Robert Murphy, Austrian school economist and blogger, is in my book a remarkably thoughtful and insightful commentator on current economic issues, even as I find some of his arguments on climate policy and energy to be shallow.
Bob`s balance and relatively rare introspection are on display in his recent blog post, I’m Starting With the Man in the Mirror, in which he directly addresses the way that people with differing views on health care and climate change policy tend to see their own views and actions as virtuous, while seeing “the other side” as having evil motives and acting unfairly. Bob had started a blog post in such a vein, but then checked himself and realized that questioning the motives of all of the other side was probably unfair.
My own thoughts are that Bob`s post is as fine as far as it goes, but that it remains partisan and fails to discuss the way that rent-seekers deliberately seek to exploit our partisan predilections. This failure is not particularly surprising, given not only Bob`s evident self-identification as a partisan, but the fact that he works for the Institute for Energy Research, a Rob Bradley-founded think tank that, along with its partner, the American Energy Alliance is a front for a particular set of rent-seekers – the fossil fuel interests.
Bob`s entire piece is worth reading, but here is the introduction:
“OK I must confess that this Wonk Room hit piece on my compatriots really ticked me off. I had originally wanted to blog it with the title, “Definition” and the comment, “If you want to know what ‘ad hominem’ means, just check out this Wonk Room piece on the AEA bus tour.”
“But then I calmed down a bit, realizing that the Wonk Room piece is really just the mirror image of what Glenn Beck did with Goldman Sachs, which I praised.”
The piece concludes in a similar vein:
“I’m just saying that, as ridiculous as Krugman’s paranoia over old people is, that’s how ridiculous some of our side’s rants against Obama fans must seem to people who know that they are really just trying to stem abuses they perceive in the health care system and so forth. They know they’re not socialists, just like we know “our guys” aren’t Nazis.”
Bob adds a brief meta-insight that I wish he had explored further:
“Don’t get me wrong, it is still perfectly consistent to think the elites in Washington are power-hungry liars. “
I left my own observations in a comment on Bob`s post, which I copy below:
Bob, on Goldman Sachs, you might enjoy this piece by Matt Taibbi at Rolling Stone.
Bob, I appreciate your attempt at even-handedness, and your implicit acknowledgment of how we are all plagued by problems of self-deception and confirmation bias, particularly with the context of battle with ideological enemies.
I hope you will continue the effort, even though it may come at a cost to effectiveness – sometimes there`s nothing like a broader understanding of the truth to get in the way of a good rant about the Truth.
The problems of self-deception, tribal division/conflict and their roles in rent-seeking are deep indeed, and you`ve barely scratched the surface.
I note, for example, that even though you try to be even-handed, you ironically identify those listed in the Wonk Room piece as your “compatriots”; if by implication the Wonk Room writers and others who support climate change action are NOT your compatriots, what country then are they citizens of?
I also note that those you call compatriots are officers of the Rob Bradley-founded American Energy Alliance, which is clearly an energy industry pressure group (and Republican-linked). You work at the free-market IER that Rob also founded, but apparently self-identify yourself with a group of fairly naked rent-seekers.
While it`s in our human nature to fall into partisanship, what`s more disturbing is the ways that rent-seekers deliberately try to take advantage of this penchant by fanning the flames of partisanship as a means of masking their own agendas while attacking others with competing preferences. This has been very clearly at work in battles over energy and environmental issues, where influence over government is the battleground.
I have made the point a number of times previously that such rent-seeking deserves much more attentions, but you have always professed puzzlement: what, ME, Bob Murphy, involved in a rent-seekers game?
To refresh your recollection, here are links to our previous discussions:
Bob Murphy, the Heritage Foundation and “green jobs” – ignore coal! We only pay attention to rent-seeking from greens/the left; and
In which I try to help Bob Murphy figure out just what the heck I`m talking about (when I say he`s entangled in a partisan, rent-seeking game).
I’m just saying that, as ridiculous as Krugman’s paranoia over old people is, that’s how ridiculous some of our side’s rants against Obama fans must seem to people who know that they are really just trying to stem abuses they perceive in the health care system and so forth. They know they’re not socialists, just like we know “our guys” aren’t Nazis.
Well said. Now how about acknowledging how the rent-seekers are busy at work trying to manipulate our partisan impulses to take everyone for a ride?
I of course am aware that rent-seeking is ubiquitous in our current political debates, and on climate and energy issues, there are many rent-seekers in addition to fossil fuel interests. My point is that it behooves us to pay attention to the manipulations of rent-seekers generally.
Bob, WHY must you “press on” with your thin and one-sided analysis on environmental issues? Because you’re being paid by polluters to do so?
It pains me to see that the nuanced, libertarian Bob whom we see explaining what’s wrong with the Keynesians and the Fed always takes a leave of absence, and sends in his poor substitute, the utilitarian It-Grows-Jobs-And-Makes-Us-Wealthy-To-Destroy-Commons Bob.
Yes, CERES’/PERI’s argument that regulations create jobs ignores jobs likely to be lost by mandating investments in pollution controls, their overall argument is not as simple or as obviously stupid as you make it out to be. From the executive summary:
“Clean air safeguards have benefitted the United States tremendously. Enacted in
1970, and amended in 1990, the Clean Air Act (“CA”) has delivered cleaner air,
better public health, new jobs and an impressive return on investment—providing $4
to $8 in benefits for every $1 spent on compliance.1″
“History has proven that clean air and strong economic growth are mutually reinforcing. Since
1990, the CAA has reduced emissions of the most common air pollutants
41 percent while Gross Domestic Product increased 64 percent.2″
“Focusing on 36 states3 in the eastern half of the United States, this report evaluates
the employment impacts of the electric sector’s transformation to a cleaner, modern
fleet through investment in pollution controls and new generation capacity and
through retirement of older, less efficient generating facilities. In particular, we assess
the impacts from two CAA regulations expected to be issued in 2011: the Clean Air
Transport Rule (“Transport Rule”) governing sulfur dioxide (SO2) and nitrogen oxide
(NOx) emissions from targeted states in the eastern half of the U.S.; and the National
Emissions Standards for Hazardous Air Pollutants for Utility Boilers (“Utility MACT”)
rule which will, for the first time, set federal limits for hazardous air pollutants such as
mercury, lead, dioxin, and arsenic. Although our analysis considers only employment-related
impacts under the new air regulations, the reality is these new standards will
yield numerous other concrete economic benefits, including better public health from
cleaner air, increased competitiveness from developing innovative technologies and
mitigation of climate change.”
Given the externalities involved, you are wrong to assume that the new jobs are all costs and do not represent wealth-creating activity. If we junked the EPA and environmental laws and regulations altogether and replaced them with a strict enforcement of property rights (Block points out that we lost this because corporations bought off judges), THEN would the jobs created as people scrambled to sue and businesses scrambled to reduce pollution be wealth-creating? Surely such policies also would “stimulate productive investment and job creation”, right?
Why, then, do you consistently drop your libertarian principles when it comes to energy and environmental matters and adopt a shallow assumption than only corporations producing “desired goods” is a “productive purpose”? Why instead of a recognition of external effects/catallaxy problems, we get suggestions that government should help “the economy” via policies such as – surprise! – “lift[ing] arbitrary restrictions on domestic energy production” that would “stimulate productive investment and job creation.” (Um, remember BP, the Gulf of Mexico and all of the “wealth creation” and great new jobs that just got “created” down there?).
Why, indeed, if you’re still an honorable man? You’re better than this, Bob.
http://mises.org/Community/blogs/tokyotom/archive/2009/08/25/fun-with-self-deception-and-rent-seeking-bob-murphy-s-quot-man-in-the-mirror-quot.aspx
http://mises.org/Community/blogs/tokyotom/archive/2009/10/28/bob-murphy-rob-bradley-and-the-austrian-road-not-taken-on-climate.aspx
http://mises.org/Community/blogs/tokyotom/archive/2009/12/19/bob-murphy-speculates-on-quot-the-benefits-of-procrastination-the-economics-of-geo-engineering-quot-cui-bono.aspx
I’m sorry to be pushing meta-issues, but one of the reasons why the Left doesn’t listen to libertarians and ‘free market’ criticisms is that these criticisms seldom are acknowledge, much less directed at, the major impersonal corporate rent-seekers who REALLY are behind government and whom the Left rightly distrust.
Best,
Tom