theft

In Nozicem

PNRJ core principles, critique of neoclassical economics, ethics, inequality , , , , , , , , , , , , ,

Nov 2 JDN 2460982

(I wasn’t sure how to convert Robert Nozick’s name into Latin. I decided it’s a third-declension noun, Nozix, Nozicis. But my name already is Latin, so if one of his followers ever wants to write a response to this post that also references In Catalinam, they’ll know how to decline it; the accusative is Julium, if you please.)

This post is not at all topical. I have been too busy working on video game jams (XBOX Game Camp Detroit, and then the Epic Mega Jam, for which you can view my submission, The Middle of Nowhere, here!) to keep up with the news, and honestly I think I am psychologically better off for it.

Rather, this is a post I’ve been meaning to write for a long time, but never quite got around to.

It is about Robert Nozick, and why he was a bad philosopher, a bad person, and a significant source of harm to our society as a whole.

Nozick had a successful career at Harvard, and even became president of the American Philosophical Association. So it may seem that I am going out on quite a limb by saying he’s a bad philosopher.

But the philosophy for which he is best known, the thing that made his career, is not simply obviously false—it is evil. It is the sort of thing that one can only write if one is either a complete psychopath, utterly ignorant of history, or arguing in bad faith (or some combination of these).

It is summarized in this pithy quote that makes less moral sense than the philosophy of the Joker in The Dark Knight:

Taxation of earnings from labor is on a par with forced labor. Seizing the results of someone’s labor is equivalent to seizing hours from him and directing him to carry on various activities.

Anarchy, State, and Utopia (p.169)

I apologize in advance for my language, but I must say it:

NO IT FUCKING ISN’T.

At worst—at the absolute worst, when a government is utterly corrupt and tyrannical, provides no legitimate services whatsoever, contributes in no way to public goods, offers no security, and exists entirely to enrich its ruling class—which by the way is worse than almost any actual government that has ever existed, even including totalitarian dictators and feudal absolute monarchies—at worst, taxation is like theft.

Taxation, like theft, takes your wealth, not your labor.


Wealth is not labor.

Even wealth earned by wage income is not labor—and most wealth isn’t earned by wage income. Elon Musk is now halfway to a trillion dollars, and it’s not because he works a million times harder than you. (Nor is he a million times smarter than you, or even ten—perhaps not even one.) The majority of wealth—and the vast majority of top 1%, top 0.1%, and top 0.01% wealth—is capital that begets more capital, continuously further enriching those who could live just fine without ever working another day in their lives. Billionaire wealth is honestly so pathological at this point that it would be pathetic if it weren’t so appalling.

Even setting aside the historical brutality of slavery as it was actually implemented—especially in the United States, where slaves were racialized and commodified in a way that historically slaves usually weren’t—there is a very obvious, very bright, very hard line between taking someone’s wealth and forcing them to work.

Even a Greek prisoner of war who was bought by a Roman patrician to tutor his children—the sort of slave that actually had significant autonomy and lived better than an average person in Roman society—was fundamentally unfree in a way that no one has ever been made unfree by having to pay income tax. (And the Roman patrician who owned him and (ahem) paid taxes was damn well aware of how much more free he was than his slave.)

Whether you are taxed at 2% or 20% or 90%, you are still absolutely free to use your time however you please. Yes, if you assume a fixed amount of work at a fixed wage, and there are no benefits to you from the taxation (which is really not something we can assume, because having a good or bad government radically affects what your economy as a whole will be like), you will have less stuff, and if you insist for some reason that you must have the same amount of stuff, then you would have to work more.

But even then, you would merely have to work more somewhere—anywhere—in order to make up the shortfall. You could keep your current job, or get another one, or start your own business. And you could at any time decide that you don’t need all that extra stuff and don’t want to work more, and simply choose to not work more. You are, in other words, still free.

At worst, the government has taken your stuff. It has made you poorer. But absolutely not, in no way, shape or form, has it made you a slave.

Yes, there is the concept of “wage slavery”, but “wage slavery” isn’t actually slavery, and the notion that people aren’t really, truly free unless they can provide for basic needs entails the need for a strong, redistributive government, which is the exact opposite of what Robert Nozick and his shockingly large body of followers have been arguing for since the 1970s.

I could have been sympathetic to Nozick if his claim had been this:

Taxation of earnings from labor is on a par with [theft]. Seizing the results of someone’s labor is equivalent to seizing [goods he has purchased with his own earnings].

Or even this:

[Military conscription] is on a par with forced labor. [After all, you are] seizing hours from him and directing him to carry on various activities.

Even then, there are some very clear reasons why we might be willing to accept taxation or even conscription from a legitimate liberal democratic government even though a private citizen doing the same fundamental activity would obviously be illegal and immoral.

Indeed, it’s not clear that theft is always immoral; there is always the Les Miserables exception where someone desperately poor steals food to feed themselves, and a liberal democratic government taxing its citizens in order to provide food stamps seems even more ethically defensible than that.

And that, my friends, is precisely why Nozick wasn’t satisfied with it.

Precisely because there is obvious nuance here that can readily justify at least some degree of not only taxation for national security and law enforcement, but also taxation for public goods and even redistribution of wealth, Nozick could not abide the analogies that actually make sense. He had to push beyond them to an analogy that is transparently absurd, in order to argue for his central message that government is justifiable for national security and law enforcement only, and all other government functions are inherently immoral. Forget clean water and air. Forget safety regulations in workplaces—or even on toys. Forget public utilities—all utilities must be privatized and unregulated. And above all—above all—forget ever taking any money from the rich to help the poor, because that would be monstrous.

If you support food stamps, in Nozick’s view, there should be a statue of you in Mississippi, because you are a defender of slavery.

Indeed, many of his followers have gone beyond that, and argued using the same core premises that all government is immoral, and the only morally justifiable system is anarcho-capitalism—which, I must confess, I have always had trouble distinguishing from feudalism with extra steps.

Nozick’s response to this kind of argument basically seemed to be that he thought anarcho-capitalism will (somehow, magically) automatically transition into his favored kind of minarchist state, and so it’s actually a totally fine intermediate goal. (A fully privatized military and law enforcement system! What could possibly go wrong? It’s not like private prisons are already unconscionably horrible even in an otherwise mostly-democratic system or anything!)

Nozick wanted to absolve himself—and the rich, especially the rich, whom he seemed to love more than life itself—from having to contribute to society, from owing anything to any other human being.

Rather than be moved by our moral appeals that millions of innocent people are suffering and we could so easily alleviate that suffering by tiny, minuscule, barely-perceptible harms to those who are already richer than anyone could possibly deserve to be, he tried to turn the tables: “No, you are immoral. What you want is slavery.”

And in so doing, he created a thin, but shockingly resilient, intellectual veneer to the most craven selfishness and the most ideologically blinkered hyper-capitalism. He made it respectable to oppose even the most basic ways that governments can make human life better; by verbal alchemy he transmuted plain evil into its own new moral crusade.

Indeed, perhaps the only reason his philosophy was ever taken seriously is that the rich and powerful found it very, very, useful.

What you can do to protect against credit card fraud

PNRJ financial advice, financial fraud, public policy , , , , , , ,

JDN 2457923

This is the second post in my ongoing series on financial fraud, but it’s also some useful personal financial advice. One of the most common forms of fraud, which I have experienced, and most Americans will experience at some point in their lives, is credit card fraud. The US leads the world in credit card fraud, accounting for 47% of all money stolen by this means. In most countries credit card fraud is declining, but not here.

The good news is that there are several things you can do to reduce both the probability of being victimized and the harm you will suffer if you are. I am of course not the first to make such recommendations; similar lists have been made by the Wall Street Journal, Consumer Reports, and even the FTC itself.

1. The first and simplest is to use fewer credit cards.

It is a good idea to have at least one credit card, because you can build a credit history this way which will help you get larger loans such as car loans and home loans later. The best thing to do is to use it for regular purchases and then pay it off as quickly as you can. The higher the interest rate, the more imperative it is to pay it quickly.

More credit cards means that you have more to keep track of, and more that can be stolen; it also generally means that you have larger total credit limits, which is a mixed blessing at best. You have more liquidity that way, to buy things you need; but you also have more temptation to buy things you don’t actually need, and more risk of losing a great deal should any of your cards be stolen.

2. Buy fewer things online, and always from reputable merchants.

This is one I certainly preach more than I practice; I probably buy as much online now as I do in person. It’s hard to beat the combination of higher convenience, wider selection, and lower prices. But buying online is the most likely way to have your credit card stolen (and it is certainly how mine was stolen a few years ago).

The US is unusual among developed countries because we still mainly use magnetic-strip cards, whereas most countries have switched to the EMV system of chip-based cards that provide more security. But this security measure is really quite overrated; it can’t protect against “card not present” fraud, which is by far the most common. Unless and until you can somehow link up the encrypted chips to your laptop in order to use them to pay online, the chips will do little to protect against fraud.

3. Monitor your bank and credit card statements regularly.

This is something you should be doing anyway. Online statements are available from just about every major bank and credit union, and you can check them at any time, any day. Watching these online statements will help you keep track of your spending, manage your budget, and, yes, protect against fraud, because the sooner you see and report a suspicious transaction the more likely you are to recover the money.

4. Use secure passwords, don’t re-use passwords, and use a secure password manager.

Most people still use remarkably insecure passwords for their online accounts. Hacking your online accounts —especially your online retail accounts, like Amazon—typically means being able to steal your credit cards. As we move into the cyberpunk future, personal security will increasingly be coextensive with online security, and until we find something better, that means good passwords.

Passwords should be long, complicated, and not easily tied to anything about you. To remember them, I highly recommend the following technique: Write a sentence of several words, and then convert the words of that sentence into letters and numbers. For example (obviously don’t use this particular example; the whole point is for passwords to be unique), the sentence “Passwords should be long, complicated, and not easily tied to anything about you.” could become the password “Psblcanet2aau”.

Human long-term memory is encoded in something very much like narrative, so you can make a password much more memorable by making it tell a story. (Literally a story if you like: “Once upon a time, in a land far away, there were seven dwarves who lived in a forest.” could form the password “1uatialfatw7dwliaf”.) If you used the whole words, it would be far too long to fit in most password systems; but by condensing it into letters, you keep it memorable while allowing it to fit. The first letters of English words are not quite random—some letters are much more common than others, for example—but as long as the password is long enough this doesn’t make it substantially easier to guess.

If you have any doubts about the security of your password, do the following: Generate a new password by the same method you used to generate that one, and then try the new password—not the old password—in an entropy checking utility such as https://howsecureismypassword.net/. The utility will tell you approximately how long it would take to guess your password by guessing random characters using current technology. This is really an upper limit—computers will get faster, and by knowing things about you, hackers can improve upon random guessing substantially—but a good password should at least be in the thousands or millions of years, while a very bad password (like the word “password” itself) can literally be in the nanoseconds. (Actually if you play around you can generate passwords that can take far longer, even “12 tredecillion years” and the like, but they are generally too long to actually use.) The reason not to use your actual password is that there is a chance, however remote, that it could be intercepted while you were doing the check. But by checking the method, you can ensure that you are generating passwords in an effective way.

After you’ve generated all these passwords, how do you remember them all? It’s unreasonable to expect you to keep them all in your head. Instead, you can just keep a few of the most important ones in your head, including a master password that you then use for a password manager like LastPass or Keeper. Password managers are frequently rated by sites like PC Mag, CNET, Consumer Affairs, and CSO. Get one that is free and top-rated; there’s no reason to pay when the free ones are just as good, and no excuse for getting any less than the best when the best ones are free.

The idea of a password manager makes some people uncomfortable—aren’t you handing your passwords over to someone else?—so let me explain it a little. You aren’t actually handing over your passwords, first of all; a reputable password manager will actually encrypt your passwords locally, and then only transmit encrypted versions of them to the site that operates the password manager. This means that no one—not the company, not even you—can access those passwords without knowing the master password, so definitely make sure you remember that master password.

In theory, it would be better to just remember different 27-character alphanumeric passwords for each site you use online. This is indisputable. Encryption isn’t perfect, and theoretically someone might be able to recover your passwords even from Keeper or LastPass. But that is astronomically unlikely, and what’s far more likely is that if you don’t use a password manager, you will forget your passwords, or re-use them and get them stolen, or else make them too simple and allow them to be guessed. A password manager allows you to maintain dozens of distinct, very complex passwords, and even update them regularly, all while remembering only one or a few. In practice, this is what provides the best security.

5. Above all, report any suspicious activity immediately.

This one I cannot emphasize enough. If you do nothing else, do this. If you ever have any reason to suspect that your credit card might have been compromised, call your bank immediately. Get them to cancel the card, send you a new one, and check any recent transactions.

Do this if you lose your wallet. Do it if you see something weird on your online statement. Do it if you bought something from an online retailer that seemed a little sketchy. Do it if you just have a weird hunch and something doesn’t feel right. The cost of doing this is a minor inconvenience; the benefit could be thousands of dollars.

If you do report a stolen card, in most cases you won’t be held liable for a penny—the credit card company will have to cover any losses. But if you don’t, you could end up making payments on interest on a balance that a thief ran up on your behalf.

If we all do this, credit card fraud could become a thing of the past. Now, about those interest rates…