The Rhetoric of Economics (Powerpoint and audio file) more

The Rhetoric of Economics: Why Words Are Important Ludwig von Mises Institute Austrian Scholars Conference March 10-12, 2011 Gustavo Morles morlesg@email.phoenix.edu Associate Faculty, Area Chair Financial Planning, Control and Risk Management, and Accounting. School of Business, University of Phoenix, South Florida Campus. Deirdre McCloskey  Peter J. Boettke of George Mason University writing in Economic Affairs (March 07) called Deirdre McCloskey¶s The Bourgeois Virtues ³one of the most ambitious and important works published in classical liberal political economy for at least half a century´ Bourgeois Dignity  In Bourgeois Dignity (2009) McCloskey argues The Industrial Revolution was made possible by the ³new dignity for the bourgeoisie in its dealings, and a new liberty for the bourgeoisie to innovate in economic affairs´ (chap. 33, par. 5). ³Without the two necessary, and large scale, conditions of dignity and liberty for the innovating class, we would have no modern world´ (chap. 33, par. 6).  ³Dignity and liberty for the bourgeoisie was viewed as an outrageous absurdity, until the view suddenly changed in academic circles in Spain and in commercial circles in Holland and then in Britain and then (in all circles) in the United States´ (chap. 33, par. 12).  McCloskey argues that this change was in reality a change in rhetoric. ³In the beginning was the word. Free innovation led by the bourgeoisie became at long last respectable. For instance, the merchants and machine makers and manufacturers in northwestern Europe were elevated for the first time to the rank of gentlemen´ (chap. 32, par. 15).  Then things changed  ³Elite artistic and intellectual turned against innovation after 1848, first in nationalism and then in socialism, and then in national socialism, and finally in environmentalism´ (chap. 34, par. 18).  ³If the new rhetoric of innovation is what caused the modern world, then it is possible ² not logically inevitable, but possible ² that losing the ideology can lose the modern world.´ (chap. 34, par. 26).  Recent polls show that ³eight in nine people believe that free market capitalism is bad; it has failed and is not working for them any more´ (Siddiqui, 2009, par. 2). Losing the rhetorical battle  In The Cube and the Cathedral: Europe, America, and Politics without God (2005) George Weigel argues that today¶s European crisis of civilizational morale could be tomorrow¶s American crisis; ³getting at the roots of Europe¶s problem is important for understanding a set of problems Americans may face in the not-too-distant future´ (p28).  Weigel embraces Joseph Weiler¶s ³Christophobia´ argument: ³European high culture is largely Christophobic, and Europeans themselves describe their cultures and societies as post-Christian´ (Weigel, 2005, p27).  In the period after 1848 Europeans replace Christendom with Western Civilization  The Christian God (a ³liberating´ God that empowers His people ³to lead lives of dignity, through intelligence and free will´) is rejected in favor of the secular state  ³Even those among us, like myself, who are not prepared to accept the anthropomorphic conception of a personal divinity ought to admit . . . that the loss of these beliefs, whether true or false, creates great difficulties´ (Hayek, p. 137). Conclusions  If the adoption of Bourgeois values made the Industrial Revolution possible; then the rejection of these same values is directly linked to Europe¶s current crisis.  Is America on the same path? Where do we go from here?  Hearts and minds: All organizations function on 3 levels. What you do, How you do it and Why you do it. The problem is, most don¶t even know that Why exists. ³People do not buy what you do; they buy why you do it´. (Sinek, 2010).   Is it about the rejection of statism, the defense of private property, the rejection of fractional reserve banking, and the re-embrace of the gold standard? Why: It about man¶s free will to choose ³life, liberty, and the pursuit of happiness´ Tu ne cede malis Yield not to Evil References Boettke, P. J. (2007). DEIRDRE McCLOSKEY'S THE BOURGEOIS VIRTUES: ETHICS FOR AN AGE OF COMMERCE. Economic Affairs, 27(1), 83-85. Retrieved from http://dx.doi.org/10.1111/j.14680270.2007.00716.x Davies, S. (2010, March 10). Locating Ourselves Historically: Why We Are Not Living in Western Civilization. Social Change Project. Mercatus Center, George Mason University. Retrieved from http://mercatus.org/video/locating-ourselves-historically-why-we-are-not-living-western-civilization Hayek, F.A. (1991). The Fatal Conceit: The Errors of Socialism. (Paperback ed.). W.W. Bartley III (Ed). Chicago, IL: University of Chicago Press. (Original work published 1988) Hulsmann, J. G. (2007). Mises: The Last Knight of Liberalism (1st ed.). Auburn, Alabama: Ludwig von Misses Institute. Retrieved from http://mises.org/books/lastknight.pdf McCloskey, D. (July 9, 2009). Part XIII. Creative Language, Creative Destruction, Creative Politics Chapters 3234 from: Bourgeois Dignity and Liberty: Why Economics Can¶t Explain the Modern World. (Available online at http://www.deirdremccloskey.com/weblog/2009/09/25/991/) Mises, L. (1962). The Ultimate Foundation of Economic Science (2002 ed.). Irvington-on-Hudson, N.Y.: Foundation for Economic Education. In Hulsmann, J. G. (2007). Mises: The Last Knight of Liberalism (1st ed.). Auburn, Alabama: Ludwig von Misses Institute. (Available online at http://mises.org/books/lastknight.pdf ) Siddiqui, H. November, (2009). Is Free Market Capitalism Failing? Social Science Research Network Abstract # SSRN-id1507345.pdf. (Available online at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1507345) Sinek, S. (2010). How great leaders inspire action. TED.com. Retrieved from http://www.ted.com/talks/lang/eng/simon_sinek_how_great_leaders_inspire_action.html Weigel, G. (2005) The Cube and the Cathedral: Europe, America, and Politics without God. (Basic Books ed.). New York, NY: Perseus Book Group.