Sunday, December 22, 2013

Free Competition for Moral Guidance




Sentimental perhaps, but I enjoyed being with old friends, signing Christmas Carrols last night.  It would mean something very different back home, I suppose.  But here in Beijing, so far from the overwhelming normalcy the season and the deluge of mandatory Christmas music in every public environment you encounter, the songs felt a bit undiluted and even melancholy and contemplative as perhaps they once were, in some other era.  One guest from Switzerland told everyone the words to Silent Night in the German it was originally written in and “Stille Nacht” sounded lovely.   Composed in 1818 by Franz Gruber in the small town of Oberndorf bei Salzburg, Austria.  I can imagine the snowy peaks that surround that city and consider the lyrics penned by a young priest, Joseph Mohr.

Sipping mulled wine, of course, I met a young man from Argentina who had lived in Japan and now was in Beijing.  I asked if whether or not he spoke any Japanese.  He did and so I introduced him to my stepson who was there and does as well.   Speaking with him it was interesting to note his observations about the two countries.  When he lived in Japan, he regarded China with disdain, thinking it was unclean, when he used to visit.  However now, having lived here, he suggested that he preferred his life in China to the one he’d had in Japan.  He suggested that he felt more accepted, and more welcome in Chinese culture.  Japan, the remarkable sui generis Galapagos island nation, beautiful somehow because it keeps its distance.  China rather, the continental giant that has forever grown, not by conquest but by attractive powers of absorption.  One more partygoer slowly being assimilated. 



There was a sad face in the Times this morning.   An inmate, who looked like one of my old students from Brownsville Brooklyn, Mr. Jesse Webster.  Put away at a time when one of my old students would have been the age that this man was in the early 90's, when he was sentenced for life, for dealing cocaine.   He received life in prison with no chance for parole under the ‘three-strikes-you’re-out’ sentencing of that time.  The article traces the story of his appeal for clemency to President Obama and how none was granted at this juncture for this individual. 

I hope the commutations continue President Obama.  What purpose is served by holding non-violent offenders without hope?  The quote that caught me was by a representative of the ACLU speaking about sentencing at that time, when crime seemed to be rising ever upward, the world becoming more and more dangerous. 

“We kind of lost our moral center and any sense of proportionality in our sentencing” during the so-called war on drugs, Ms. Gupta said. “The result was the throwing away of certain people’s lives, predominantly black and brown people’s lives.”

The frenzied call to “do something” from that time, unhinging people from their sense of proportion.  Punish someone with life in prison for selling drugs regardless of whether or not they ever physically hurt anyone.  And with time, we must reflect. 

This notion of a moral center is the crux of a different article by a different priest that caught my attention this morning as well.  HackerNews had another compelling piece from The Guardian concerning the morality of the market. 

It is an interesting article, penned by Malcolm Brown, an assistant to the Arch Bishop of Canterbury trying to look fresh at a critique of market forces.  It begins with Mr. Brown’s own “conversion” to a perception of free markets as a force for good, distributing goods, creating value, etc.  Monopolies conversely are where unregulated markets veer towards, hardening, destroying opportunities for value creation.  Keynesians look to the government to regulate monopolies, for the health of the economy.  What Mr. Brown suggests is that a sense of morality should also naturally and forcefully act to retard monopolization. 

The mistake a lot of Christians (and others) made about economics was
locating the competition mechanism firmly in the sphere of sin. But, as my old mentor Professor Ronald Preston, who studied economics under R H Tawney and theology with Reinhold Niebuhr, used to point out, in economics the opposite of competition is not co-operation but monopoly. Christians on the left had missed an important moral argument for markets – that free competition, where no one firm or small group can dictate the products and the prices, is a safeguard against excessive accumulations of power and wealth.

There is an acceptance of human’s innate need to compete, as healthy.  And some sense of morality, rather than pure economic theory or algorithmic refinement as the necessary component therefore, in optimizing the capability of markets.  When small innovative businesses disrupt yesterdays giants, yesterdays entitlements, it isn’t simply “good” for the economy and jobs.  We all note something moral at play as well.  That’s part of why, I think, we look at most disruptive startups as “cool.”

Interestingly, this is what the same conundrum that China is facing with its recent plenum.  The rhetoric of the Chinese Communist Party (CCP) is all about breaking up the large state owned enterprises (SOEs) they allowed to flourish, because they are an impediment to growth in the domestic economy.  Unregulated under the relative timidity of the last administration, the SOEs ballooned into some of the largest companies in the world.  Fed from the state till they have crowded out all the day light in the canopy, choking out the “real” innovation down on the rain forest floor that China so desperately wants to see flourish. 



The CCP, who have all but completely jettisoned the ethical framework that underpins the second “C” in their moniker, must also look now to buttress their economic vision for a better functioning economy with some sort of moral framework.  China in this oddly amoral epoch looks back, of course, to thousands of years and a variety of wisdom traditions to cull from.  Nationalism alone, like prosperity will fall short of this broad need for a moral framework to explain the life in front of us and chart some kind of growth that is sustainable.

It seems that both civilizations, China and the West, in their own way, have arrived at this searching, modern moment where we agree what it is that makes markets function better, and that creative destruction will lead to more innovation and prosperity.  But why and in what manner should we proceed?  As Mr. Brown suggests, prosperity is not simply a function of the amoral driver of greed. Reframed, reconsidered, the drive for prosperity maximizes opportunities for people, which is a force for good.  What then are the ethics that guide this innovation and creative destruction?

It strikes me that there is a setting being laid for a contemporary, international  articulation of morality. A 集思广益[1] that is informed by theology, (Christian, Buddhist, Confucian) and by ideology, (Communism, free markets,) but not beholden to any one in dogmatic consistency.  People will invariably try to reclaim one or the other tradition as a new contemporary interpretation of one or the other tradition for this post-post-modern epoch.  Soon, scientific breakthroughs will force new, heretofore-unexplored ethical challenges.  Hopefully the free market of ideas will result in continued creative destruction of any one of these religious or ideological resurrections, so that, rather we have a more interesting synthesis of moral guidance that speaks to the broad wealth of human contributions therein.  




[1] jísīguǎngyì:  collecting opinions is of wide benefit (idiom); to pool wisdom for mutual benefit / to profit from widespread suggestions

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