The man of system - Barney Frank

A great post on Barney Frank that illustrates the man of system from Adam Smith:

Theory of Moral Sentiments:

Part VI. Of the Character of Virtue, Section I. Of the Character of the Individual, so far as it affects his own Happiness; or of Prudence
VI.II.43

Some general, and even systematical, idea of the perfection of policy and law, may no doubt be necessary for directing the views of the statesman. But to insist upon establishing, and upon establishing all at once, and in spite of all opposition, every thing which that idea may seem to require, must often be the highest degree of arrogance. It is to erect his own judgment into the supreme standard of right and wrong. It is to fancy himself the only wise and worthy man in the commonwealth, and that his fellow-citizens should accommodate themselves to him and not he to them. It is upon this account, that of all political speculators, sovereign princes are by far the most dangerous. This arrogance is perfectly familiar to them. They entertain no doubt of the immense superiority of their own judgment. When such imperial and royal reformers, therefore, condescend to contemplate the constitution of the country which is committed to their government, they seldom see any thing so wrong in it as the obstructions which it may sometimes oppose to the execution of their own will. They hold in contempt the divine maxim of Plato, and consider the state as made for themselves, not themselves for the state. The great object of their reformation, therefore, is to remove those obstructions; to reduce the authority of the nobility; to take away the privileges of cities and provinces, and to render both the greatest individuals and the greatest orders of the state, as incapable of opposing their commands, as the weakest and most insignificant.

Wealth of Nations

B.IV, Ch.2, Of Restraints upon the Importation from Foreign Countries
IV.2.10

What is the species of domestic industry which his capital can employ, and of which the produce is likely to be of the greatest value, every individual, it is evident, can, in his local situation, judge much better than any statesman or lawgiver can do for him. The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.

Greg Mankiw's Blog

Mankiw has an outstanding blog for students of all stripes.

Travels of a T Shirt in the Global Economy - Part 2

In a previous post I referred to my use of Rivoli's Travels of a T Shirt as a text for The World Economy at MCC. Below is part 2 of the excellent NPR podcast.

The World in a T-Shirt

U.S. Town's Economy Shifts Away from T-Shirt Business

by Adam Davidson

Until recently, Florence, Ala., considered itself the T-shirt capital of the U.S. That was a few years ago, prior to a surge in cheap imports from China and other countries. Today, the T-shirt mills are all gone, along with all the jobs they once provided.

Bill Easterly - Poverty is not a violation of human rights

The title of this blog will make many think I am callous, and yet I definitely agree that poverty is an EXTREMELY BAD THING. Perhaps some use the words “human rights violation” to be equivalent to “extremely bad thing,” but why? There are many different “extremely bad things,” and it helps if everybody discriminates between them.

Virtue and vice

Adam Smith underscores the importance of institutional support for natural liberty in The Theory of Moral Sentiments. In discussing character, virtue and vice, he writes:

Vice is always capricious: virtue only is regular and orderly.

In a previous post I described the discussion of TMS by Russ Roberts and Dan Klein over at EconTalk. I recommend a listen - this investment in time will really deepen your appreciation of Smith.

EconTalk Book Club

Dan Klein and Russ Roberts offer a six-part podcast series reading and discussing The Theory of Moral Sentiments (TMS), by Adam Smith.

See the List of TMS Podcasts below for the complete set of podcasts. See also the Links to the Book for various online, in-print, audio, and other media formats for the book.

If you would lik

Rose Johnson - Unintended Consequences

As I relaxed yesterday to enjoy the newspaper, I can across the following article about the tragic death of a local artist - the result of perverse incentives, unintended consequences and the coercion of the government. While this took place in Bali, this blog posting shows how frequent it is in the US, with equally devastating consequences.

Bisbee artist among 25 killed by tainted liquor

The Associated Press

Tucson, Arizona | Published: 06.03.2009

"Artist Rose Johnson, an English-born painter and muralist who spent more than 20 years working in Phoenix and Bisbee, was among 25 people who died after drinking homemade liquor in Indonesia.

Methanol, also known as wood alcohol, can be used for fuel and is an ingredient in formaldehyde as well as plastics and paints.

Alcohol is heavily taxed in Indonesia, the world's most-populous Muslim nation, and the high prices have spawned a huge black market for wine and liquor."

Travels of a T Shirt in the Global Economy

I am using this book in my World Economy class this summer. NPR has an outstanding resource site - below is the a sense of the information from Part 1 of the book.

After 200 Years, U.S. Remains King of Cotton

April 26, 2005 · Much of the world's cotton comes from Texas, even though it's not a particularly great place to grow the crop. Big subsidies and heavy technology and R&D spending have helped the United States dominate the global cotton trade for two centuries.