Utilitarianism vs. Liberty (II)

Utilitarianism is an empty concept. And it’s inimical to liberty.

What is utilitarianism, as I use the term? This:

1. (Philosophy) the doctrine that the morally correct course of action consists in the greatest good for the greatest number, that is, in maximizing the total benefit resulting, without regard to the distribution of benefits and burdens.

To maximize the total benefit is to maximize social welfare, which is the well-being of all persons, somehow measured and aggregated. A true social-welfare maximizer would strive to maximize the social welfare of the planet. But schemes to maximize social welfare usually are aimed at maximizing it for the persons in a particular country, so they really are schemes to maximize national welfare.

National welfare may conflict with planetary welfare; the former may be increased (by some arbitrary measure) at the expense of the latter. Suppose, for example, that Great Britain had won the Revolutionary War and forced Americans to live on starvation wages while making things for the enjoyment of the British people. A lot of Britons would have been better off materially (though perhaps not spiritually), while most Americans certainly would have been worse off. The national welfare of Great Britain would have been improved, if not maximized, “without regard to the distribution of benefits and burdens.” On a contemporary note, anti-globalists assert (wrongly) that globalization of commerce exploits the people of poor countries. If they were right, they would at least have the distinction of striving to maximize planetary welfare. (Though there is no such thing, as I will show.)

That’s enough about utilitarianism for now. Turning to liberty, I have defined it as

the general observance of social norms that enables a people to enjoy…peaceful, willing coexistence and its concomitant: beneficially cooperative behavior.

Where do social norms come into it? The observance of social norms — society’s customs and morals — creates mutual trust, respect, and forbearance, from which flow peaceful, willing coexistence and beneficially cooperative behavior. In such conditions, only a minimal state is required to deal with those who will not live in peaceful coexistence, that is, foreign and domestic aggressors. And prosperity flows from cooperative economic behavior — the exchange of goods and services for the mutual benefit of the parties who to the exchange.

Society isn’t to be confused with nation or any other kind of geopolitical entity. Society — true society — is

3a :  an enduring and cooperating social group whose members have developed organized patterns of relationships through interaction with one another.

A close-knit group, in other words. It should go without saying that the members of such a group will be bound by culture: language, customs, morals, and (usually) religion. Their observance of a common set of social norms enables them to enjoy peaceful, willing coexistence and beneficially cooperative behavior.

Free markets mimic some aspects of society, in that they are physical and virtual places where buyers and sellers meet peacefully (almost all of the time) and willingly, to cooperate for their mutual benefit. Free markets thus transcend (or can transcend) the cultural differences that delineate societies.

Large geopolitical areas also mimic some aspects of society, in that their residents meet peacefully (most of the time). But “cooperation” in such matters as mutual aid (care for the elderly, disaster recovery, etc.) is forced by government; it isn’t true cooperation, which is voluntary.

In any event, the United States is not a society. Even aside from the growing black-white divide, the bonds of nationhood are far weaker than those of a true society (or a free market), and are therefore easier to subvert. Even persons of the left agree that mutual trust, respect, and forbearance are at a low ebb — probably their lowest ebb since the Civil War.

Therein lies a clue to the emptiness of utilitarianism. Why should a qualified white person care about or believe in the national welfare when, in furtherance of national welfare (or something), a job or university slot for which the white person applies is given, instead, to a less qualified black person because of racial quotas that are imposed or authorized by government? Why should a taxpayer care about or believe in the national welfare if he is forced by government to share the burden of enlarging it through government-enforced transfer payments to those who don’t pay taxes? By what right or gift of omniscience is a social engineer able to intuit the feelings of 300-plus million individual persons and adjudge that the national welfare will be maximized if some persons are forced to cede privileges or money to other persons?

Consider Robin Hanson’s utilitarian scheme, which he calls futarchy:

In futarchy, democracy would continue to say what we want, but betting markets would now say how to get it. That is, elected representatives would formally define and manage an after-the-fact measurement of national welfare, while market speculators would say which policies they expect to raise national welfare….

Futarchy is intended to be ideologically neutral; it could result in anything from an extreme socialism to an extreme minarchy, depending on what voters say they want, and on what speculators think would get it for them….

A betting market can estimate whether a proposed policy would increase national welfare by comparing two conditional estimates: national welfare conditional on adopting the proposed policy, and national welfare conditional on not adopting the proposed policy.

Get it? “Democracy would say what we want” and futarchy “could result in anything from an extreme socialism to an extreme minarchy, depending on what voters say they want.” Hanson the social engineer believes that the “values” to be maximized should be determined “democratically,” that is, by majorities (however slim) of voters. Further, it’s all right with Hanson if those majorities lead to socialism. So Hanson envisions national welfare that isn’t really national; it’s determined by what’s approved by one-half-plus-one of the persons who vote. Scratch that. It’s determined by the politicians who are elected by as few as one-half-plus-one of the persons who vote, and in turn by unelected bureaucrats and judges — many of whom were appointed by politicians long out of office. It is those unelected relics of barely elected politicians who really establish most of the rules that govern much of Americans’ economic and social behavior.

Hanson’s version of national welfare amounts to this: whatever is is right. If Hitler had been elected by a slim majority of Germans, thereby legitimating him in Hanson’s view, his directives would have expressed the national will of Germans and, to the extent that they were carried out, would have maximized the national welfare of Germany.

Hanson’s futarchy is so bizarre as to be laughable. Ralph Merkle nevertheless takes the ball from Hanson and runs with it:

We choose to be more specific [than Hanson] about the definition of what we shall call the “collective welfare”, for the very simple reason that “voting on values” retains the dubious voting mechanism as a core component of futarchy….

We can create a DAO Democracy capable of self-improvement which has unlimited growth potential by modifying futarchy to use an unmodifiable democratic collective welfare metric, adapting it to work as a Decentralized Autonomous Organization, implementing an initial system using simple components (these components including the democratic collective welfare metric, a mechanism for adopting legislation (bills)) and using a built-in prediction market to filter through and adopt proposals for improved components….

1) Anyone can propose a bill at any time….

8) Any existing law can be amended or repealed with the same ease with which a new law can be proposed….

13) The only time this governance process would support “the tyranny of the majority” would be if oppression of some minority actually made the majority better off, and the majority was made sufficiently better off that it outweighed the resulting misery to the minority.

So, for example, we should trust that the super-majority of voters whose incomes are below the national median wouldn’t further tax the voters whose incomes are above the national median? And we should assume that the below-median voters would eventually notice that the heavy-taxation policy is causing their real incomes to decline? And we should assume that those below-median voters would care in any event, given the psychic income they derive from sticking it to “the rich”? What a fairy tale. The next thing I would expect Merkle to assert is that the gentile majority of Germans didn’t applaud or condone the oppression of the Jewish minority, that Muslim hordes that surround Israel aren’t scheming to annihilate it, and on into the fantasy-filled night.

How many times must I say it? There is no such thing as a national, social, cosmic, global, or aggregate welfare function of any kind. (Go here for a long but probably not exhaustive list of related posts.)

To show why there’s no such thing as an aggregate welfare function, I usually resort to a homely example:

  • A dislikes B and punches B in the nose.
  • A is happier; B is unhappier.
  • Someone (call him Omniscient Social Engineer) somehow measures A’s gain in happiness, compares it with B’s loss of happiness, and declares that the former outweighs the latter. Thus it is a socially beneficial thing if A punches B in the nose, or the government takes money from B and gives it to A, or the government forces employers to hire people who look like A at the expense of people who look like B, etc.

If you’re a B — and there are a lot of them out there — do you believe that A’s gain somehow offsets your loss? Unless you’re a masochist or a victim of the Stockholm syndrome, you’ll be ticked off about what A has done to you, or government has done to you on A’s behalf. Who is an Omniscient Social Engineer — a Hanson or Merkle — to say that your loss is offset by A’s gain? That’s just pseudo-scientific hogwash, also known as utilitarianism. But that’s exactly what Hanson, Merkle, etc., are peddling when they invoke social welfare, national welfare, planetary welfare, or any other aggregate measure of welfare.

What about GDP as a measure of national welfare? Even economists — or most of them — admit that GDP doesn’t measure aggregate happiness, well-being, or any similar thing. To begin with, a lot of stuff is omitted from GDP, including so-called household production, which is the effort (not to mention love) that Moms (it’s usually Moms) put into the care, feeding, and hugging of their families. And for reasons hinted at in the preceding paragraph, the income that’s earned by A, B, C, etc., not only buys different things, but A, B, C, etc., place unique (and changing) values on those different things and derive different and unmeasurable degrees of happiness (and sometimes remorse) from them.

If GDP, which is is relatively easy to estimate (within a broad range of error), doesn’t measure national welfare, what could? Certainly not systems of the kind proposed by Hanson or Merkle, both of which pretend to aggregate that which can’t be aggregated: the happiness of an entire population. (Try it with one stranger, and see if you can arrive at a joint measure of happiness.)

The worst thing about utilitarian schemes and their real-world counterparts (regulation, progressive taxation, affirmative action, etc.) is that they are anti-libertarian. As I say here,

utilitarianism compromises liberty because it accords no value to individual decisions about preferred courses of action. Decisions, to a utilitarian, are valid only if they comply with the views of the utilitarian, who feigns omniscience about the (incommensurable) happiness of individuals.

No system can be better than the “system” of liberty, in which a minimal government protects its citizens from each other and from foreign enemies — and nothing else. Liberty was lost in the instant that government was empowered not only to protect A from B (and vice versa) but to inflict A’s preferences on B (and vice versa).

Futarchy — and every other utilitarian scheme — exhibits total disregard for liberty, and for the social norms on which it ultimately depends. That’s no surprise. Social or national welfare is obviously more important to utilitarians than liberty. If half of all Americans (or American voters) want something, all of us should have it, by God, even if “it” is virtual enslavement by the regulatory-welfare state, a declining rate of economic growth, and fewer jobs for young black men, who then take it out on each other, their neighbors, and random whites.

Patrick Henry didn’t say “Give me maximum national welfare or give me death,” he said “Give me liberty or give me death.” Liberty enables people to make their own choices about what’s best for them. And if they make bad choices, they can learn from them and go on to make better ones.

No better “system” has been invented or will ever be invented. Those who second-guess liberty — utilitarians, reformers, activists, social justice warriors, and all the rest — only undermine it. And in doing so, they most assuredly diminish the welfare of most people just to advance their own smug view of how the world should be arranged.