Zombie ideas rise again

John Quiggin39 Comments

A glutton for punishment, I’ve decided the Zombie Economics book manuscript I submitted a month ago (mostly online here) is in urgent need of more zombies. I’ve been struck, even in that short space of time by the extent to which, with undeniable “green shoots” now appearing, the zombie ideas I’ve written about are clawing their way through the softening soil and walking among us again. The most amazing example is that of the Great Moderation – surely you would think no one could believe in this anymore, but they do.

So, I’m planning to add a bit to each chapter, pointing to examples of these ideas being revived. I’d appreciate good examples for the rest: Trickle Down, Micro-based Macro the Efficient Markets Hypothesis and Privatisation (of course, the Queensland government gives an example v close to home).

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Ignoring the elephant

John Quiggin77 Comments

My piece in Thursday’s Fin noted the prevalence of delusional conspiracy theories about climate change on the political right, pointing in particular to Lord Monckton, Nick Minchin and the Lavoisier Institute as sources for the claim that the whole thing was a plot to destroy the economy and bring in a communist world government. Among other points on the silliness of this claim, I observed that all credible economists agreed that the cost of measures to stabilise global climate (less than 5 per cent of GDP) on all estimates, did not appear sufficient for the catastrophic destruction required by the conspiracy theorists.

The piece attracted a couple of responses, one from the Lavoisier Institute and one from Sinclair Davidson (who has given Monckton plenty of favorable treatment on his blog, and his pushed conspiracy-theoretic views of the IPCC). Curiously, neither of them mentioned the conspiracy theories that were the main subject of the piece, and which Lavoisier has pushed for years.

Rather they cavilled at the point that the economic costs of an ETS or carbon tax would be marginal. Lavoisier’s Ray Evans did not offer a counterargument, but simply claimed that economists had been wrong when they said the effects of Thatcher’s 1981 Budget would be disastrous. Davidson accepted the standard estimates, but said that, if you converted them into present values at a low discount rate, they looked really big. He also made a spurious personal attack on me (reply over the fold).

This is just silly. Although Australia got off relatively lightly from the GFC, our national income is several percentage points below where it would have been in the absence of the crisis and is likely to remain below trend for some years to come. Has anyone noticed the collapse of civilisation as we know it? Even in countries like the UK, where the impact of the GFC has been many times the size of the maximum estimates put forward by economists for the cost of climate stabilization, many observers believe that the threat of imminent communist dictatorship and a return to the Dark Ages may yet be staved off.

As I said in my original piece, it is tempting to dismiss all this as mere hyperbole. But, for delusionists, the only alternative to crazy conspiracy theories is the claim that thousands of professional scientists have fallen prey to errors that can easily be discerned by the average (scientifically untrained, innumerate, information derived from blogs) rightwing pundit. Now that’s really crazy.

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Well, we did do the nose … and the hat

John Quiggin70 Comments

In discussing the loony antics of Lord Monckton with climate delusionists/rightwingers (the two categories are now pretty much coextensive), I’m struck by the frequency with which I get the line (pushed a little while ago by Janet Albrechtsen) “Well he did say that Rudd and Obama were planning a communist world government, and that Jackie Kennedy killed millions of people and that the child of holocaust survivors was a Nazi and that he was a member of House of Lords, but why focus on that stuff … you should be debating him on the science”

I’m not sure whether the appropriate Monty Python reference is the witch sketch in Holy Grail or “What have the Romans ever done for us” in Life of Brian. Certainly, the idea of supposedly hard-headed politicos going to this guy for scientific advice is one that would stretch credulity even for a Python gag.

European exceptionalism (crosspost from CT)

John Quiggin24 Comments

I’d like to broaden John Holbo’s CT discussion of the US as a center-right nation to consider the broader idea that the US is, in some sense, exceptional. As Barack Obama correctly pointed out not so long ago, every nation is exceptional in its own way, which tends to undermine the idea that any nation is specially exceptional.

Still, compared to the developed world in general, it seems obvious that the US is different in lots of ways: an outlier in terms of nationalism, military power, religiosity, working hours and inequality of outcomes and (in the opposite direction) in terms of government intervention, health outcomes and other measures typically associated with welfare states. Among these the outstanding differences arise from the fact that the US aspires, with some success, to be globally hegemonic in military terms and (with rather less success) in economic terms as well.

But, when you think about it, there is nothing exceptional here.
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Moral philosophy, casuistry and the ethics of organ donation (crosspost from CT)

John Quiggin22 Comments

As Harry Brighouse mentioned at CT, I’m sceptical of the value of artificial “thought experiments” in moral philosophy, without having a fully coherent basis for this scepticism. One thing I don’t like about the term “thought experiment” is the implication that the results of such thought experiments constitute data, and therefore that an ethical theory is more satisfactory if it fits such data than if it does not. The way I’d prefer to approach such problems involves an iterative loop, with repeated stages of (i) consider reasonable general principles (ii) compare to intuitions about specific cases (iii) where appropriate, adjust judgements on specific cases (iv) revise general principles to give a better fit to adjusted intuitions. That is, I don’t think either general principles or specific intuitions are trumps.

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My response to Monckton’s conspiracy theory

John Quiggin159 Comments

As we’ve been discussing, my invitation to debate Lord Monckton was withdrawn before I could make a decision on it. But, for those interested, my column in yesterday’s Fin presents my thoughts on Monckton’s key claim: that the scientific literature on climate change is a gigantic fraud, cooked up in the service of a conspiracy to inaugurate a communist world government at Copenhagen.

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The circuit breaker

John Quiggin150 Comments

The Greens have proposed a carbon tax as an interim measure to begin cutting carbon emissions. Although there are strong reasons to favor an emissions trading scheme over a carbon tax in the long run, I think it’s time to look seriously at this option. Here a few points in no particular order.

* since the price of carbon is initially capped under the CPRS, it’s just like a carbon tax in the short run
* the way to dispel public fear of a new tax is to bring it in. Look at capital gains tax and GST, both the subjects of highly successful election scare campaigns (in 1980 and 1993 resp) and both now uncontroversial.
* the capture of the political right by delusionism is now irreversible, as can be seen from the embrace of the obviously loony Lord Monckton. There’s no chance, now or in the foreseeable future of a deal with these guys. In particular, the version of the CPRS negotiated with Turnbull and briefly supported by the majority of Coalition members is unsalvageable in every respect. There’s no way the deal can be modified enough to get Liberal support now, and on the other hand it’s too much of a dog’s breakfast to take to a double dissolution.
* The Greens will almost certainly regain the balance of power in the Senate after the next election. Much as the government dislikes it, they are going to have to rely primarily on deals with the Greens to get legislation through in future. They might as well start dealing now.

In general terms, the government lost control of the debate with the defeat of the Turnbull compromise ETS last year, and has done nothing to regain it. Turning up with the same discredited compromise in February makes no sense at all. This is a time for firm action, not more delay.