Monday, April 28, 2008

Should career choices be taken out of our hands?

This question was raised in my mind by the first chapter of Daniel Gilbert’s book, “Stumbling on Happiness”(2007). The question that the author actually considers is: Why do humans make predictions about the future? He gives two answers:
  • First, people make predictions about the future because “our brains want to control the experiences we are about to have”. People “find it gratifying” to exercise control.
  • Second, “we are the apes that learned to look forward because doing so enables us to shop around among the many fates that might befall us and select the best one”.


The author managed to catch me by surprise by asserting that the first answer is right and the second answer is wrong. He then informed me that he intended to spend the rest of the book trying to convince me that the second answer is wrong.

This set me wondering whether there would be important implications for the relationship between freedom and human flourishing if we were not able to choose rationally between alternative futures.

Imagine a young person making a career choice. Perhaps she is weighing up whether to become a politician or courtesan. In thinking about which option would contribute most to her future happiness she would presumably consider such things as potential pecuniary benefits, the kind of people she would be working with, the respect she would have of herself, attitudes of family and friends and potential risks associated with the alternatives. Based on these considerations she might decide that there is not much to choose between these alternatives. (Just joking!)

Why would I object if this person’s career choice was taken out of her own hands and placed in the hands of a government-appointed expert who would assess her aptitude for a range of occupations and choose the one that would give her the best chance of having a happy life? I have four reasons:

  1. My inner economist tells me that this person is probably in a better position to make such choices than any expert because she has better knowledge about herself and hence about how happy she would be likely to feel in different occupations.
  2. She has a right to make these decisions herself. Even if she is thought likely to make the wrong choice, her right to choose should be respected.
  3. Interference with her right to choose her occupation may have a net adverse effect on her happiness over a life-time, even if the expert is in a position to make a more-informed choice about her future happiness.
  4. There is evidence that happiness is associated with the exercise of competence in the face of challenge. Competence comes from accepting responsibility for decisions and learning from mistakes.

    I concluded that I would be surprised but not devastated if Gilbert managed to persuade me that I was wrong in believing that individual humans have the capacity to look forward in order to choose the best future for themselves. I suggested that my inner economist might feel a little bruised, but I would remain a strong advocate of liberty.

    I suggested, however, that Daniel Gilbert would probably claim that my imaginings about how I might feel after I had finished reading his book were not likely to be reliable predictions of how I would actually feel. See my next post for the sequel.

Was Lao-tzu a libertarian?

Lao-tzu was a Chinese philosopher who lived in the early sixth century BC and served as a resident scholar at the royal court of the Shou. Taoism, the religion based on his teachings, spread over much of Asia.

Lao-tzu wrote:
“If I keep from meddling with people, they take care of themselves,
If I keep from commanding people, they behave themselves,
If I keep from preaching at people, they improve themselves,
If I keep from imposing on people, they become themselves.”

When I first read that last year I was surprised that such a liberal viewpoint had once been influential in China.

So I went looking for more of the writings of Lao-tzu and found the following:

If you want to be a great leader,

you must learn to follow the Tao.
Stop trying to control.
Let go of fixed plans and concepts,
and the world will govern itself.

The more prohibitions you have,
the less virtuous people will be.
The more weapons you have,
the less secure people will be.
The more subsidies you have,
the less self-reliant people will be.

Therefore the Master says:
I let go of the law,and people become honest.
I let go of economics,and people become prosperous.
I let go of religion,and people become serene.
I let go of all desire for the common good,
and the good becomes common as grass (Toa Te Ching, 57 (here).

When I looked further I found that some high ranking Chinese officials have recently called for the wisdom of ancient Taoism to be adopted to help build a harmonious society in China (here).

It seems to me that western political leaders could also learn a great deal from Lao-tzu.

Do we now have a new Australian settlement?

In his book, “The end of certainty”, published in 1994, Paul Kelly argued that the 1980s saw the collapse of an Australian political tradition that had been embraced nearly a century before. This tradition, which he termed the 'Australian settlement', was based on the white Australia policy, trade protectionism, the arbitration system (national wage regulation), government paternalism (extensive government intervention aimed to promote individual well-being) and the belief that Australian prosperity was underwritten by the British Empire.

Kelly suggests that the Australian settlement (also sometimes known as Fortress Australia) was bipartisan – an alliance between the conservative establishment and working class power (p 13).

It seems to me that the Australian settlement had begun to crumble by the late 1960s. By that time many people felt that racial discrimination in immigration was an embarrassment. By then the case for some reductions in protection was being seriously considered within government, even though few people were brave enough to advocate free trade. Faith in Empire had crumbled during the Second World War and had largely been replaced by the American alliance – which (as today) was coming under criticism as a result of poor leadership in Washington.

I think Kelly is correct, however, in pin-pointing the 1980s as the decade in which the greatest part of the Australian settlement collapsed, even though centralised wage fixation was still strong during that decade. Arguably, government paternalism is as strong as ever, even now.

Kelly ended his book by suggesting that the challenge for Australian leadership was “to create a synthesis between the free market rationalism needed for a stronger economy and the social democracy which inspired the original Australian Settlement ideals of justice and egalitarianism”(p 686).

More recently Paul Kelly has announced the arrival of a “new Australian settlement engineered by political leaders during the past generation and a half”. He suggests that “Australia's post-1983 progress is a direct function of national leadership. Hawke, Keating and Howard, despite their differences, are best understood in an historical continuum finding similar solutions to the same problems”. He notes that the policies of the major parties have converged. For example, economic policy has become more pro-market, foreign policy has converged on a strategic outlook of simultaneously deepening ties with East Asia and the US, and immigration policies have converged on acceptance of increased immigration accompanied by a deeper commitment to Australian citizenship (see here).

In a Financial Review article entitled ‘Merging into nothing’, a few weeks later (9 November) Mark Latham, former leader of the Australian Labor Party, took this argument about policy convergence somewhat further. He suggested that the policies that the major parties had put forward in the election campaign then being conducted were virtually indistinguishable. It seems to me that he was not suggesting that the situation could be otherwise – it was the result of an “economic revolution” that had “transformed the nature of politics”.

Latham argues that “the market-based reforms of the Hawke / Keating / Howard governments transformed Australia into an intensely materialistic society. For the first time, working class people were given easy access to finance and capital. They used these economic opportunities to climb the social ladder, leaving behind their working-class suburbs and values”.

I disagree with Latham on the question of whether society has become more materialistic. It seems to me that despite all the talk about the “fair go” ethos the Australian Settlement embodied a mean-spirited form of tribal materialism. The prevailing ethos was that in this country we look after our mates. The “fair go” ethos did not even extend as far the nation’s first inhabitants.

Latham does seem to be right, however, in suggesting that more people have adopted middle-class values over the last couple of decades. He states: “The chief middle-class demand on the political system is ... for more money. It wants governments to get out of the way: cutting taxes, cutting outlays to undeserving welfare recipients and freeing up more resources for the growth of private sector lifestyles”.

It seems to me that the policy convergence on middle class concerns, as identified by Mark Latham, provides the foundation for the new Australian settlement. Whereas the old Australian settlement left room for political battle over income distribution, this has now just about evaporated.

One of the few areas in which major policy divergence could open up within the framework of the new Australian settlement lies in the contradiction, noted by Latham, between middle class demands for lower taxes and for middle class welfare to be retained or increased. Hopefully, before too long, one of the major parties will begin to offer the electorate the choice of reducing middle class welfare in exchange for lower taxes.

Sunday, April 27, 2008

Which comes first: self-esteem or achievement?

This is like asking: Which comes first, the chicken or the egg? Before I explain why I think this, I will first attempt to explain why I find myself in sympathy with both views.

Why does it make sense to view self-esteem as a by-product of worthwhile achievement? It seems to me that Adam Smith was correct in suggesting that when we examine our own conduct and pass judgement on it we are adopting the perceptual position of a spectator. If we view our conduct as praiseworthy this can be a source of “inward tranquillity and self-satisfaction” even if no-one actually praises us (“The Theory of Moral Sentiments”, 1759, III,i,6 and III,ii,1 (here). It is not particularly satisfying to be esteemed if we do not feel that we deserve to be favourably thought of.

Why does it make sense to view self-esteem as a prerequisite for worthwhile achievement? Some people grossly under-estimate their own ability. They are believe that they are destined to fail at everything they attempt to do. Such people need to attain a more balanced assessment of their own capability – greater self-esteem - before it is possible for them to achieve anything worthwhile.

So, how can these views be reconciled? It seems to me that the first view concerns achievement - or conduct, behaviour or performance - whereas the second view concerns capability or potential. Nathaniel Branden has no difficulty in combining both views in his definition:
“Self-esteem is the disposition to experience oneself as being competent to cope with the basic challenges of life and of being worthy of happiness. It is confidence in the efficacy of our mind, in our ability to think. By extension, it is confidence in our ability to learn, make appropriate choices and decisions, and respond effectively to change” (see here).

Abraham Maslow saw satisfaction of the need for self esteem - feelings of adequacy, competence and confidence - as necessary for self-actualization. Michael Hall, a psychologist and personal development trainer, argues that both internal factors (meaning-making or conceptualisation) and external factors (performance) are required for self-actualization. He suggests that people who focus excessively on the conceptual side of things tend to become dreamers and to live in fluff land. Those who focus excessively on performance tend to lose sight of the big picture and become compulsives and workaholics. According to Hall, self-actualization emerges in an experience from creating a rich synthesis of meaning-making and performance – from both knowing and doing ( “Unleashed, A guide to your ultimate self-actualization”, here)

Just as eggs come from chickens, people need some self-esteem before they can achieve anything worthwhile. And just as chickens come from eggs, people need ongoing achievement to maintain self-esteem.