The Myth of Market Karma – Part 1. The esoteric philosophy of ‘bad’ Peter Saunders

Does the Centre for Independent Studies’ Peter Saunders want you to believe something he thinks isn’t true?

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Peter Saunders says that "we should endeavour to make the meritocratic principle work". At the same time, however, he argues that we should roll back government involvement in the economy and increase the scope of the private sector. Does Saunders really believe that markets identify and reward merit? Is the work of nurses, child care workers and stay at home mothers really so much less worthwhile than the work of bank executives and people who market cigarettes to the third world?

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Who’s good at big firms

I’m back jetlagged from Japan, about which I may have the strength to post a little in the future.

For now a thought – a big generalisation with only the sketchiest of evidence. Please don’t take it too seriously – or think that I have. It just occured to me as the hours and the kilometres whizzed by. Others may well have suggested it also.

Maybe commenters can provide further examples or counter-examples.

My hypothesis: That the Americans are not good at big bureaucratic firms, whereas the Japanese are and perhaps the Europeans are too.

My evidence (better to call it the phenomena that provoked the idea – its not a lot of evidence): Toyota is beating the pants off the American Big Three car makers. Boeing’s not doing that much better against Airbus. In the latter case subsidies make things murky, but Airbus appears to be beating Boeing technically.

My hypothesis as to the reason for this phenomenon if it’s true: The degeneration of corporate culture into naked pillage from the top is unlikely to engender the kind of morale that is conducive to high productivity and innovative dynamism within a large mature corporation. On the other hand it may be neutral or positively beneficial in other kinds of organisations – for instance software producers where work can be much more easily broken down.

Pressure in Pretoria

It’s truth time for the Wallabies tomorrow night in Pretoria, the old Boer capital lying in the transitional area between the Highveld and the Bushveld, 50 km from Joburg in north-east South Africa. After an excellent start to the 2005 international season – with thrashings handed out to Samoa and Italy, followed by convincing victories over France and South Africa on our home turf – the Australians crashed in South Africa last week. Tomorrow night’s match should tell us whether this was a one-off Wallaby lapse in forbidding conditions, or whether the rugby brains-trust will have to seriously rethink before we can dream of taking the Bledisloe off New Zealand’s All Blacks, who have been in absolutely cracking form.

My confidence in the Australians is at a low-ebb, mainly because it’s impossible to follow the thinking of Coach Eddie Jones, who has made more bizarre team changes for tomorrow’s first big tri-nations test. Instead of urgently adding a recognised goal-kicker to the team, as I argued for over at Mark’s place after Matt Giteau failed for the third match in a row, our perennially losing Coach has dropped Stirling Mortlock – the only alternative goal-kicker to Gits! As if that decision was not baffling enough, he’s also selected Queenslander John Roe as a flanker in place of Rocky Elsom, who has not only been having a terrific season, but has also added height and stability to the line-out (it was only after Elsom was injured by a foul last week that the line-out fell apart). Why on earth we would reverse on having a tall blind-flanker is beyond me; and if we are going to reverse, why on earth we wouldn’t add the world-class perpetual motion of Phil Waugh is equally mystifying.

Still, hope springs, as it always will with players like Bernie Larkham and George Smith in your team, and it’s good to see the exciting Morgan Turinui getting a starting match. Let’s hope they stay off the booze tonight. Go the Wallabies!

Update: A shambolic Australian effort against an ordinary opposition saw the ‘Boks get up 22-16 in an entirely unsatisfying, see-sawing tri-nations opener. Coach Jones has again failed abjectly in an overseas campaign. Amid a sea of insane decisions, Jones replaced not only our main line-out man, Dan Vickerman, but also the hooker (who throws the ball in) in the dying phases, while the match was still in the balance, predictably resulting in crucial hand-overs that snuffed out the last desperate Wallaby hopes. Words fail …

Update on reflection for serious rugby fans: The Wallabies actually played well in the first half, going to the break ahead much more than the 13-11 score told, with finishing (and all that this involves, including managing professional fouls) costing up to four more tries. The mystery around the Wallaby form centres entirely on the second half performance. Under normal conditions, the ‘boks should have been promptly put away after the break. Why this didn’t happen is the $64 question.
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What about liberal education then?

Taking up a passing comment by Gummo Trotsky on the apparent failure of liberal education, it is tempting to compose a small essay or meditation to explore some points of entry to this rather large issue.
Talk of failure (or of deferred success) raises the question, when do we think that liberal education was succeeding, and what was the measure of its success?
For the moment I will take literacy and numeracy for granted and speculate about what liberal education means on top of that.
Possibly what we have in mind is a situation where a handfull of students either inspired or encouraged by parents and teachers (1) become interested in ideas and learning, (2) pursue them to the point where they had a broad general knowledge, (3) pick up professional skills and qualifications as required, and (d) display both the capacity and the willingness to keep learning for the rest of their lives.
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The use and abuse of Arthur (“Artie” or “Art”)

Jacques Barzun is one of the great pioneering figures in cultural studies and he is also a most illuminating commentator on the problems of education at all levels. In 1973 he delivered some lectures at the National Gallery of Art in Washington D. C. and they were published in The Use and Abuse of Art. He comes as a lover of art, and a lover of progressive, avant garde art moreover, on the evidence of his earlier book The Energies of Art. However he sees a need to challenge art, or Art, on account of the diverse and contradictory theories and interests that are promoted under its banner.
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Child labour revisited

Toby Fattore, of the New South Wales Commission for Children and Young People has written an insightful and nuanced review of a book of international readings on child labour. Some of the more strident commentators on this topic are unfortunately still in the grip of the moral panic generated by the Saddler Committee report on the conditions in the English cotton mills circa 1830. Actually it was not a report on the cotton mills at all, except in its title, and Engles (of Marx and Engles) who knew something about cotton mills wrote that it was a travesty of real situation. Bill Hutt described how the falsehoods in the first report of the Saddler Committee were picked up and repeated uncritically by subsequent writers and so have become part of the accepted folklore about the industrial revolution.

Fattore wrote “Child Labor provides fifteen national case studies from four continents. By examining child labour in its historical, social, political and economic contexts, the book makes a wide-ranging contribution to our understanding of working children. The case studies demonstrate the diversity of child labour in rich and poor countries alike, and the variety of tasks and skills involved in the work that children do. The editors focus on exploitative and hazardous work including the worst forms of child labour. In adopting this focus, the book belongs to a body of research that implicitly understands work as harmful to child development. On this view, work for children should (ultimately) be abolished.”
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Killing in History

Following a debunking post on Che Guevara, John Quiggin made an interesting comment. “The orthodox history I was taught at school consisted largely of glorification of people who were pretty much identical to Che in all essentials (Alexander the Great, Richard the Lionheart, the Black Prince and so on). Admiration for such characters is a widespread human failing.”

Someone else said something very similar a generation or two ago. “There is no history of mankind, there is only an indefinite number of histories of all kinds of aspects of human life. And one of these is the history of political power. This is elevated to the history of the world. But this, I hold, is an offence against every decent concepton of mankind. It is hardly better than to treat the history of embezzelment or of robbery or of poisoning as the history of mankind. For the history of power politics is nothing but the history of international crime and mass murder (including, it is true, some of the attempts to suppress them). This history is taught in schools, and some of the greatest criminals are extolled as its heroes.”

For more of the same and cognate reflections on education, including the place of science in liberal education.

Gummo Trotsky, Peter Saunders and The Game of Life

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In an article for Policy, Peter Saunders of the Centre for Independent Studies compares life to a game of Monopoly. But over at Tug Boat Potemkin, Gummo Trotsky is unconvinced.

The aim of Monopoly is to drive your opponents into bankruptcy. For decades arrogant older brothers have been cut down to size by their little brothers and sisters. Everyone remembers the tantrums, sulking and exultant smirking. But play the game again the next day and the tables may turn.

Saunders thinks that Monopoly is a good metaphor for society. On his view a ‘fair go’ is about having rules which apply to everyone. Playing the game fairly means not bending the rules because you feel sorry for someone or cheating because you think your opponent doesn’t deserve to win. It’s an odd metaphor for society. Monopoly is all about winners and losers. But for most political philosophers society is about mutual benefit.

Saunders argues that there are three competing principles for the ‘fair go’ in social life. One is the classical liberal idea — society is fair when everyone plays by the same rules. The second is the meritocratic principle — fairness is about people getting what they deserve. The third is the egalitarian principle — equal shares for all. Saunders argues that most Australians think of fairness in terms of reward for hard work and talent while social policy intellectuals think of fairness in terms of equal shares.

Gummo Trotsky thinks that Saunders is oversimplifying. He writes:

Saunders’ three "logically incompatible" definitions of fairness might be accepted as partial definitions of what we mean by fairness in social settings a little more complex than your typical game of Monopoly.

Gummo is right.
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