Category Archives: Tyler Cowen

Moana, Complacency, and the Enduring Appeal of Steady-State Economics

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Even a cursory reading of Disney’s Moana suggests that it is built around a not-so-Straussian story of complacency and risk-taking. (Now try listening to it on repeat for a year because your four year-old loves it, and it starts to take on, like, layers, man.) Moana’s island is both a rich source of happy subsistence and under threat from a mythological enemy that seems like a clear metaphor for overfishing. Thus she constantly struggles with a desire for exploration that she feels duty-bound to discipline, and yet her failure to be dutiful is ultimately the salvation of her people as she learns to navigate the dangerous oceans beyond the safe harbor of the island.

You can find happiness right where you are

Like many Disney films, the ordinary storyline tells the fantasy story in reverse: in the ordinary A-story we see a culture suffering from stagnation and accepting the need for new discoveries and risks. In the supernatural B-story we see that the trickster god’s risk-taking is to blame for misfortune, and human piety is required to achieve a mythical overcoming of divine vengeance and the rejection of creativity and innovation in the name of divine–but soporific!–fecundity.

In the A-story, a group of Pacific Islanders end their nomadic wayfaring to settle in a reef-protected idyll that promises them a flourishing steady state. They develop traditions and rituals that ensure stability with minimal growth, which includes communal ownership of the means of subsistence, as well as rites of cultural passage that refuse innovation:

“Who needs a new song? This old one’s all we need.”

Yet this steady state is itself the result of great innovations: for instance, the villagers of Motunui have discovered uses for every part of the coconut tree and the taro root. And one of those innovations–fishing nets from the coir fibers of the coconut–threatens to deplete their local fishing stock. Over a long enough period the island has become unsustainable, slowly growing beyond its own carrying capacity. Yet the current chief, Moana’s father Tui, can’t see the need to return to their wayfaring traditions because he was traumatized as a child by going beyond the reef with a friend, who died in the unprotected waters. Moana’s rebelliousness thus finally meets with her  obligations as the future chief, and so she ventures out beyond the reef on her own to learn Pacific Ocean navigation techniques.

The B-story stars the trickster god Maui, who once stole the heart of a maternal creator god, Te Fititi, in order to grant her life-giving powers to humanity in the form of divine creativity and innovation. The care-giving Te Fititi is thus transformed into the vengeful volcano god Te Ka, who–thousands of years later–is blamed for the shortages on the island of Motunui. The B-story resolves when the heart of Te Fititi–the power of creativity–is returned to Te Ka by Moana, and Te Ka’s desire for vengeance is sated: restored as Te Fititi she becomes so complacent she literally returns to sleep. Here it is the desire for risk-taking and innovation that causes trouble, and the supernatural resolution comes from eschewing novelty for tradition.

Moana’s first encounter with Maui depicts him as coasting on the laurels of his earliest accomplishments (creating the sky, sun, and wind; inventing or discovering coconuts; stealing humanity fire like Prometheus) while trapped in a cave. Moana doesn’t appreciate these ancient achievements and demands that Maui return the heart of Te Fititi, launching a few picaresque adventures. Maui eventually teaches Moana wayfinding for the A-story, but along the way, Moana and Maui go to the realm of monsters to steal Maui’s magic shapeshifting hook from a giant crab named Tamatoa, another figure of complacency, who has mastered the art of fish attraction so completely he doesn’t need to do any work to feed, they just pour right into his mouth.

The stories thus resolve with the sacrifice of cosmological creativity in the name of mundane risk-taking: the volcano/nature goddess goes back to sleep, making it safe for the islanders to take moderate risks to navigate to new islands. The Motunuians political economy is shown its way to a new equilibrium steady state, nomadically moving from island to island in order to avoid depleting the resources of a single place.

Complacency, Stagnation, and the Duty to Grow

In a recent triptych of books, Tyler Cowen has been exploring a kind of generic theory of political economy that appeals to me. In The Great Stagnation (recall), Cowen argued that many of our recent economic woes were due to discovering that much recent growth had been illusory. In Average is Over, he argued that current long-run trends are all pushing towards increasing inequality. And in his most recent book, The Complacent Class, he spins the story of decreasing innovation and increasing concentrations of wealth as related: too few comfortable people are taking the risks that would lead to the next big economic (or political) revolution which would be disruptive enough to lead to major increases of overall wellbeing. (In a sense this is really a tetraptych because his free ebook of meta-ethics, Stubborn Attachments, argues along the same lines that we have serious obligations to future generations to continue innovating.)

So: Cowen thinks most of our biggest economic problems are due to a lack of growth and invention. That’s not to say that the pace of novelties is decreasing, but just that few of these novelties are truly innovative in ways that would substantially change the quality of our lives. Computers seem like a big deal, but they haven’t been that big. They haven’t fundamentally changed the way our lives work as much as, say, the washing machine did. Norman Borlaug won the Nobel Peace Prize for saving a billion people from starvation. Mark Zuckerberg just gave billions of people a distracting website where we can fight about politics and look at cute animal pictures. If someone masters self-driving cars and trucks, maybe that will be the kind of disruptive, physical economy shift Cowen says we are morally obligated to pursue.

But we’re complacent, see? We don’t take those kinds of risks anymore. We make off-color Twitter jokes, or rap musicals about the founding fathers, when we should be moving mountains. Elon Musk is a genius, and a weirdo, and a comic book villain, because that’s what it takes to start a new car company, send rocketships to space, and redesign the electrical grid around solar power. The rest of us don’t do that kind of thing because we don’t like risks. We don’t even move out of town for new jobs as much as we used to do.

If you buy Cowen’s argument in Stubborn Attachments then we actually have a kind of limited obligation to try to innovate, because compounding innovations are what will make the future better off than the present. (In philosophy we talk about this as the “intergenerational justice” question, or under the heading of John Rawls’ discussion of the “just savings principle.”) We are ourselves massive beneficiaries of past generations’ efforts to store up for their posterity the technological and artistic achievements of their own and previous epochs. We owe the future the same.

Cowen even bites the bullet in arguing that we should be wary of making prioritarian investments in the poorest or most needy members of the current generation if they come at the expense of slowed discovery and invention. (Often these goals are not at odds, but when they are….) But he’s clear that the bourgeoisie are the real problem, insofar as we bask in our current quite high standards of living without taking the risks that could lead to greater growth. For the most part, then, Cowen’s target is not the poor but the well-off.

The Steady-State Economy

Whenever I teach environmental policy or ethics courses, we spend some time with arguments like that of William Ophuls or Herman Daly or Wendell Berry. I’ve probably taught Garrett Hardin’s “Tragedy of the Commons” essay once or twice a year for more than a decade. There’s even a utopian novel, Ecotopia, depicting a California that has seceded and voluntarily created a non-growth economy (with a dash of hippy free love that eventually sways the uptight unreliable narrator.) The gist of the arguments all boil down to this: perpetual physical growth is impossible on a finite planet. Too many humans, living too good a life, will eventually exceed the carrying capacity of the Earth. Or perhaps even worse: we’re already there! Life as the American middle class is unsustainable and will lead to our destruction.

So we need to either find our way to new planets or learn to live within the planet’s means. And given the near-impossibility of terraforming within our solar system, we might as well get used to the idea that economic growth cannot continue forever *now* and work to arrest it. The parts of our political economy that are addicted to growth need to be reined in, and that’s most of them. Apparently we need more farmers and fewer philosophers; more plumbers and fewer petroleum engineers.

Depictions of the steady state economy usually emphasize more egalitarian and communal cultural mechanisms. But my sense is that steady states usually depend on strict deference for authority and a lack of disruptive mobility. Abilities vary, but roles are assigned (as Moana’s is) by birth. What marks out stable societies is a clearer connection between cultural prestige, political power, and economic privilege. I think that’s part of the appeal that steady state political economy holds for cultural elites in particular; a community where our mastery of the seminar room will be rewarded with attendant power and wealth, and we won’t have to defer to stockbrokers who got rich by taking big risks with other people’s money. (I always associate this critique with Lynn Sanders’ “Against Deliberation” but there are other sources for this insight, including Karl Marx himself.)

The problem is that infinite growth does look impossible on a finite planet. Certainly we can sustain a little more growth, at least for a while. But the obligation to future generations may be to waste less electricity on Bitcoin mining and spend more time fighting for adequate policy responses to climate change! While Cowen might not disagree with those priorities, he certainly doesn’t seem to think that growth (understood as innovations and discoveries and cultural production) is limited. We’re not getting closer to any recognizable ceilings, for the simple reason that there are still diseases to be cured, technologies to be invented, and novels to be written. Even the rap musical about America’s first Treasury Secretary is still unfinished!

This is how I think about the error of the steady-staters: that they assume the old model of growth, where production and consumption occur primarily in terms of linear increases in resource use. This is what we measure, kind of, with GDP. But some kinds of innovation and invention are different: they create lots of value for lots of people without really costing a lot. A pill saves a life, and it only costs fifty cents to make; the pharmaceutical company will register some of those gains as profits contributing to GDP, but then the patent will expire, and it’ll SEEM like stagnation. But in fact, it’s a permanent increase in our shared wealth. More people live, but they live for cheap. (There are ways that this is supposed to be captured by the surviving worker’s productivity and the fall in drug prices is supposed to impact inflation measures, but it’s imprecise.) Growth is a misnomer: creating new things and ideas and experiences is the good bit. And there’s no reason to stop.

Aue aue
We are explorers reading every sign
We tell the stories of our elders in a never-ending chain
Aue aue
Te fenua, te mālie
Nā heko hakilia
We know the way

Calm is not Rational

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I’ve written a bit before about Tyler Cowen’s idea for a fallacy of mood affiliation, and I generally find something useful in discussions of it. Here’s the basic story:

It seems to me that people are first choosing a mood or attitude, and then finding the disparate views which match to that mood and, to themselves, justifying those views by the mood.  I call this the “fallacy of mood affiliation,” and it is one of the most underreported fallacies in human reasoning.  (In the context of economic growth debates, the underlying mood is often “optimism” or “pessimism” per se and then a bunch of ought-to-be-independent views fall out from the chosen mood.)

Byran Caplan offers some reflections on using mood as a credibility heuristic (that are consonant with others things he has said) and so it seems worth discussing where he goes wrong.

On Caplan’s account, evidence is the best way to judge credibility and truth. There we agree. But he adds that using appropriate mood as a heuristic for credibility is a wise backup for discounting some movements or claims. He describes the appropriate moods that environmental activists ought to bring to bear on fossil fuels:

A reasonable person who was convinced that fossil fuels posed a major danger would feel a specific package of moods:

1. Sadness that a crucial resource has terrible side effects.

2. Gratitude for all the wonders the resource brought us in the past.

3. Resignation that mankind must forego many of these wonders.

4. Determination to salvage as many wonders as possible by using the best available substitutes for fossil fuels.

When an opponent of fossil fuels evinces none of these moods, it strongly suggests he isn’t reasonable.

This seems unlikely to be true. On the one hand, I do think those are basically the right judgments about fossil fuels: they are awesome, we should be glad that they existed, and it really sucks that we’re going to be giving them up, but it’s time to take action. That said, it’s not clear why I can’t also feel:

  1. Anger that providence does not supply as good a solution without the costs.
  2. Resentment that those who have profited from fossil fuel extraction are willfully denying the evidence that we must change.
  3. Frustration that scientific consensus does not bind more of my fellow citizens and their elected representatives.
  4. Suspicion of the ways that our current interests cause us to downplay the risks and need for resignation and determination.

Those seem perfectly rational to me, too. And we might not be able to hold all those emotions in our mind at the same time, and thus we find that we’re unable to capture the state of perfectly neutral ambivalence that Caplan here suggests is a prerequisite for being considered rational. Worse, though, Caplan’s account of those prerequisite “moods” mistakes how social movements work with how scholars comport themselves.

  1. For Cowen, mood is about having too much of the wrong sort of alignment within your portfolios of beliefs. So mood affiliation is not about demeanor but about getting your beliefs to support your preferred mood (like the just world fallacy.) Some things are good and some things bad, some things are more certain than others, etc. And yet we tend to adopt similar judgments rather than diversify, suggesting that it’s us and not the world that’s drawing those beliefs together. So Bryan Caplan is not using mood in Cowen’s sense, but rather describing something like demeanor.
  2. Most of the evidence suggests that groups of people actively resisting the status quo fall into group polarization dynamics. This is regardless of whether the status quo is just or unjust or safe or dangerous. This means that they will tend to circulate ideas and attitudes among themselves, developing more extreme and fanatical opposition to it than the overall community could support. Thus a heuristic based on demeanor is basically a pro-status quo heuristic.
  3. Sometimes this polarization is primarily attitudinal, and sometimes it is primarily evidential: that is, sometimes movement members help each other engage in motivated reasoning and skepticism, and sometimes they help each other by egging each other on with a bias for action. The attitudinal polarization is likely to be MORE reasonable than the evidential one. Yet representatives of the status quo can then use those attitudinal group polarization dynamics to depict the resistors as irrational and thus wrong. (We can see this in all sorts of places, not just the standard ones.)
  4. The demeanors of calm and dispassionate analysis are, frankly, overrated by college professors and college graduates. It’s how we signal competence, but it’s not the same as subject-matter competence, rather it’s generally a prerequisite competence in dealing with other college graduates.
  5. Lots of obviously wrong people demonstrate the wrong demeanors. But lots of *subtly* wrong people have the right demeanors. Probably then, we should actually develop enough subject-matter expertise to parse the evidence (as Caplan is doing by reading Epstein) and not rely on demeanor so much as a heuristic.

Basically, where I see Cowen contributing is in allowing us to reflect on the ways that our ideas may be too tightly connected to each other by some overarching mood or partisan affiliation. Disaggregation, decoupling, debundling: these aren’t always smart epistemological moves, but there’s a lot of good reasons to experiment with them, rooted in methodological individualism and the necessities of the scientific method.

Caplan, by contrast, seems to want to use it as a heuristic for discrediting others. I’ll admit a bias here: I really want to bend over backwards to understand the views of others and listen carefully to their arguments in hopes of finding useful insights. That’s my fallibilism talking, a mood that I’m quite sure has its own pitfalls. But still, doesn’t it seem unwise to pretend you can’t hear people just because they are shouting? After all, they’re very likely to be shouting because no one listened when they spoke.