Once when I asked an economist how the government should cure the fiscal deficit, he said that the government should cut spending. “The government shouldn’t run schools and colleges. The government shouldn’t run hospitals. The government shouldn’t run the police and the courts. The government doesn’t do anything well—except perhaps running the NHAI roads.” Then he asked, laughing, “Do you disagree with that?” I said, “No. I don’t disagree. This is obvious. Everywhere I see idiots. I haven’t talked to an honest guy before.” He said, “Thank You. But, you can’t quote me on this.”
Call him a hypocrite, but my respect for him went up. The establishment economists do lie, or at least they do not tell the whole truth. Whatever the ethical aspects of the matter, this is the necessary price they pay for being part of the establishment. We’re better off when the establishment economists are otherwise sane, thoughtful fellows. Would you rather have sincere mad scientists as appointees? I’d pick economists who cannot help speaking their mind over others any day.
Once when a proposal to raise the tax rate on the rich in India was under discussion, in a meeting with the Finance minister, all the economists present disagreed with the proposal. When I was at the finance ministry, an economist who spoke after the meeting had as much as said so. After an hour, I noticed that the finance ministry had issued a statement saying that there was a near-unanimous consent on the proposal. I couldn’t even believe what I read. When I asked an economist, he said that he was surprised to hear this too, but he was not willing to be quoted on that.
I am not willing to believe that “They are doing this for the nation.”, but I am sure that they see this as a necessary price to pay for having a say in policy matters. But, irrespective of whether they would like to believe it or not, are they right? I suspect “sincere” policy making is scarier. India’s central bank head, Raghuram Rajan, for instance, is more sensible than he comes across. Inflation has fallen drastically in the past one year.
Few days ago, Rich Weinstein, an obscure investment adviser publicized tapes of establishment economist Jonathan Gruber’s cynical comments on Obamacare. Now, this is what Jonathan Gruber said that angered people:
“Lack of transparency is a huge political advantage. And basically, call it the stupidity of the American voter or whatever, but basically that was really, really critical for the thing to pass. Look, I wish Mark was right that we could make it all transparent, but I’d rather have this law than not.”
Of course, now he claims that these were off-hand remarks. Human nature being what it is, this is what we should expect. Jonathan Gruber has proven not to be a sincere liar. But, would Jonathan Gruber have been an honest man if he had accepted the official party line, lock, stock and barrel? People think that the sincere liars have more integrity than the intellectuals who consciously lie. I have my doubts. I have learned from hard experience that people can convince themselves of almost anything they want to believe. The conscious liars at least feel bad about what they do, but the sincere liars feel good about themselves. Wouldn’t they go too far?
What is unusual about Gruber is that people penalized him for not having consistently lie dabout having lied. Remember: He is not being punished for being deluded, or even lying, but for not having consistently lying about having lied. Otherwise he would have been damned all along.
He wouldn’t have been publicly humiliated if he had kept his mouth shut. The harm has already been done. So, what did he gain by speaking his mind? Gruber probably felt better saying that he did not really agree with how things were being done. Wouldn’t it be good if this happened often enough? By punishing Jonathan Gruber for making off-hand remarks, libertarians are punishing him for not being a good coalition partner. I think we should subsidize that more. Or, should false excuses inspire more trust?
I do not believe that there is something antisocial about too much honesty, but I think libertarians haven’t internalized this enough:
“Although we claim to value truth above all else, we are also at least dimly aware that there is something antisocial about too much honesty. This dilemma has often been portrayed in literature and film, from Dostoevsky’s Prince Mishkin, whose innocence and honesty destroy the lives of those around him, to the 1997 film Liar, Liar! in which a lawyer wreaks havoc when he is placed under a spell condemning him to be truthful for twenty-four agonizing hours. Evolutionary biology suggests that no normal person would be capable of such a feat. We are natural-born liars.
The power to deceive is our main weapon in the struggle for social survival. Like it or not, without it, we are sheep in the company of wolves. Similarly, the power to read intentions from nonverbal expressions is our best safeguard against victimization by others. Without it, we are at their mercy.
Immensely rapid, specialized unconscious modules are humming in the background of our minds twenty-four hours a day. We could not get along without them. We could not get manage if we had to consciously coordinate our bodily movements, choose words in a conversation, or laboriously parse streams of sound from people’s mouths into choppy words and sentences. Fortunately, our brains come equipped with pre-installed cognitive software for these tasks, and the same holds true of our ability to understand the meaning of social behavior.
“All social inferences flow from a common set of assumptions, an informal folk-psychological theory of human nature. If the theory is biased, it will deliver faulty appraisals of everyone: not only of oneself, but also of other people. Commonsense assumptions include gems of sagacity such as the notion that self-deception is abnormal, that good people do not lie, that so-called normal people are not motivated by self-interest, and that politicians aspire to serve the public. Such homilies cannot serve as a basis for sound social reasoning, but they are terrific gimmicks for Machiavellian manipulation. The knife of self-deception cuts two ways: you cannot maintain a highly distorted conception of yourself side by side with a true estimate of others.
A savvy social operator needs to have an excellent grasp of human self-interests, because it’s impossible to beguile others unless you understand what makes them tick. However, self-deception, which is also essential for competent social manipulation, pulls us in the opposite direction, leading us to disavow knowledge about human self-interest and encouraging a rather naive conception of human nature. So, there is a tension between the profound psychological understanding needed by the shrewd social player and the dumbing-down of social intelligence required by self-deception. How could nature have engineered the mind to make the most out of these conflicting forces? The obvious solution is to split the mind. It is all right for consciousness to be socially myopic if this helps social intelligence to operate smoothly behind the scenes. Our sheer conscious stupidity about one another is a perfect front for a wily Machiavellian intelligence. If these considerations are on the mark, we must be far better at “reading” other people unconsciously than we are consciously. We must all be gifted, instinctive psychologists, whose conscious minds are left out of the loop. The chasm dividing unconscious astuteness from conscious naivete is a consequence of the way that natural selection has sculpted our psyches to handle the pressures of a complex social life. It is distinctly and quintessentially human.
In short, we are like people playing poker in the dark. We are in the dark because “part of the game of social competition involves concealing how it is played.” from our own conscious minds. As unconscious poker players, we can manipulate the others while remaining innocent of many of our own self-serving intentions. If accused, we can sincerely take offense and claim that it is all in the paranoid eye of the beholder. Self-deception about our own Machiavellian agenda also makes us relatively insensitive, on the conscious level anyway, to the selfishness of others. We sleep because waking up would spoil the game.”—Why We Lie, David Livingstone Smith