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194 pages, Kindle Edition
First published January 1, 2011
The words enshrined in the Jefferson Memorial, written 40 years after the Declaration and 43 years before Darwin authored Origin of Species, capture this spirit perfectly: I am not an advocate for frequent changes in laws and constitutions. But laws and institutions must go hand in hand with the progress of the human mind. As that becomes more developed, more enlightened, as new discoveries are made, new truths discovered and manners and opinions change, with the change of circumstances, institutions must advance also to keep pace with the times. We might as well require a man to wear still the coat which fitted him when a boy as civilized society to remain ever under the regimen of their barbarous ancestors.
True citizenship is about treating even the most trivial choice as a chance to shape your society and be a leader. It is laying down habits that scale up throughout society. It is not just setting an example; it is actively leading others to copy you.
If we look at good citizenship as a contagion, but as a contagion we want to accelerate rather than contain, then it behooves us to search out the supercarriers—the nodes of networks in every community whose influence and reach are disproportionate.
In every latticework, whether chemical or physical or human, it’s the links that connect a tight ring to another tight ring that add the greatest collective value and make the network bigger and more powerful. Or to put it in terms used by Robert Putnam, bridging social capital is better than bonding.
As a matter of both public policy and private self-organization, we should be de-chunking ourselves into units of no more than 150, and then connecting the chunks.
Courtesy—a cooperative consideration of, and deferral to, the needs of others—is the start of true citizenship.
Designing experiences where people come to know each other, where they can expect to encounter one another repeatedly, and where the quality of life is increased for all if each individual thinks of himself as a steward—or trustee—of the experience.
Within any given competitive environment—or what’s called a “fitness landscape”—individuals and groups cooperate to compete, to find solutions to problems and share the gains from those solutions. The most successful strategies for cooperation spread and multiply. Throughout, minor initial advantages get amplified and locked in—as do disadvantages. Whether you are predator or prey, spore or seed, the opportunity to thrive compounds and then concentrates. It bunches. It never stays evenly spread.
if markets are perfectly efficient then it must be true that: –The market is always right. –Markets distribute goods, services, and benefits rationally and efficiently. –Market outcomes are inherently moral because they perfectly reflect talent and merit and so the rich deserve to be rich and the poor deserve to be poor. –Any attempt to control market outcomes is inefficient and thus immoral. –Any non-market activity is inherently suboptimal. –If you can make money doing something not illegal, you should do it. -As long as there is a willing buyer and seller, every transaction is moral. -Any government solution, absent a total market failure, is a bad solution.
As complex adaptive systems, markets are not like machines at all but like gardens. This means, then, that the following must be true: –The market is often wrong. –Markets distribute goods, services, and benefits in ways that often are irrational, semi-blind, and overdependent on chance. –Market outcomes are not necessarily moral—and are sometimes immoral—because they reflect a dynamic blend of earned merit and the very unearned compounding of early advantage or disadvantage. –If well-tended, markets produce great results but if untended, they destroy themselves. –Markets, like gardens, require constant seeding, feeding, and weeding by government and citizens. –More, they require judgments about what kind of growth is beneficial. Just because dandelions, like hedge funds, grow easily and quickly, doesn’t mean we should let them take over. Just because you can make money doing something doesn’t mean it is good for the society. –In a democracy we have not only the ability but also the essential obligation to shape markets—through moral choices and government action—to create outcomes good for our communities.
As we write, the Chinese government is making massive, determined, strategic investments in their renewable energy industry. They’ve decided that it’s better for the world’s largest population and second-largest economy to be green than not—and they are shaping the market with that goal in mind. By doing so they both reduce global warming and secure economic advantage in the future. We are captive, meanwhile, to market fundamentalism that calls into question the right of government to act at all—thus ceding strategic advantage to our most serious global rival and putting America in a position to be poorer, weaker, and dirtier down the road.
This is not picking winners; it’s picking games. [...] To refuse to make such game-level choices is to refuse to have a strategy, and is as dangerous in economic life as it would be in military operations.
Trust creates cooperation, and cooperation is what creates win-win outcomes. High-trust networks thrive; low-trust ones fail. And when greed and self-interest are glorified above all, high-trust networks become low-trust.
The election of Ronald Reagan in 1980, under the banner of “limited government” and “trickle-down economics,” marked the start of a Thirty Years War against the middle class.
In their paper, Kumhof and Rancière demonstrated that inequality and financial leverage create an unholy and fatal feedback loop. As the wealthy accumulate ever more money they generate price bubbles in real estate and other assets, which force all other participants in the economy to borrow more just to keep up. As the wealthy accumulate capital, their need to find return for these assets grows. The rich come to financialize their assets in the form of loans to—whom else?—the poor and middle class.
Easy credit is the natural result of enormous pools of money seeking returns. As the poor and middle class borrow more in order to maintain lifestyles increasingly beyond their means, unsustainable leverage follows. In both 1929 and 2008, collapse was the inevitable consequence.
whereas wages used to track productivity, they no longer do: American workers are ever more productive, but the wealthy are capturing those gains. [...] If the income distribution for all Americans had remained constant since 1980, the average American family would be earning $64,395, which is $12,295 and 24 percent more than they do today.
(And while we don’t advocate the 90 percent marginal rate of the 1960s, we would note that America’s growth rates were never higher than during that period of supposedly job-killing high taxes).
this agenda—as exemplified by the Reagan rewrite of the tax code and the Bush perpetuation of it—is itself government-mandated redistribution of wealth: to the already wealthy.
The “state of nature” does not dictate preferential treatment of capital over work, or regressivity of taxation, or the tax-free inheritance of unearned wealth and power: these are all consequences of man-made rules. The question, then, is not whether redistribution but in which direction.
Today the richest 1 percent of Americans has more wealth than the bottom 90 percent. The richest 1 percent collects twice as much annual income as the lower 50 percent. That is not circulation; it is clumping and clotting.
Economic right-wingers insist that heroic individuals “do it themselves” and that such people are “self-made.” This claim does not hold up under any serious scrutiny. Ford could not have created an auto industry without the roads necessary for them to travel on. He did not build those roads, let alone mark or map them. Amazon and Google did not create the Internet; the federal government did. No company in America has provided the infrastructure that made its lines of businesses possible, much less educated its own workforce.
As James Scott describes in Seeing Like a State, his illuminating survey of social engineering schemes of the 20th century, the very idea of “social engineering” treats complex human problems as orderly, predictable, manageable. The trouble, of course, is that they are not. This desire to “bracket uncertainty,” as Scott writes, is self-defeating in three ways: sclerosis, impracticality, and crowding out.
Progressives say “it takes a village,” but then too often rely on an agency.
We do not accept a false choice between individual rights and collective responsibility. We say you can have both. You can’t have either unless you have both. And to win, you must have both. With inalienable rights come inalienable responsibilities.
Freedom is just another word for we’re all in it together.