Utilitarianism

As I read his Utilitarianism, I want to like John Stuart Mill. He seems like such a clever man, but he is a victim of his Enlightenment Age. Attempting to fabricate order created by science’s encroachment on the absolutes of religion and the shifting sentiments toward monarchies, Mill tries to replace this moral compass with Jeremy Bentham‘s utility.

£1 ≠ £1

The problem is that despite (sort of) dispensing of religious doctrine, Mill was still fettered by the dogma of virtue ethics of dignity and duty. To this, he adds happiness. Not to go full-on Foucault, but these are concepts leveraged, like religion, to maintain power—take an elevated system in a constructed society, and the duty becomes a burden to the bottom, save for pretence of duty and dignity at the top.

I’ve had an issue with the concept of virtue and all of its offspring: duty, justice, and so on. I’ll likely write about this later. I expect that I’ll be reading Mill’s On Liberty next, so stay tuned.

Ignoring my contention that Utilitarianism is baseless, I have two other issues, using economic examples, each related to prospect theory (pdf):

  1. Regressivity: A person with less money values an incremental dollar more than a person with more money.

  2. Loss to gain asymmetry due to risk aversion: A person values losing a dollar more than earning a dollar, ceteris paribus.

Pareto efficiency, a cornerstone of Classical economics, does not take this into account. For this theory, all dollars are created (or perceived to be) equal, so it doesn’t matter whether person A, who earns £10,000 p.a., or person B, who earns £100.000 p.a.,  gets £100, but in the real world, person A would give it a higher value, so a transfer from A to B would be an inferior transaction to a B to A transaction.

This said, person B values the £100 more than having gained the amount, but it is not clear how to reconcile (in order to reach perceived parity) what the fair equilibrium would be, allowing that equality of outcome might not be the desired outcome.

What’s in Store for 2017?

Going into 2017, I am going to focus more attention on Universal Basic Income (UBI) otherwise known as minimum income. Providing everyone with a safety net in the spirit of life, liberty, and happiness. Hopefully, this will take some focus away from or redirect the negativity I am anticipating under the Trump regime, but I make no promises, expressed or implied. I’ll attend to the detractors as well.

I’ve been peripherally aware of the concept of UBI for a couple of years now—Martin Ford’s Rise of the Robots and Erik Brynjolfsson’s The Second Machine Age, among others. Although I don’t envision it as a permanent solution—after all, what is permanent? —but it is a solution that works within the existing (and woefully wanting) economic framework. It does, however, have a way to go relative to the current socio-political constructs.

The solution is not permanent primarily because the current economic system based on markets, supply, demand, income, and production is tenuous, so building on a platform of shifting sand is bound to fail—not because it is a bad idea considering the given system, but because the system itself is faulty. Capitalism is a house of cards, a tenuous MacGyver-ed system held together with spit and bubble gum (and who knows what else). I don’t have a replacement system in mind, and most people are not quite ready to abandon their cherished ragdoll owing to indoctrination, propaganda, and escalating commitment.  Entropy is at play, and the establishment needs to apply more and more external force to keep it together. We can look to history and the French revolution of 1789 as a guide—or perhaps the fall of tsarist Russia. These systems were inherently unstable.

Regarding these societies of serfs, the gutting of the middle class and the expanding inequality along with technological trends seems to have a trajectory along a vector to return us there, and the results can be expected to be as disastrous.

The United States was founded during the so-called Enlightenment with dashes of a Calvinistic work ethic and rugged independence, whatever that means. ‘Enlightenment,’ like ‘modern’, is a flattering term given to self-describe a period, but this description is mostly wishful thinking. I am not opposed to much of the thought that came from the Enlightenment, from Diderot to Locke to Montesquieu—thoughts such as freedom and separation of powers—, hijacked by the likes of Franklin and Jefferson on these shores, but they, too, were built on shaky grounds—the grounds of gods or God, and nature—, so our laws are built upon nothing; this is worse than shifting sand: at least there was sand to shift.

Language tries to obfuscate the divine with the euphemism nature. From so-called ‘natural laws’ we derive property rights, but take away the premise of natural law, and we lose the basis for such an assertion. And don’t get me started on the further foundationless logical leap to intellectual property rights.