Monday, October 26, 2009

The Architect's Tale (5 of 5)

In the previous five posts, I have explored and fleshed out my ideas on many philosophical ideas. I believe I have constructed a rational set of conclusions that reflect the best knowledge I have about the universe, and that these ideas can be built on further in this post.

The main conclusions I have reached so far are:

1. It is logical to assume the universe exists largely as I observe it.

2. The explanations for why the universe is the way it is can be split into two groups, those postulating some purpose for life, and those that do not. Either group could contain the correct answer, I believe the purposeful existence to be slightly more likely.

3. There are several guiding principles that people should use to decide how to live their lives. They include:

- People should act to ensure the survival of intelligent life by any necessary means

- People should endeavour to discover a possible purpose to our existence through study, observation and exploration of the universe. They should also use this increased knowledge to refine their moral views

- People should promote the establishment of free societies wherever they do not already exist, and encourage as much discussion and debate as they can within their own societies

- People should recognize the validity of a variety of viewpoints, and avoid fundamentalism and self-righteousness

-People should try to make sure that their decisions, moral and otherwise, are as nonzero-sum as possible, and should promote increased nonzero-sumness within their societies (and between societies) by increasing communication and trust

I think that those statements are a pretty good foundation for my belief system. However, to complete the circle, and build those core statements up towards my political beliefs, more work is needed.

Firstly, I would argue that in order to increase communication and trust, and in order to facilitate free discourse and the study and exploration of the universe, some kind of society is necessary. Anarchism will not work here, because it has at its base a rejection of the type of cooperation necessary for things like global communication networks and large-scale space exploration.

The next thing to consider is the kind of society that should be constructed, beyond the simple requirement of free discourse. Again, the requirements above dictate a technological society, one that accepts and promotes rational thought, questioning of paradigms and allows for new ideas. In my mind, this eliminates the forms of societies that discourage free thought, promote blind acceptance of ideas and discourage deviation.

This disqualifies any totalitarian state, be it fascist or communist, and also disqualifies any theocracy of the kind prevalent today. I do not deny, however, that it would be possible (although probably not with Christianity or Islam), to have an open and accepting theocracy that was in harmony with science and free discourse. This would require a more nuanced interpretation of God than is found in most western religions today, although many of the eastern religions seem to mesh relatively well with a scientific worldview. For now, however, I am of the strong opinion that the principles I have outlined can be accomplished most fully thorough a vigorously defended separation of church and state.

The next point I want to make is that any large-scale, technological and rational society must have some notion of personal responsibility. The evidence for this is empirical, there has been no successful society that has not been based on personal responsibility. This implies a key philosophical assumption, the one that started my whole philosophical investigation. The notion of personal responsibility is absurd without free will. If someone is not in control of their actions, there is no logical reason to punish or reward them for those actions. Therefore, I believe that we must accept the existence of free will. Even if there is no free will, we must continue to believe, and act, as if there is. Right now, I believe there is no conclusive evidence either way, but even if there was, I think we would, in order to have a chance of succeeding as a species, would have to ignore it. This pains me greatly, but I see no other way.

Once we accept that we have free will, I believe the notion of differential reward systems becomes defensible. If people can make free choices, then people can expect different standards of living, within an acceptable range. It is perfectly acceptable for people that perform certain actions, like hard work, to be rewarded to a greater extent than those that do not.

The following question then becomes, what types of actions should qualify a person for such a differential reward? This question is at the foundation of the type of economic system that I support. I believe that the ultimate measuring stick for differential reward should be "contribution to society". A person who makes a society more dynamic and vibrant, or achieves some great advance in understanding, should be rewarded more than someone who contributes nothing. However, it is obviously extremely difficult to build an economic system based on contribution, because there will never be complete agreement on what contributions are most important.

A second factor that is important to consider when discussing an ideal economic system is efficiency. In order to promote the development of a society, especially from a technical/scientific point of view, economic resources must be allocated as efficiently as possible. Inefficient societies will either be replaced my more efficient ones, or simply stagnate or crawl along at a snail's pace.

My view of the empirical evidence is that capitalism, tempered by government management of externalities, tends to be the best system to satisfy those dual criteria of efficiency and reward for contribution. Although the use of a price system and monetary reward has its issues, it is by far the most efficient system we have yet tried, and has produced massive technological advancement, and for the first time, a potential capability to explore the universe and to begin to reduce existential threats to humanity's existence.

In my view, there are three big problems with capitalism that do not naturally coincide with my perceived ultimate goals. The first is one have discussed previously, the existence of externalities in a capitalist economic system. I have previously advocated that management of this problem should be the primary responsibility of the government.

The second, related issue is that of equality of opportunity. If we are to have a system truly based on differential reward, it is essential that everyone have the same opportunity to succeed, otherwise the system will lose both efficiency and fairness. Some of this issue will be addressed by the management of externalities, for example, education and health care are both underproduced by a competitive market, given the positive externalities they create. Government will indirectly promote equality of opportunity by addressing these issues. However, I believe there is more that would need to be done. Even with management of externalities, issues like a de facto "aristocracy" based on inherited wealth (and the opposite, children disadvantaged by the socio-economic performance of their parents) as well as issues of broad-based discrimination might need to be addressed.

The third, and biggest issue, is the difference between contribution and profit. Capitalist systems encourage the maximization of the latter, as we all know. However, I believe empirical evidence clearly shows that although profit-making and contribution are correlated (strongly so), there remains a significant gap. I believe that it is self evident that many people grow rich without contribution, and many contributors live in poverty.

Exactly who these people are is certainly debatable, but I would give my own opinion that it tends to be artists of various kinds and scientists who are under-rewarded in our system and that celebrities of various kinds as well as many people in my own field (finance) and other service industries who are often overvalued. Now it is important to note that finance professionals, lawyers and other service professionals do make significant contributions to the functioning of societies and deserve to be rewarded. I am only stating that I believe it to be excessive in some cases.

Policies that can fix this problem are few and far between. As hard as I try, I cannot find many ways to try and reconcile this difference between contribution and wealth. This, in my view, should be one of the foremost challenges of the 21st century. It may end up requiring a wholesale shift in our economic system over the next century or two, but this is a challenge that I believe can be met incrementally and gradually.

Once we settle on a society with a market economy and recognize the need for a government to manage some parts of that economy,as well as to maintain a free and open society, the next question is about the kind of government that you want. Here the question seems to be around balancing efficiency, which we have established as key, with accountability and the need to preserve fundamental freedom and openness.

Although there certainly seems to be some evidence, including the experience of modern China, to suggest that authoritarian systems have a slight efficiency advantage, there are serious problems with preventing the abuse of power in those systems, because of the lack of accountability. Most authoritarian systems have difficulty maintaining a free society for a variety of reasons. On the other hand, democracy has its own problems. Some democratic systems are vulnerable to paralysis and inaction, either because of checks and balances in the system or because the system promotes highly fragmented coalition governments. Additionally, democracy sometimes has issues with making hard decisions, ones that might be unpopular but necessary.

As much as I have to admit that the Platonic "philosopher kings" might superficially appeal to me, I have to judge that given that since I believe freedom and openness must be the cornerstone of a society, an authoritarian government is too dangerous to accept. We simply cannot take the risk, and must therefore accept democracy as the best, and only choice. Additionally, as I have pointed out in the past, democracies generally have less civil war, genocide, political repression and other internal conflicts, and rarely fight wars against each other, all of which will help achieve my ultimate goals.

However, that does not mean we cannot attempt to at least minimize democracy's problems. The efficiency problem is a small one, especially when democracy is combined with capitalism. The main steps than can be taken to improve efficiency have to do with regulatory regimes and tax policy. In many cases, efficiency can be improved by simply trying to minimize regulation itself. I believe that in many cases there is far too much government regulation. Where regulation is required, it should be geared towards maximizing efficiency, through doing things like funding hospitals based on services provided and choosing cap & trade systems over flat taxes when trying to minimize carbon emissions. This desire for efficiency is also a contributor to my view on taxation.

The problem of systematic paralysis is more difficult, but seems to have been mostly surmounted in many democratic systems. Here I believe Canada has it at least partially right, in that the executive branch of a democracy needs to be relatively powerful. Gridlock can also be prevented through a multiparty system (ideally 3-5 parties) or even better, doing away with political parties altogether. Canada's system does have some weaknesses, which I have outlined in previous posts, but they generally do not relate to the gridlock issue.

Another problem Canada has managed to avoid is the lack of stability caused by extremely fragmented democracies, which also tend towards the extremes because of the tendency for the balance of power to be held by smaller, fringe parties. This has come at a cost of fairness in some respects, but I have already discussed those issues.

I think that that begins to cover the links between my basic philosophical views and the core of my political beliefs. Most of my other political beliefs drive off of the basis of the key goals at the beginning of the post, and off the subsequent analysis. Specifically, many beliefs come from a perceived necessity for efficiency, nonzero-sumness and tolerance. I will briefly elaborate, but try and keep it short as this post is getting towards the long side.

My views on efficiency inform many of my political beliefs. My views on free trade, agricultural subsidies, the necessity of global regulation, the desirability of a meritocracy (which leads to other policies around equality of opportunity) and other issues, are driven by my belief that we require both an efficient, and increasingly nonzero-sum society.

Another key factor that drives my political views is tolerance. I view a free and tolerant society as non-negotiable, which drives much of my social policy views. My views on regulation also affect my social views; government has no place legislating who can or cannot get married, for example.

There are some views that do not fall clearly within this framework, notably my views on health care and the environment. I believe that these views simply spring from the obvious point that humanity cannot explore the galaxy, drive science to new heights, and ensure our survival as a species if people are not getting quality health care, or if the environment is uninhabitable. There is also something to be said for preserving the diversity of life, for the sake of human knowledge and experience. I think this is why issues of conservation are probably the most important parts of environmental policy for me.

I believe I have accomplished an important task in the last few posts. I believe I have developed a reasonably solid and consistent philosophical foundation for my beliefs, which should help me significantly when I confront future issues and decisions. I am satisfied.