If the Only Way You Can Get Your Great Idea Implemented…

Economics textbooks are full of clever-and-appealing policy proposals.  Proposals like: “Let’s redistribute money to the desperately poor” and “Let’s tax goods with negative externalities.”  They’re so clever and so appealing that it’s hard to understand how any smart, well-meaning person could demur.  When critics appeal to “public choice problems,” it’s tempting to tell the critics that they’re the problem.  The political system isn’t that dysfunctional, is it?  In any case, reflexively whining, “The political system will muck up your clever, appealing policy proposal,” hardly makes that system work better.  The naysayers should become part of the solution: Endorse the clever-and-appealing policy proposals – and strive to bring them to life.

When you look at the real world, though, you see something strange: Almost no one actually pushes for the textbooks’ clever-and-appealing policy proposals.  Instead, the people inspired by the textbooks routinely attach themselves to trendy-but-awful policy proposals.  If you point out the discrepancy, they’re often too annoyed to respond.  When they do, reformers shrug and say: “The clever-and-appealing policy never has – and probably never will – have much political support.  So we have to do this instead.”

Examples?  You start off by advocating high-impact redistribution to help poor children and the severely disabled… and end defending the ludicrously expensive and wasteful Social Security program.  “Unfortunately, the only politically viable way to help the poor is to help everyone.”  Or you start off advocating Pigovian taxes to clean the air, and end up defending phone books of picayune environmental regulations.  “Unfortunately, this is the way pollution policy actual works.”

Don’t believe me?  Here’s a brand-new example courtesy of Paul Krugman:

But if a nation in flames isn’t enough to produce a consensus for action — if it isn’t even enough to produce some moderation in the anti-environmentalist position — what will? The Australia experience suggests that climate denial will persist come hell or high water — that is, through devastating heat waves and catastrophic storm surges alike…

[…]

But if climate denial and opposition to action are immovable even in the face of obvious catastrophe, what hope is there for avoiding the apocalypse? Let’s be honest with ourselves: Things are looking pretty grim. However, giving up is not an option. What’s the path forward?

The answer, pretty clearly, is that scientific persuasion is running into sharply diminishing returns. Very few of the people still denying the reality of climate change or at least opposing doing anything about it will be moved by further accumulation of evidence, or even by a proliferation of new disasters. Any action that does take place will have to do so in the face of intractable right-wing opposition.

This means, in turn, that climate action will have to offer immediate benefits to large numbers of voters, because policies that seem to require widespread sacrifice — such as policies that rely mainly on carbon taxes — would be viable only with the kind of political consensus we clearly aren’t going to get.

What might an effective political strategy look like? … [O]ne way to get past the political impasse on climate might be via “an emphasis on huge infrastructural projects that created jobs” — in other words, a Green New Deal. Such a strategy could give birth to a “large climate-industrial complex,” which would actually be a good thing in terms of political sustainability.

Notice the pattern.

Step 1: Economics textbooks offer a clever-and-appealing policy proposal: Let’s tax carbon emissions to curtail the serious negative externalities of fossil fuels.  It’s cheap, it’s effective, it provides great static and dynamic incentives.  Public choice problems?  Don’t listen to those naysayers.

Step 2: Argh, Pigovian taxes are going nowhere.

Step 3: Let’s have a trendy-but-awful populist infrastructure program to get the masses on board.

So what?  For starters, any smart activist who reaches Step 3 tacitly concedes that public choice problems are dire.  You offer the public a clever-and-appealing remedy for a serious social ill, and democracy yawns.  To get action, you have to forget about cost or cost-effectiveness – and just try to drug the public with demagoguery.

Note: I’m not attacking Krugman for having little faith in democracy.  His underlying lack of faith in democracy is fully justified.  I only wish that Krugman would loudly embrace the public choice framework that intellectually justifies his lack of faith.  (Or better yet, Krugman could loudly embraced my psychologically-enriched public choice expansion pack).

Once you pay proper respect to public choice theory, however, you cannot simply continue on your merry way.  You have to ponder its central normative lesson: Don’t advocate government action merely because a clever-and-appealing policy proposal passes a cost-benefit test.  Instead, look at the trendy-but-awful policies that will actually be adopted – and see if they pass a cost-benefit test.  If they don’t, you should advocate laissez-faire despite all those shiny ideas in the textbook.

Krugman could naturally reply, “I’ve done the math.  Global warming is so terrible that trendy-but-awful policies are our least-bad bet.”  To the best of my knowledge, though, this contradicts mainstream estimates of the costs of warming.  That aside, why back a Green New Deal instead of deregulation of nuclear power or geoengineering?  If recalcitrant public opinion thwarts your clever-and-appealing remedy, maybe you started out on the wrong path in the first place.

Unfair?  Well, this is hardly the first time that Krugman has rationalized destructive populism when he really should have reconsidered.  Krugman knows that immigration is the world’s fastest way to escape absolute poverty.  He knows that standard complaints about immigration are, at best, exaggerated.  But he’s still an immigration skeptic, because:

The New Deal made America a vastly better place, yet it probably wouldn’t have been possible without the immigration restrictions that went into effect after World War I. For one thing, absent those restrictions, there would have been many claims, justified or not, about people flocking to America to take advantage of welfare programs.

Notice the pattern.

Step 1: You start with the textbook case for a welfare state to alleviate domestic poverty.  Public choice problems?  Bah.

Step 2: Next, you decide that you can’t get that welfare state without horrible collateral damage.

Step 3: So you casually embrace the status quo, without seriously engaging obvious questions, like: “Given political constraints, perhaps its actually better not to have the New Deal?” or even “How close can we get to the New Deal without limiting immigration?”

The moral: If the only way you can get your great idea implemented is to mutilate it and/or package it with a pile of expensive junk, you really should wonder, “Is it still worth it?”

Well, is it?

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Black America Before LBJ: How the Welfare State Inadvertently Helped Ruin Black Communities

“We waged a war on poverty and poverty won.”

The dust has settled and the evidence is in: The 1960s Great Society and War on Poverty programs of President Lyndon Baines Johnson (LBJ) have been a colossal and giant failure. One might make the argument that social welfare programs are the moral path for a modern government. They cannot, however, make the argument that these are in any way effective at alleviating poverty.

In fact, there is evidence that such aggressive programs might make generational poverty worse. While the notion of a “culture of dependence” is a bit of a cliché in conservative circles, there is evidence that this is indeed the case – that, consciously or not, the welfare state creates a culture where people receive benefits rather than seeking gainful employment or business ownership.

This is not a moral or even a value judgment against the people engaged in such a culture. Again, the claim is not that people “choose to be on welfare,” but simply that social welfare programs incentivize poverty, which has an impact on communities that has nothing to do with individual intent.

We are now over 50 years into the development of the Great Society and the War on Poverty. It is time to take stock in these programs from an objective and evidence-based perspective. When one does that, it is not only clear that the programs have been a failure, but also that they have disproportionately impacted the black community in the United States. The current state of dysfunction in the black community (astronomically high crime rates, very low rates of home ownership and single motherhood as the norm) are not the natural state of the black community in the United States, but closely tied to the role that social welfare programs play. Or as Dr. Thomas Sowell stated:

“If we wanted to be serious about evidence, we might compare where blacks stood a hundred years after the end of slavery with where they stood after 30 years of the liberal welfare state. In other words, we could compare hard evidence on “the legacy of slavery” with hard evidence on the legacy of liberals.”

Here’s a peek into how black America has been a victim of LBJ’s Great Society and War on Poverty.

Continue reading Black America Before LBJ: How the Welfare State Inadvertently Helped Ruin Black Communities at Ammo.com.

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The One Big Fact that Overawes All Doubts

How do I pick book topics?  On reflection, I usually start with what appears to be a big blatant neglected fact.  Then I try to discover whether anything in the universe is big enough to explain this alleged fact away.  If a laborious search uncovers nothing sufficient, I am left with the seed of a book: One Big Fact that Overawes All Doubts.

Thus, my Myth of the Rational Voter starts with what appears to be a big blatant neglected fact: the typical voter seems highly irrational.  He uses deeply flawed intellectual methods, and holds a wide range of absurd views.  Twist and turn the issue as you please, and this big blatant neglected fact remains.

Selfish Reasons to Have More Kids, similarly, begins with a rather different big blatant neglected alleged fact: Modern parenting is obsessed with “investing” in kids’ long-run outcomes, yet twin and adoption researchers consistently conclude that the long-run effect of nurture is grossly overrated.  Yes, the latter fact is only “blatant” after you read the research, but once you read it, you can’t unread it.

What’s the One Big Fact that Overawes All Doubts in The Case Against Education?  This: education is highly lucrative even though the curriculum is highly irrelevant in the real world.  Yes, it takes a book to investigate the many efforts to explain this One Big Fact away (“learning how to learn,” anyone?).  But without One Big Fact, there’d be no book.

Finally, the big motivated fact behind Open Borders is that simply letting a foreigner move to the First World vastly multiplies his labor earnings overnight.  A Haitian really can make twenty times as much money in Miami the week after he leaves Port-au-Prince – and the reason is clearly that the Haitian is vastly more productive in the U.S.  Which really makes you wonder: Why would anyone want to stop another human being from escaping poverty by enriching the world?  Giving this starting point, anti-immigration arguments are largely attempts to explain this big blatant neglected fact away.  Given what restrictionist arguments are up against, it’s hardly surprising that they don’t measure up.

On reflection, my current book project, Poverty: Who To Blame doesn’t seem to fit this formula.  The book will rest on three or four big blatant neglected facts rather than one.  Yet perhaps as I write, One Big Fact that Overawes All Doubts will come into focus…

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Open Borders Are a Trillion-Dollar Idea

Tearing down all barriers to migration isn’t crazy—it’s an opportunity for a global boom.

The world’s nations, especially the world’s richest nations, are missing an enormous chance to do well while doing good. The name of this massive missed opportunity—and the name of my book on the topic—is “open borders.”

Critics of immigration often hyperbolically accuse their opponents of favoring open borders—a world where all nationalities are free to live and work in any nation they like. For most, that’s an unfair label: They want more visas for high-skilled workers, family reunification, or refugees—not the end of immigration restrictions. In my case, however, this accusation is no overstatement. I think that free trade in labor is a massive missed opportunity. Open borders are not only just but the most promising shortcut to global prosperity.

To see the massive missed opportunity of which I speak, consider the migration of a low-skilled Haitian from Port-au-Prince to Miami. In Haiti, he would earn about $1,000 per year. In Miami, he could easily earn $25,000 per year. How is such upward mobility possible? Simply put: Human beings are much more productive in Florida than in Haiti—thanks to better government policies, better management, better technology, and much more. The main reason Haitians suffer in poverty is not because they are from Haiti but because they are in Haiti. If you were stuck in Haiti, you, too, would probably be destitute.

But borders aren’t just a missed opportunity for those stuck on the wrong side on them. If the walls come down, almost everyone benefits because immigrants sell the new wealth they create—and the inhabitants of their new country are their top customers. As long as Haitians remain in Haiti, they produce next to nothing—and therefore do next to nothing to enrich the rest of the world. When they move, their productivity skyrockets—and so does their contribution to their new customers. When you see a Haitian restaurant in Miami, you shouldn’t picture the relocation of a restaurant from Port-au-Prince; you should picture the creation of a restaurant that otherwise would never have existed—not even in Haiti itself.

The central function of existing immigration laws is to prevent this wealth creation from happening—to trap human talent in low-productivity countries. Out of all the destructive economic policies known to man, nothing on Earth is worse. I’m not joking. Standard estimates say open borders would ultimately double humanity’s wealth production. How is this possible? Because immigration sharply increases workers’ productivity—and the world contains many hundreds of millions of would-be immigrants. Multiply a massive gain per person by a massive number of people and you end up with what the economist Michael Clemens calls “trillion-dollar bills on the sidewalk.”

Or do we? An old saying warns, “If it seems too good to be true, it probably is.” Far lower levels of immigration already inspire vocal complaints. After presenting my basic case in Open Borders, I strive to evaluate all the common (and many not-so-common) objections to immigration. My bottom line: While open borders are undeniably unpopular, they deserve to be popular. Like every social change, immigration has downsides. Yet when we patiently quantify the downsides, the trillions of dollars of gains of open borders dwarf any credible estimate of the harms.

The simplest objection to open borders is logistical: Even the largest countries cannot absorb hundreds of millions of immigrants overnight. True enough, but no reasonable person expects hundreds of millions to come overnight, either. Instead, immigration usually begins slowly and then snowballs. Puerto Ricans have been legally allowed to move to the United States since 1904, but it took almost a century before Puerto Ricans in the United States came to outnumber the population left on the island. Wasn’t the European migration crisis an unmanageable flood of humanity? Hardly. Despite media outcry, total arrivals from 2014 to 2018 came to less than 1 percent of the population of the European Union. Many European countries—most notably West Germany during the Cold War—have swiftly absorbed much larger inflows in the past.

The standard explanation for these asymmetric public reactions is that resistance to immigration is primarily cultural and political, not economic or logistical. While West Germans welcomed millions of East German migrants, a much lower dose of Middle Eastern and African migration has made the whole EU shiver. Aren’t economists who dwell on economic gains just missing the point?

Yes and no. As a matter of political psychology, cultural and political arguments against immigration are indeed persuasive and influential. That does not show, however, that these arguments are correct or decisive. Does immigration really have the negative cultural and political effects critics decry? Even if it did, are there cheaper and more humane remedies than immigration restriction? In any case, what is a prudent price tag to put on these cultural and political effects?

Let’s start with readily measurable cultural and political effects. In the United States, the most common cultural complaint is probably that—in contrast to the days of Ellis Island—today’s immigrants fail to learn English. The real story, though, is that few first-generation immigrants have ever become fluent in adulthood; it’s just too hard. German and Dutch immigrants in the 19th century maintained their stubborn accents and linguistic isolation all their lives; New York’s Yiddish newspapers were a fixture for decades. For their sons and daughters, however, acquiring fluency is child’s play—even for groups like Asians and Hispanics that are often accused of not learning English.

Native-born citizens also frequently worry that immigrants, supposedly lacking Western culture’s deep respect for law and order, will be criminally inclined. At least in the United States, however, this is the reverse of the truth. The incarceration rate of the foreign-born is about a third less than that of the native-born.

What about the greatest crime of all—terrorism? In the United States, non-citizens have indeed committed 88 percent of all terrorist murders. When you think statistically, however, this is 88 percent of a tiny sum. In an average year from 1975 to 2017, terrorists murdered fewer than a hundred people on U.S. soil per year. Less than 1 percent of all deaths are murders, and less than 1 percent of all murders are terrorism-related. Worrying about terrorism really is comparable to worrying about lightning strikes. After you take a few common-sense precautions—do not draw a sword during a thunderstorm—you should just focus on living your life.

The most cogent objection to immigration, though, is that productivity depends on politics—and politics depend on immigration. Native-born citizens of developed countries have a long track record of voting for the policies that made their industries thrive and their countries rich. Who knows how vast numbers of new immigrants would vote? Indeed, shouldn’t we expect people from dysfunctional polities to bring dysfunctional politics with them?

These are fine questions, but the answers are not alarming. At least in the United States, the main political division between the native- and foreign-born is engagement. Even immigrants legally able to vote are markedly less likely than native-born citizens to exercise this right. In the 2012 U.S. presidential election, for example, 72 percent of eligible native-born citizens voted versus just 48 percent of eligible immigrants. Wherever they politically stand, then, immigrants’ opinions are relatively inert.

In any case, immigrants’ political opinions don’t actually stand out. On average, they’re a little more economically liberal and a little more socially conservative, and that’s about it. Yes, low-skilled immigrants’ economic liberalism and social conservatism are more pronounced, but their turnout is low; in 2012, only 27 percent of those eligible to vote opted to do so. So while it would not be alarmist to think that immigration will slightly tilt policy in an economically liberal, socially conservative direction, warning that “immigrants will vote to kill the goose that lays the golden eggs” is paranoid.

Note, moreover, that free immigration hardly implies automatic citizenship. Welcoming would-be migrants is a clear-cut blessing for them and the world. Granting citizenship is more of a mixed bag. While I am personally happy to have new citizens, I often dwell on the strange fact that the Persian Gulf monarchies are more open to immigration than almost anywhere else on Earth. According to the Pew Research Center, 76 percent of people in Kuwait—and 88 percent in the United Arab Emirates—are foreign-born. Why do the native-born tolerate this? Probably because the Gulf monarchies generously share their oil wealth with citizens—and jealously protect the value of citizenship by making naturalization almost impossible. You do not have to ignore the Gulf monarchies’ occasional mistreatment of immigrants to realize that it is much better to welcome immigrants with conditions than to refuse to admit them at all. Migrants—mostly from much poorer parts of the Islamic world—accept this deal, however unfair, exactly because they can still do far better in the Gulf than at home.

In Open Borders, I have the space to address many more concerns about immigration in more detail. What I can’t do, I confess, is address the unmeasured and the unmeasurable. In real life, however, everyone routinely copes with ambiguous dangers—“unknown unknowns.” How do we cope?

For starters, we remember Chicken Little. When people’s warnings about measured dangers turn out to be wrong or overstated, we rightly discount their warnings about unmeasured and unmeasurable dangers. This is how I see mainstream critics of immigration. Their grasp of the basic facts, especially their neglect of the tremendous gains of moving labor from low-productivity countries to high-productivity countries, is too weak to take their so-called vision seriously.

Our other response to unmeasured and unmeasurable dangers, however, is to fall back on existing moral presumptions. Until same-sex marriage was legalized in certain countries, for example, how were we supposed to know its long-term social effects? The honest answer is, “We couldn’t.” But in the absence of strong evidence that these overall social effects would be very bad, a lot of us have now decided to respect individuals’ right to marry whom they like.

This is ultimately how I see the case for open borders. Denying human beings the right to rent an apartment from a willing landlord or accept a job offer from a willing employer is a serious harm. How much would someone have to pay the average American to spend the rest of his or her life in Haiti or Syria? To morally justify such harm, we need a clear and present danger, not gloomy speculation. Yet when we patiently and calmly study immigration, the main thing we observe is: people moving from places where their talent goes to waste to places where they can realize their potential. What we see, in short, is immigrants enriching themselves by enriching the world.

Do I seriously think I am going to convert people to open borders with a short article—or even a full book? No. My immediate goal is more modest: I’d like to convince you that open borders aren’t crazy. While we take draconian regulation of migration for granted, the central goal of this regulation is to trap valuable labor in unproductive regions of the world. This sounds cruel and misguided. Shouldn’t we at least double-check our work to make sure we’re not missing a massive opportunity for ourselves and humanity?

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Do You Talk About X in Open Borders? Yes!

The modal question about Open Borders is, “Do you talk about X?”  The answer is “YES” for all of the following…

1. Do you talk about the historical pattern of global poverty rates?

2. Do you talk about people’s attachment to their country of birth?

3. Do you talk about overcrowding?

4. Do you talk about the global poor’s ability to function in a modern society?

5. Do you talk about global apartheid?

6. Do you talk about the level of illegal immigration?

7. Do you talk about human smuggling?

8. Do you talk about the effectiveness of immigration law at preventing and deterring illegal immigration?

9. Do you talk about immigration as a civil right?

10. Do you talk about whether the plight of the immigrant is our problem?

11. Do you talk about whether there is a right to immigrate?

12. Do you talk about whether this right is absolute?

13. Do you talk about America’s open borders era?

14. Do you talk about how America’s open borders era ended?

15. Do you talk about the potential dangers of open borders?

16. Do you talk about whether we should look before we leap?

17. Do you talk about the Antarctican farmer hypothetical?

18. Do you talk about the connection between mass consumption and mass production?

19. Do you talk about the benefits of immigration for immigrants?

20. Do you talk about the benefits of immigration for natives?

21. Do you talk about how much immigration actually helps immigrants?

22. Do you talk about why immigration helps immigrants?

23. Do you talk about how much a trillion dollars of gains really buys?

24. Do you talk about whether open borders is “trickle-down economics”?

25. Do you talk about how immigration affects native workers?

26. Do you talk about how immigration affects you personally?

27. Do you talk about the effect of immigration on average national incomes?

28. Do you talk about the Arithmetic Fallacy?

29. Do you talk about what open borders would really look like?

30. Do you talk about the effect of open borders on the visibility of poverty?

31. Do you talk about “swamping”?

32. Do you talk about diaspora dynamics?

33. Do you talk about Puerto Rico?

34. Do you talk about brain drain?

35. Do you talk about what good for places versus what’s good for people?

36. Do you talk about zombie economies?

37. Do you talk about how immigration’s fiscal effects vary by immigrant skill?

38. Do you talk about whether open borders and the welfare state are compatible?

39. Do you talk about rival versus non-rival government services?

40. Do you talk about how welfare states prioritize the old versus the poor?

41. Do you talk about the cost of educating immigrants’ children?

42. Do you talk about the effect of immigration on the sustainability of retirement systems?

43. Do you talk about the best way to measure immigrants’ overall fiscal effects?

44. Do you talk about Net Present Value?

45. Do you talk about empirical estimates of  immigrants’ overall fiscal effects?

46. Do you talk about whether more immigration is likely to save Social Security and Medicare?

47. Do you talk about empirical estimates of immigrants’ overall fiscal effects as a function of their education and age?

48. Do you talk about Milton Friedman’s arguments against open borders?

49. Do you talk about the parallels between the fiscal effects of native births versus immigration?

50. Do you talk about how human beings value their cultures?

51. Do you talk about the value of Western civilization?

52. Do you talk about the cultural dangers of admitting non-Western immigrants?

53. Do you talk about terrorism, mass rape, human trafficking, Sharia, and the decline of English?

54. Do you talk about numeracy?

55. Do you talk about the statistics of terrorism, including the share of terrorism committed by foreigners?

56. Do you talk about the Skittles argument against refugees?

57. Do you talk about immigrant crime rates?

58. Do you talk about the effect of immigration on overall crime rates?

59. Do you talk about the “What if it happened to you?” objection to statistical evidence?

60. Do you talk about first-generation immigrant language acquisition?

61. Do you talk about later-generation immigrant language acquisition?

62. Do you talk about immigrant assimilation across generations?

63. Do you talk about how modernity makes assimilation slower?

64. Do you talk about how modernity makes assimilation faster?

65. Do you talk about the social importance of trust?

66. Do you talk about the effect of immigration on national trust?

67. Do you talk about trust assimilation?

68. Do you talk about how much trust a successful society needs?

69.  Do you talk about the cultural benefits of immigration?

70. Do you talk about immigrants’ desire for freedom?

71. Do you talk about immigrants’ disdain for freedom?

72. Do you talk about the danger that immigrants will vote to “kill the goose that lays the golden eggs”?

73. Do you talk about how Democratic immigrant voters are?

74. Do you talk about Indian-American voting?

75. Do you talk about immigrants’ specific policy views?

76. Do you talk about how immigrants’ specific policy views vary by education?

77. Do you talk about the effect of immigration on actual government policy?

78. Do you talk about immigrants’ political assimilation?

79. Do you talk about whether immigrants undermine natives’ support for the welfare state?

80. Do you talk about “Magic Dirt”?

81. Do you talk about research on “Deep Roots”?

82. Do you talk about whether Deep Roots research shows that “trillion-dollar bills on the sidewalk” are illusory?

83. Do you talk about national IQ?

84. Do you talk about the effect of immigration on national IQ?

85. Do you talk about whether you’re virtue signaling?

86. Do you talk about whether IQ research shows that “trillion-dollar bills on the sidewalk” are illusory?

87. Do you talk about the effect of immigration on immigrants’ IQs?

88. Do you talk about human genetics?

89. Do you talk about “keyhole solutions”?

90. Do you talk about imposing admission fees and surtaxes on immigrants to help less-fortune natives?

91. Do you talk about why tax-and-transfer schemes are any better than simple exclusion?

92. Do you talk about restricting immigrants’ eligibility for government benefits?

93. Do you talk about requiring immigrants to learn English?

94. Do you talk about requiring immigrants to acquire cultural literacy?

95. Do you talk about the dangers of Islam?

96. Do you talk about Muslim bans?

97. Do you talk about keyhole solutions for the dangers of Islam?

98. Do you talk about restricting immigrant voting rights?

99. Do you talk about the political feasibility of keyhole solutions?

100. Do you talk about the bracero program?

101. Do you talk about H-1Bs and other work visas?

102. Do you talk about the fairness of keyhole solutions?

103. Do you talk about Sodom and Gomorrah?

104. Do you talk about what utilitarians, egalitarians, libertarians, wealth-maximizers, meritocrats, Christians, and Kantian should think about open borders?

105. Do you talk about whether immigrants have a right to immigrate to your house?

106. Do you talk about who Jesus would deport?

107. Do you talk about the connection between open borders and socialism?

108. Do you talk about immigration and political polarization?

109. Do you talk about why conservatives should favor open borders?

110. Do you talk about why liberals should favor open borders?

111. Do you talk about citizenism?

112. Do you talk about Trump’s views and policies?

113. Do you talk about the best argument against open borders?

114. Do you talk about whether any human is illegal?

115. Do you talk about the best way to frame the immigration debate?

116. Do you talk about immigration as charity?

117. Do you talk about immigration as justice and abundance?

118. Do you talk about open borders with Canada?

119. Do you talk about why you talk so much about the United States?

120. Do you talk about whether you hate America?

121. Do you talk about earlier cosmopolitan transformations?

122. Do you talk about Brexit?

123. Do you talk about public opinion on immigration?

124. Do you talk about scaring people with extremism?

125. Do you talk about the Overton Window?

126. Do you talk about whether open borders is another crazy Ivory Tower Proposal?

127. Do you talk about how to get there from here?

128. Do you have endnotes?  Lots of them?

129. Do you have references?  Lots of them?

130. Do you have acknowledgements?  Lots of them?

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How Children Learn the Humanity of Trade

My older children attend a self-directed learning center for unschoolers a couple of days a week. I love to hear the stories they share about what they do during the day. Classes are offered and are generated based on the young people’s interests, but they are entirely voluntary. Kids can attend classes or do their own projects, either independently or collaboratively, during what is known as “open hangout.” No one directs the hangout. Adults are present to facilitate and help if needed, but they don’t orchestrate the children’s work and play. The kids are free to create at will.

One creation that has been ongoing for months during open hangout is the development of a marketplace and its associated currency, known as myafo. It turns out, some of the kids want to tax the businesses in the marketplace “because that is how it is.”The kids create myafo using crayons and hot glue to make colorful, round gems and then use this currency to “buy” items that are produced for sale in the myafo marketplace. It’s been interesting to hear about the evolution of this economy and its unit of exchange, including the successes and setbacks.

Lately, as the marketplace gains popularity among the young people at the learning center, there have been discussions about creating a central bank and the potential issues related to that. There have also been conversations about power and control. Not surprisingly, one discussion that piqued my interest related to taxes. It turns out, some of the kids want to tax the businesses in the marketplace “because that is how it is.”

Forced Generosity

Others have more magnanimous reasons for taxation, such as using the taxes as a method of charity to allow kids who are new to the center, or who attend irregularly, to fully participate in the marketplace by receiving an allotment of myafo out of the collected taxes. It was called a charity tax. Some children disagreed with the tax idea and suggested that everyone be encouraged to voluntarily donate some of their myafo to help the newcomers. After all, forced generosity isn’t charity; it’s coercion.

It will be interesting to see how the myafo marketplace matures and how the kids address conflicts related to their growing economy. The issues they grapple with are big, and even we adults haven’t figured them out in real life. I am glad to see that dialogue and debate are central to the young people’s decision-making and that it is all completely child-driven. Trade is a fundamental process of human betterment.The kids, who range in age from about six to 14, created this project all on their own, with no adult prompting and no adult interference. It reveals how the idea of peaceful, voluntary cooperation through trade is something humans gravitate toward. Indeed, they have for millennia.

The history of trade dates to prehistoric times, as individuals sought to improve their well-being through trade. Someone has something to barter or sell that someone else wants to barter or buy, and both parties are better off as a result of the exchange. Trade is a fundamental process of human betterment. As it has spread during modern times, particularly when unencumbered by kings, dictators, and other central powers, free trade has led to growing global prosperity and astonishing reductions in poverty.

Trade

FEE’s Dan Sanchez goes so far as to say trade is what makes us human and quotes Adam Smith, who wrote in The Wealth of Nations of humans’ “propensity to truck, barter, and exchange one thing for another.” Smith continues:

It is common to all men, and to be found in no other race of animals, which seem to know neither this nor any other species of contracts. (…) Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog. Nobody ever saw one animal by its gestures and natural cries signify to another, this is mine, that yours; I am willing to give this for that.

If you or your children are curious about the history of money and exchange, I highly recommend this Outschool.com class taught by Tom Bogle, as well as the Netflix original series Origins and its episode on “Money, Banks, and The Stock Market.” And definitely check out FEE’s fantastic Common Sense Soapbox episode “Voluntary Trade is Win-Win!

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