Jim and I chew the fat about the Nuisance Economy over that the Attack Ads! Podcast. It was fun to be a podcast guest once again, so I’m glad he had me on.
Here’s a bit of our correspondence you might find interesting. I mentioned that Franklin Roosevelt did not have things like Fox News to contend with. He mentioned that there was a lot of co-opted media at the time that was very opposed to Roosevelt’s New Deal (mostly owned by rich newspaper barons). But my point was that television news did not exist, and television news is a completely different animal because it renders people more suggestible than when you actually have to parse words in written media. He replied:
Roosevelt dealt with privately-owned newspapers and (especially) radio, which has a power of its own. There is something about a well-modulated human voice to convey not just information but opinion.
You’re right about the light. There is something about flickering, low-light experiences which imprints on us easily. I’ve heard theories that tales told around the nightly campfire were the main method of imparting helpful wisdom, so our brains glommed on to those conditions for paying attention. Hence, the Latin word “focus,” which literally meant “domestic hearth.” Combine such a mental preference for optics with a human voice, both backed by vast fortunes and the need for their continuance, and… Oh, yeah, here we are!
We also talked a bit about the economics of Henry George via email. I’m somewhat familiar with George, but haven’t dived in too deep. Jim mentioned an economist working in the Georgist tradition called Mason Gaffney: https://masongaffney.org/
Gaffney is yet another economist banished from the “respectable” discipline for heresy (but not inaccuracy). As I’ve said so often, economics is really a type of theology.
He also said quite a few interesting things about rents and rent seeking. He turned me on tho this author: Gerrit De Geest. Chapter one of his book is available as a paper online: Rents: How Marketing Causes Inequality (Chapter 1)
De Geest’s argument is that wide wealth and income differentials are not primarily the results of differences in individual ability, intelligence, inventiveness, or “hard work.” Instead, he argues, they are the results of being able to capture outsize economics rents. This is done by distorting markets, and the primary means of distorting markets is (ironically) called marketing. Marketing today is the science of distorting markets for the benefit of businesses in order to extract outsize profits far in excess of the costs of production and distribution. This is everything from exploiting cognitive biases to vendor-lock-in, to extending copyright protection and many other techniques.
Furthermore, he claims, these techniques have reached such a high level of sophistication and ubiquity that nearly all markets everywhere are heavily distorted in some way towards rent-seeking, and consumers are often powerless to resist. He sees this as a under-represented reason for the rise of extreme inequality that we see everywhere today. And this is all perfectly legal. As he puts it, “business schools have outsmarted law schools.”
We’ll take a closer look at that another time.