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Here’s What We’ve Lost in the Past Decade

Here’s What We’ve Lost in the Past Decade

The confidence and hubris of those directing the rest of us to race off the cliff while they watch from a safe distance is off the charts.

The past decade of “recovery” and “growth” has actually been a decade of catastrophic losses for our society and nation. Here’s a short list of what we’ve lost:

1. Functioning markets. Free markets discover price and assess risk. What passes for markets now are little more than signaling devices to convince us the economy is doing spectacularly well. It is doing spectacularly well, but only for the top .1% of 1% and the class of managerial/technocrat flunkies and apologists who serve the interests of the top .1%.

2. Genuine Virtue. Parading around a slogan or online accusation, “liking” others in whatever echo-chamber tribe the virtue-signaler is seeking validation in, and other cost-free gestures–now signals virtue. Genuine virtue–sacrificing the support of one’s tribe for principles that require skin in the game–has disappeared from the public sphere and the culture.

3. Civility. As Scientific American reported in its February issue (The Tribalism of Truth), the incentive structure of largely digital “tribes” rewards the most virulent, the most outrageous, the least reasonable and the most vindictive of the tribe with “likes” while offering little to no encouragement of restraint, caution, learning rather than shouting, etc.

The cost of gaining tribal encouragement is essentially zero, while the risk of ostracism from the tribe is high. In a society with so few positive social structures, the self-referentially toxic digital tribe may be the primary social structure for atomized “consumers” in a dysfunctional system dominated by a rigged “market” and a central state that no longer needs the consent of the governed.

Common ground, civility, the willingness to listen and learn–all lost.

…click on the above link to read the rest of the article…

Outsourcing Morality

Outsourcing Morality

Ron Brown and Bill Clinton

All the benefits of virtue without the costs.

Remember when you had to do something virtuous to signal your virtue? Some of the virtuous way back when did virtuous acts and didn’t even tell anyone else about them. If you go into older museums and other civic monuments and look at donors’ names on plaques, you’ll find anonymous donors. They didn’t get a wing named after them, there were no press releases, they just gave to a good cause and that was its own reward. If they were alive today, they wouldn’t have Twitter feeds. Private virtue and public anonymity—incomprehensible!

At least plutocrats who plaster their names where they donate are donating their own money. Perhaps the most odious form of virtue signaling demands everyone’s taxes fund a chosen cause, then claims the same moral stature as the plutocrats. Strictly speaking this can’t be virtue signaling. There’s no virtue, only coercion and theft. The merit, if any, of the cause never justifies the immoral means used to fund it.

Gresham’s law of virtue: phony virtue drives out the real thing. It’s partly mathematical—what the government steals cannot be donated—but it goes much deeper.

There’s an intergenerational understanding rooted in biology: parents take care of children when they’re young; children take of parents when they’re old. Rearing children and caring for aging parents impose inconvenient burdens, but for most of history people had little choice, the only alternative was neglect and abandonment. Enter the state. In most Western countries responsibility for both child rearing and elder care has in whole or in part shifted to it.

…click on the above link to read the rest of the article…

What do I mean by Skin in the Game? My Own Version

What do I mean by Skin in the Game? My Own Version

When selecting a surgeon for your next brain procedure, should you pick a surgeon who looks like a butcher or one who looks like a surgeon? The logic of skin in the game implies you need to select the one who (while credentialed) looks the least like what you would expect from a surgeon, or, rather, the Hollywood version of a surgeon.

The same logic mysteriously answers many vital questions, such as 1) the difference between rationality and rationalization, 2) that between virtue and virtue signaling, 3) the nature of honor and sacrifice, 4) Religion and signaling (why the pope is functionally atheist) 5) the justification for economic inequality that doesn’t arise from rent seeking, 6) why to never tell people your forecasts (only discuss publicly what you own in your portfolio) and, 7) even, how and from whom to buy your next car.

What is Skin in the Game? The phrase is often mistaken for one-sided incentives: the promise of a bonus will make someone work harder for you. For the central attribute is symmetry: the balancing of incentives and disincentives, people should also penalized if something for which they are responsible goes wrong and hurts others: he or she who wants a share of the benefits needs to also share some of the risks.

My argument is that there is a more essential aspect: filtering and the facilitation of evolution. Skin in the game –as a filter –is the central pillar for the organic functioning of systems, whether humans or natural. Unless consequential decisions are taken by people who pay for the consequences, the world would vulnerable to total systemic collapse. And if you wonder why there is a current riot against a certain class of self-congratulatory “experts”, skin the game will provide a clear answer: the public has viscerally detected that some “educated” but cosmetic experts have no skin in the game and will never learn from their mistakes, whether individually or, more dangerously, collectively.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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