Revisiting Adam Smith

From time to time, a number of my friends have remarked on the GOP’s emphasis on Adam Smith’s The Wealth of Nations and  its corresponding neglect of his Theory of Moral Sentiments–a work that casts considerable doubt over the simplified message for which people cite Wealth of Nations .

Like most Americans, I was familiar with the citation and Smith’s celebration of “the hidden hand,” and unfamiliar with the work itself, so it was interesting and enlightening to read an essay/book review in the New Republic titled “The Betrayal of Adam Smith.”

I had always thought that Wealth was a single volume making a coherent argument about economics; apparently, I was very wrong.

To call it wide-ranging is an understatement; the opposite of a tightly focused, logical argument, its five volumes and 1,000-plus pages range over everything from the problems with apprenticeship to the origins of money to the “discouragement of agriculture in the ancient state of Europe after the fall of the Roman Empire.”

According to the author of the essay, the massive work was “replete with contradictory ideas.”

and The full complexity of his thinking was reduced to the catchphrase “the invisible hand,” even though (as intellectual historian Emma Rothschild has noted) the words appeared just a few times in his entire corpus of work, and only once in The Wealth of Nations.

The book that prompted this essay was “Adam Smith’s America,” by Glory M. Liu, what the reviewer calls an “intriguing account of Smith’s reception in the United States.”

The Wealth of Nations was published in 1776, the same year the Colonies declared their independence, and many of those who sought to break from Britain were familiar with Smith’s work—both Wealth and his earlier writing. As Liu shows, the first thinkers to make use of Smith in America were more inclined toward his musings about politics and psychology than any of his economic prescriptions. Nor did they interpret Smith in a way that narrowly aligned him with a particular political perspective

John Adams, most notably, drew on Smith to meditate on the political power of the rich. In an argument that echoes Smith’s in The Theory of Moral Sentiments (his first major book), Adams suggested that there was a deep tendency in human psychology to defer to the wealthy and powerful and to treat them with an esteem that was unseemly for democratic citizens. Smith had warned that the poor man was “ashamed of his poverty,” while the rich man gloried in the “attention of the world” that his wealth conferred. This genuflection, Adams insisted, was still present in the new republic. Wealth had a way (as Liu puts it) of transmuting itself into power even in a constitutional order that lacked an aristocracy.

One of the lessons Americans took from Smith was that countries don’t become rich or poor due to geographic luck, climate and resources (or God smiling on the inhabitants), but rather on how it organized labor—on human will, ingenuity, and effort.

In earlier works, Smith wrote that “sympathy”—or the ability to identify with the pain and joy of others—was among the “original passions of human nature,” and that “the greatest ruffian, the most hardened violator of the laws of society, is not altogether without it.”

How could this be congruent with his argument in Wealth that “self-love”—the “propensity to truck, barter and exchange one thing for another”—was what set humanity apart from other animals? …Self-interest was the defining principle of human nature, and the source for the immense division of labor that produced “general opulence” without anyone quite planning that it would do so. But how to reconcile self-interest with sympathy?

An early Chicago School economist wrote that Smith saw a “wide and elastic range of activity for government,” believing that “self-interest and competition were sometimes treacherous to the public interest they were supposed to serve”—and that collective action is sometimes necessary.

It was later economists–especially Milton Friedman, Friedrich von Hayek, and George Stigler– who are responsible for our current understanding of Smith.

They were drawn to Smith for his commitment to the idea of individual self-interest as the principle that underwrote the entire theory of the price mechanism. For them, as Stigler wrote, The Wealth of Nations was “a stupendous palace erected upon the granite of self-interest.”

That current, truncated understanding of Smith is the “betrayal” of the title.

The essay/review is lengthy, but it’s well worth reading in its entirety. Today’s misunderstanding of Smith is an example of what happens when readers approach a work through an ideological lens. “Captains of industry” emphasize the “hidden hand” in much the same way contemporary theocrats cherry-pick passages from the Bible.

Both  are betrayals.

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Rights And Obligations

 A few months ago,  Bret Stephens wrote an essay in New York Times that included the following paragraph about what he–accurately– called the  “classically liberal core of intelligent conservatism,” defined as:

 The idea that immigrants are an asset, not a liability; that the freedoms of speech and conscience must extend to those whose ideas we loathe; that American power ought to be harnessed to protect the world’s democracies from aggressive dictators; that we are richer at home by freely trading goods abroad; that nothing is more sacred than democracy and the rule of law; that patriotism is about preserving the capacity to criticize a country we love while loving the country we criticize.

Well, how extremely “woke” of the Times’ conservative columnist…

I continue to be amazed–gobsmacked, really–by the complete 180-degree turn of a Republican Party that used to be serious about such old-fashioned ideas, along with “duty” and “responsibility.” 

In January, Richard Haass published The Bill of Obligations: The Ten Habits of Good Citizens. While it once might have been seen as an exercise in “preaching to the choir,” these days, a depressing number of Americans are no longer members of that choir.

As the linked review begins,

It’s an idea as old as Rousseau: With rights come responsibilities toward the social contract. To this, Haass adds the admonition that “American democracy will work and reform will prove possible only if obligations join rights at center stage.” Those rights are constitutionally enumerated even if “the struggle over rights…continues to this day.” The obligations are less well enshrined, though the 10 Haass offers are unobjectionable. The first, echoing the right of freedom of speech and thought, asks that citizens be informed about how the government works and be prepared to participate in civic duties. On that second point, the fundamental obligation is to vote (and to insist on it when that right is impeded). “Voting is the most basic act of citizenship,” writes the author. “It creates a bond between the individual and government and between the individual and country.” Given a largely uninformed citizenry, that bond would seem tenuous, and it’s also conditioned by a lack of civility, which asks of each citizen a reasoned willingness to set aside ideology in order to deal with matters of shared concern or interest “on their merits, not on motives you may ascribe to those making the arguments.” Civility bespeaks a willingness to accept another obligation, which is to reject and repudiate violence of the kind we saw on Jan. 6, 2021. Civility also feeds into the obligation to respect norms and the lessons of civics, such as the idea that the common good often overrules one’s selfish demands—e.g., being allowed to smoke in a crowded restaurant or walk around unvaccinated and unmasked in a pandemic. Sadly, of course, those who most need to read this agreeably thoughtful book likely won’t, but that’s the way of the world.

I am hardly the only observer of today’s rancid and decidedly uncivil politics to endorse the importance of re-emphasizing these obligations. 

Rights–as Haass points out–imply duties. Your right to exercise freedom of speech, for example, imposes a duty on me (and especially on government) not to engage in behavior making that speech impossible. I don’t have to listen or agree; I am free to respond critically–but neither individual citizens nor government is free to censor you. (A/K/A “pulling a DeSantis.” ) When an individual citizen does so, it is unbecoming and, I’d argue, unAmerican; when government does so, it’s unconstitutional.

Haass does not limit the obligations of citizenship to the duties implied by our constitutional rights. He quite properly includes duties/obligations of  democratic participation–especially informed voting. 

The approaching national elections are very likely to be a turning point for this country. What is at stake is nothing less than our national commitment to America’s longtime–albeit still unrealized– aspirations to democratic self-rule, liberty and equality.

In 2024, the electorate will be faced with a deceptively simple question: will we continue to work toward realizing those aspirations? Or will we make a philosophical U-turn into White Christian Nationalism? 

It really is as simple–and profound–as that.

I have absolute faith in the good will of most Americans. I remain convinced that–no matter how loud they are– the racists, anti-Semites and misogynists are a minority. What I worry about is the willingness of the majority of Americans to take their civic obligations seriously–to inform themselves, to ignore the incessant messaging that tells them their votes won’t count, and to turn out at the polls.

Good people need to vote like America depends on their ballots, because the version we and they want to inhabit really, truly does.

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Why I Don’t Think The Midterms Were An Anomaly

I have a bet with my youngest son. He’s a political pessimist, especially when it comes to the state of Indiana. (The bet involves very expensive dinners…) The bet was triggered by my excitement–and optimism–about Jennifer McCormick’s announcement that she is a candidate for Governor. I think she can win, even in deep Red Indiana; my son has written off the possibility of any Democrat winning statewide office, and has dismissed any predictive value of Obama’s 2008 Hoosier win.

My optimism about McCormick’s campaign is partially due to candidate quality (both hers and that of her likely opponent, the odious Mike Braun) but it is also based on what I see as a national trend: from top to bottom, the GOP is running truly horrible candidates.

At the very top of the Republican ticket, we are almost certain to get either Donald Trump or Ron DeSantis. American voters soundly rejected Trump in 2020, and he gets more certifiable as his legal woes mount. DeSantis appears to be basing his campaign on an “anti-woke” platform. Not only is DeSantis most definitely not a guy you’d like to have a beer with, his evident belief that a majority of Americans want to return to the 1950s, when “men were men” (and in charge), women were in the kitchen barefoot and pregnant, no one had ever heard the word transgender, and schools dutifully imparted White Christian propaganda, is simply delusional.

In a recent issue of his daily newsletter, Robert Hubbell noted that Democratic over-performance hasn’t abated since the midterms, when that predicted Red wave failed to materialize. He pointed to subsequent elections in Colorado Springs, Colorado, where voters selected the first non-Republican mayor since 1979 by a margin of 15 points;
a Pennsylvania special election to the state assembly where the Democrat won by 20 points and maintained Democratic control despite the fact that, going into the 2022 midterms, Republicans had held a 113-90 advantage; and a New Hampshire assembly race where the Democrat won by 43 percentage points, “eclipsing Biden’s 27-point margin in 2020.”

Hubbell quoted one analyst for the observation that

Democrats have overperformed the 2020 presidential results by an average of six points across 18 state legislative races this year. . . . They’ve also beaten their 2016 margins by an average of 10 points.

He quotes another analyst who focused in on the underlying reasons for that over-performance: abortion extremism, ongoing GOP-encouraged gun violence, extremist MAGA candidates, and a (finally!) fired-up Democratic grassroots.

In the run-up to the midterms, Republicans confidently pointed to Joe Biden’s disappointing approval ratings as a sign that they would sweep their gerrymandered House districts and retake control of the Senate. As we now know, despite the extreme gerrymandering and the vote suppression efforts, those victories eluded them.

As Morton Marcus and I argued in our recent book, the loss of Roe v. Wade was a major reason for that outcome. Women’s progress toward civic equality requires autonomy, control over one’s own reproduction, and most women who vote understand that. Republicans running for office in 2024 will have to “thread the needle” between primary voters who are rigidly anti-abortion and a general election electorate that is lopsidedly pro-choice.

Good luck with that…

Add to the abortion wars the daily gun carnage that feckless Republicans keep trying to blame on mental health–despite the fact that large majorities of voters, even majorities of NRA members, attribute the mayhem to the lack of responsible gun regulations.

Voters who aren’t part of the White Nationalist Cult that is today’s GOP look at Congress–at Republicans protecting George Santos, hiring Neo-Nazi staffers, threatening to ruin the economy if they aren’t allowed to deprive poor people of food and mistreat veterans...and a not-insignificant number of them are echoing the immortal words of Howard Beale in the classic movie Network:“I’m as mad as hell, and I’m not going to take this any more!”

It’s true that the GOP can count on its cult members coming to the polls. There are more of those sorry creatures than most nice people want to believe, and they absolutely pose a danger to all of us–but they are a distinct minority of Americans. We need to see them for what they are, and recognize the threat they pose to the America the rest of us inhabit, but they can’t win in the absence of majority apathy.

Democratic candidates, on the other hand, appeal to voters who (like Indiana’s McCormick) support public education and academic freedom, who believe in separation of church and state, in women’s equality, in civility and compassion and inclusion–in all those qualities that our parents taught us were admirable, but the GOP disdains as “woke.”

There’s a lot to be concerned about, but like Hubbell, I’m hopeful.

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History Repeats Itself

One of the most disconcerting realizations triggered by the election of Donald Trump and the various rages of MAGA Republicans has been my realization that there are many more haters in the American public than I had ever imagined. If survey results and academic research are to be believed, these fearful and angry people comprise some 25-30% of our “body politic”–and they are coming for the rest of us: Blacks, Jews, Muslims, LGBTQ+ folks…anyone who isn’t a White Christian. 

Not a majority, thankfully, but a substantial and incredibly dangerous minority–made infinitely more dangerous by anti-democratic political mechanisms (gerrymandering, the Electoral College, the filibuster) that allow them to exercise far more power than they would be entitled to on the basis of raw numbers.

The New York Times recently ran an essay by Michelle Goldberg tracing differences between the Christian Nationalism favored by Trump and his supporters, and the version being developed by Ron DeSantis.

As she noted,

The issue isn’t whether the next Republican presidential candidate is going to be a Christian nationalist, meaning someone who rejects the separation of church and state and treats Christianity as the foundation of American identity and law. That’s a foregone conclusion in a party whose state lawmakers are falling over themselves to pass book bans, abortion prohibitions, anti-trans laws, and, in Texas, bills authorizing school prayer and the posting of the Ten Commandments in classrooms.

Goldberg reported on the recent ReAwaken America Tour, “a Christian nationalist roadshow co-founded by the former Trump national security adviser Michael Flynn.” Two of the speakers on that tour were jettisoned when the tour arrived in Miami because of negative publicity over their praise of Hitler, although they remain on the group’s website.

Unsurprisingly, Trump called in to offer his unrestrained support.

Goldberg notes that DeSantis is “fluent in the language of the religious right, and strives to check all its policy boxes”. 

Put on the full armor of God. Stand firm against the left’s schemes,” he said at the Christian Hillsdale College last year, substituting the “left’s schemes” for the “devil’s schemes” of Ephesians 6:11. In addition to the abortion ban and his war on “woke” education, he will almost certainly sign a recently passed bill intended to keep trans people from using their preferred bathrooms in government buildings, including schools.

As Goldberg notes, the question is whether rank-and-file religious conservatives care more about consistency or charisma. “DeSantis treats Christianity as a moral code he’d like to impose on the rest of us, Trump treats it as an elevated status that should come with special perks.”

Both are terrifying–and both are eerily reminiscent of the significant pro-Nazi movement in the United States during the interval between the first and second World Wars. Most of us today are unaware of just how robust that movement was–it became considerably less fashionable once we entered the Second World War (although some American corporations that traded with Germany continued to do so even after declarations of war).

I was certainly unaware of the extent of American pro-Nazi sympathy.

In 1933,  Rudolf Hess, then deputy führer of Germany, authorized formation an official American branch of the Nazi Party, to be known as the Friends of New Germany in the U.S. Although based in New York, it had a strong presence in Chicago, and it was openly pro-Nazi. According to historians, members stormed the German-language newspaper New Yorker Staats-Zeitung and demanded that the paper publish articles sympathetic to Nazis.

The German American Bund formed in 1935 and lasted until America formally entered World War II. Its goal was a united America under Nazi ideology. It was anti-communist and anti-Semitic. Taking inspiration from Hitler Youth, the Bund had a youth division–  members “took German lessons, received instructions on how to salute the swastika, and learned to sing the ‘Horst Wessel Lied’ and other Nazi songs.”

The Bund continued to justify and glorify Hitler and his movements in Europe during the outbreak of World War II. After Germany invaded Poland in 1939, Bund leaders released a statement demanding that America stay neutral in the ensuing conflict, and expressed sympathy for Germany’s war effort. The Bund reasoned that this support for the German war effort was not disloyal to the United States, as German-Americans would “continue to fight for a Gentile America free of all atheistic Jewish Marxist elements.”

The Bund didn’t disband until the day after the bombing of Pearl Harbor.

It’s impossible to read today’s news without seeing the parallels–and concluding that the pro-Nazi sentiments that led to the Friends of New Germany and the German-American Bund have simply remained underground until encouraged to emerge by the MAGA movement and its would-be fuhrers. 

We can only hope that it won’t take another World War to defeat them.

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It Isn’t Just In MAGA-World

Let’s be honest: believing the people who tell you what you want to hear is a trait shared by all humans–Left, Right and Center. There’s a reason researchers study  confirmation bias–the current terminology for what we used to call “cherry-picking the facts.”

Just one recent example: MAGA folks who are frantic to believe that Joe Biden is just as corrupt as Donald Trump (okay, maybe not quite that corrupt…) have latched onto a report issued by James Comer, a Republican House member determined to find something to support that accusation. Unfortunately, as TNR (among many other media outlets) has reported, there just isn’t anything that we might call “evidence” to support that desired belief.

The House GOP accused Joe Biden and his family on Wednesday of engaging in business with foreign entities—but were unable to provide any actual evidence linking the president to any wrongdoing.

House Oversight Committee Chair James Comer released a 65-page memo detailing a sprawling investigation into Biden and some of his relatives, particularly his son Hunter Biden. Nowhere in the massive document was there a specific allegation of a crime committed by Biden or any of his relatives.

During a press conference explaining the investigation, Comer was asked if he had evidence directly linking Biden to corruption. The Kentucky Republican hemmed and hawed but ultimately admitted he didn’t.

It’s easy enough to see confirmation bias at work when a commenter to this blog “cites” to Comer, a lawmaker who has publicly admitted that he “intuited” misbehavior by the Biden family, despite the fact that even Fox “News” personalities have admitted that there’s no there there. But it isn’t only folks on the Right who engage in confirmation bias–and the strength of that human impulse to cherry-pick is about to get a test on steroids.

Researchers have recently warned about the likely misuse of AI--artificial intelligence–in producing misleading and dishonest political campaigns

Computer engineers and tech-inclined political scientists have warned for years that cheap, powerful artificial intelligence tools would soon allow anyone to create fake images, video and audio that was realistic enough to fool voters and perhaps sway an election.

The synthetic images that emerged were often crude, unconvincing and costly to produce, especially when other kinds of misinformation were so inexpensive and easy to spread on social media. The threat posed by AI and so-called deepfakes always seemed a year or two away.

No more.

Sophisticated generative AI tools can now create cloned human voices and hyper-realistic images, videos and audio in seconds, at minimal cost. When strapped to powerful social media algorithms, this fake and digitally created content can spread far and fast and target highly specific audiences, potentially taking campaign dirty tricks to a new low.

The implications for the 2024 campaigns and elections are as large as they are troubling: Generative AI can not only rapidly produce targeted campaign emails, texts or videos, it also could be used to mislead voters, impersonate candidates and undermine elections on a scale and at a speed not yet seen.

“We’re not prepared for this,” warned A.J. Nash, vice president of intelligence at the cybersecurity firm ZeroFox. “To me, the big leap forward is the audio and video capabilities that have emerged. When you can do that on a large scale, and distribute it on social platforms, well, it’s going to have a major impact.”

Some of the ways in which AI can mislead voters include the production of automated robocall messages that use a (simulated) candidate’s voice and instruct voters to cast their ballots on the wrong date, or phony audio recordings that sound as if a candidate was expressing racist views– AI can easily produce video footage showing someone giving a speech or interview that they never gave. It would be especially simple for AI to fake images designed to look like local news reports making a variety of false claims….The possibilities are endless. And what happens if an international entity — a cybercriminal or a nation state — impersonates someone?

AI-generated political disinformation already has gone viral online ahead of the 2024 election, from a doctored video of Biden appearing to give a speech attacking transgender people to AI-generated images of children supposedly learning satanism in libraries.

If we have trouble now knowing who or what to believe, today’s confusion over what constitutes “fact” and what doesn’t is about to be eclipsed by the coming creation of a world largely invented by digital liars employing tools we’ve never before encountered.

If regulators can’t figure out how to address the dangers inherent in this new technology–and quickly!– artificial intelligence plus confirmation bias may just put the end to whatever remains of America’s rational self-government.

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