Showing posts with label Keynes. Show all posts
Showing posts with label Keynes. Show all posts

February 01, 2013

Delusion of rational choice or Deleuzian solutions

It is important to reflect on Sri Aurobindo, who once said referring to the average politician, “He does not represent the soul of a people or its aspirations. What he does usually represent is all the average pettiness, selfishness, egoism, self-deception that is about him as well as a great deal of mental incompetence and moral conventionality, timidity and pretence.’’
Great jurist Nani Palkhivala in his book Our Constitution Defaced and Defiled says, “At present the main infirmity of democracy is that the only job for which one needs no training or qualification whatsoever is the job of governing and legislating. Election mostly throws either mediocrity or extremism into power”. Well said.

Sri Aurobindo is one of them who saw through the veil. He wrote, “The affirmation of a divine life upon earth and an immortal sense in mortal existence  can have no base  unless we recognize not only  eternal Spirit as the inhabitant of this bodily mansion, the wearer of this mutable robe, but accept Matter of which it is made, as a fit and noble material out of which He weaves  constantly His garbs, builds recurrently the unending series of His mansions.” (The Life Divine, Sri Aurobindo Ashram Trust, 1990). In other words, what is important is how one looks at it.

Adam Smith’s advocacy of the philosophy of Natural Liberty was quite different from laissez-faire (words he never mentioned). Natural Liberty, as expressed by Smith, equalised the rights of all participants in commercial society, employers, labourers and consumers.  This does not prevent modern economists from associating laissez-faire with Adam Smith’s name, a habit that goes right back to the early 19th century and continues into the 21st. Many, I find, conflate laissez-faire to mean both freedom for employers and governments.  The lobbying of government is big business and by big business in many countries
Rand’s assertion that her “moral theory of self-interest is derived from man’ s nature as a rational being and end in himself” sits comfortably with neo-classical theories of ‘rational’ beings (who ‘Max U’ in everything).  That belief in rational Homo economicus is unfounded.   Humans are capable of reasoning (not the same as having a common rational faculty) because their individual ability to reason is not the same as all of us arriving at the same answers or choices. Jails are full of the victims of their own ‘rational’ choices given their desperate or opportunistic circumstances and many more prisons would be required if judicial processes were applied for the rational choices of those in government who intentionally or unintentionally inflict misery on their innocent victims. Our behaviour in different circumstances may be considered individually to be reasoned, given our individual perceptions of specific situations, but there is no reason to believe our individual actions from our perceptions of the circumstances are subject to a universal rationality.  Humans in human societies are not like that.  We do not all rationally act in accordance with some theory of rational choice.
It is in this area that I parted company with Ludwig von Mises in his 1966  “Human Action: a treatise on economics” – a very large tome I read some years back – in which he derives everything that follows in his book from a rigorous logic of the consequences of proposition. 
I prefer Smith’s approach of studying what happened since some humans left the forest and then as a minority, at first, moved to shepherding and farming.  Another minority  (“at last”) moved from country life to live in towns, inevitably and indubitably, creating (“at last”) commercial society that first processed food and raw materials from the country in traded exchange for processed food and later in exchange for manufactured goods. It was that historical development of traded exchange that laid the basis for the creation of capital that led to commercial development.  Those that remained in the forest, or in shepherding or farming, mostly remained there for millennia.  There is nothing ordained about what humans do, nor is there a particular direction by which they pass their lifetimes, as their archaeological remains testify.
Smith did not require the conversion of everybody to new morality or to a universal conformity to logic.  In fact he wrote of humans as they were.  He made no predictions about the future  (except about the future of the former British colonies in North America becoming the wealthiest economy in the world by around 1875).  Instead he studied the past to understand within the limitations of knowledge the present; we might be better doing the same.  

On money and macro, I am more persuaded by Friedman, Irving Fisher, early Keynes, David Hume, and Scott Sumner, among others. 

First I would like to say how grateful I am for the opportunity to respond to these comments about The Hermetic Deleuze.  Those of us who are able to write academic books, and there are many of you following this blog who write those books, know that it is, in the end, a solitary and even an isolating affair, and that even with publication the chances that one’s work will be noticed or responded to are slim.  In this age of increasing destitution and de-investment in higher education, blogs like this one are becoming more and more important as places for those of us compelled by these thoughts can meet and take our chances together.  Each of the writers who have agreed to respond to my book are people whose work I deeply admire, and the opportunity to continue to think with them, and with those of you who read and respond to that thinking, is an extraordinary occasion in my life. 
To speak of the occasion, as Dan does in his beautiful and deeply thought piece, I want to affirm, first of all, that absolutely, there is a connection between reading and ritual, reading and mantra.  There is an occasionalism to reading… So what interested me, the more I read Deleuze, were his attention to various procedures, from the modernist work of art to the psychedelic experiment, that seemed to have a common goal of “absolute immanence.” … I have very little interest in championing Deleuzian “solutions” to contemporary “problems,” any more than I have in inviting people to fold their contemporary desires for life back into some perennial or archaic hermeticism.  Everything remains to be reinvented.  I am much more interested in how Deleuze’s problems are still our problems, and how yes, I think that there are hints and rumors of future possible “solutions” to those problems, but perhaps the problems have already become unrecognizable, on strictly Deleuzian “terms.”  But if one looks at his own “metaphilosophical” comments, I think he would agree that such a situation defines philosophy, as such.

January 17, 2013

The aim should be understanding of being and the world

This has been the fifth year running that communication and political science students from the American University of Paris have been coming to Auroville for their undergraduate practicum. Also for the past few years they have been joined by students from Linneaus University in Sweden. Auroville provides a perfect platform for the students with all the different projects and activities they can get involved in. To round of their 2-3 week visit they all gave a presentation of the work they have been doing in Auroville.
Auroville Integral Sustainability Institute shares the experience of hosting 2 different groups of visiting planning students from Queens University, Canada & CEPT, Ahmedabad - ‘It was very enriching for all’, says Lalit, Programme coordinator. Auroville being an inspiring & interdisciplinary learning field provided very conducive environment to experience a different way of life which gave them a very real life glimpse of integral life & sense of purpose.

“The Party” from Larval Subjects Jan 17, 2013
Among Heideggerians, for example, Heidegger research becomes an end in itself, whereas the aim should be understanding of being and the world.  Among the democratic party, perpetuation of the democratic party becomes an end in itself, rather than representing the interests of the people.  The first question we need to ask of any form of organization– and this is why we need anarcho-communism as a regulative ideal –is that of how we can insure that parties, groups, and organizations remain “complex, adaptive systems”, rather than becoming ends in themselves and machines of alienation.  How can we organize in a way that remains responsive to the alien and singular?
The second problem with group structures is of greater concern and has darker implications.  As I have argued for a number of years now, group identification has the structure of masculine sexuality (the left side of the diagram to the right).  I will not rehearse the intricacies of Lacan’s graph of sexuation here (readers who are curious can consult chapter 6 of The Democracy of Objects or my article “The Other Face of God“, .pdf)… Such was Zizek’s conclusion regarding the function of the symbolic figure of the Jew in anti-semitism.  Anti-semitism has nothing to do with real Jews, but is instead a fantasy structure designed to explain why the organic and harmonious communities dreamed of by conservative ideologies fail (today the figure of the Jew has been replaced by leftists and Middle Easterners).   

Martin Heidegger, a major practitioner of the phenomenological and existentialist approaches in philosophy, buddy of the Nazi (the well! what the well!), and a top competitor with Derrida for most obscure philosophical writer of the 20th century. He talked a lot about Being (and Time).

Eric Schliesser follows last week’s ‘Philo of Economics’ with this week’s on “Foucault and the Invisible Hand”. Eric refers to Michel Foucault's treatment of Smith in “The Birth of Biopolitics”. While commenting on Smith's use of "invisible hand" in the Wealth of Nations (hereafter WN), Foucault insists that Smith is committed to the claim that:
“Everyone must be uncertain with regard to the collective outcome if this positive collective outcome is really to be expected. Being in the dark and the blindness of all the economic agents are absolutely necessary. The collective good must not be an objective... Invisibility is not just a fact arising from the imperfect nature of human intelligence which prevents people from realizing that there is a hand behind them which arranges or connects everything that each individual does on their own account. Invisibility is absolutely indispensable. It is an invisibility which means that no economic agent should or can pursue the collective good” (Foucault 2008: 279-80).
Comment
I am not going to comment on Foucault’s general reasoning on Adam Smith’s use of the IH metaphor in this post.  His reasoning tends to be obscure. To argue that “human intelligence prevents people from realizing that there is a hand behind them which arranges or connects everything that each individual does on their own account” is a strange way of putting it. The “hand behind them which arranges or connects everything that each individual does on their own account” is either saying that “human intelligence” stops them fantasising about an IH that actually exists or prevents them fantasising about one that does not exist.  That is what makes philosophy such a tormented subject; it’s never really clear as to what they mean except by engaging in constant “deep thinking”. Those excellent teacher’s of philosophy (such as Eric Schliesser) are unfazed by textual ambiguity and are among the brightest and best of social scientists.  They are always stimulating when listened to in conversation or in seminars and stretch their student’s critical faculties…
I suggest Hayek’s defiant conjecture (Fatal Conceit) that knowing every action of 7 billion of people about matching possible choices among billions of products and services (36 billion choices in New York alone each minute of the day – only a few dozen choices for gatherer-hunter upper Amazonian tribes) is well beyond human comprehension or understanding, let alone practical even in a Providential fantasy of the imagination. Surely it is an extreme theological idea, even as a figure of speech. A Must Read New Book on Friedrich Hayek Eamonn Butler: “Friedrich Hayek: the ideas and influence of the libertarian economist”

I am a fully paid-up member of the Karl Polanyi fan club. In the past few years I have published, with my collaborators, a collection of essays on the significance of The Great Transformation for understanding our times (Blanc 2011, Holmes 2012) and have made him a canonical figure for my versions of economic anthropology, the human economy and the history of money. I have also published two short biographical articles on him. I have contributed in this way to the recent outpouring of new work on Polanyi to which this book is a significant addition. I am a believer, but some believers also have doubts. I still have reservations about a Polanyian strategy for achieving economic democracy and these are linked to his historical vision of “market society”.  Theories are good for some things and not for others and, in my view, the plural economy would be best served by a plural approach to theory and politics. But first let me summarise what I most value personally in what I have learned from Polanyi.
Most anthropologists take their lead from the academic work done by Polanyi and his collaborators at Columbia University after the war… Polanyi falls within this anti-market camp since he acknowledged Aristotle as his master and considered “the self-regulating market’s” contradictions to have been the principal cause of the twentieth-century’s horrors. A less apocalyptic version of socialism in the tradition of Saint-Simon acknowledges the social damage done by unfettered markets (what Joseph Schumpeter called “creative destruction”), but would not wish to do away with the wealth they produce… John Maynard Keynes produced the most impressive synthesis of liberalism and social democracy in the last century. Much recent writing on Polanyi would place him within this tendency rather than as a card-carrying anti-marketeer. He did recognize a role for the market and lined up with those who sought institutional means to correct capitalism’s ills… In either case, the post-war turn to social democracy or “embedded liberalism” – the apogee of national capitalism – was hardly anticipated by The Great Transformation. We should not repeat this error when we draw inspiration from Polanyi in the struggle for economic democracy today.   

Regarding a passage in Savitri in which Sri Aurobindo describes the universe as a play between He and She. "This whole wide world is only he and she," He, the Supreme in love with her, her servitor; She, the creative Force.
As one too great for him he worships her; … This whole wide world is only he and she. 
What a marvellous work! He goes into a completely different region, so much above thought! It's constant vision, it isn't something thought out—with thought everything becomes flat, hollow, empty, empty, just like a leaf; while this is full, the full content is there, alive.

To begin with, any successor must be someone who will swear personal loyalty to Manoj Das Gupta as against Sri Aurobindo. Some of the names being ...