I was delighted to see Ostrom win a Nobel. I knew of her work from my previous researches into the nature of rights, when I found her descriptions of the rights bundles associated with common resources (Schlager and Ostrom, 1992).
Reviewing the various summaries of her work, I'm delighted that she's finding good support for non-market solutions. That should stick nicely in the craw of many market-uber-alles libertarians and neoliberals.
Now, some libertarians may claim that the solutions she documents and researches are not government solutions: and indeed they are not. However, they rely upon government supported special privilege to coerce rule-following behavior in ways libertarians would not consider freedom. In the frequent example of the alpine pastures, there is an enforced rule that you may not pasture more animals in the summer than you can maintain over the winter. Such coercion (I'm using the libertarian sense) is unjustifiable for libertarians, since there is either no ownership or communal ownership of the commons. Unless a commune is granted governance powers, it has no legitimate power to direct any behavior than any partner in a partnership does, nor even the power to exclude endless newcomers.
I also wondered if organ donation, which is strongly regulated and prohibited from markets, might benefit from this alternative approach. So I searched in google, and lo and behold:
"The Puzzle of Private Rulemaking: Expertise, Flexibility, and Blame Avoidance in Regulation." By David L. Weimer, 2005.
"My approach to the analysis of private regulation as an institutional form, although much
less ambitious, follows in the spirit of Elinor Ostrom’s study of self-governing common property
regimes."
Libertarians (and others) proposing marketization of transplant organs are opposed to Ostrom's sort of system in this case.
Tuesday, October 13, 2009
Friday, September 04, 2009
Objectivist Party
I guess I'm not up to date: I'm a year late in noticing the Objectivist Party.
It was bound to happen: the phenomenal success of the Libertarian Party HAD to spawn even more splinter parties. :-) Yet more evidence that getting libertarians to agree or cooperate is like herding cats.
See also: The Objectivist Party vs "Toxic Randroid Cultists".
It was bound to happen: the phenomenal success of the Libertarian Party HAD to spawn even more splinter parties. :-) Yet more evidence that getting libertarians to agree or cooperate is like herding cats.
See also: The Objectivist Party vs "Toxic Randroid Cultists".
Wednesday, September 02, 2009
Drug abuse.
Here's an idea that is not statistically valid, but may be a good indicator anyhow.
Think about how many of your relatives, friends and acquaintances have died from illegal drug overdoses or side effects. And how many have had serious addictions to illegal drugs.
Then think about how many rich public figures you can name who have died from illegal drug overdoses or side effects. And how many have had serious addictions to illegal drugs.
In the latter group, I can name at least 20 or thirty without trying hard.
Libertarians want to make it legal and affordable for everybody to enjoy addiction and death from overdoses. Free from oversight by government, doctors and pharmacists. Free from the expenses of black markets and dubious private doctors.
You too can have a pathetic side like Michael Jackson, River Phoenix, Janis Joplin, Rush Limbaugh, etc.
Think about how many of your relatives, friends and acquaintances have died from illegal drug overdoses or side effects. And how many have had serious addictions to illegal drugs.
Then think about how many rich public figures you can name who have died from illegal drug overdoses or side effects. And how many have had serious addictions to illegal drugs.
In the latter group, I can name at least 20 or thirty without trying hard.
Libertarians want to make it legal and affordable for everybody to enjoy addiction and death from overdoses. Free from oversight by government, doctors and pharmacists. Free from the expenses of black markets and dubious private doctors.
You too can have a pathetic side like Michael Jackson, River Phoenix, Janis Joplin, Rush Limbaugh, etc.
Sunday, August 30, 2009
Jane Galt's Got a Gun
Over at Cogitamus, the recent post Jane Galt's Got a Gun has two excellent observations.
First, on carrying guns to town hall meetings:
The guns that people bring to these events are designed to kill people -- that is their sole purpose. When I strap one on and wear it to an event I am saying to my fellow citizens "if you fuck with me, I am willing to kill you." The gun is not designed to stimulate debate, it is designed to end it. It is not a symbol of civil liberty, it is an instrument of solipsistic incivility saying rather clearly that I intend to have the last word[...]
Second, echoing my dislike of the corporate propaganda of NPR's Marketplace program:
Maybe NPR should consider a show called "Workplace" which would focus on the 90% of Americans who really don't give a fuck about the "numbers."
First, on carrying guns to town hall meetings:
The guns that people bring to these events are designed to kill people -- that is their sole purpose. When I strap one on and wear it to an event I am saying to my fellow citizens "if you fuck with me, I am willing to kill you." The gun is not designed to stimulate debate, it is designed to end it. It is not a symbol of civil liberty, it is an instrument of solipsistic incivility saying rather clearly that I intend to have the last word[...]
Second, echoing my dislike of the corporate propaganda of NPR's Marketplace program:
Maybe NPR should consider a show called "Workplace" which would focus on the 90% of Americans who really don't give a fuck about the "numbers."
Sunday, August 09, 2009
Progressivism explained.
Tyler Cowen and Arnold Kling attempt comically inept descriptions of progressivism through libertarian blinkers. But worse, neither of them see the big picture.
I'll take a stab at describing progressivism.
Progressivism is a political philosophy that takes the "pursuit of happiness" seriously. Pursuit of happiness in a more Aristotelian sense: human flourishing. Not beer parties. Flourishing means being able to become what you want and do what you want. Progressives want more human flourishing. In this sense, early liberals were progressives and most modern liberals are progressives. And not just flourishing for elites, but for everybody at every age.
Progressives see many obstacles to human flourishing: poverty, disease, tyranny, corruption, monopolists, bigotry, ignorance, traditions, pollution, crime, war, etc.
Progressives believe that humans can flourish better if these obstacles are removed or circumvented, and that society can find solutions. This improvement is the progress in progressive.
Some of the solutions to problems of human flourishing include markets, regulations, unions, corporations, education, laws, publicity, privatization, takings, antitrust, buyouts, public works, infrastructure, balancing powers, social provision, etc. Progressives are pragmatic: they are not committed to one set of solutions (such as traditional solutions or markets): they will look at the history of experimentation with these solutions accross the planet and select what they think will work best in their situation, even if it is untried. In this sense, the founders of the US and authors of its Constitution were progressive.
Progressivism demands improvement, but not perfection. Early liberal enfranchisement of white, male landowners with the vote was progressive, but far from perfect. Later enfranchisement of blacks and women was further progressive improvement. And civil rights voting acts to enable blacks and other minorities to actually register and vote was further progressive improvement still.
This doesn't mean that progressives all perceive the same problems and would choose the same solutions. Progressives are a heterogeneous lot, and can disagree strongly. But their pragmatism and lack of perfectionism allows them to work together and with others easily through compromise.
It may appear that progressives turn away from markets and towards government, but that is because there is little progress to be made by markets that markets aren't already making. In some cases, markets create problems (such as redlining) that require regulation to undo. In some cases, conspicuous market failures require either government incentives or government provision (such as for roads and schools.) In some cases, government institutions were under-performing (such as representation of the indigent in courts: the solution was access to free legal services.) And sometimes government is oppressive: hence the ACLU.
Progressivism has often been defined by its history and people. The history of progressivism is usually a list of issues that progressives have fought for such as 8 hour work days, universal enfranchisement, antitrust, etc. What unites all these issues is that they were viewed by progressives as solutions to the problems they saw for human flourishing. Lengthy work days provided no opportunity for leisurely pursuits, education, family matters, health issues, etc. Voting restricted to men meant women's issues (such as their legal status, whether they could own property, etc.) were not attended to. Monopolies and trusts created hardship for farmers and the poor by keeping prices artificially high.
Viewing progressivism by its history and people, rather than by its basic objective, causes a "can't see the forest for the trees" problem. But a moderately good list is available at Progressive Living.
I'll take a stab at describing progressivism.
Progressivism is a political philosophy that takes the "pursuit of happiness" seriously. Pursuit of happiness in a more Aristotelian sense: human flourishing. Not beer parties. Flourishing means being able to become what you want and do what you want. Progressives want more human flourishing. In this sense, early liberals were progressives and most modern liberals are progressives. And not just flourishing for elites, but for everybody at every age.
Progressives see many obstacles to human flourishing: poverty, disease, tyranny, corruption, monopolists, bigotry, ignorance, traditions, pollution, crime, war, etc.
Progressives believe that humans can flourish better if these obstacles are removed or circumvented, and that society can find solutions. This improvement is the progress in progressive.
Some of the solutions to problems of human flourishing include markets, regulations, unions, corporations, education, laws, publicity, privatization, takings, antitrust, buyouts, public works, infrastructure, balancing powers, social provision, etc. Progressives are pragmatic: they are not committed to one set of solutions (such as traditional solutions or markets): they will look at the history of experimentation with these solutions accross the planet and select what they think will work best in their situation, even if it is untried. In this sense, the founders of the US and authors of its Constitution were progressive.
Progressivism demands improvement, but not perfection. Early liberal enfranchisement of white, male landowners with the vote was progressive, but far from perfect. Later enfranchisement of blacks and women was further progressive improvement. And civil rights voting acts to enable blacks and other minorities to actually register and vote was further progressive improvement still.
This doesn't mean that progressives all perceive the same problems and would choose the same solutions. Progressives are a heterogeneous lot, and can disagree strongly. But their pragmatism and lack of perfectionism allows them to work together and with others easily through compromise.
It may appear that progressives turn away from markets and towards government, but that is because there is little progress to be made by markets that markets aren't already making. In some cases, markets create problems (such as redlining) that require regulation to undo. In some cases, conspicuous market failures require either government incentives or government provision (such as for roads and schools.) In some cases, government institutions were under-performing (such as representation of the indigent in courts: the solution was access to free legal services.) And sometimes government is oppressive: hence the ACLU.
Progressivism has often been defined by its history and people. The history of progressivism is usually a list of issues that progressives have fought for such as 8 hour work days, universal enfranchisement, antitrust, etc. What unites all these issues is that they were viewed by progressives as solutions to the problems they saw for human flourishing. Lengthy work days provided no opportunity for leisurely pursuits, education, family matters, health issues, etc. Voting restricted to men meant women's issues (such as their legal status, whether they could own property, etc.) were not attended to. Monopolies and trusts created hardship for farmers and the poor by keeping prices artificially high.
Viewing progressivism by its history and people, rather than by its basic objective, causes a "can't see the forest for the trees" problem. But a moderately good list is available at Progressive Living.
Tuesday, August 04, 2009
Libertarian corporate catspaws.
The American Enterprise Institute has published a very successful propaganda piece opposing Michael Pollan that is being widely circulated on the web. But it's not a real argument: it's denialism. Luigi over at Agricultural Biodiversity Weblog noted the black and white framing: that's a good guideline for spotting the propagandistic nature of the article.
As propaganda, you can't trust any provided numbers or anecdotes: the turkey drowning story is an urban myth. His calculations on the amount of table scraps needed for fertilizer make all sorts of ridiculous, inefficient assumptions.
And of course, the techniques that he endorses such as no-till were developed precisely to deal with "agri-intellectual" complaints against loss of topsoil to erosion. And they were developed by "agri-intellectual" researchers at public universities. And it took a whole lot of convincing to get farmers to begin using them.
50 years ago, Hurst would have written a screed against "agri-intellectual" concerns about topsoil loss. He wouldn't have had the vision to dream that solutions could be found, so he would deny the problem, ridicule the identifiers of the problem, and claim it couldn't be solved anyhow. Hurst has that same lack of vision for these newer concerns.
The American Enterprise Institute is a propaganda organ for conservative corporate capitalism. They don't really care about Pollan's book: all they care about is that they can present another
denialist club for bashing liberals and progressives who criticize capitalists for trampling over our health, environment, politics, and culture.
There's a good criticism at The Big Money.
As propaganda, you can't trust any provided numbers or anecdotes: the turkey drowning story is an urban myth. His calculations on the amount of table scraps needed for fertilizer make all sorts of ridiculous, inefficient assumptions.
And of course, the techniques that he endorses such as no-till were developed precisely to deal with "agri-intellectual" complaints against loss of topsoil to erosion. And they were developed by "agri-intellectual" researchers at public universities. And it took a whole lot of convincing to get farmers to begin using them.
50 years ago, Hurst would have written a screed against "agri-intellectual" concerns about topsoil loss. He wouldn't have had the vision to dream that solutions could be found, so he would deny the problem, ridicule the identifiers of the problem, and claim it couldn't be solved anyhow. Hurst has that same lack of vision for these newer concerns.
The American Enterprise Institute is a propaganda organ for conservative corporate capitalism. They don't really care about Pollan's book: all they care about is that they can present another
denialist club for bashing liberals and progressives who criticize capitalists for trampling over our health, environment, politics, and culture.
There's a good criticism at The Big Money.
Monday, August 03, 2009
Austrian Economics can't count.
Austrian economists are notorious for their rejection of mathematical models in economics. Considering this evidence that they can't count, we can guess what their REAL reason is.
Seven Periodicals
Our monthly The Free Market examines the economic and political scene from a classical-liberal viewpoint. The Austrian Economics Newsletter links our academic network with in-depth interviews. The Mises Review surveys new books. The Quarterly Journal of Austrian Economics (the successor journal to the Review of Austrian Economics), is the premier setting for new research and ideas in economics. The Journal of Libertarian Studies is the scholarly venue for political theory and applications.
They say seven, but only list 5 (or 6 if you give them the benefit of the doubt.) Taken from About the Mises Institute.
Seven Periodicals
Our monthly The Free Market examines the economic and political scene from a classical-liberal viewpoint. The Austrian Economics Newsletter links our academic network with in-depth interviews. The Mises Review surveys new books. The Quarterly Journal of Austrian Economics (the successor journal to the Review of Austrian Economics), is the premier setting for new research and ideas in economics. The Journal of Libertarian Studies is the scholarly venue for political theory and applications.
They say seven, but only list 5 (or 6 if you give them the benefit of the doubt.) Taken from About the Mises Institute.
Tuesday, July 21, 2009
Now why would they want that?
I asked for silly Reason articles, and here's a doozy:
Hands Off Hitler! It's time to repeal Godwin's Law by David Weigel.
Now, Godwin's Law has several interpretations:
(1) If a discussion goes on long enough, EVENTUALLY a Hitler/Nazi analogy will be made.
(2) An observation that when a Hitler/Nazi analogy is invoked, meaningful argument is over.
Since the invention and popularization of Godwin's Law, libertarians feel hobbled when they want to lump all their opponents with Nazis and Hitler. The propaganda and hyperbole don't work when they can be so easily ridiculed with a pithy invocation of the words "Godwin's Law".
Now, Weigel assembles a well-documented pseudo-intellectual argument for "repeal" of Godwin's Law, exploring special cases, history, and persecution when this victimless crime is committed. Why pseudo-intellectual? Well, how can you respond to howlers such as "Thus, despite all efforts at regulation, the market has repeatedly decided in favor of the N[azi]-bomb." What regulation? What market? If anything, you'd expect a libertarian to claim this is an example that should be in Ellickson's book "Order Without Law". Here we have a social institution that has developed without government and without markets. Without markets? Libertarian heresy! There must be a way to purchase the institution!
Evidently Weigel misses the corollary to freedom of speech that others are free to laugh at you for whatever reason. Knowing that others will punish you with derision must make him feel unfree. Poor baby. If only propaganda was easy, and you could always simply tarbrush your opponents without anybody understanding how they were being manipulated!
"We'll be better off rolling back Godwin's Law and admitting the all-purpose usefulness of Nazi analogies. It's exactly what the Germans wouldn't want." Ah, and here we have the ultimate justification. Stick it to the Germans! Wow, what a lot of intellectual traction THAT argument has!
I think Reason Magazine should be more properly named Prejudice Magazine. The article-writing process is rather obvious: start with the conclusion and bend facts, history, and argument until your point is "supported". A dark ages scholastic approach. About the only nice thing I can say about Weigel is that he's far from the only one at Reason who writes this way.
Hands Off Hitler! It's time to repeal Godwin's Law by David Weigel.
Now, Godwin's Law has several interpretations:
(1) If a discussion goes on long enough, EVENTUALLY a Hitler/Nazi analogy will be made.
(2) An observation that when a Hitler/Nazi analogy is invoked, meaningful argument is over.
Since the invention and popularization of Godwin's Law, libertarians feel hobbled when they want to lump all their opponents with Nazis and Hitler. The propaganda and hyperbole don't work when they can be so easily ridiculed with a pithy invocation of the words "Godwin's Law".
Now, Weigel assembles a well-documented pseudo-intellectual argument for "repeal" of Godwin's Law, exploring special cases, history, and persecution when this victimless crime is committed. Why pseudo-intellectual? Well, how can you respond to howlers such as "Thus, despite all efforts at regulation, the market has repeatedly decided in favor of the N[azi]-bomb." What regulation? What market? If anything, you'd expect a libertarian to claim this is an example that should be in Ellickson's book "Order Without Law". Here we have a social institution that has developed without government and without markets. Without markets? Libertarian heresy! There must be a way to purchase the institution!
Evidently Weigel misses the corollary to freedom of speech that others are free to laugh at you for whatever reason. Knowing that others will punish you with derision must make him feel unfree. Poor baby. If only propaganda was easy, and you could always simply tarbrush your opponents without anybody understanding how they were being manipulated!
"We'll be better off rolling back Godwin's Law and admitting the all-purpose usefulness of Nazi analogies. It's exactly what the Germans wouldn't want." Ah, and here we have the ultimate justification. Stick it to the Germans! Wow, what a lot of intellectual traction THAT argument has!
I think Reason Magazine should be more properly named Prejudice Magazine. The article-writing process is rather obvious: start with the conclusion and bend facts, history, and argument until your point is "supported". A dark ages scholastic approach. About the only nice thing I can say about Weigel is that he's far from the only one at Reason who writes this way.
Tuesday, July 07, 2009
Extreme cases.
I saw this over at Marginal Revolution and just had to laugh.
Imagine the extreme case -- a 100% income tax. No matter how much you make, you actually receive nothing. Therefore, no one works. Result: 100% unemployment and GDP=0.
Obviously, smaller taxes will have less extreme effects. But increasing a tax can surely make a recession worse.
Posted by: Robert A. Book at Jul 7, 2009 12:47:48 PM
I love the world of economics. Imagine the extreme case--no taxes. Assuming we weren't taken over by some other country, we would have no army, a fragmented system of private toll roads, unlimited immigration, warlord armies fighting over territories. Kind of like Somalia. Obviously this proves the more taxes the better, and that taxes will make everything better.
Posted by: es32 at Jul 7, 2009 1:33:11 PM
Imagine the extreme case -- a 100% income tax. No matter how much you make, you actually receive nothing. Therefore, no one works. Result: 100% unemployment and GDP=0.
Obviously, smaller taxes will have less extreme effects. But increasing a tax can surely make a recession worse.
Posted by: Robert A. Book at Jul 7, 2009 12:47:48 PM
I love the world of economics. Imagine the extreme case--no taxes. Assuming we weren't taken over by some other country, we would have no army, a fragmented system of private toll roads, unlimited immigration, warlord armies fighting over territories. Kind of like Somalia. Obviously this proves the more taxes the better, and that taxes will make everything better.
Posted by: es32 at Jul 7, 2009 1:33:11 PM
Thursday, June 11, 2009
The Top 10 Most Absurd Time Covers of The Past 40 Years
The Top 10 Most Absurd Time Covers of The Past 40 Years
Reason Magazine, ever delighted to snipe at others, points out a load of silly hype from Time.
If only what was good for the goose was good for the gander: no, wait! Is it possible that Reason Magazine has published something that was ridiculous hype? Could they have published some libertarian point of view that is ludicrously alarmist or otherwise silly in hindsight?
Let's collect a top 10 silly articles from Reason. Pick a back issue at random and look at it for the ridiculous. Extra bonus points for black helicopters!
Reason Magazine, ever delighted to snipe at others, points out a load of silly hype from Time.
If only what was good for the goose was good for the gander: no, wait! Is it possible that Reason Magazine has published something that was ridiculous hype? Could they have published some libertarian point of view that is ludicrously alarmist or otherwise silly in hindsight?
Let's collect a top 10 silly articles from Reason. Pick a back issue at random and look at it for the ridiculous. Extra bonus points for black helicopters!
Saturday, May 30, 2009
Seasteading redux.
Seasteading: Libertarians Set to Launch a (Wet) Dream of 'Freedom' in International Waters
Brad Reed takes an amused look at Patri Friedman's seasteading plans, yet another repeat of utopian libertarian daydreams for the wealthy.
This must be at least the fourth or fifth version of this sort of plan. As I see it, all the old ones foundered on the problem of distrust of their centralized planning by incompetent or downright criminal organizers.
In the "Freedom Through Technology" index. Hat tip to Markus Cavanagh for this one!
Brad Reed takes an amused look at Patri Friedman's seasteading plans, yet another repeat of utopian libertarian daydreams for the wealthy.
This must be at least the fourth or fifth version of this sort of plan. As I see it, all the old ones foundered on the problem of distrust of their centralized planning by incompetent or downright criminal organizers.
In the "Freedom Through Technology" index. Hat tip to Markus Cavanagh for this one!
Saturday, May 02, 2009
Parable of the ship: why Austrian Economics fails.
Many libertarians and other conservatives look to Austrian economics because they find their preferred positions explained with clear moral stories. But the great fault of Austrianism is that it is not scientific. Science is a better way of knowing than philosophy, because scientific theories have to explain close to all the scientifically collected data. For all the faults of conventional economics, it is far closer to a science than Austrianism because it relies heavily on data. Austrianism has a methodological disrespect of data. It is structured as a medieval philosophy based on authority, rather than systematic adherence to real-world data.
I've collected criticisms of Austrian economics for many years in my index Austrian Economics. But a sheaf of miscellaneous criticisms may not be as clear as a parable.
The owner of a ship noticed that his ship was filling with water. Being an educated man (if not nautically trained) he knew there were many possible causes for water in a ship: leaks in the hull, the bilge pump being broken, waves washing over, condensation, and even the crew urinating in the hold. He heard the bilge pump running, he saw water from waves pouring in the open hatches, but worst of all he smelled urine in the hold! Being sensible, he ordered the crew to shut the hatches and then gave them a lengthy, stern harangue on hygienic use of the head. While he was lecturing the crew, his ship sank due to a combination of causes: large, unobserved leaks in the hull, a bilge pump that was running but not pumping correctly, and condensation that had shorted out warning circuitry.
Now, it's easy to write a story to justify or ridicule any course of action, any philosophy. Indeed, that described Ayn Rand's fiction. But my purpose here is to illustrate ways in which the owner failed to think correctly. Ways which are STRONGLY analogous to Austrian economic methodology.
In every theory-rich subject, there can be a multitude of explanations of cause. For example, there might be 5 possible causes for a specific problem, be it inflation or disease or whatever. All or none of those causes might be valid. If all of them are valid, some might be unimportant because they cause very little of the problem or cause the problem very infrequently or cause the problem only under specific circumstances. But more than one of the causes might be quite important, singly or in combination. Economics is just such a theory-rich subject.
There is no way to identify from philosophy which of these might be the case. You need to be able to observe enough to quantify these factors. However, Austrianism is staunchly against measurement: indeed, it is innumerate because it does not use measurement. Rothbard, Mises, and Hayek railed about how measurements were philosophically invalid.
In the parable, the owner did not investigate condensation; he presumed the pump was working correctly without measurement; he did not attempt to measure leaks; he presumed (again without measurement) that the water sloshing in the hatches was the right amount to explain the filling; and he distracted the crew from finding the real problems with his own assumptions and moral haranguing.
Since Austrians are innumerate, instead they must rely on their assumptions, which needless to say tend to have a very right wing bias. Science does not work that way. Nor can Austrians really defend their assumptions: no assumption about the real world is totally true which means that there is fallacy in all their logic about the real world. They make up for this in bluster and old-fashioned appeal to their own authority.
When confronted with real-world problems that could have multiple causes, logical verbal models are insufficient. You MUST introduce measurement and mathematics into your models if you want to have any hope of valid answers. Logical verbal models are sufficient to specify possible chains (or networks) of causation, but telling which are significant is a quantitative problem that requires measurement.
This is not a new position: it is basic to science and ought to be basic to philosophy. Hume said it very clearly 260 years ago:
David Hume, Enquiry Concerning Human Understanding, 12, "Of the Academical or Sceptical Philosophy"
I've collected criticisms of Austrian economics for many years in my index Austrian Economics. But a sheaf of miscellaneous criticisms may not be as clear as a parable.
The owner of a ship noticed that his ship was filling with water. Being an educated man (if not nautically trained) he knew there were many possible causes for water in a ship: leaks in the hull, the bilge pump being broken, waves washing over, condensation, and even the crew urinating in the hold. He heard the bilge pump running, he saw water from waves pouring in the open hatches, but worst of all he smelled urine in the hold! Being sensible, he ordered the crew to shut the hatches and then gave them a lengthy, stern harangue on hygienic use of the head. While he was lecturing the crew, his ship sank due to a combination of causes: large, unobserved leaks in the hull, a bilge pump that was running but not pumping correctly, and condensation that had shorted out warning circuitry.
Now, it's easy to write a story to justify or ridicule any course of action, any philosophy. Indeed, that described Ayn Rand's fiction. But my purpose here is to illustrate ways in which the owner failed to think correctly. Ways which are STRONGLY analogous to Austrian economic methodology.
In every theory-rich subject, there can be a multitude of explanations of cause. For example, there might be 5 possible causes for a specific problem, be it inflation or disease or whatever. All or none of those causes might be valid. If all of them are valid, some might be unimportant because they cause very little of the problem or cause the problem very infrequently or cause the problem only under specific circumstances. But more than one of the causes might be quite important, singly or in combination. Economics is just such a theory-rich subject.
There is no way to identify from philosophy which of these might be the case. You need to be able to observe enough to quantify these factors. However, Austrianism is staunchly against measurement: indeed, it is innumerate because it does not use measurement. Rothbard, Mises, and Hayek railed about how measurements were philosophically invalid.
In the parable, the owner did not investigate condensation; he presumed the pump was working correctly without measurement; he did not attempt to measure leaks; he presumed (again without measurement) that the water sloshing in the hatches was the right amount to explain the filling; and he distracted the crew from finding the real problems with his own assumptions and moral haranguing.
Since Austrians are innumerate, instead they must rely on their assumptions, which needless to say tend to have a very right wing bias. Science does not work that way. Nor can Austrians really defend their assumptions: no assumption about the real world is totally true which means that there is fallacy in all their logic about the real world. They make up for this in bluster and old-fashioned appeal to their own authority.
When confronted with real-world problems that could have multiple causes, logical verbal models are insufficient. You MUST introduce measurement and mathematics into your models if you want to have any hope of valid answers. Logical verbal models are sufficient to specify possible chains (or networks) of causation, but telling which are significant is a quantitative problem that requires measurement.
This is not a new position: it is basic to science and ought to be basic to philosophy. Hume said it very clearly 260 years ago:
Does it contain any abstract reasoning concerning quantity or number? No. Does it contain any experimental reasoning concerning matter of fact and existence? No. Commit it then to the flames: for it can contain nothing but sophistry and illusion.
David Hume, Enquiry Concerning Human Understanding, 12, "Of the Academical or Sceptical Philosophy"
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