no third solution

Blogging about liberty, anarchy, economics and politics

Environmental Questions

September 15th, 2008

Two environmentalist questions from the aggregator, just begging for a cynical response:

1. Why do people pay extra for bottled water?

There are probably plenty of arguments one could offer up contra bottled water (see below). But the “it’s not useful” argument (c.f. the diamond-water paradox) isn’t one of them. I’m going to, for the sake of brevity, choose “convenience.”

You can’t take your tap water with you, at least not very easily, on a long road trip and expect it to stay cold. Bottled water is simply convenient, and besides, if you put the kibosh on bottled water, people will just go back to unhealthy sodas and juices which use the exact same amount of resources. If you want to ban all of those, too, then you’re demonstrably a fascist.

2. How can we reduce global fuel consumption?

The author argues that we might choose to reduce fuel consumption by mandating ridiculously low speed limits.

The problem is that people see a shorter travel time as an advantage, while it has no ecological value whatsoever.

One oblivious commenter even goes so far as to suggest,

Maybe if cars go only 60km/h people would realise that on many occasions a bike or a train is a better alternative.

I’ve addressed the ideological problems with the straw-man argument in favor of lowering speed limits to save gas before: violence is not the answer. But this is a more technical question, I guess. All other things being equal, the “better alternative” is chosen by the person most closely affected by the decision. For many of us, a shorter commute, an easier or more enjoyable vacation, etc., is the “better” alternative, and that’s why we choose it.

Look, you can certainly try to make the argument that the costs of driving or even that the costs of driving excessively fast are not fully internalized, and to such extent that these costs are forced upon others, they constitute a negative externality which needs to be corrected. Then, I could drop a Coase-bomb on you: where commons problems exist, property rights are often poorly defined (see also: What would Coase do? or The Lighthouse Problem.)

The strongest argument is probably that most of what we’ve grown accustomed to (in terms of transportation) is the product of an economy which is anything but free, and so it’s no wonder the incentives are all warped.

In this case, the true costs are so far divorced from reality that we don’t really know what we’re choosing and can’t be reasonably held accountable for the consequences, about which we aren’t certain because we’ve swallowed hundreds upon hundreds of years of complete and utter bullshit, spoonfed to us by monarchs and tyrants and kings and princes and presidents and prime ministers.

The most severe environmental threat is government.

The solution to whatever ails the planet will certainly not come from the fucking cancer that’s strangling it.

Truth is Not Relative

September 15th, 2008

FSK says that Truth is Not Relative.

An important pro-State troll debating point is “Truth is Relative”. They say there is no absolute standard of truth.

In math, computer science, physics, engineering and chemistry, most people agree that absolute truths exist, but on matters of politics or economics, people often disagree and claim that objective truths don’t exist.
One commenter, anarcho-mercantilist says, referring to something called “E-Prime”,

Unless I interpret your statement as “We all believe that theft contradicts our moral philosophy in all circumstances,” your statement that “Stealing is wrong” is subjective.

I thought it was funny, that his conclusion violates the principles of E-Prime, which sounds like another futile exercise in semantic confusion. Note that FSK did not suggest that “Stealing is wrong” is axiomatic.

Is it possible to deduce “Stealing is wrong” based on E-Prime valid premises? I’m fairly certain it can be done. Most people think that stealing is OK if the government does it, or if 50%+1 of a population vote against 50%-1 of the population. These people don’t know E-Prime from a hole in the wall. Since I presume that nobody really gives a shit about that sort of pedagogy, I’ll table it for further discussion.

Since an indisputable goal of debating is to establish what is (and what is not) true, anyone disputing the existence of universal truths is committing a performative contradiction, since participating in the dispute belies the existence of universal truths, since the contrary position “There are no universal truths” is, of itself, a binary universal statement; it cannot be a true statement, since its truth is self-invalidating.

Who Owns General Motors?

September 11th, 2008

Back in July, Shagya Blog commented on a New York Times piece about General Motors, about which I’d been meaning to comment since right around the time I first read it. The post notes that,

G.M. acknowledged in its most recent annual report that from 1993 to 2007 it spent $103 billion “to fund legacy pensions and retiree health care — an average of about $7 billion a year — a dramatic competitive and cash-flow disadvantage.” During those 15 years, G.M. paid only $13 billion or so in shareholder dividends. The company has been sending far more money to its retirees than to its owners.

I thought, that was a quite fascinating financial tidbit. General Motors gave $13B to its “owners” and it gave 850% of that to its former workers.

Unfortunately, the article concludes that “[T]he government is [a] better provider [than industry] of social insurance.” As I’ve previously commented on social insurance programs and specifically in regards to catastrophic re-insurance schema:

Social insurance programs necessarily … stimulate a morale hazard, by reducing the actual exposure of those most prone to the particular risk being “insured.” [S]uch programs, like most government programs, have the propensity to be self-perpetuating… I can find no justification for social insurance, so-called, which forces those wise enough to avoid a risk altogether, to bear its burden for the certain benefit of others.

I think we’ll have to agree to disagree on that point. But, back to the General.

As of September 11, 2008, General Motors stock is trading around $13/share.

There are 560M shares outstanding. General Motors has at least 263,000 full time employees, by definition, who work somewhere in the neighborhood of 2,000 hours per year. I’m going to go out on a limb here, and assume that FTEs at General Motors earn more than $13/hour in gross compensation.

No, seriously. Let’s crunch these numbers:

Think about it: $13/share X 2000 hours/FTE X 263,000 FTEs = General Motors’ market cap.

I’m just saying…

no third solution

Blogging about liberty, anarchy, economics and politics