Quote of the Day: Anti-Federalist Edition

When the public is called to investigate and decide upon a question in which not only the present members of the community are deeply interested, but upon which the happiness and misery of generations yet unborn is in great measure suspended, the benevolent mind cannot help feeling itself peculiarly interested in the result.

That’s the opening sentence Brutus #1, from 1787. Politics isn’t policy, however, even at the constitutional level. For related reading, see here.

Brutus on the Optimal Size of Nations

In a republic, the manners, sentiments, and interests of the people should be similar. If this be not the case, there will be a constant clashing of opinions; and the representatives of one part will be continually striving against those of the other. This will retard the operations of government, and prevent such conclusions as will promote the public good. If we apply this remark to the condition of the United States, we shall be convinced that it forbids that we should be one government. The United States includes a variety of climates. The productions of the different parts of the union are very variant, and their interests, of consequence, diverse. Their manners and habits differ as much as their climates and productions; and their sentiments are by no means coincident. The laws and customs of the several states are, in many respects, very diverse, and in some opposite; each would be in favor of its own interests and customs, and, of consequence, a legislature, formed of representatives from the respective parts, would not only be too numerous to act with any care or decision, but would be composed of such heterogenous and discordant principles, as would constantly be contending with each other.

That’s from Brutus #1. He has half (and by far the most important half) of Alesina and Spolaore’s model of the optimal size of government. Speaking of which, you should go check out today’s secession week topic at LaTNB!

When I first read the Federalist Papers, I remember being struck by the subtlety of Madison’s public choice theorising. Now that I’m reading the Anti-Federalist Papers, I’m far more impressed with them and inclined to see Madison as naive in comparison. Sadly, I suspect he remains more realistic about politics than any politician who has come since.

Scenes from a Moral Panic

From Craig Reinarman and Harry G. Levine (1997), The Crack Attack: Politics and Media in the Crack Scare.
On September 5, 1989, President Bush, speaking from the presidential desk in the Oval Office, announced his plan for achieving “victory over drugs” in his first major prime-time address to the nation, broadcast on all three national television networks. We want to focus on this incident as an example of the way politicians and the media systematically misinformed and deceived the public in order to promote the War on Drugs. During the address, Bush held up to the cameras a clear plastic bag ofcrack labeled “EVIDENCE.” He announced that it was “seized a few days ago in a park across the street from the White House” (Washington Post, September 22,1989,p.A1). Its contents, Bush said, were “turning our cities into battle zones and murdering our children.” The president proclaimed that, because of crack and other drugs, he would “more than double” federal assistance to state and local law enforcement (New York Times, September 6, 1989,p.A11). The next morning the picture of the president holding a bag ofcrack was on the front pages of newspapers across America.

About two weeks later, the Washington Post, and then National Public Radio and other newspapers, discovered how the president of the United States had obtained his bag of crack. According to White House and DEA officials, “the idea ofthe President holding up crack was [first] included in some drafts” of his speech. Bush enthusiastically approved. A White House aide told the Post that the president “liked the prop….It drove the point home.” Bush and his advisors also decided that the crack should be seized in Lafayette Park across from the White House so the president could say that crack had become so pervasive that it was being sold “in front of the White House” (Isikoff,1989).

This decision set up a complex chain of events.White House Communications Director David Demarst asked Cabinet Affairs Secretary David Bates to instruct the Justice Department “to find some crack that fit the description in the speech.” Bates called Richard Weatherbee, special assistant to Attorney General Dick Thornburgh,who then called James Milford, executive assistant to the DEA chief. Finally, Milford phoned William McMullen,special agent in charge of the DEA’s Washington office, and told him to arrange an undercover crack buy near the White House because “evidently, the President wants to show it could be bought anywhere” (Isikoff,1989).

Despite their best efforts,the top federal drug agents were not able to find anyone selling crack (or any other drug) in Lafayette Park,or anywhere else in the vicinity of the White House.Therefore,in order to carry out their assignment, DEA agents had to entice someone to come to the park to make the sale. Apparently,the only person the DEA could convince was Keith Jackson,an eighteen-year-old African-American high school senior. McMullan reported that it was difficult because Jackson “did not even know where the White House was.”The DEA’s secret tape recording of the conversation revealed that the teenager seemed baffled by the request: “Where the [expletive deleted] is the White House?” he asked. Therefore, McMullan told the Post, “we had to manipulate him to get him down there. It wasn’t easy” (Isikoff,1989).

The undesirability of selling crack in Lafayette Park was confirmed by men from Washington,D.C., imprisoned for drug selling, and interviewed by National Public Radio. All agreed that nobody would sell crack there because,among other reasons, there would be no customers. The crack-using population was in Washington’s poor African-American neighborhoods some distance from the White House. The Washington Post and other papers also reported that the undercover DEA agents had not, after all, actually seized the crack, as Bush had claimed in his speech. Rather, the DEA agents purchased it from Jackson for $2,400 and then let him go.

This incident illustrates how a drug scare distorts and perverts public knowledge and policy. The claim that crack was threatening every neighborhood in America was not based on evidence; after three years ofthe scare, crack remained predominantly in the inner cities where it began. Instead, this claim appears to have been based on the symbolic political value seen by Bush’s speech writers. When they sought, after the fact, to purchase their own crack to prove this point, they found that reality did not match their script. Instead of changing the script to reflect reality, a series of high-level officials instructed federal drug agents to create a reality that would fit the script. Finally, the president of the United States displayed the procured prop on national television. Yet, when all this was revealed, neither politicians nor the media were led to question the president’s policies or his claims about crack’s pervasiveness.

Robert Higgs on Big Business and Competition

An interesting passage that I wanted to make a note of for future reference, and figured I might as well throw it up here in case anyone finds it of interest. From Neither Liberty Nor Safety (an excellent, and short, book; well worth reading even if you’ve read Crisis and Leviathan), pp. 89-90:

The large manufacturing and commercial companies that developed during the last quarter of the nineteenth century heightened the public’s fears and compounded the political reaction. Trusts, in the strictly legal sense, were not the problem. Nor, despite the orthodox claim to the contrary, was the problem large corporate business as such. For political economy, the important development was not that some firms became very big; rather, it was they did (a great deal of) business in many states – sometimes, and increasingly, in many countries. Hence, the giant corporations, which in many cases had been made large in order to exploit new technologies and organizational structures that offered economies of scale and scope, came increasingly into competition with the multitude of established firms serving previously fragmented local and regional markets. Received wisdom notwithstanding, the rise of Big Business produced not monopoly, but rather, certainly in the emergent phase, greatly heightened competition. Countless cozy little markets – places where local suppliers acted pretty much as Adam Smith warned they would – experienced the invasion of “alien” competitors. The octopus arms of big out-of-state corporations reached out to grasp a share of the local markets by offering consumers better products or lower prices. As the national market became more integrated, more and more firms found themselves blown by what Joseph Schumpeter called the gale of creative destruction. The great merger movement at the turn of the century capped this accelerating development by expanding the number of large firms and significantly augmenting their market shares.

The Best Sentence I’ve Read in Some Time

From BK Drinkwater:

Repeat after me: if you outlaw a voluntary transaction, you’re hurting all the parties that would benefit from that transaction, and not just the ones you’re trying to hurt.

A double-play: gets across the central point about mutually beneficial trade, and incidentally reveals the target’s implicit desire to hurt the rich. Well done, Sir!

Nerdy History of Economic Thought/Metal Quote of the Day

Eric Crampton:

Is it strange that I always hear the Sepultura lyrics as “War of Methodology” rather than “War for Territory”?

Yes, Eric, but in a good way. (Read about the methodenstreit here)

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