Showing posts with label social policy. Show all posts
Showing posts with label social policy. Show all posts

09 February 2013

What is the value of... anything?

In watching the course on The Moral Foundations of Politics presented by Professor Ian Shapiro at Yale as part of their Open Yale courses, I've had one of the most interesting and entertaining courses that, for me at least, help examine the Classical and Neo-Classical realm of political and economic theory.  I've been watching this via my Roku box and they are under the Lecture Kings channel.

In the Enlightenment tradition of science, that is to say the pre-Popper understanding of science, the ability of a scientific theory to explain any set of phenomena rested on repeatability (which is to say the theory will yield the same results time after time with a set of given conditions) and that it encompassed not just known phenomena but then extended into those that were not explained by current theory.  Popper would add in falsifiability, which is to say that any theory must have conditions which, if they are met, will demonstrate that the theory doesn't work  and isn't consistent, but that is a latter post-Classical addition to the scientific method.  The great movement of science in the 17th to 19th century was that it was encompassing broad swaths of observed phenomena in nature (motion, gravity, chemistry, the movement of energy, discovering gases and the laws that govern them, etc.) that nothing seemed to be outside this realm of discovery and that since everything was a result of natural phenomena, then everything can be explained by it.  This course examines a few of the major pushes towards integration (or disintegration and reintegration) of Enlightenment understanding to the realm of economics and politics.  From this the major movers and culmination of schools of thought are seen as they base their foundations on Enlightenment understanding.

The benefit of watching such a course where it can be paused while seen by more than one person is that ideas can be caught as they are presented and examined as they come up and then see where the at-home analysis goes between individuals and where the class goes.  And while there was some of that going on with the post-introductory seminars that dealt with Utilitarianism, when the class moved on to Karl Marx the amount of discussion was making a system of watching for a few minutes and then talking about each part of Marxist views as presented.  I've written about my views on Marx and socialism before and had only the background of being in a family where my parents were Scientific Socialists that tried to adhere to the First International and generally had disdain for the later International Congresses.  That gets you crunchy on the road sort of view of Marx and his ideas, not just as they were presented by himself but also as interpreted through a certain lens of understanding.  I do have a bias on Marx coming in, no doubt about it, but I can be persuaded by rational thinking that actually attaches itself to the real world utilizing scientific methodology to do so.  Marx, it was obvious, hadn't bothered to learn the scientific method or actually talk to any scientists on things like gravity, chemistry or even learn about the calculus and how infinite progressions are utilized to yield answers and that when certain equation formulations appear they can never be answered.  Plus his early upbringing in what can be described as Generation I capitalism would leave only a certain set of trends open to Marx which would be later shifted by Gen II capitalism of the late 19th century (that era in which some of what he predicted came true, but others did weird things with capitalism that would have been pure magic to Marx).

From the presentation of a few sessions discussing Marx's view of the economy and man's place in it, I've found that the non-scientific nature of Marx's methods and lack of any touchstones of real world examples to then raise issues that aren't just Third or Fourth Wave criticisms but ones that could have been pointed out to Marx in his own time, or that he could have discovered just by looking around.  Indeed if you are using the Hegelian Dialectical method and utilizing it for Materialism, then it is best to use material when utilizing the method.  And, as a side-note, Hegel was using the Thesis leading to Anti-Thesis (or reversion towards the old order) and Synthesis (arising between the change and the reaction against it to form something new) as a means to demonstrate that the pinnacle of government for man was that of the Prussian State.  It is a methodology used towards that end and even when generalized the way the methodology was created and utilized must be acknowledged as having some inward bias to it.  Marx applied this methodology (not Hegels actual argument, just the way he argued his case) to all of human history (because if the methodology had past utility in explaining events then it must have some future utility) and found that mankind was on the cusp of creating a new order that would transform from a capitalist to a socialist society and then dissolve the State in a communist society. 

In other words he uses Hegelian Dialectic methodology to come up to a conclusion that goes beyond Hegel and shows him to be wrong... unless the Prussian State of the early to mid-19th century truly is the perfect governing State for all of mankind, in which case Marx is wrong. In any event the Hegelian Dialectic has a presumption of a 'forward' motion in social change, that is to say that changes within societies have a direction over history and that changes from the norm of society then get a pull back towards the norm and the synthesis point incorporates some of that 'forward' direction.  As a method of historical analysis this form of logical argument has counter-arguments in the known post-Roman Empire Dark Age, which was known at the time, and other counters to it seen not just in the European region (the late Bronze Age collapse is another example of such a period), but in Mayan culture pre-Columbian contact or similar episode in Japan (the closing of Japan by the noble and aristocratic class) or China both of which had societal systems that did not put any real value on 'progress' outside of the military realm and even that had a limit in Japan.  Problems with Dialectical analysis of societies are immense and utilization of it as a system of analysis is one heavily fraught with the dangers that the system misses.

The methodology of Dialectical Materialism is one used to examine an end-state of society and government by using the Dialectical method and applying it to economic and political realms.  This is a key part of Marx: he is getting to a end-state, no change possible regime, aka 'the end of history'.  Utilizing the methodology of the Dialectic, then, appears to be one to reach an end-state based on what you know, without regards to what you don't know.  Thus any change that comes from outside of the realm of the Materialist utilization of the Dialectic, which is any information outside that of the writer (Marx) during the time of the writing will have unknown and unknowable effects upon the initial conclusion based on a set of assumptions or observations. 

A first major assumption of Marx is that all that is known about the economics of capitalism of his time are true, are the entirety of capitalism, and that anything that derives from this known base is a mere variation within the known structure and that there are no external factors that will play into this structure at all.  It is an end state methodology, after all.  Yes, that is part of the objective perspective that Marx brings to the table and the claim he puts forward is that those inside the capitalist system have no idea of how it truly operates and that only an objective observer can have that or that the workers will finally gain that and end capitalism once it reaches its self-evident conclusion.

There are two major parts of capitalism that Marx is examining in the use of the Dialectic and they revolve around the conception of 'value' and that the observed phenomena of the decline of profits was universal to capitalism as a system.  Utilitarian thought puts cost of something, and thus its 'value', as a marketplace concern which is met at the price point of supply and demand.  Marx tosses that out and puts forward that there is a natural value to any commodity (that is a good that can be sold) and that this 'value' is invariant.  There is a price paid for that commodity at any given time, but there is a true inherent 'value' that resides within the commodity once it is made and that is different and stable as compared to pricing at any given time.  In the capitalist system (actually in any system) there is a required amount of unrecoverable cost (be it in labor or raw materials) that once it is compensated for you can't get back which is a sunk cost which is not the same as 'value' in the Marxist conception of things but has a direct relation to his argument as a whole. 

As the capitalist system is about selling goods at a higher than production cost to gain more than that current sunk cost (and above the natural 'value' that has been put into that commodity because its current 'value' in production cost is above its future 'natural value'), the question of 'where does this excess value arise from?' comes from Marx.  This is then utilized to put forward that there is only work value in any commodity and that 'value' can only be created by work, therefore any worker is not getting their true work 'value' from the exchange of labor for a wage.  As capitalists compete with each other they cut profit to get a leg up on their competition and this is done via exploitation of the workers (and this is not done in a pejorative sense but a 19th century sense of exploiting natural resources or exploiting one's time to good ends conception).  Efficiencies are developed which are done through the realm of increased capital cost to the capitalist.  Profits decline as the number of goods rise and their price declines, therefore the wage of the worker must decline to increase profits.

Now lets step back from this for a moment and take a quick look a the Labor Theory of Value, which Marx puts into the conception that all commodities that are sold have a natural value inherent in them that is reflected by the amount of labor to get that good.  That is the true, natural value of a commodity.  There is a problem with that as this is normally defined as a sunk cost to get to that end product. 

There is a sunk cost that goes into production via the utilization of capital (which is made via labor, of course) which is purchased at a subjective value based on what the buyer is willing to pay and what the seller is willing to take for that item.  A sunk cost is the paid for amount of time, energy and materials to get a produced good to any stage in its production and that cost is paid for at that time (or within increments of it as in paying a worker for a week's worth of work).  That asking price for a commodity can be equal to, higher or lower than the sunk cost in making that commodity at the instant of transaction.  The value of that commodity is then placed at that instance in a subjective manner, which is to say that the worker is paid for the work time at the instant of payment and a seller is paid a negotiated price at a similar time for a commodity. 

This is a critical weakness in the conception of an inherent 'value' of a commodity as the actual value of a created commodity can and, indeed, does change over time with the majority decreasing in value but with other items actually increasing in value.   The cost for that commodity is always an instantaneous one and encapsulates the entire chain of sunk cost up to that moment of sale.  A worker in the pin factory, to use Adam Smith's example in Wealth of Nations, gets paid for the work put in to draw out pins of a certain diameter and length and that pin, at that place in production, is not the entire pin, not useful as a pin and is only a part of the process of making a pin.  There is 'value' to that work and the worker is paid for it via the time incremental payment system.  For the object that will become a pin that is then part of the sunk cost to get it to that point in time. 

In that instant before it has been sharpened, the end pressed down, the pin head place, the pin polished, then put into a paper roll, etc. there is very little actual value to the piece of drawn wire that has been cut: it isn't a pin nor is it of much use outside of the pin factory setting.  Indeed those pieces that haven't been properly sized are put aside and sold for scrap value which is generally the open market value of the metals involved by weight.  If Marx complains about where all the excess 'value' goes for sales of commodities, then why no complaint when 'value' is lost via waste, pieces not well made and so on?  If work is the paramount achievement of creating 'value' then what happened to that 'value' when such pieces have no greater value than raw metal stock that has very little value added to them?  Even with automation there are still pieces that do not come out right, that have flaws in them that do not allow for them to be utilized and other defects that cause them to be cast aside for mere raw value or less. 

Why is the inherent 'value' of such an item less than its perfect counter-part as they both have the exact, same amount of labor time in them?  Is the labor value added to it zero?  It has a sunk cost that must be recouped as the labor has been paid for, so if capitalists magically create money out of thin air (or are stealing it out of the true 'natural value' of the work represented in a commodity) then how can the inherent value of a flawed piece lose the work value that has been imbued in it?  And if the capitalist is recouping some of that labor 'value' by raising the price of other pieces, then that is because he must then over-value those pieces to recoup the lost 'value' of pieces that cannot be sold.  A great push to move such lost pieces out via inspection and other means increases overall production cost, adds little value, and yet helps raise the number of items produced which helps to defray those incremental cost increases (all sunk costs as they now happen to the perfect and imperfect alike) via increased production of higher quality items acceptable in the marketplace.   What is the actual 'natural value' in the Marxist conception for those objects that don't make it? And if their 'value' is transferred to those that become actual commodities, then how does that labor 'value' get put in those finished pieces from out of nowhere as that was not labor performed on them but on pieces discarded and sold for less than their added labor 'value'.

One cannot even say that there is a true 'natural value' that is at some average between the high and the low for that class of object as the low is zero, the high an unknown, and the next pricing valuation will be based on a set of valuations that are not based on labor cost.   The value of labor, then, is what someone is willing to pay for it as a sunk cost to produce a commodity and is only paid in expectation of what can be gained via sale of that item.  An individual worker who gets paid at the instant for making something is not paid the value of the item, but for the value of the work done to the item with regards to how much skill is necessary to make it.  Marx, however, doesn't see it that way and prefers that there is an inherent end 'value', a 'natural value', to any human produced commodity: value accumulates to the end of work on an item and is always embodied in it.  That process of accumulating work on a commodity is seen as having the 'value' of what it takes someone to make it, but that the process of making it in smaller steps is a value cumulative one.

This is why there is a division of labor, as explained by Adam Smith in Wealth of Nations, is one so that a pin making factory can churn out tens of thousands of pins a day (all set in paper, a set number per box and a set number of boxes per crate) while if each worker had to do the whole process on their own the output would be dozens not tens of thousands of pins per week.  Marx puts forward that such division of labor is alienating man from his natural self and capabilities.  What it is doing via that process, however, is allowing easily learned separate steps to put less sunk cost in per piece so that the entire amount manufactured has a lower cost associated with it.  The ability to recoup cost, add in other overhead (factory maintenance, heating, cooling, maintenance of equipment, etc.) plus some additional amount known as 'profit' to pay investors a fraction of what they have invested back for the risk they are taking, plus to pay the actual capitalist a wage or salary.

Marx is not about rewarding risk, from what I can see of his conceptualization of an end-state system, but about meeting 'needs'.  Because 'natural value' is accumulated in commodities, the capitalist system will build up a huge 'value' that then will allow for its demise as that 'value' will meet the needs of everyone.  Before the end state there is a socialist period in which the problems of politics and the State are addressed by the workers who have removed the capitalist system and then remove the basis for the State and dissolve it so that a final communist system can arise.  This system will end the division of labor and heads towards a piece in The German Ideology (1845) in Part I, A, Section on Private Property and Communism (Source: marxists.org):

Further, the division of labour implies the contradiction between the interest of the separate individual or the individual family and the communal interest of all individuals who have intercourse with one another. And indeed, this communal interest does not exist merely in the imagination, as the “general interest,” but first of all in reality, as the mutual interdependence of the individuals among whom the labour is divided. And finally, the division of labour offers us the first example of how, as long as man remains in natural society, that is, as long as a cleavage exists between the particular and the common interest, as long, therefore, as activity is not voluntarily, but naturally, divided, man’s own deed becomes an alien power opposed to him, which enslaves him instead of being controlled by him. For as soon as the distribution of labour comes into being, each man has a particular, exclusive sphere of activity, which is forced upon him and from which he cannot escape. He is a hunter, a fisherman, a herdsman, or a critical critic, and must remain so if he does not want to lose his means of livelihood; while in communist society, where nobody has one exclusive sphere of activity but each can become accomplished in any branch he wishes, society regulates the general production and thus makes it possible for me to do one thing today and another tomorrow, to hunt in the morning, fish in the afternoon, rear cattle in the evening, criticise after dinner, just as I have a mind, without ever becoming hunter, fisherman, herdsman or critic. This fixation of social activity, this consolidation of what we ourselves produce into an objective power above us, growing out of our control, thwarting our expectations, bringing to naught our calculations, is one of the chief factors in historical development up till now.

In the communist society not only is all labor equal, but everyone can do all labor equally well.  And since all of those things are labor they deserve equal consideration and equal valuation because all labor is equal and done equally well.  With this being the case all will be treated exactly alike, that is in a 'fair' way about their labor so that all can have their needs met.

Do note that the capitalist system is attempting to provide for the needs of workers via labor exchange, which is to say that the workers can garner enough from their labor value to then get food, water, clothing, etc.  Their needs are met via work through the medium of exchange of value, but the actual value is placed higher than the 'natural value' of the labor involved for a commodity.  In doing so value is accumulated via the capitalist, which then has that system overthrown and after an intermediate socialist period that capital survives to meet everyone's needs.

This leads to the famous passage in the Critique of the Gotha Programme Chapter I (1875) (Source: marxists.org) which reads as follows:

In a higher phase of communist society, after the enslaving subordination of the individual to the division of labor, and therewith also the antithesis between mental and physical labor, has vanished; after labor has become not only a means of life but life's prime want; after the productive forces have also increased with the all-around development of the individual, and all the springs of co-operative wealth flow more abundantly -- only then then can the narrow horizon of bourgeois right be crossed in its entirety and society inscribe on its banners: From each according to his ability, to each according to his needs!

If you don't believe that thinking about fishing and fishing are equal in value, then you have a problem with Marx.  In his conception of the world that is the case, where having the idea of going fishing (or hunting, or farming) is the exact same value as doing these things.  That is because we are all so productively abundant in our co-operative creation of wealth!  Yes, by just thinking about creating wealth you can create wealth.  See, isn't that a great place to be in?  Labor has changed from a requirement to survive to a mere want that you contribute to the collective and then you get back the necessities to survive in return.  No man's work is better than any others, no man's ideas are better than any other man's ideas, and, really, if you are that far along in history there is nothing left to discover, explore or innovate since that all was done under capitalism or maybe socialism.  Remember you are at the end state of history here and back to mere necessities and needs, and wants are nice things but, really, with just a bit of wanting to survive you contribute enough to survive because of the big, heaping, left over value that capitalism has graced you with.

Sounds a bit like The Matrix, doesn't it?  Yeah its called 'dystopian fiction' for a reason.

Isn't it lovely how egalitarian mankind comes once he finds out that 'we are all workers now?'  The process of that change?  Recognition you are a worker!  Ending capitalism and putting in the temporary state of socialism!  All your needs will be met!  You shall be happy!  Don't worry about all the blood on your hands and under your feet to get to this place, you are so much more advanced for doing that.  Luckily you have all that capital for free, once you get rid of the owners, and it produces products with no oversight, no inputs, and no requirement of actual labor... of course you don't need any more of those things since you can do very well with what you have, right?  And work done by the daydreamer, the tinkerer, the baker, the surgeon, the physicist... why anyone can do that work equally well without missing a step.

And those things known as 'consumables'?  You know the stuff consumed to keep you alive, the stuff used up to keep things running, the stuff that wears out and needs to be replaced? How, exactly, is this end state society different than our hunter-gatherer forebears who actually did have to know a wealth of skills, do them better than average and actually keep themselves alive with a roof over their head?  Doesn't that also fit the definition of this communist society, as it also has goods passed down generation to generation with being able to make-do or do without when something breaks?  How quickly does wanting to hunt, fish, sew, etc. become survival requirements once the automated equipment breaks down and there are no easy to get spare parts and no one left who actually has bothered to work on those machines left over from the capitalist era?  Who wants to be the mechanic with little to do when you can be the artist, the critic, the cynic and the socialite?  Even assuming the food comes from bacteria (with yummy blue, yellow and green varieties and happy red every other Friday) as we know any and all things made of nature are bound by its laws and entropy is a leading one of those.  What is made does not last forever, stored value decays as nature reclaims it through her work upon all things.  That great pile and store of 'natural value' is stuck facing up to its own nature and ours.

To sum up this end state of mankind as seen through Marx has a number of problems that stretch into infinity.

It has a problem of what 'value' is in compared to current cost, and imputes that there is some 'natural value' of a made thing that is pure, separate and independent from the cost of making it, that the labor value is over-priced to gain profit and that profit is created by exploitation of past labor, not paid off by past and current labor (with expectations of future labor) combined.  That is if all the workers can't buy what they produce now, could they buy all that was produced, say, ten years ago?  Profit comes from a delta of past cost sunk into making a commodity, and it is paid for not just with current value but with a delta between past and present value and an expectation of future work value added into the economy as a whole.  Those payments for labor have already happened for the pure present and near present, and there is the expectation of continuation of it in the future.  You paid more for your car or house than its then current value, knowing it will actually decline in value, but paying it off with future labor.  The actual value of the item will be far less than you paid for it with extra, but you have had the use and utility of it in the mean time that helps to defray that cost and, indeed, continue your livelihood.

It has a problem of marginal cost of maintenance which, while marks accounts for it as 'social capital' it is a hand-waving gesture to acknowledge that this vast area has a cost all its own that increases with the complexity of the original cost of procurement.  You can't use the stored natural value from capitalism to keep it running, and that means that people must run it because the loss of any of those systems for even a short period means that the entire edifice will begin to crumble.  It is at the margins that great Empires first erode on the way to collapse, and no matter how egalitarian a system is, no matter how much 'value' is laying around, the present demands maintenance so you can have a future.  The reason for the hand-waving criticism is that someone, somewhere, who actually has some understanding of the vast and complex set of systems involved must be the ones to not fritter their days away with artwork, fishing, and other work 'wants'.  Very quickly those people, because of their skill and application of it, are the ones making decisions for everyone else. 

It has a further problem of convertibility of skills, knowledge, intellect and actual physical labor.  Truly if everyone can do everything, in turn, where does this repository of skills, knowledge, intellect and actual ingenuity and perseverance come from?  And as skills actually build up neural structure as they are used, what is the likelihood that anyone can pick up a skill and have equal capacity of it?  Even if you could do that, could gain all of this in an instant, what is the point of it when it is the time, energy and love one puts into gaining and honing skills that is a major reward for seeing the differential in outcome for the better over time.  It is that dedication that builds up self-worth and a value that isn't reduced to labor, yet even with the best of training, the best of repetition, the best of all possible capability that one puts into a skill they just may not be very good at it.  That entire division of labor business has a point beyond just nature granting some gifts while not granting them to others.  The actual derived value of such a gift is its self-discovery, enjoyment and utilization of it and appreciation of it from others beyond just monetary rewards, yet it is that 'starving artist' that receives the spur to create masterpieces: name the royal, noble or aristocrat that was as good as da Vinci, Picasso or Rembrandt and you will have named an anomaly, not the way of art.  Similarly Einstein's most productive year of four ground-breaking papers was marked as a 2nd class engineer at the Swiss Patent Office, and his recompense in the immediate sense was whatever the payment was for that job and the four papers.  Is that in any way a measure of the labor value he was paid for?  That inquisitive mind seeking answers may not yield immediate results, indeed it may not yield ANY results if the question just can't be answered, yet to Marx that is all productive labor value in an advanced communist system.

It has the problem of actually finding an end to science, answering all its questions, answering all questions of theology and metaphysics, and discovering literally every means there is to produce and advancing it to the highest stage of production.  These are not 'nice things to have' but are end state requirements to have communism as Marx describes it.  To date while there have been physicists who have said they think that there is a decrease in question feedback (answer one question and you get ten more questions is the concept), but that is not pointing to any short-term end of scientific discovery.  Indeed in Marx's time there were those declaring the end of science with all that was known about heat, radiation, steam power, chemistry, biology and electromagnetism, yet it didn't happen.  Creating atheistic communism is not an end to theology as the causation of all things then stands with no starting point and, even as we have seen in current science, a starting point may not even be a true starting point for everything.  Getting a coherent meaning of life to ourselves, as individuals, a great goal of the Classical movement, gets no closer by removing God from the equation as it still leaves a void in that place.  And if what we are coming across in modern physics is any indication, then that search for meaning must start taking on realms that are hard to describe or imagine, but are perfectly allowable by what is known of nature.  The questions of those artifacts of nature are things that can only be answered in the 'how' way by science, not in the 'why' way: how does it work vs. why does it work.  To get to communism all of these questions must have a definitive answer and for many we haven't even started to ask the questions or know just what it is we should be asking.

It is the problem of non-closed systems for economics, because capitalism works best with natural resources to find and utilize, and then use at the cheapest possible competitive rate and create commodities.  The Earth is not a closed system.  Nor is the Earth-Moon system.  Nor is the solar system.  Nor the Milky Way galaxy.  Nor our local cluster of galaxies.  Nor our super-cluster of galaxies.  It is at that, truly universal scale, that you might, possibly with lots of provisos, have a 'closed system'.  And we haven't even produced widget #1 from the Moon yet.  Yet.  With the groups now at work to get to the Moon for useful exploration and others to bring an asteroid into Earth's orbit to begin orbital engineering, mining, and manufacturing, we stand at the cusp of opening up the solar system.  That is why the efforts of all socialists and communists is to stop human advancement into space: it destroys the chances of ever seeing a communist system evolve in timeframes less than centuries, if ever.

Finally there is the problem of human nature, to work not for one's own good but for the good of others as the basis for work.  By getting necessities provided for there is no reason to work harder, longer, innovate or do anything to improve one's lot because the effects cannot be concentrated due to skill, luck or anything beyond corruption of the system.  Thus capital doesn't accrue, it is maintained and probably not all that well once the individual work incentive is removed.  To state that the grand recognition that 'we are all workers now!' will change mankind is akin to saying 'when Jesus arrives we will reach the Promised Land!'  It is a theological statement about something shifting the very basis of human nature by singular awakening and it can neither be proven nor disproven.  That means it isn't a scientific conclusion, but a theological one based on ideology.  As there is no precedent for such an event, no prior happening similar to it, it requires a singular event which has never happened before in history... like Ray Kurzweil's singularity promises.  Point to those, if you like, but a combination of trends like this actually has precedent at a smaller scale, in inventions and changes in how we think about things (like light and combustion) that take time to play out.  Even with the hyper-acceleration of the modern age, that is for knowledge, not wisdom nor insight into the nature of man.  Knowledge is great stuff, don't get me wrong, but wisdom it ain't.  In fact if you take a look at how leading a prudent life, not overspending, preparing for a rainy day, being a service to others as a gift not a requirement, as touchstones of wisdom and how to lead a good life, then we have actually backslid on the foundations of wisdom to lead a good life.  The Romans lost wisdom as they expanded so the very firm basis of a republic that actually allowed the Empire to form could not survive when its citizens slid into depravity and debauchery.  At the height of its power its people were no longer the force to sustain an Empire and it fell, quite hard.  If that is an antecedent to the modern age, then we are in deep, horrific trouble and nowhere near what is necessary to transform into some Marxian new man for the post-capitalist world.

Necessity is the mother of invention and when all your needs are met then it is Prudence, our handmaid of conscience, that reminds us to put away for that rainy day, to make sure you have extra in case of disaster, to prepare in case tomorrow really isn't a better day.  When we heed her influence we can be altruistic in helping others and create a better society that can sustain itself.  Marx removes necessity by bare provisioning, locks up Prudence in a dungeon, and tells you that you shall be altruistic because it is required.  Maybe Marx is right... but tens of thousands of years of human nature point to a different outcome.  And we have already seen what happens when you try to force this new man to arise, and it isn't a happy nor pretty sight, and the word tyranny doesn't do that state justice for how low it has sunk.

17 February 2010

The terms are the thing for defining what you want

In the 'health insurance' debacle that is playing itself out around the Nation, I have heard many, many, many terms thrown out but the question of 'covering the poor' and the 'uninsured' come out the most with the partisans in favor of large expansions of government.  Yet the first, the poor, are supposed to be covered by Medicare and Medicaid.  The 'uninsured' are not numerous particularly when you remove those who don't want insurance or refuse to buy it.  The number of those seeking insurance who can't get it is small.  Then the reasons of 'pre-existing conditions' is bandied about for why the 'insurance' system needs 'reform', which is to be expanded to cover everyone, everywhere with unlimited liability to do so.

That is a mess of terms and ideas floating around that need some rigor to them before you can even ask the question: what should we do?

You might first ask: are we doing the right thing to begin with?

Pre-existing conditions are those you get when relatively healthy or are born with that then limit your ability to get medical 'insurance'.  But are you truly looking for 'medical insurance'?  Hold that thought as we go along.

Insurance is the idea that you bet something will happen to you, like you will die in the case of life insurance, and the insurer bets that you won't.  You pay into a plan so that if you die unexpectedly or younger than would normally be the case, then a larger payout than anything you have put into the plan is then paid to those you designate.  Catastrophic care health insurance is your bet that you will come down with one (or more) catastrophic problems health-wise and the insurer covers you on the bet that you won't get them.

Health Insurance does not follow that formula.  I has you paying into it to get price breaks on seeing a doctor, getting tests run or getting medications or procedures done.  Your expectation is that you will use a certain number of visits and procedures as part of your annual needs (physicals, colds, injuries, etc.) and have a catastrophic component of a plan that will cover you in case something bad happens to you.  It is not just catastrophic insurance but has a large maintenance and minor to intermediate levels of care thrown in, plus things like reduced costs on medications.

Then there is the concept of 'managed care', in which you are trying to manage your medical expenses via pooling your risks with that of others in a given plan.  We often call this 'health insurance', especially when it has a catastrophic portion to it, but is it, really, that?  This dovetails with 'pre-existing conditions', above, as those conditions have set courses and routines to them that are generally well known.  If you are a Type I diabetic, say, there is an expectation that you will need more frequent eye exams and almost a certain course of laser work to stop degeneration of your eyesight.  Similarly people who have had any cancer in their lives need certain treatments based on the cancer type they had.  Individual with HIV/AIDS have a generally known set of problems and conditions, along with medications and treatments for that suite of conditions.  In many of these conditions if you take better care of yourself you may forestall the need to have certain procedures performed or get certain medications, thus by taking good care of yourself you move within the overall set of statistics for all patients: those who do take good personal care of themselves and those who do not.

Our current system of 'insurance' only has a negative reward built in: you don't have to pay out for a treatment you don't need in a given year.  But forestalling a need is not the same as not needing a procedure at an unknown future time.  Thus you are trying to use 'insurance' as a model for something that pays out on a continual basis for 'managing' your care and gives no incentive for you to take better care of yourself so that you follow closer to the average risk rather than shifting your risk and costs to a future time.  Without encouragement, beyond the nice talks you have with your doctors on the subject, you have no incentive to actually take care of yourself as future problems are 'in the future' and as individuals we tend to place lower value on future problems and concentrate on current costs.  It is a given that not all conditions can let you shift the need for procedures and medications and such by you maintaining your health in a better way on a personal level, but many can and do have that potential.

Thus with 'pre-existing conditions' you would like to have a system that allows for some pooling of risk, some price breaks, and some actual rewards for better health care that you do so that you do not utilize the system at an average or above average rate for your condition(s).  As we acknowledge that tangible rewards beat the absence of cost and give assurance that we have actually done a good job and should continue to do so, this means that a good 'managed care' system would then give you a return for a future procedure that comes up statistically for your condition, age and length of time that you have had it, but through your good work at maintaining or even improving your health you do not get at the average time.  For that you get a certificate that you can have a full course of work done, at any future time, within 'the plan' or its associated plans or through similar cross-accepting plans, this procedure or treatment for FREE.

This concept is called: investing.  You are investing via payments to 'the plan' and you can get 'payback' from it for full cost treatment of conditions by taking good care of yourself now.

Any individual 'plan' is not insurance, then, but investment management via managing your pre-existing conditions in a better fashion in the short term, so as to stave off secondary or consequential impacts of not doing so at a later date.  And as such treatments usually require follow-ups, re-testing and such, if you continue to keep up your good health then as those come on their normal and expected times from when you would, on average, have required such follow-ups, then you continue to garner free benefits for an entire course of normal treatment for you condition(s).  Even if you leave the plan or go to another one or get laid off, the certificates remain valid and have a definite value to them in the form of the cost of a procedure that is vested in the certificate.  Mind you it may not be a paper certificate, but an electronic one keyed to a banking or financial institution, insurance company, or medical management group.

At this point the concept can now be broadened to the general population in which individuals have a set of risks associated with their genetic background, current lifestyle and health, as well as other factors.  This concept of paying an up-front set of costs for guaranteed treatment with defined parameters is something that will go beyond those with 'pre-existing conditions' and extend to those who have 'pre-existing tendencies' towards a condition or set of conditions, often due to family heritage, but they have not manifest at that point in time.  Individuals could start pre-investing in treatment plans for those conditions, get certificates for the typical types of work done and necessary courses for a given condition years or even decades in advance of possibly getting such problems and pay a substantially lower cost, up-front, than when the actual on-set happens.  Thus if you are prudent with your health, invest a minimal amount in your future health when younger, you can then have assurances that major problems that often happen in your family are covered by those early investments.  And if you get another condition or problem, you can then either trade or cash-out those pre-paid investments for treatment courses you need, now, via utilizing your investments.

This, too, is 'managed care' but done by individuals willing to pay into treatment risk pools due to their background, jobs, or other conditions that indicate a future risk of certain conditions.  Competition for this comes from groups able to offer better sets of treatments, wider arrays of affiliates beyond the immediate plan or such things as paying for research into the specific condition(s) 'the plan' covers.  The latter would be investment plans into better future treatment or even ameliorating and removing the condition completely.  At which point you can cash out your investments for their last face value cost before the cure was found, or trade them for other treatment plans.

Like stock you can pass these on to your children if you die before utilizing the treatments.  It can be argued that cash may be a better investment, but that has become taxable so many times through current investment systems that it isn't funny.  As these certificates have real value attached to them, that is an actual set of treatments, tests and procedures, which can vary across a set of affiliates, there is no set cost to a given certificate, only a 'high-low' range.  Further, when you utilize the certificate for that treatment, it cannot be taxed as it is a deferred service being rendered, not an actual good or cash payment.

This can be applied to medications, as well, as conditions often need medicines or durable equipment.  A given plan may associate with pharmaceutical and durable equipment companies to include certain name brand medications and durable equipment, or their future successors in improved medication or equipment, so that the level of treatment for a given procedure gets better over time.  Purchase a treatment plan that relies on generics, now, and in the future you get the generic equivalent of what is standard for the treatment at that future time.

Covering those with 'pre-existing conditions' no longer centers on the current cost, but on the future need for treatment.  Joining a plan that covers a condition or set of conditions then allows you to move into a known risk category and have some minor pricing breaks immediately and then rewards you for keeping yourself healthy once you join such a plan (perhaps after a given vestment period in it, say 3 years).  Once you are vested in a plan that works for you and that allows you to demonstrate that you can have a positive control over the course of your disease, the rewards are lowered future costs and even getting the ability to know that necessary future treatments will not take a bit out of your budget because you have practiced a healthy lifestyle to avoid complications.  This changes our systemic viewpoint from paying and 'let the insurance company handle it' to having some price breaks because you are in a pool with known risks and then getting rewards for shifting the actualizing of those risks further into the future.  The plan you join is centered on managing your care and treatment, not on your 'health' save to help you lead a good life so you need less care and treatment in the immediate future.

At that point only the critically and terminally ill are left to deal with, and for that we do have charity.  Of course if you had spare treatments available to you, and spare medication guarantees that you aren't likely to use, you could donate those directly to a charity that cares for the ill so that they could match up those people with good care givers at no cost.  And you could invest money to replace a treatment if you needed to do so, also.

I am less than impressed with 'health insurance' as it does not center on critical factors of coverage, health maintenance and rewarding good health in a positive fashion that is tangible.  If we were serious with verbiage that makes our health an 'investment' and started treating as something we can invest in, then we might just find out that we had the wrong idea about our own health in the first place.  And that the individual is the best person to judge risk, cost and expectations.  And you could still purchase catastrophic care insurance if you really needed a backstop, too, for the unexpected future.  But you can take care of the expected and probably future on your own far better than 'insurance' will ever lead you to do.

24 January 2010

Survival, DIYism and Haiti

I have written multiple times on survival of disasters and how you can cope with disaster through preparation. Here is what I have said in the first of a series of articles on survival, although I had written about the same topic before that in much the same way:

The #1 thing I learned while hiking, camping, driving and so on is that you keep necessities with you so you don't waste time and energy on worrying.  The moment you sit to worry, or sit to think, or sit to do anything but rest for a few minutes, then you are no longer thinking about surviving what life is handing you.  The act of worrying when you need to be surviving is to not be surviving and that ends up in a very bad place for you... and whoever has to come and get your carcass out from where you worried yourself to death.

Nor can you think your way to surviving.  You can only DO your way to surviving and when you do something wrong you admit it and then change what you are doing to account for it.  If you aren't doing, you aren't actually thinking about what you need to do to survive.  Plenty of time for self-recrimination when you get back out of your situation to whatever passes for civilization.

This describes a mind-set, a way of approaching life and problems.  I recognize it as such and it works for me rather well, YMMV.

When disaster strikes I look at those caught in the midst of it and ask myself: 'Did that person plan on surviving?'

It may seem rough, crude, nasty but life is all those things and mother nature is not kind to you.  Disasters can and do strike at the most inopportune times, namely when you least expect them to.  That is why they are called 'disasters' and not 'carnival rides'.  In a disaster that strikes anyone, your chances of 'being saved' depends completely on your ability to survive past the disaster.  Getting through a major earthquake, aircraft falling out of the sky, being shipwrecked, stranded by the roadside when your car skids off into a ditch... all of these requires a mode of thought to kick in which puts your survival first and foremost.  If you have others with you, then you cannot help them if you do not survive.  I'm sorry if this is a shock to you, but if you love someone, dearly, your best way to save them (save in lovely  circumstances of 'its either them or me' often seen in works of fiction and less often in real life) is to ensure that you can survive.  A man trapped with a boulder crushing his forearm and being alone had one choice and took it: he cut off his forearm.  And survived.  Family units that break up for a father to go out and bravely seek assistance often finds either the father or the family dead.  Sticking together to share resources and skills is a damned good idea, but circumstances can dictate that staying where you are is lethal.

Looking at the disaster in Haiti, we see a Nation that has not prepared its infrastructure for an earthquake there, and they are not unknown on the island.  With so many collapsed buildings it is safe to say that the building codes were not up to snuff or, if they were, that the companies doing the construction did not adhere to them and they passed inspection anyway.  Emergency services are lacking and absent on the ground in a real sort of way with police stations, fire houses and even hospitals collapsing due to the quake.  Nor are there indications that the power infrastructure, potable water lines and sewage infrastructure were in any way prepared for this sort of event.  The main harbor to the Nation at Port au Prince is a mess and it is safe to say that it was not built up to codes to resist earthquakes as now the US Sea Bees are on the job to clear the harbor for shipping.  The finger-pointing by most commentators is to a lackluster government, full of corruption and creating more poverty as they do not return any essential services in a concrete way for the money taxed from the citizenry.  That impoverishment means the average Haitian is dependant upon the government for any largesse that can be dispensed, and becomes an electable kleptocracy where past governors take the money and run, when they do not situate themselves in for a permanent life term.

This is a Nation that can not do on its own, and at the slightest disaster the entire Nation needs 'saving'.  Yet, sharing the island with Haiti, is the Dominican Republic that appears, even while poor, to be doing a bit better job of running itself in the exact same climate, geography and geophysical circumstances as their poor neighbor.  Thus what is seen is not a lack in natural resources, not a lack in personal fortitude and not a  lack capability as all men are created equal.  What is seen is an outgrowth of a lack in society and its organ called government.  If there is something wrong with the organ then that is a reflection of the society: as night follows day, a corrupt government is indicative of a society that is corruptible.  You cannot get the government like that without assent from the people of the Nation for it.  That assent may be coerced, yes, as it is with dictators the world over willing to kill their way to power and threaten their own citizens and make them subjects, so too that may be the case with Haiti.  If that is the case then our past experience will tell us this is so.

Past experience, you ask?

For what I have heard from a limited portion of commentators in the media wanting the US to 'take over' Haiti for a few months and get things running, there is a deep and extreme caution flag that they are missing.  America has been there and done that before.  And not just for a few months, either.

One of the seminal papers on US Counter-Insurgency (COIN) was done by Peter L. Bunce with a work published on 05 JUN 1995 in Foundations On Sand: An Analysis Of The First United States Occupation Of Haiti 1915-1934.  As COIN is something we have gotten to experience in Iraq and Afghanistan, as well as Colombia, Philippines and elsewhere, it behooves us to understand the goals, execution and results of a COIN operation that was done in our past in the exact, same Nation by the United States.  The Executive Summary of the paper is telling:

Thesis: The first United States Occupation of Haiti, after a slow start, made a great variety of capital improvements for Haiti, made changes in the Haitian political system, and refinanced the Haitian economy, none of which had much lasting impact on the Haiti people once the occupation was terminated.

Background: The United States occupied Haiti originally to restore public order in 1915. It's self-imposed mandate quickly expanded to reestablishing Haitian credit in the international credit system, establishing good government and public order, and promoting investment in Haitian agriculture and industry. After a slow start, marred by a brutal revolt in 1918-20, the United States Occupation of Haiti was reorganized and began to address many of the perceived shortcomings of Haitian society. Its international and internal debt was refinanced, substantial public works projects completed, a comprehensive hospital system established, a national constabulary (the Gendarmerie [later Garde] d'Haiti) officered and trained by Marines, and several peaceful transitions of national authority were accomplished under American tutelage. After new civil unrest in 1929, the United States came to an agreement to end the Occupation before its Treaty-mandated termination in 1936. Once the Americans departed in 1934, Haiti reverted to its former state of various groups competing for national power to enrich themselves. Almost all changes the American Occupation attempted to accomplish failed in Haiti because they did not take into consideration the Haitian political and social culture.

Recommendation: Before the United States intervenes in foreign countries, particularly in those where nation-building improvements are to be attempted, the political and social cultures of those countries must be taken into consideration.

The Thesis is, itself, telling.  Those in the areas of commentary and punditry could learn something from that Thesis which is the seminal distillation of the entire work.  Any calls to improve the Haitian infrastructure, clean up its political system and get the Haitian economy going fell apart as soon as the US left Haiti.  In the Background is the telling sentence I highlighted that points to the failure of the infrastructure being rooted in Haitian political and social culture, not the fault of the 'occupiers' who created a then modern infrastructure, financed its farming and banking system, and installed a political group to run Haiti.  From that the Recommendation is well founded and the US, outside of wartime work, must examine when it intervenes in foreign Nations and determine what, if anything, can be done through the good will and money of the people of the United States in regards to the country we are involved with.  That Recommendation is the largest warning flag to be put up for all of those seeking 'humanitarian missions' and 'peace keeping' operations and are then unwilling to examine the society, culture and political structure of those areas that they want intervention.  It is a hard lesson the United States learned in blood and money put into a Nation that could not, for all of the niceness of its individuals, keep that infrastructure going even after they had been trained to do so.

Any goals for 'humanitarian missions' must take into consideration that while all men are created equal, they form different and unique societies that are unequal to each other and that some will operate far, far better than others.  That is no aspersion on the individuals, although the society is reflective of them, but of the inability to examine the society involved in an honest manner and ask: 'just what can these people sustain once we leave them?'

To examine the roots of the problem you do not look at 'root causes' but see the roots, themselves, and how they exist and function.  You do not start with presumed 'root causes' and see if they match against some pre-determined checklist, but, instead, see what functions, how it functions and why it functions the way it does to see what the causes of problems actually are.  That is a much harder job than blithely pointing at 'root causes' because it leads one out of gauzy theory and multi-culti blandness and into the cold, hard world of examination and seeing the illnesses of society as they exist, not as you think they exist.  You cannot think your way to survival but only do your way to survival and, similarly, you cannot think your way to the causes of societal problems via theory, only the actual doing of examination.  If you do not think before you do, then you are likely to screw things up and if you can't examine the actual problems when you form your plan you are likely to fail.  Thus any good analysis paper starts with examining things as they are:

By the turn of the 20th Century, Haiti was a deeply troubled country. Its society, since the revolutions, had always been divided. In the absence of the French colonialists--all of whom fled the country in 1804 or were killed--the mulâtres, the mulatto class, approximately three percent of the population, assumed the social role of the colonials. The peasantry, almost exclusively African in ancestry, remained peasants. The elite of Haiti, who for all intents and purposes ran (and run) Haiti, are largely, not exclusively, mulâtres. Noirs, particularly those with a military background or powerbase, could become part of the elite, and often ruled Haiti. But Haiti was and is most often administered for the benefit of the elite, and the elite are heavily mulâtre. "As in colonial Saint Domingue [Haiti], where the gens de couleur and black slaves hated each other, racial antagonism persisted between the elite and the black peasantry of Haiti."4

This is long after Haiti became an independent country in 1804.  And while it would still suffer from its original association with France, the shift of power inside the Nation to an elite, minority class was a result of its history as a colony.  The division in society between the mulatto and blacks served as a long term divisive factor in the Nation.  External factors do play a role in that period before the first US occupation, as seen in the corrupt banking system:

The Banque Nationale d'Haiti was Haiti's treasury and fiscal agent. Instead of being a financial entity controlled by the Haitian government, it was a French stock company, owned principally by French banks, led by the Banque de l'Union Parisienne. It charged a commission on the Haitian issue of paper currency and on the cashing of checks. Since the French blacklisted Haiti on the world financial markets, so as to keep the Haitian account for themselves, the French funneled all loans to the government through the Banque, often at outrageous discounts*.12 To give an example of French loan practices, Haitian obstacles to establishing a bank in 1874 was multiplied by the various political and financial thieves inside and outside Haiti:

[Late 19th Century political leader Antenor]Firmin and historian Antione Magloire say the loan was 60 million francs, to be repaid in forty annual installments of 7.5 million francs, a return of 400 percent. [Dantes] Bellegarde says 50 million francs, but that the Crédit-Général in Paris was able to raise only 36.5 million, of which 26 million went to intermediaries and private pockets in Port-au-Prince and Paris, while the remaining 10 million francs were used to liquidate, at par, a mountain of worthless Haitian bonds bought up as scrap paper by European speculators. The Crédit-Général's commission alone exceeded 9.5 million francs.13

Finally chartered in 1880, the Banque Nationale d'Haiti lost its charter in 1905, after refusing to back Nord Alexis' blizzard of paper money. A five year period of intense competition between French, German, and American (relative newcomers) banking interests ensued over rechartering a new bank. Finally, in late 1910, the Haitian legislature voted to dissolve the Banque Nationale d'Haiti, and created a new Banque Nationale de la République d'Haiti, which moved into the old Banque's headquarters. French banking interests, which put the package together with several German-American private banks, diplomatically invited in American interests (including the infamous National City Bank14). The French had a 75% interest in the new bank, the Americans and the German-American banks 20%, and the German Berliner Handelsgesellschaft Bank 5%. Not surprisingly, the new $13 million loan was discounted to $9.4 million.15

The government that backed this, in Haiti, was neither wise, smart or had any foresight.  They would further back a railroad scheme by James P. McDonald that would effectively give him rights to half the land in Haiti for putting down a railroad.  That rail line was never completed, but did lead to an unrest and an uprising in the northern highlands.  Those highlands served as the place where mercenaries had traditionally gathered to serve the local tribal Kings, and they attacked the railroad camps and then the government itself.  That racial division, then, served as one causative factor to an insurrection and the short-sightedness of the ruling elite then served as another: neither one is indicative on its own, and both required the long tradition of local tribes hiring mercenaries to come to a head as had happened before in Haiti.

Thus the 'root causes' argument of Haiti being the fault of France/US/Germany can be dispensed with.  If Haiti had a functioning society it would seek to smooth out the differences between the urban, elite culture and the rural, tribal culture and offer opportunities for 'buy-in' by that rural culture without having to go through elitist intermediaries.  No one has forced that societal structure on the Haitians, and while it was an artifact of colonial rule, that rule directly ended in 1804 with the rulers fled or dead.  Yes France did play a role in the system, without a doubt and is a causative factor.  The society, itself, by adhering to that for over a century is a primary factor: any society that wanted to do without such meddling, without an elite class, would have removed them either peacefully or under force of arms.  The tribes had demonstrated that capability and by 1910 it would begin the ball rolling to further internal disasters.

If we replace kleptocratic elites for the French, you then get the same power structure with a different formulation of who gets what, but retaining the same societal agenda that was previously set.  No amount of 'reparations' would improve this, and the similar work about to be undertaken by the US underscores that.  You cannot 'make right' with money a society and culture that is failing.

Skipping ahead past sorry turmoil, insurrections and such, we come to 1915 the US President is Woodrow Wilson noted for his not wanting to get involved in the European World War that was going on, wanting to be the big peace maker and generally be a Progressive in pushing forward an isolationist agenda militarily but an expansive global agenda in other realms and the Admiral is Caperton of the (CA) USS Washington:

In July 1915, the Washington, Rear Admiral Caperton embarked, sat in Port au Prince harbor as still another Haitian presidency wound its way to a messy conclusion. This time it was Guillaume Sam, who was besieged in his palace by a new challenger, Dr. Rosalvo Bobo. At daybreak on 27 July 1915, Sam made a break for the French legation next door. Sam made it, although most of the people accompanying him did not. He sent a message to his chief of police, Charles-Oscar Etienne, at the police Arrondissement in the lower city, to the effect that his presidency was over and that Etienne should follow the dictates of his own conscience ["La partie est perdue, j'abandonne le pouvoir. Faites ce que votre conscience vous dictera."]. Accounts vary, but somewhere between 160 and 'nearly 200' political prisoners, from Haiti's mulâtre elite--including ex-president Oreste Zamor, died. The next day, a mob of the elite attacked Guillaume Sam in the French legation and murdered him. Sam's mutilated body was dragged through the streets. Having received a green light from the State Department via the Acting Secretary of the Navy, Caperton met with the American and British chiefs of mission and the French minister aboard the Washington and, with their concurrence, decided to land troops and restore order.24

While his small landing force secured the legations in Port au Prince, Admiral Caperton had a problem. With Guillaume Sam dead, there was no one really in charge in the city. There was a revolutionary committee formed by General Polynice,25 Charles Zamor (brother of the recently deceased ex-president), and others*, but no one, at least to American eyes appeared to be in charge. The landing force was disarming what remained of the Haitian Army in Port au Prince (and confiscated five wagon-loads of weapons the first day), and the Haitian legislature was going through the opening stages of voting for still another new President, but with the immediate crisis under control, Caperton didn't know what the United States Government wanted. The Secretary of State, Robert Lansing was relatively new (his predecessor, William Jennings Bryan, resigned in June 1915, in a disagreement over President Wilson's handling of the Lusitania crisis), so he asked the President: "The situation in Haiti is distressing and very perplexing. I am not at all sure what we ought to do or what we legally can do . . . I hope you can give me some suggestion as to what course we can pursue." Wilson apparently answered the next day:

I suppose there is nothing to do but to take the bull by the horns and restore order . . .

1. We must send to Port au Prince a force sufficient to absolutely control the city not only by also the country immediately about it from which it draws its foods . . .

2. We must let the present Haitian Congress know that we will protect it but that we will not recognize any action on its part that does not put men in charge of affairs whom we can trust to handle and put an end to revolution.

3. We must give all who now have authority there or who desire to have it or who think they have it or are about to have it understand that we shall take steps to prevent the payment of debts contracted to finance revolutions.

. . . In other words, that we consider it our duty to insist on constitutional government and will, if necessary (that is, if they force us to it as the only way), take charge of elections and see that a real government is erected which we can support.26

Caperton radioed Washington DC on 5 August that the president of the Haitian Senate, Philippe Sudre Dartiguenave, appeared most electable, and that he "realizes Haiti must agree to any terms laid down by the United States, professes to believe any terms demanded will be for Haiti's benefit, [and] says he will use all his influence with [the] Haitian Congress to have such terms agreed upon by Haiti."27 To insure Dartiguenave's election, all Caperton had to do was neutralize the Cacos, take Dr. Bobo out of the running, and make sure the election in the Haitian legislature went for Dartiguenave.

Thus under the best of intentions, to create a constitutional form of government, President Wilson ordered the intervention into Haiti.  Notice that the unrest had caused a problem in the food supply?  For a Nation that is barely 30 miles wide and has one really good deep sea shipping port, Haiti has a problem in that anything that causes Port au Prince to go into disorder soon puts the entire Nation in jeopardy.  Also notice that the orders are from the top heading downwards?  Create a constitution first, get everyone to run by it second?  That is Progressivism at work, trying to create a new social order from the top and impose it on those beneath the top level.  It would prove to have ruinous ramifications.

An extension of those ramifications would be brought up in Senate testimony given by Admiral Caperton in 1921 as he described trying to get agreement from the two major leaders of Haiti, Senator Philippe Sudre Dartiguenave and Dr. Rosalvo Bobo an associate of Davilimar Théodore who had fallen out the with Zamor family and took control of the Cacos army (a mercenary group that the Zamor family had hired, but couldn't finance due to banking troubles).  In that testimony Admiral Caperton describes how the meeting he had with the two men went in 1915:

"Senator Dartiguenave, in case Dr. Bobo should be elected will you promise that you will exert every influence in your power to assist him for Haiti's good; that you will join with him heartily and helpfully and loyally?"

"If Dr. Bobo is elected president I will give him the most loyal, earnest support in every effort he may make for Haiti's welfare," replied Dartiguenave, with simple dignity.

"Dr. Bobo, if Senator Dartiguenave is elected president, will you help him loyally and earnestly in his efforts to benefit Haiti?"

"No I will not!" shouted Bobo. "If Senator Dartiguenave is elected president I will not help him. I will go away and leave Haiti to her fate. I alone am fit to be president of Haiti; I alone understand Haiti's aspirations, no one is fit to be president but me; there is no patriotism in Haiti to be compared with mine; the Haitians love no one as they love me."28

The Senator is one of the elite class in Haiti, while Dr. Bobo is a third-hand representative of the Zamor family, and neither had much in the way of scope or grounding to lead Haiti.  With the Senator being the only one of the two elected, Dr. Bobo saw the handwriting on the wall and left just before Admiral Caperton would go through his chain of command to say that the US supports the Senator in his bid to be President of Haiti.  With that the USMC secured the legislative building and a session of the Haitian legislature arrived, with members armed, to hold a vote for the next President, which was one by Senator Dartiguenave, overwhelmingly.  Thus the elite would have their leader for the Nation that would serve their purposes and not so much those of the people of Haiti.  The Treaty that would allow the US occupation of Haiti, however, had the US in a role of oversight for Haitian finances, and the analysis examines just who was the resistance to the occupation because of that:

Another byproduct of the American Haitian Treaty was the Haitian Union Patriotique, which was to become the principle organization of Haitian resistance to the First Occupation. Interestingly, it was an organization of and for the Haitian elite, the opinion of the noir peasantry towards the Occupation was apparently neither desired nor solicited.33 (A comment by the French minister in May 1916 (after the pacification of the Artibonite and the North by the Marines): "'The peasants, the pure noirs,' he wrote, 'are, like the tradesmen in the towns, delighted with the American occupation.'"34)

The US comes in, creates stability, pisses off the elites and gets the support of the middle class of Haiti.  It must be remembered that the middle class is primarily urban, not rural, while the peasantry spans from urban to rural.  The US would take over trade and customs control, putting in normal regulatory systems and set the Haitian currency on par with the US dollar, which would wipe out the elite class that depended on debasing the currency, running costly exchange venues and getting private deals for goods.

To get permanent reforms through the Haitian legislature would not be amenable to the necessary laws to put their favorite cronies out of business and President Dartiguenave dissolved the Senate and put the lower house representative body in charge of writing a new Constitution.  It is interesting that although this was expedient for both the President and the US, it was not what was expected for a means of enacting reforms:

Using an ancient Haitian constitutional device, Dartiguenave dissolved the Haitian Senate 6 April, 1916, and instituted a Council of State in its place. He  then designated the lower house a Constituent Assembly to rewrite the Constitution40 (Annex C, Appendix 8). Interestingly, a document from the Butler Papers (Butler was Chef of the Gendarmerie by this time), entitled "Coup d'Etat" details the reports the American had and made on the closing of the Senate41. From the title, and its inclusion in Butler's papers, it would appear that Butler, his Marine Gendarmerie officers, or both, disapproved of Dartiguenave's action, even though it served American interests as well as Dartiguenave's. This is especially interesting, considering Butler's part in the closing of the Haitian legislature the following year. According to his testimony before the Senate investigating committee in 1921, Colonel Waller, who had been told by Dartiguenave that he feared impeachment, was also opposed to the action.42

Maj. Butler (later Lt. Col. and Brigadier General) and Col. Waller (later Major General) were both of the USMC and were part of the force to stabilize Haiti.  Both of these men are part of the US system of military in which there is civilian control over the military and the idea of dissolving a Constitution to get legislative reforms through is one that obviously did not sit well with them in their role as 'occupiers'.  With that said it must also be understood that Haiti had gone through 17 Constitutions by that point in time.

This is actually a prime point: Haiti would be doing what Jefferson recommended, having a new Constitution every generation, save that it would be about every 6 years in Haiti between Constitutions.  You cannot set up a government with any continuity in 6 years.  You can't set up an orderly system of civil law if the Constitution on which it is based changes that frequently.  The absolute reverence by the US military forces, here the USMC, for a Constitutional law process and civil command over the military puts them in stark contrast with what is going on in Haiti.  No civil society that exists can survive such major changes so frequently and be a coherent society able to support civil needs as what may be perfectly allowable one year may not be in 6 years or 3 years or next year depending on who is coming to power and when.

Top down government that starts with a Constitution with only political representatives from the old system that do NOT offer widespread public input to a Constitution are unlikely to draft a Constitution that does anything but meet current needs.  When the people are eliminated from the drafting process and only the political elites form that process, the result is an elitist supporting document.  Here even the limited geography of Haiti, which should be the hallmark of creating a strong republic, has not sufficed for such a republic as the people have no means of input to it and the elites feel they can change the structure of government via overthrow of an existing regime and getting their cronies to support the takeover.  The end product of that is not a government that has stability, but is seen as unstable from the start.  As each ruling clique comes to power, they wash away the previous set of laws and support for them and will keep only a few 'traditional' forms of government.  Like allowing the President to liquidate the Legislature and have the lower house draft a new Constitution.   That makes the Presidency the key point of power and puts the Legislative branch into a secondary, and supporting role for the Executive.

Why bother voting if none of your input matters and none of the expected works of government (safeguarding the Nation, controlling its borders, ensuring equal opportunity for trade and commerce) can 'stick' via the legislative process?  Without an adherence to a system of laws, you get no legal system from that as the crafting of such a system requires long term input and remediation, not overthrow of the whole thing in a term or two of a representative.  Without the security that government brings via laws and governance to private life, to safeguard your wealth from the ravages of tyranny, you get a system that is tyrannical and sees private wealth as a 'cookie jar' to be raided by one set of elites or another.  Basic security of ownership rights creates an atmosphere where achievement can take place and a society and Nation be built upon personal achievement for oneself and one's family.  In being unable to get the basic underpinnings for personal rights Haiti does not create an atmosphere where you are expected to do for yourself.

If you cannot DIY and create the necessary safeguards to fall back on for yourself and your loved ones, and await the next group of elites that may or may not rob you blind, when a disaster strikes you are in a position of needing rescuing as the government has not allowed you to do the basics so you can rescue yourself.

In Nations with normal law processes, when the citizens start to safeguard themselves by supplying themselves with necessary long-term consumables before they are needed (stockpiling) a clear and exacting message is being put out: the citizens no longer trust the government to secure their rights to a civil economy.  With that said, change the government via any means and overthrow entire systems of laws based on Constitutions that are ephemeral, then the supplies will run out and government will exercise its will over people's economic well being to the ends of government, not the people.

With one short episode and the responses to USMC members on what was going on at the time, we get a clear sign of why Haiti had problems and would continue to have problems: there is no ability to make the rule of law stick there.

The Harding Administration had a review of the Occupation performed to look into military abuses during and after an uprising.  The claims were found to be over-blown and the committee recommended a number of civil works be performed to help the people of Haiti:

The committee also noted that the thrust of most of the accusations had been an effort to discredit the entire occupation of Haiti.57 More importantly, the Committee noted that the occupation was not serving its goals and recommended changes:

¨ "... [place] within reach of the Haitian masses, justice, schools, and agricultural instruction . . . [and] . . . send to Haiti a commission comprising a commercial advisor, an expert in tropical agriculture, and an educator . . ."

¨ "..advise the Haitian government against permitting foreign interests to acquire great land holdings in Haiti."

¨ "...as communications are opened up and as the peasants are secure in their life and property, . . . reduce the force of marines in the territory of the Republic and ultimately to intrust the maintenance of order and peace exclusively to the gendarmes."

¨ Eliminate provost courts for civil crimes and "offenses by the press against public order."

¨ Raise the caliber and qualifications of the Americans who represent the United States in Haiti.58

Interestingly, almost a year earlier, President Harding had apparently solicited an evaluation of the Occupation from the State Department shortly after his inauguration in 1921. Written by Sumner Wells, who at the time was Chief of the Latin American Division of the State Department and who would become the American High Commissioner in the Dominican Republic in 192259, it recommended similar changes in the Occupation and its administration:

¨ Increase the size of Gendarmerie d'Haiti in order to increase public order.

¨ Appoint a single representative of the United States to represent the President in Haiti and subordinate all United States "Treaty officials" to this representative.

¨ Change the basic supervision of the Occupation of Haiti from the Navy Department to the State Department, which would presumed to be more diplomatic in budget items, for instance.

¨ Develop the Haitian economy, principally by reforming the Haitian education system60 (Annex C, Appendix 16).

Thus, getting recommendations from all sides, the Occupation of Haiti entered a period of great change and, ultimately, some progress.

This is modern 'Nation Building' seen in a nutshell.  It is famous for not working.

Notice that all the recommendations are top-down predicated?

Without exception this is the concept that good government can 'create' society that is civil.  Yet our understanding is that civil society creates many organs of which government is but one, and not the brains, either, but the means to digest the rougher stuff so that sustenance can be garnered for the entire body.  Government cannot create civil society, but is an outgrowth of civil society.  Trying to build up a government and hope that it gets popular support is a dream of every individual supporting the conception that government is the leader of civil society and that we should vest all our effort, welfare and, ultimately, lives in the support of government.  Getting good and honest bureaucrats is one thing, getting a good and honest system of government to find, maintain and support a modicum of good an honest bureaucrats is something else, again.

When the people are considered citizens, they get an input into society and government, and are able to protect themselves without the undue intrusion of government in their lives and can seek the recourse of law against government.  When one is a subject of government, the people are considered objects of government and even with courts one must plea or supplicate to get justice done and the government may, at its convenience, forestall any suits against it in the civil venue.  While all governments have that last as part of its background, in a civil system that is upheld by society, government rarely uses that ability and puts itself in the position of being controlled by the citizenry.  Subjects are less able to assert civil control over government and when government pleases to do something that is against one or many of the people and seeks the refuge of its ability not to be held accountable, then one is left with arms as the only means to hold government accountable.

That last is the case of Haiti, save that only those with some money (the elites and land owners) have the ability to overthrow government by force of arms.  Even when there is peasant input, it is to an elite group that they look for leadership or organization, not to themselves.

Our recent experience in Iraq points to these lessons being learned as COIN did not consist of getting this or that public works built or making this or that department of government able to stand up, but put up a framework of a government and then went to the bottom to start the re-building process.  One of the prime testing grounds for this conception, and a large scale success, was in Fallujah where, post-combat and after some stumbling of initial stand-up, the US forces reached out to the local population and found what the diverse tribal groups actually wanted to feel secure. That turned out to be not water, sewage, or electricity or schools, but getting the family compound walls fixed. 

In a city that has always been described as 'lawless' in travelogues going back to the 1920's, and even further back in local history, trust was won and built upon at the lowest level and built up, not downwards.  At each higher level of needs there was local support for them and it wasn't imposed by a grand vision or scheme which would 'make everything right' and set down a government.  The system of politics that arrives from that is one that is federalist in formulation: strong local governments, accountable provincial governments and the National government needing to address the needs of the provinces to be seen as legitimate, plus the people from the local basis have direct input and say into their own political structure. 

By repeating the methodology and allowing the locals to set the course of their needs, first, the entire rebuilding would change the original framework by adjusting it, yet still leave its outlines visible.  The civil society grew into an adaptable framework of government and populated it from the bottom-upwards.  You will still get corrupt bureaucrats and politicians, yes, that is true in any system of government.  What was put in place, however, was the concept of using the structure to weed them out via civil law.

In Iraq the people considered themselves Iraqi's, first, members of tribes, second, and family members and clans, third, with religion falling out into the much lower ranks for associative elements.  That points to a class of people who have education, a knowledge of government and the ability to understand why you need a Nation and why you need strong social ties within society.  Haiti would not be so lucky in the 1920's as even getting the basics taught met resistance:

One area in which the Americans encountered an immense amount of resistance was in the area of public education. In his memo for President Harding, Sumner Welles accused the Haitian elite publicly funding education at adequate levels, while actually pocketing the bulk of the money for themselves.67 In 1923, General Russell instituted a Service Technique de l'Agriculture et de l'Ensignement Professionel, or Service Technique as it became known, to provide a agricultural educational system for the noir peasantry under a Dr. George F. Freeman. This was "a matter of extreme social sensitivity for the elite," who feared both the social consequences of an educated noir peasantry and the loss of the noirs' loyalty to the blancs, who were improving their lives.68

The elites preferred an uneducated peasantry as educating the poor would change the entire power structure of society to the detriment of the elite classes.  Yet that is the foundation of a civil society that supports any form of representative democracy: an educated population.  The very foundation of the modern public school system was to get the very basics of what is necessary to be literate, reading, writing and math skills, to the poor or those who could not afford private schooling.  In an agrarian system with so much time spent working for adults at manual labor, there was little or no opportunity to teach any skills to children.  Adults, themselves, were often illiterate and unable to do basic and necessary math functions for understanding what their labor was worth.

DIYism does not, of necessity, predicate itself upon literacy or math knowledge.  Without them you cannot judge changes in society either in type or scale, so as to estimate the impact of them on your life.  One of the observations of the use of home computers is that they allowed the common man to utilize sophisticated analysis tools for economic review and forecasting, thus allowing people to change their perspective on what was coming to either maximize their profit or minimize their losses.  This is a large step away from being able to see if changes are coming, but the literacy in reading and math skills means that such venues are open to you: without them you are relying upon the educated class for your survival, by and large, although still keeping some things for a 'rainy day' you cannot judge if it will be a gentle summer shower or a hurricane.

Education would prove one of the spark points that would usher in the end of the American Occupation of Haiti, in that student uprisings against the teaching of the peasants would spread throughout the cities and require the Hoover Administration to start the plans for leaving the Nation.  Under FDR the last of the Marines would leave in 1934 and the works build over the prior years were turned over to the Haitians:

The Constitution, modified in 1928, was again changed in 1935 to invest more power in the President. According to the first Haitian Chef of the Garde d'Haiti-- Démosthènes Calixte, the same officer who was the Haitian deputy of the then-new Ecole Militaire in 1922 under General Russell--the Garde was rapidly politicized, beginning in 1934.78 This same officer offers some observations (1939) to what happened to the institutions left the Haitians by the United States Marines Corps and Navy:

¨ The Sanitation and Hygiene Service, which was originally an organization trained by the officers of the Medical corps of the United States Navy, has lost its real purpose as an institution. The persons responsible for its administration are rank politicians and the most ill-bred officials Haiti ever had.

¨ The Public Works Administration was also organized by officers of the Civil Engineer Corps of the United States Navy. But since its "Haitianization", it has become merely a payroll institution for all the friends of the President who are jobless, as well as those who do not care to work. The engineers and architects in charge of various departments cannot do anything to remedy the situation.This is why this service has spent so much money and Haiti still has no roads, no bridges, and no sewers in areas where such construction is badly needed.

¨ The Agricultural and Rural Education Service . . . was, after its "Haitianization." placed under another foreigner, a Belgian, who resigned in 1938. This department could have rendered great service if the five-year plan submitted by the scientific agriculturist-in-charge had been approved by the government. . .Political opportunism was rampant. No attempt was made even to try the plan.

¨ The Contribution or Internal Tax Service was also organized by Americans. The Haitians who have replaced the Americans are competent and honest; but again political interference was followed by embezzlement of Government funds, which of course went unpunished.

¨ Education is purposely neglected for the benefit of politics and social prejudice. The method of education in Haiti has always been a matter for "discussion." The removal from office of competent administrators and personnel of the Education Department for political reason renders the problem practically insoluble.

¨ There cannot be an independent press in Haiti, because of the enactment of a law against a free press. A 'state of siege' is maintained by the present government, but even in time of peace no one can express an honest opinion as to the general condition or administration of the country without being mistreated.79

Other observers, even those hostile to the United States Occupation, have noted the deterioration of the infrastructure: "American civil service reform, for instance, had little impact. After the occupation, Haitian politics reverted to the 'spoils system' whereby successive administrations installed their own partisans in public office."

"...The network of roads, potentially the most significant legacy of the occupation, didn't last long because almost all roads were unpaved and required elaborate maintenance."80

This is the crux of the matter for Haiti: without an educated peasantry there are not enough people to maintain civil works such as roads and understand good agricultural practices so as to prosper from their work.  Land owning is a part of that, yes, but it is not a 'root cause' as individuals who are able to utilize their own liberty by understanding it can then gather up funds to go into farming or business for themselves.  Unfortunately the society is in such a state of disability in those realms that there is not sufficient education for the population to take over such works on a local scale and depend upon the National government to maintain them.

Getting to the present day and the disaster in Haiti, we must ask: has this society remedied its ills as seen in the early 1930's, or have they continued on since then?

The unfortunate answer is the latter as we see individuals very much in the form of modern day peasants cast asunder by the extremely destructive earthquake, and the ruling elite have demonstrated their incompetence in either fostering a civil society or putting in good works to safeguard civilian infrastructure.  While quakes of this magnitude are rare in Haiti, they are not unknown and even basic earthquake code building would stand a better chance of survival than the unreinforced masonry buildings typically seen in urban Haiti.  Brick and masonry buildings are cheap, yes, but they offer no ability to ride out an earthquake without steel rebar or other internal reinforcements so as to maintain structural integrity of the building.  As horrific as the scenes of apartments that have collapsed are, the scenes of modern hotels, police and fire stations and even modern hospitals collapsing stagger the imagination.

To have rescue services they must survive a disaster and not collapse with it.  That is the lesson learned from every earthquake venue on the planet with inhabitants nearby: civil structures for police, fire and medicine must be reinforced as they are the first line of protection after a disaster for civil society.  Just the structures, themselves, at the very least, must survive so that survivors can utilize them as community rallying points.  Having competent and self-sacrificing police officers, firemen and medical personnel are also necessary, but they must have places to rally to so as to be effective.  Their specialized equipment cannot be stored at home, great fire trucks cannot festoon the city parking spaces with individual ownership.  Storehouses of medical supplies must be in structurally sound buildings so that the supplies are useful and not destroyed by the ravages of the quake and local climate.

Without those the local population must be able to fend for itself, which requires a pre-existing system that teaches self-reliance and that if things go wrong you are the first line of defense for yourself.

That is not what we see in Haiti.

With those commentators that want to see the US 'take over' rebuilding, our past must inform our current and future decisions.

We can put forward that a spare, lean framework of a government must exist while the local sections of Haiti put themselves back together and are allowed to state their own needs and get them met through bottom-upwards forms of government that does not rely upon an elite class.  Yes emergency shelter is necessary, and yes temporary structures for housing and other needs is necessary.  And if we do as we did in the past, then those will be the only things we leave behind and the Haitian people no better off and just in much danger tomorrow as they are today.

To get to a system that can help itself, first, must be the goal of any 're-building' efforts, and placing the tools and skills on the ground to help teach how to re-build and build anew must be a part of that process.  Unfortunately with the ill-conceived notions of Presidents involved in the past, the government run venue must be temporary, limited and seek only to ensure that private aid and restructuring organizations willing to teach the basic and fundamental skills to Haitians are protected and supported. 

Agencies that teach to ask for a hand-out can go to hell.

For Haiti to avoid future disasters and be able to coordinate their own relief, they require the very basics of understanding that personal freedom and liberty can build that for themselves and they can maintain it.  To try otherwise is to place high value structures into the hands of those who cannot maintain it and who have elites wanting no power to get out of their control to the people of Haiti.

That hasn't worked so well before.

Perhaps it is time we try something different with a proven track record this time?