A9/p9 Bourgeois Deeds

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When bourgeois values do not thrive, the results are poor. As Virgil Storr notes about the Bahamas, “virtually all models of success to be found in the Bahamas’ economic past have to be characterized as piratical,” with the result that entrepreneurs there “ pursue ‘rents’ rather than [productive] profits” (Boettke and Storr 2002, pp. 180-181. Greed, which is to say prudence without the balance of other virtues such as justice, is not good. Bernard Mandeville and Ivan Boesky were wrong.


Place: It is easy to confuse the commercial middle classes with the Bildungsbürgertum, that is, the state bureaucrats and lawyers and professors. The confusion has political dangers, as evinced in the catastrophes of a rent-seeking “middle class” in Africa composed mainly of state bureaucrats. Education is the path to bourgeois life, especially after the Second World War. As I’ve said, the bourgeois is becoming the universal class. Expand or drop
“Talking against religion is unchaining a tiger,” said Ben Franklin’s Poor Richard in the mid eighteenth century. In these days of the New Atheism it is more like the opposite: “Talking in favor of religion” to sophisticates and quasi-sophisticates “is unchaining a bear.”

The bourgeois society was pragmatic, non-utopian, so-to-speak Scottish rather than French in its Enlightenment. It knew, as Louis Dupré put it, “what Voltaire knew,” and his French descendents sometimes forgot, “how little reason directs human conduct.”711

Hirschman was much influenced by a presentation of Gerschenkron in 1951 of his “Prerequistes” essay:

“When it was increasingly realized that economic backwardness cannot be explained in terms of any outright absence or scarcity of this or that human type or factor of production, attention turned to the attitudes and value systems that may favor or inhibit the emergence of the required activities and personalities. . . . But whenever any theory was propounded that considered a given value system a prerequisite of development, it could usually be effectively contradicted on empirical grounds: development had actually taken place somewhere without the benefit of the "prerequisite." Hirschman, The Strategy of Economic Development 1958 (1988), p. 4

p. 5n11, a surprising source of support for my claim about K: "There are always and everywhere potential surpluses available. What counts is the institutional means for bringing them to life. . . . for calling forth the special effort, setting aside the extra amount, devising the surplus." Harry W. Pearson, "The Economy Has No Surplus: Critique of a Theory of Development", in Trade and Markets. in the Early Empires, ed. K. Polanyi, C. M. Arensberg, and H. W. Pearson ( Glencoe, Ill., Free Press, 1957), p. 339.
On March 2, 1797 Nathaniel Briggs of New Hampshire patented a washing machine. In 1752 an elaborate diagram of the “Yorkshire maiden” machine, which was in actual use, was displayed in the January 1752 edition of Gentleman’s Magazine. Note: “gentlemen” were now presumed in England to have an interest in mechanical devices other than machines of war. And an Italian machine was in use in the late 1400s. thus the canny, urban Italians in their most creative age.712 it illustrates the madness that overcame European men once they came to believe that they were free men. , the NNN that Joel Mokyr notes in the Gonfallier brothers and their almost perfectly useless ascent in a balloon.

“Money confounds subordination, by overpowering the distinctions of rank and birth,” wrote Johnson in his Journey to the Western Islands of Scotland

Novum ordo secolorum (get it right; apply to USA only)

The Second Vatican Council : “earthly goods and human institutions according to the plan of God the Creator are also disposed for man’s salvation and therefore can contribute much to the building up of the body of Christ.” Second Vatican Council, “Decree Concerning the Pastoral Office of Bishops in the Church,” Rome, October 28, 1965, quoted in United States Conference of Catholic Bishops, Readings on Catholics in Political Life (Washington, DC: 2006), p. x.

Adam Ferguson, friend of Adam Smith and father of sociology, devised the notion Smith used about the division of labor. Dividing labor, separating it into one or another profession, of manager or wheel-turner, will yield, Ferguson claimed, technological progress. But, said he in 1767 “the separation of professions, while it seems to promise improvement of skill, and is actually the cause why the productions of every art become more perfect as commerce advances; yet in its termination, and ultimate effects, serves, in some measure, to break the bands of society, to substitute form in place of innovation, and to withdraw individuals from the common scene of occupation, on which the sentiments of the heart, and the mind, are most happily employed” (1767, p. 325). Ferguson was concerned about the “bands of society,” using the phrase six times in the book.
Masonic movement as evidence of pre-industrial bourgeoisfications.
Rhetoric of prudence-only argues (foolishly) against persuasion and ethics. People feel bound to explain themselves and others on grounds of self interest. When the wife of the governor of New York in 2008 stood beside him while he apologized for frequenting prostitutes, and resigned the governorship, people such as Mel Novitt of Morton Grove, Illinois wrote into the newspaper explaining that she stood by her man because “she had too much invested in [the] relationship to jump ship over a situation that was simply about sex.” What about Love, Mel?

Michael Novak’s lucid presentation of Charles Taylor’s argument in

Novak, Michael. 1993. “An Authentic Modernity (Review of Charles Taylor, The Ethics of Authenticity.)” First Things (May).
Taylor by his own lights needs to show that one can offer telling reasons for one’s discriminations, and he does so with a brilliant maneuver. One thing modernity certainly requires, he points out, is an awareness of personal identity different from that of all others, an acute self-consciousness. Very well, then, how can one answer the question, "Who am I?" without searching through the stream of memory in order to select out those items that one deems "significant" to one’s identity? But how can one do this without appealing to various reasons for declaring one thing "significant," and another not? In this way, the question "Who am I?" is a question of, by, and for reason. You can go ahead and just be, if you want to, but the moment you rise to the fully human activity of "living an examined life," you must invoke the rules and standards of reasoned judgment.

Nee and Swedberg note that in recent decades China, which had ruined its educational system in the Great Leap Forward, grew vigorously, while Russia, which led the world in education, did not, unless oil prices were high.713

Peg Jacob points out that 1680s are the key, and are Anglo-Dutch reactions to the threat of French absolutism, the “catalyst for what we call Enlightenment.” Enlightenment comes from the moves towards Catholic absolutism under late Charles II and brother James, and its completion in France under Louis with the Revocation of the Edict of Nantes. Jack Goldstone points out that the common law was under attack, etc. [not true I think; need to read a little on this to get details of the “threat”] Thus the political thinking that made the modern world. But it was the politics, not the economics. Both absolutist and Catholic France and anti-absolutist, Dutch-led, and Protestant England, for example, were mercantilist. The Dutch, French, and English, not to speak of the Portuguese and Spanish, were imperialists.
Acknowledge Maxine Berg’s point about imports of new products: chocolate, coffee, tea, to which tulips could be added.
Mill’s essay on “The Claims of Labour” Edinburgh Review 1848: ideas and circumstances have to be complementary. Either with itself doesn’t do any work—read.
To do the Navy section:

N. A. M. Rogers The Safeguard of the Sea and other volume on the British navy

Gary Anderson, The Crucible of War, on Seven years war, how blockading Brest was finally figured out.

“Navy Bills” invented, moving from personal to bureaucratic.

All this is an organizational innovation. British naval superiority was a consequence not a cause of British imperialism. A more enlightened, less personal, less great-chain-of-being navy makes mercantilism possible.
Enlightenment is public knowledge of improvements arising from a practical and theoretical: thus Newton invents ridged coins to prevent clipping.

Bret Steele: Newtonian mechanics to gunnery. Analytic geometry was declared a state secret in France, because of its military applications. The French thought that the semaphore and the balloon, with military applications, were the greatest inventions of the eighteenth century! Contrast with China: innovations secret? But this is merely institutions, not Enlightenment.

Why Northwestern Europe? Enlightenment, says Joel. Why Britain? [I think Britain’s liberty was essential: 1588 was the turning point. And without Britain, no applied Enlightenment, and maybe none at all—it dates, Jacob says, from 1680s in Britain and Dutch. Divine right and absolutism would have won. IR would have run into the sand.] The unique conditions of Britain in matters of liberty and free speech with the Enlightenment did it. Without Britain, no IR. A less liberal society would have resulted. I say it would have been poorer. Becker, Lipsey, Carlo It’s the British version of the Enlightenment that triumphs. Voltaire, despite his anglophilia, regarded China is the ideal, with mandarins running the country—a French notion which was to have a long history. British competition haunts the French after 1750. If Louis fourteenth had won in 1714, says Jack Goldstone, there would have been a rationalized, centralized state.

The common set of ideas in the Enlightenment are not merely technical. They are so to speak ethical and political. One must make open arguments, not use political force to settle them. That is Erasmian humanism, and rhetoric, not science. That is the Reformation, though only when it became Erasmian after a good deal of killing. These are Western European, Scotland to Poland. Without these you can argue that the IR might have happened in a different way, a centralized, French version. But I do not think it would have worked.

1780s sees in Britain a shortage of technically trained people who can supervise machines, like computer techies nowadays.

Christian van Bochove PhD dissertation Utrecht. Dutch wages higher than in Britain for sawyers, so wind driver sawmills never adopted.

The politics could have stopped it. John Wallis claims that the politic systems stopped having civil wars c. 1650.
Teaching of elementary math is better in Britain than in France in the eighteenth century. And it’s not so elementary.
Cambridge taught Newtonian math (not in Oxford).
London published the Scottish Enlightenment, Amsterdam the French (one Ray was the publisher in A’dam).

Mokyr argues that Britain innovated madly even when it didn’t matter, or didn’t have much effect economically. He summarizes the recent work on the once-heralded Agricultural Revolution, noting that the innovations were small in their impact.

That wages did not go down is the extraordinary achievement. A better economy and wider foreign trade kept the land constraint at bay. And indeed as Nicholas Crafts notes the Human Development Index improves, except in the matter of mortality in cities. Positive/negative checks die out in early seventeenth century—that is, Malthus’ model is wrong for the seventeenth and eighteenth century in the sense that population does not find its own level, so to speak. It is well known that about ½ percent per year growth was all the economy could handle without w/P falling. In late eighteenth century the growth rate is in fact 1 ½ percent per year. Eventually TFP saves Britain, which is to say in Mokyr’s terms the Enlightenment messing about with machines, in my terms the ideology of innovation which made the Enlightenment possible.
Late seventeenth: times were tough, non-married women rose from 5 to 10%, age at marriage rose from 24 to 26, says Jack Goldstone. That is, late seventeenth is not a prosperous time. Getting rich leading us to get richer is not what was happening. The ideology changed first, not the economy.
[Surely the bulge of births minus deaths in the eighteenth century was some world-wide improvement—better crops? Lower disease? It happens in China.]
Avner calls culture “informal institutions,” and Doug tries to talk this way as well.
Mokyr argues that the Enlightenment needs other things—commercial society, trade, peace, London’s growth. Method of residues.
The failure of emancipation of women is a case of projects that didn’t work showing how important ideas are.
All over Europe the IR started away from the metropolises, Mokyr observes: away from Paris, Vienna, London. Guilds, mercantile crowding out, over-regulation to satisfy the mob?
If one regards diaries as sources, the novel is, too. Peg notes that in the diaries people talk of time of day, which is a change (although of course only the elite had watches).
Female literacy rises after 1750 when male literacy does not—so obviously non-material, attached to ideas and novels and diary-keeping.
Enlightenment: identity, individualism (books: ), standardization (esp. French),
Jan says the separation of spheres is a sign of the success of women—they wanted to stay home (cf. freed women).
“Robust,” says Boettke, or “flexible” societies make possible the modern world—even the French Revolution did not stop French industrialization.
For Joel: go back earlier.

The Great Chain of Being makes real conversation impossible—show in Shakespeare. Only in the soliloquies does anyone pause to reflect. Is this true? Look at the colloquy between Falstaff and Hal: “Banish stout jack and banish all the world.” In Don Quixote the same is true. The Don just does things. Sancho complains, but with no effect. The comic point of the book is that the Don is invulnerable to conversation, rhetoric, reason. On the other hand, Don Quixote is an answer to the literature on chivalry. Impossible, too, in authoritarian nations. Such as USSR. The novel, such as Pamela, or even Shamela, and certainly Austen, consist of dialogue, in the epistolary novel reported. Moll Flanders and Crusoe have real discussion, real internal dialogue, real decision-making. Read Shackle. Epistemics and Economics. The conversation starts c. 1700. There was in Il Cortegiano or Plato discussion among the elite, but not across classes? Contrast it with the 1,000,000 innovations per year at Toyota, coming from the shop floor, 100 times as many per worker as at GM.

The disintegration of the Great Chain of Being implied that use mattered—it would not matter if routine ruled. The belief that the world can be changed might be attributed to science. [Bailyn book here.] But surely the political revolutions of the seventeenth century were more important to more people than the novelties of science. And indeed the success of business projectors, whether bourgeois or aristocratic, told people that they too could change things.

Un-Enlightenment versions of growth were impossible. Whether

The British Enlightenment had moral underpinnings as the French did not.
Larry Stewart, Peg show how much science was used, the knowledge economy.
Priestley preaches on being good and rich.
French engineers comment on the division of labor in Britain. But the division of labor was much noted in contemporary China.
Clan enforcement of law in China involved collective responsibility. The state let the clans enforce laws. No king’s law. But in that case it is similar to English feudalism. And so I need to acknowledge that common law was not so common. But, yes, it was. It was English, after all.
General incorporation was, John Wallis argues, one thing the Enlightenment got wrong. It was afraid of large organizations.
Types of inventors gentleman inventors like Franklin, entrepreneurial inventors who got profit from monopoly, (entrepreneurial open-source inventors, Joel adds), those responding to prizes, and anonymous micro inventors who got nothing. The patent on Watt’s steam engine stopped innovation for decades, illustrating the dilemma. Patents sound like a good idea until one realizes that they are monopolies.
Greg argues that the gains were going to workers, not to rich. But Joel says, no, what small rise of wages occurred had to be paid to compensate for urban life, no garden, lower life expectancy, higher rents, longer hours, the unpleasantness of factories. But Mokyr’s conclusion does not imply that the rich profited enormously. They were not made better off with bad conditions in cities.
Greenfeld on nationalism.
If we want our society to work well, a constitutional point, we need to restrain rent seeking. John Wallis doesn’t think that government policies moved to free trade, against rent seeking—which is certainly true. On the contrary, incorporation and the Corn Law developed. The open society, he says, reduces rents. The elite opened conversation for itself, but had spillover to the whole society. Conversations start in salons and spread to the street. But it surely is an ideological change by 1850. John replies that rent creation dies for reasons, and Joel needs to say what they are. The enemies of corruption in the eighteenth century were against rent seeking—the society had the capability to eliminate Old Corruption. I say it had the capability on ethical grounds.
I also am sympathetic with the project. Enlightenment essentialism was attacked by postmoderns.

John Nye points out that the materialist historiography goes along with a program of wanting development without liberalism. “We will get rich without being free. Hurrah!”

As Greg says, the patience of the British poor was crucial.
Emerson, “The Transcendentalist,” p. 1:

As thinkers, mankind have ever divided into two sects, Materialists and Idealists; the first class founding on experience, the second on consciousness; the first class beginning to think from the data of the senses, the second class perceive that the senses are not final, and say, the senses give us representations of things, but what are the things themselves, they cannot tell. The materialist insists on facts, on history, on the force of circumstances, and the animal wants of man; the idealist on the power of Thought and of Will, on inspiration, on miracle, on individual culture. These two modes of thinking are both natural, but the idealist . . . . concedes all that the other affirms, admits the impressions of sense, admits their coherency, their use and beauty, and then asks the materialist for his grounds of assurance that things are as his senses represent them. . . . Every materialist will be an idealist; but an idealist can never go backward to be a materialist..

The old bourgeoisie and the aristocracy—the dishonor of innovation and trade. Even the scholastic intellectuals, for all their admirable rhetorical seriousness, did not get their hands dirty. It was sixteenth-century English merchants, with their ink-stained hands, who developed the notion of an experimental and observing life. Enlightenment was a change in the attitude towards what Charles Taylor calls “ordinary life.” The honor of kings and dukes and bishops was to be devalued. The devaluation of courts and politics was a part.
Hobbes, says Danford, believed that the tranquility notably lacking in the Europe of his time could best be achieved “if the political order [is] understood as merely a means to security and prosperity rather than virtue (or salvation or empire).”714 “This amounts,” Danford notes, “to an enormous demotion of politics, now to be seen as merely instrumental,” as against seeing it as an arena for the exercise of the highest virtues of a tiny group of hoi aristoi. We nowadays can’t easily see how new such a demotion was, since we now suppose without any sense of its historical oddness that “quote Declaration of Independence: are instituted upon earth.” Hume spoke of the “opposition between the greatness of the state and the happiness of the subjects.”715 In an earlier time even the great Machiavelli could easily adopt for at least one book the greatness of the Prince as the sole purpose. The purpose of Sparta was not the “happiness” of the Spartan women, helots, allies, or even for any low purpose the Spartanate itself. The entire point was the glory of the state, and Richard Pipes notes, a theoretically egalitarian elite with such a point “would be realized (in theory at least) 2500 years later in the Communist and Nazi parties.”716 The entire point of Henry VIII’s England was Henry’s glory [use his titles]. What was shockingly new about Hobbes is that he adopts the premise, in Danford’s words, that “all legitimate [note the word] governments are trying to do precisely the same things: to provide security and tranquility so that individuals can pursue their own private ends.”717 Danford argues that “perhaps it would be better to describe the change as the devaluation of politics and the political rather than the elevation of trade.”718 But to devalue aristocratic values, when anyway Christian values are devalued too, is to leave only bourgeois values. And as Danford notes, ????

True, a reaction to the Enlightenment arose as it came to its height, in a Romantic and nationalist attachment to King and Country. The guns of August were to bring the reaction to its height. What was unique about the Enlightenment was precisely the elevation of ordinary people and ordinary life. Check this against reading of Jacob’s argument. Joel’s idea of the Enlightenment: Belief in human progress (care about progress of ordinary people as against eternal salvation (a shockingly high percentage of the inventors were Unitarians and the businessmen were Quakers: the theology of human improvement replaces a theology of salvation, as in the Lockean ideas of life, liberty, and the pursuit of happiness; all the abolition of slavery). Write down a program of how it is to happen (the rationalism of the age; persuasion is to matter, not tradition and hierarchy). Implemented it (depends on political accident, such as politics of 1680s in Britain, or of 1750s in France). Joel speaks of the “avalanche” of first-rate minds. And then Romanticism.

“Industrialization, East, West, North, and South” Hirschman essay. Propensity for Self-Subversion
Read Joyce Appleby
In 1800 the Enlightenment and the Industrial Revolution is a minority affair. The minority was not a conventional elite, because their unconventional raising of the sons of [Newton] and saddlers to world renown differed ….. but a “vital few,” in John Hughes’ phrase. By 1900 it is much wider, and in 2000 a vital many.

Danford may be reachable through Law at Colgate? Send a fan letter about his article.

The debate in the middle of the eighteenth century, argues John Danford, was “whether a free society is possible if commercial activities flourish.”719 The models on the anti-commercial side of the debate, as Pocock and NNN have shown, were Republican Rome and especially, of all places, Sparta. Commerce such as Athens and now Britain favored would introduce “luxury and voluptuousness,” in Lord Kames’s conventional phrase as the debate reached its climax, which would “eradicate patriotism,” and extinguish at least ancient freedom, the freedom to participate. As the Spartans vanquished Athens, so some more vigorous nation would rise up and vanquish Britain, or at any rate stop a “progress so flourishing . . . when patriotism is the ruling passion of every member.” Danford reads Hume as opposing such a civic humanist view, that is, the view that stressed “the primacy of the political.” Commerce, said Hume, was good for us, and Georgian mercantilism in aid of the political was questionably so. “In this denigration of political life,” writes Danford, “Hume [is] thoroughly modern and [seems] to agree in important respects with [the individualism of] Hobbes and Locke.”720 Danford does not claim that all we moderns now reject the nationalist, sacrificial, anti-luxury, classical republican view. On the contrary, he says, no paradigm rules without challenge. Classical republicanism with its Spartan ideal is alive and well and living in the pages of The Nation.

“the challenge posed by early modern thinkers to the understanding of human nature which had been regnant for nearly two thousand years” (Danford 2004, p. 325) is a good capsule of one big change.
Hume for chapter on Mill and others: “trade was never esteemed an affair of state till the last century; and there scarcely is any ancient writer on politics who has made mention of it” (Essays, 88: Lib Fund?)
Chp. On denigration of commerce by ancients. “In Thebes,” wrote Aristotle with evident approval, “there used to be a law that one who had not abstained from the market for ten years could not share in office” (Politics 1278a20-25 q.v. and check surrounding)

Add footnote to Hume on Honorable as key to why republics do better at econ See also Danford 2006, p. 332.

Add to discussion of Marx: The “no limit” in Aristotle (Politics 1256b40-1257a2) is buying low and selling high. As John Danford observes, “the belief that there is something objectionable about [arbitrage] has persisted for more than two thousand years. . . . The enduring legacy . . . was. . . the view that . . . commerce or the acquisition of wealth is not merely low; it is unnatural, a perversion of nature, and unworthy of a decent human being.”721
Hume against anti-consumerism: “Refinement on the pleasures and conveniencies of life has no natural tendency to beget venality and corruption” (“Of Commerce,” p. 336)
At “greed” universal: Hume (On Commerce, 276): “Nor is a porter less greedy of money, which he spends on bacon and brandy, than a courtier, who purchases champagne and ortolans [tell what]. Riches are valuable at all times, and to all men.” Of course.
Hume on foreign trade not mattering: “if strangers will not take any particular commodity of ours, we must cease to labor in it.” Granted. But “the same hands will turn themselves towards some refinement in other commodities, which may be wanted at home” (Hume Essays 284, check).
Unintended consequences in laws on the economy: “the real consequences of a law or practice is [in the economy] often contrary to first appearances” [Hist of Eng., 3:74, quoted in Danford 2004, p. 345.]
For attack on North:

For Polanyi: The legal historian Harold Berman is not saying anything that a historian of medieval Europe would find shocking when he asserts that “not only capitalism but bureaucratism [in the Church], rationalism [in the universities], and indeed ‘modernity’ in all its forms [postmodern carnival, for example] were characteristic of European society to one degree or another from the twelfth century on.” (Berman 2003, p. 379)

Attacking Polanyi having less excuse: cf. Berman 2003, p. 379.
Support for my idea argument. Harold Berman, who attributes what legal change there was in Germany and England during the early modern period to the Lutheran and then Puritan revolutions, argues that political power derived from “changes in the belief system and changes in law” (2003, p. 380).

25 chapters, August: one a day a piece using books intensely. in addition to the particular **Projects tagged here, during August/September, and going through comments from conference. Target of Oct 1 for submission, with perhaps polishing in Bloem.

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