(Austrian) Economics

BOOK REVIEW | The Unincorporated Man by Dani and Eytan Kollin Thumbnail

Justin Cord, protagonist of The Unincorporated Man (2010 Prometheus Award winner for Best Libertarian Novel) once quips that, “You often learn more about a situation from the questions than the answers.”

My highest praise for the book is for the questions it raises in the best tradition of social science fiction, questions that get us thinking about economic, legal, and even financial institutions in new ways. The book portrays a future society with a minimalist limited government, strong corporations, and a universal system of “personal incorporation.”

Each person is owned by a shifting combination of self and others through a joint stock arrangement set up at birth. Making corporations personal serves to amplify and universalize the conventional image of corporate titans maneuvering against each other for power and position. Everyone plays the “corporate game” and plays it with their whole lives, not just their jobs. Into this mix awakens one man from 300 years of suspended animation. Can he remain wholly self-owned? Will his ancient ideas of autonomy infect others and upset the new social order?

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BOOK REVIEW | Double Star by Robert Heinlein Thumbnail

Robert Heinlein’s first Hugo Award winner was Double Star, a work that garners him far less attention today than his other Hugo winners. A reading of the novel will make obvious the reason for this: it is simply not as good. This is not to say that the book is poor, but for it to have won the Hugo Award in 1956, one must suppose either that it was a weak year for science fiction or that giving it the award was a mistake, akin to giving the Oscar to American Beauty or Shakespeare in Love.

It is something of a mystery to me why the novel does not amount to much. The protagonist has a distinct and interesting personality and the idea for the story holds promise. The prose is spare but efficient as you would expect from a Heinlein piece. What went wrong is that the plot is underdeveloped, a fault that would seem to be easily avoided, especially with a veteran author if he cares enough to put the effort into it. A writer needs to squeeze out of a story idea its potential, like one wrings the juice from an orange, and this is not achieved in Double Star. Given that The Puppet Masters came out a few years earlier, its weakness cannot be explained by an author who had yet to come into his own as a storyteller.

The main character is Lorenzo Smythe, an actor in the middle of some lean times but who preserves his pride and thespian affectation, though not to the point of becoming a caricature. He is offered a top secret job to impersonate a kidnapped Martian politician, Joseph Bonforte, until the man can be recovered. At stake is the peaceful equilibrium of human society.

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It might be something like this fantastic new rap video produced by John Papola and Russ Roberts as part of their EconStories.tv project, “Fight of the Century: Keynes vs. Hayek Round Two“:

One of these days I’ll write an article on why fiction authors, especially science fiction authors (hellooo!), should study the “dismal science.”

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In a recent addition to The Libertarian Tradition podcast series, part of the Mises Institute’s online media library, Jeff Riggenbach discusses Friedrich Hayek and American Science Fiction.

You can also read the transcript, which was later published as a Mises Daily article.

In the podcast, Riggenbach discusses the dramatization of Austrian economist Friedrich Hayek’s ideas in William Gibson’s novel Pattern Recognition and Alfred Bester’s short story “Time is the Traitor.”

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A few years ago in honor of Arthur C. Clarke’s then-recent birthday, I wrote on my own blog that he must never have read Ludwig von Mises and Murray Rothbard,

because according to this quote cited by Gregory Benford in his happy-birthday letter in Locus Magazine (January 2008), he claims that “there are some general laws governing scientific extrapolation, as there are not (pace Marx) in the case of politics and economics.” Well, far be it from me to disagree that Marx was wrong about a lot of things, but Clarke is wrong here. Sir Clarke, you may be 90 years old now, and happy birthday by the way, but it’s never too late to acquire a firm grasp of sound economic theory.

As disappointing as it is, it’s not surprising that he had a natural-scientistic bias against economics. Sadly, he died only a few months after my post.

In a more recent article in the Sri Lanka Guardian, more of Clarke’s economic ignorance is on display:

While researching for this article I came across a searing indictment by Clarke on the American capitalist system. After observing that the structure of American society may be unfitted for the effort that the conquest of space demands he continued, “No nation can afford to divert its ablest men into essentially non-creative and occasionally parasitic occupations such as law, insurance and banking”. He also referred to a photograph in Life Magazine showing 7,000 engineers massed behind a new model car they had produced as ‘a horrifying social document’. He was appalled by the squandering of technical manpower it represented. All this indeed makes one wonder whether he really was a closet socialist.

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With great solemnity, “Defense” Secretary Robert Gates imparted on West Point cadets this Friday a hard-earned pearl of newly discovered wisdom:

In my opinion, any future defense secretary who advises the president to again send a big American land army into Asia or into the Middle East or Africa should ‘have his head examined,’ as General MacArthur so delicately put it,” Mr. Gates told an assembly of Army cadets here.

In other words, “Never get involved in a land war in Asia.”

Sounds like good advi… Wait,what? Not everyone knows this already? Inconceivable!

Any culturally literate person has seen The Princess Bride at least once in the last 24 years1 and certainly knows about the most famous classic blunder:

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  1. The novel by William Goldman was published over a decade earlier in 1973. But I imagine this bit of wisdom goes back much further. 

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