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The background art you see is part of a stained glass depiction by Marc Chagall of The Creation. An unknowable reality (Reality 1) was filtered through the beliefs and sensibilities of Chagall (Reality 2) to become the art we appropriate into our own life(third hand reality). A subtext of this blog (one of several) will be that we each make our own reality by how we appropriate and use the opinions, "fact" and influences of others in our own lives. Here we can claim only our truths, not anyone else's. Otherwise, enjoy, be civil and be opinionated! You can comment by clicking on the blue "comments" button that follows the post, or recommend the blog by clicking the +1 button.

Monday, January 6, 2014

Irrational Ignorance

It’s strange the little things you can learn sometimes from abroad about your own country’s history.  A Dutch reporter recently cited an exchange between Henry Ford and Walter Reuther, the head of the auto workers’ union. Ford was showing Reuther a newly automated factory and said to him, ”Walter, how are you going to get those robots to pay union dues?”  To which Reuther replied, “Henry, how are you going to get them to buy cars?”  Sometimes it’s more complicated than that.  Boeing has been negotiating with its machinists’ union, trying to get them to agree to 401(k)’s instead of fixed benefit pensions, along with other concessions.  The workers don’t buy planes, though if they can any longer afford it, they are passengers.  Boeing is using the usual corporate ploy of threatening to move its new plane operations elsewhere, to “ensure it remains competitive” and of course to guarantee its CEO his over $100 million annual compensation package.  Latest word is that the machinists have caved in and agreed.  It’s just another lost battle in the erosion of worker and retiree income that comes about from the capability of corporations to move elsewhere.  It's what economists like Robert Reich, Larry Summers and Joseph Stiglitz regard as a basis for the continued stagnation in our economy.  But it may echo in Congress and elsewhere also.

2014 is the year issues meet head-to-head during negotiation over proposed trade pacts between the U.S. and both the EU and China.  Negotiations have been going on in secret with mainly corporate interests in the loop, but the Obama administration is promising to protect worker interests.   But agreement by the workers and the Congress is going to take a lot of trust, and Boeing is not helping any.  At the same time as it’s negotiating secret trade pacts to promote American exports, the administration is promising to reduce income inequality and protect worker rights.  The goals seem at cross purposes, since profitable exports are generally perceived as requiring low labor costs at home.  At the same time, Larry Summers points out that the real roadblock to a robust economy is inadequate demand for goods and services, and low-paid workers are not going to do much in the way of stimulating demand.  He seems to be echoing Reuther, while the corporate interests are talking like Ford.  We're facing the kinds of policy choices that would benefit greatly from the input of a well-informed public, but that's not what seems to be happening.  Left strictly to the markets and to secret corporation negotiators, the workers are most likely to lose again.  It seems the only way really to cure income inequality and the economy is not from within the usual market mechanisms, which give power only to the corporations, but with the electorate.  The fact that trade negotiations are occurring during an election year may prove interesting.

George Will of course would prefer that those ignorant voters not get in the way of clever negotiators.  In a recent column, he opines that the principal problem with democracy is… democracy!  He quotes favorably Churchill’s quip that “the strongest argument against democracy is a five-minute conversation with the average voter.”  He bases his views on the “public choices” view of economic theory which holds that “rational ignorance” prevents voters from being well informed on policy choices, and makes them opt for “sentimental” (that seems his code word for considering the needs of others) solutions, rather than the market-based solutions he prefers. He seems to think we would all be better off just letting the markets decide things.  George forgets – surely his education must have included it – that in a democracy, the voting process is a principal means of legitimizing government and stabilizing society.

Rational ignorance is the failure to learn about a topic resulting from a decision that knowing about it won’t affect your life much.  But policy decisions do affect your life a lot.  It’s just that in a market economy where the corporate interests hold the reins of power, only political means are available to the “average voter” to affect outcomes.  The voting booth becomes the “market” in which he can express his choices in a meaningful way.  George could have more closely examined the “average voter” and found that the principal difference between him or her and the corporate negotiator is not in rational ignorance – the negotiators have plenty of that themselves - they understand how policy options affect markets, but not people.  The real difference lies in the quality of their education and the extent of their self interest.  The negotiator, like George, is much better educated and much more happily uninterested in the fortunes of others.  But part of the cure for the ignorance of both the average voter and the negotiator is supposed to be democracy itself.  George could have quoted Churchill saying that “the only thing worse than democracy as a form of government is all other forms of government.”  Or Lincoln saying “God must love the common man because he made so many of him.”  Or Alexander Pope acidly remarking that “How God feels about riches can be seen from those he bestows them on.”   Take that, Donald Trump! 

A quality education in a democracy is supposed to be a public good available to all, provided through public funding as a benefit for all.  It was Jefferson who emphasized that with his sponsoring of the University of Virginia, in his own words, his greatest achievement. If the average voter is not even aware enough to know at least roughly the impacts of policy on his life, then we have failed to achieve a necessary goal of democracy.  The price of liberty is both eternal vigilance and quality education.  If agricultural policy is going to raise or lower the cost of a loaf of bread by a dollar for the average voter, or put or take out a million dollars from the pocket of a billionaire, there is no reason the average voter should rationally be less interested than the billionaire.  Yet elite educations even at the high school level generally include some economics and political science and other subjects needed to better understand policy choices, while much public education is deficient in all that. The deficiency continues at college levels.  The “average voter” starts off with a major educational handicap.  It is that handicap which must be cured for effective democracy, and that requires the enlightened funding which many of the prosperous are so unwilling to provide.


Back in the days of slavery, slaves were prohibited from learning to read and write; their owners knew that an educated person would not willingly remain a slave.  Now in the 21st century, education must go far beyond the rudiments if we are to maintain ourselves as a free and prosperous nation.  That requires loosened pockets among those who have already benefited from their own superior education.   To overweight ignorance as a factor in policy choices is to turn it simply into an excuse for ignoring the genuine needs of the economically powerless. That  itself displays a kind of irrational ignorance, for it leads not only to the kind of economic stagnation we have been experiencing, but to economic and political strife.

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