'Lead Essay' Category Archive

Why We Think They Hate Us: Moral Imagination and the Possibility of Peace

by Robert Wright
Lead Essay
June 8th, 2009

This month’s Cato Unbound features an essay drawn from The Evolution of God, the ambitious new book by Robert Wright, author of Nonzero and The Moral Animal. In this essay, Wright explores the relationship between “moral imagination” and the possibility of religious tolerance and social cooperation. Wright argues that moral imagination is part of our evolved mental machinery. When we see others as potentially cooperative, moral imagination is awakened to better grasp the needs and interests of partners and allies. But when we see ourselves caught in a zero-sum game with others, moral imagination, and thus sympathy and the spirit of toleration, shrinks as we prepare for a fight. Wright argues that the widespread perception that “the West” and “the Muslim world” are playing a zero-sum game is an illusion created by a misfire of moral imagination. The media’s relentless focus on the truculent acts of a small minority of Muslim extremists encourages the sense that the larger, more moderate Muslim world is much more hostile than it really is. But this sense narrows moral imagination, making it harder still to grap the possibility of cooperation and the point of toleration.

Read: Why We Think They Hate Us: Moral Imagination and the Possibility of Peace

What Larry Didn’t Get

by Declan McCullagh
Lead Essay
May 4th, 2009

Journalist Declan McCullagh offers a mixed assessment of Lawrence Lessig’s Code and Other Laws of Cyberspace: Although Lessig was right that preserving individual liberty on the Internet is important, and although he was right to note the crucial importance of infrastructure and basic rulemaking in preserving individual choice, Lessig was mistaken in at least two ways. Lawmakers haven’t lived up to Lessig’s high expectations, and the “threat” of commercialization has largely failed to materialize.

Read: What Larry Didn’t Get

Beyond Folk Activism

In this month’s lead essay, Patri Friedman charges libertarian activists with falling victim to bias: Specifically, they seem to suffer from the belief that advocacy and education are enough to change public policy. Friedman suggests otherwise, and recommends that much more effort be put into demonstration projects that will show how a libertarian world might work. Not only will these projects do more than mere persuasion toward winning the war of ideas, but they will also allow individual libertarians to live in a much freer society, and they will exert competitive pressure on existing governments to reform themselves. Friedman discusses several such projects, including his own, the Seasteading Institute.

Read: Beyond Folk Activism

A Nation of Jailers

by Glenn Loury
Lead Essay
March 11th, 2009

In this month’s lead essay, Brown University’s Glenn Loury, author of Race, Incarceration, and American Values, points out that the United States imprisons more of its population than any country on the planet. America’s incaceration policies, Loury observes, fall disproportionately on black men. Loury is disturbed that we seem rarely to consider whether these policies make sense. He argues that they do not make sense, but that “the racially disparate incidence of punishment in the United States is a morally troubling residual effect of the nation’s history of enslavement, disenfranchisement, segregation, and discrimination.” Loury contends that the American ethos of individual responsibility has largely blinded us to the fact that “society at large is implicated in [the criminal's] choices because we have acquiesced in structural arrangements which work to our benefit and his detriment.” Loury concludes: “What the brutal facts about punishment in today’s America show is that [the] American project of civic inclusion remains incomplete.”

Read: A Nation of Jailers

The Moral Distinctiveness of ‘Party ID’

by Nancy Rosenblum
Lead Essay
February 2nd, 2009

Lead essayist Nancy Rosenblum argues that political parties need a “moment of appreciation.” Schemes to minimize, frustrate, or avoid party politics, and replace it with bipartisanship or nonpartisanship all seem founded, to her, on misconceptions that date to the Progressive Era. Among these misconceptions are the ideas that nonpartisan decisionmakers are impartial, well-informed, and above the corrupting influence of politics. Parties, meanwhile, serve many useful functions in politics. They reduce transaction costs to new political entrants (at whatever level). They encourage the formation of political communities, and they act to inform and supply coherent narratives about current events. Further, the need to maintain winning coalitions means that political parties actually foster, rather than impede, political compromises.

Read: The Moral Distinctiveness of ‘Party ID’

The Path Well Taken: Making the Right Decisions about Risks from Terrorism

by William Burns
Lead Essay
January 5th, 2009

In his lead essay, William Burns argues that national discussion of terrorism can take one of two forms: It may be reflexive and fear-driven, or scientific and confident. He expresses hope that the new administration will choose the latter: In recent years, abundant research has been conducted on the social psychology of risk, and that of terrorist risk in particular. Moreover, the transition to a new administration offers an opportunity to change the official tone of public discourse about terrorism, and to employ many of the insights now being produced in social psychology. Burns outlines some of the major findings and describes how they might be applied to public counterterrorism policy.

Read: The Path Well Taken: Making the Right Decisions about Risks from Terrorism

Liquidity, Default, Risk

by J. Bradford DeLong
Lead Essay
December 8th, 2008

Our fourth and final anatomist, J. Bradford DeLong, notes that “in the past two years the wealth that is the global capital stock has fallen in value from $80 trillion to $60 trillion,” and lays out five reasons why this value might fluctuate. “Savings has not fallen through the floor. We have had no little or no bad news about resource constraints, technological opportunities, or political arrangements.” Therefore, DeLong says, we’re left with changes in the discounts for liquidity, default, and risk. The housing crash has increased default risk significantly, but central banks have actually pumped up liquidity. Almost the entire drop of the value of global capital, DeLong argues, comes from an “increase in the perceived riskiness … of income from capital.” The problem, DeLong says, is that “our models for why the risk discount has taken such a huge upward leap in the past year and a half are little better than simple handwaving and just-so stories. Our current financial crisis remains largely a mystery: a $2 trillion impulse in lost value of securitized mortgages has set in motion a financial accelerator that we do not understand at any deep level that has led to ten times the total losses in financial wealth of the impulse.” However, DeLong is confident that Larry White’s story — focusing on the money supply and government policy to encourage bad home loans — cannot be the right one.

Read: Liquidity, Default, Risk

Adam Smith Was Right about Corporate CEOs’ Incentives absent Effective Regulation

by William K. Black
Lead Essay
December 4th, 2008

In our second anatomy of the financial crisis, William K. Black, associate professor of economics and law at the University of Missouri, Kansas City, says that key to the crisis was perverse compensation schemes that put the incentives of executives at odds with the interests of creditors and shareholders. Drawing on his concept of “control fraud,” Black argues that a failure of regulation encouraged executives to meet short-term earnings goals and to capture large bonuses by encouraging fraudulent mortgages — even when it could be foreseen that this might lead to the destruction of the firm. “When we do not regulate or supervise financial markets we, de facto, decriminalize control fraud. The regulators are the cops on the beat against control fraud –- and control fraud causes greater financial losses than all other forms of property crime combined,” Black writes. Fannie and Freddie cannot have been the culprits, Black argues, because they were guilty of less mortgage control fraud than their fully private counterparts. “‘Modern finance’ has failed the market test,” Black concludes. “Its policies optimize the environment for control fraud and create perverse dynamics that create recurrent financial crises.”

Read: Adam Smith Was Right about Corporate CEOs’ Incentives absent Effective Regulation

What Really Happened?

by Lawrence H. White
Lead Essay
December 2nd, 2008

In the first of this month’s four accounts of the causes of the financial crisis, Lawrence H. White, the F.A. Hayek Professor of Economic History at the University of Missouri, St. Louis, makes his case. White argues that the housing boom and bust, and the resulting meltdown of financial markets, cannot have been the result of a laissez-faire monetary and financial system, since we never had one. Nor can deregulation have been the cause, since the most recent relevant deregulation has probably helped contain the turmoil. While admitting that “private miscalculation and imprudence made matters worse,” White argues that “to explain industry-wide errors we need to identify policy distortions capable of having industry-wide effects.” He points to two such distorting sets of policies: the overexpansion of the money supply by the Fed, and government mandates and subsidies to write riskier mortgages.

Read: What Really Happened?

Corporations versus the Market; or, Whip Conflation Now

by Roderick Long
Lead Essay
November 10th, 2008

In this month’s lead essay, philosopher and libertarian theorist Roderick Long draws a sharp contrast between corporatism and libertarianism properly understood. He argues that liberals, conservatives, and even libertarians have all been guilty to some degree of obscuring this difference, and that the quality of our political discourse has suffered accordingly. He suggests that libertarians should guard themselves against falling into the trap of “vulgar libertarianism,” in which all things good spring from business, and particularly from business as usual. Corporations, he argues, should be no more free of scrutiny than any other institution in a free society, and often businesses have done more than their share to hamper free economic relations in the industrialized world.

One implication of all of this is that the truly free market is farther away than we imagine. Long suggests several ways in which a freed market would be different from what we see around us today. Notably, nearly all of these differences are to the benefit of the consumer and the small or start-up business. These likely outcomes of laissez faire suggest new grounds for left-liberals and libertarians to revise their thinking on economic issues and on politics more generally.

Read: Corporations versus the Market; or, Whip Conflation Now

Down with the Four-Year College Degree!

by Charles Murray
Lead Essay
October 6th, 2008

In this month’s provocative lead essay, the American Enterprise Institute’s Charles Murray draws from his new book, Real Education: Four Simple Truths for Bringing America’s Schools Back to Reality, to argue against America’s obsession with the four-year BA degree. Murray argues that the BA “wreaks harm on a majority of young people, is grotesquely inefficient as a source of information for employers, and is implicated in the emergence of a class-riven America.” Murray contends that vocational training and a new regime of certification testing would provide a superior alternative to a college degree for many high school grads.

Read: Down with the Four-Year College Degree!

Towards a Culture of Responsible Psychoactive Drug Use

by Earth and Fire Erowid
Lead Essay
September 8th, 2008

In their lead essay, Earth and Fire Erowid stress the importance of developing responsible, fully informed relationships toward psychoactive drugs. Although drug prohibition has persisted for decades, the overwhelming majority of adults have tried at least one illegal drug, and these substances aren’t going away any time soon. Sadly, prohibition itself has stunted our knowledge of these substances, and, as in so many things, ignorance is both dangerous and irresponsible. Provocatively, they criticize even the word “drugs” as a tag for illegal psychoactives: Lumping them all together, they write, betrays a lack of understanding of their vastly different effects, risk profiles and — yes — benefits.

Read: Towards a Culture of Responsible Psychoactive Drug Use

Keeping Our Cool: What to Do about Global Warming

by Jim Manzi
Lead Essay
August 11th, 2008

The danger of potentially catastrophic global warming is an almost paradigmatic case of decision-making under conditions of extreme uncertainty. Of course, this is just another way of saying that many of the intellectual sinews of libertarianism are central to thinking through this problem. . . .

It should not, therefore, be surprising that formal efforts to weigh the near-term costs of emissions abatement against the long-term benefits from avoided global warming show few net benefits, even in theory.

Read: Keeping Our Cool: What to Do about Global Warming