sense that one can be a real intellectual, and not something like a young Earth creationist, while believing what even Richard Rorty could not believe after 1989.

But let’s not give Rorty too much credit here, either. To see “the struggle against avoidable human misery” as “banal and untheoretical” is ridiculous. That human beings should not suffer, that suffering is avoidable, that we should not simply reconcile ourselves to its inevitability and retreat to the consolations of mysticism, is an invention of modernity, and central to the ideology of progressive liberalism. The struggle to improve human welfare is banal only in contrast to the expectation of something much more romantic, dramatic, and stupid, such as the consummation of history through the revolutionary remaking of human society. And that is precisely what Rorty rightly says that it is baseless to expect and wrong to want.

But Klein wants it. And Rorty’s bourgeois petty reformism must seem anything but untheoretical; it is certainly ideological. And the struggle against avoidable human misery is evidently still not good enough, for Klein exhibits a rare genius in carefully avoiding the ample and well-understood body of knowledge about how human misery is best avoided.

Conspiracy theory will always find an audience among the ignorant, but there is no real chance that Naomi Klein matters much in the end. There is Naomi Klein and then there is the way the world is. Well-functioning market institutions will continue to lift the world’s poor from misery. It remains that Milton Friedman did immensely more to avoid avoidable human misery than did three generations of Richard Rortys and Naomi Kleins, who in stark contrast helped drive tens of millions of human beings straight into it. And Naomi Klein is a  dishonest, self-infatuated hack. With a little help from people who know what they are talking about, it all works itself out.

[Next up in the "What You're Searching For" series: "Mormon"]

Bourgeois Deeds

I just discovered that Deidre McCloskey has posted on her website a draft [doc] of the second volume of her work on bourgeois virtues. For those of us who love the history and anthropology of morality and economic history and rhetoric and political economy, McCloskey’s hard to beat for interestingness value.

HT: David Boaz

No Limits to Growth

Here is a thumbnail sketch of my position on the sustainability of economic growth. What do you think is wrong with it?

(a) energy is not scarce; the historically most efficient sources (oil, coal, etc.) are;

(b) a well-functioning price system will shift energy consumption to (cleaner) alternative energy sources as prices for historical extracted sources of energy rise;

(c) the initial high price of alternative energy will temporarily slow growth, but competition and technological progress will eventually push prices below the historical trend and even asymptotically approach zero, increasing average rates of growth;

(d) environmental quality is a global public good, but;

(e) this is most likely to be secured as a consequence of growth — as a consequence of the technological innovation that both creates and is created by growth — together with the rising scarcity and prices of the most environmentally degrading energy sources.

So,

(f) there are no meaningful limits to growth from either the scarcity of energy, or from negative environmental externalities from economic production, since in the medium run, those externalities are positive.

America: Actually Quite Poor!

I read Kevin Phillips cover article [$$$] in this month’s Harper‘s, and thought he was completely crazy. First of all, I was amazed that they printed an article largely about one of my pet interests, the methodology of the Consumer Price Index, which I thought was a bit too esoteric for a general readership. But I was really baffled by Phillips’ claim that the CPI massively underestimates inflation. Phillips thinks the Boskin revisions were a big mistake, despite the fact that they were very conservative, and most economists who know about this that I have talked to think the problem goes in the opposite direction. Tyler is his usual ambassadorial self in his blog review of Phillips’ book Bad Money when he says:

Either the current market estimate of inflation is the best estimate available, or you know that it is wrong and you will be a very rich man.  I find the former scenario more plausible.

But thankfully he really lays it out there in his comments:

A lot of the Phillips book is simply economically illiterate. For sure America has its economic problems, but they are not the ones identified in *Bad Money*

Perhaps it is time to convene an Overcoming Bias colloquy about how it is that estimates of the trend in real wealth can be so massively divergent.

Fact of the Day

From Tyler Cowen:

When a Pole moves to London he can buy many more goods and services.  It’s a big move up in real income plus lots of new goods are introduced to the consumption basket.  So when there is lots of voluntary movement from poorer to richer regions, changes in measured income will understate some of the true gains.

The other measurement understated is the reduction in real consumption inequality.