Hannah Arendt Center for Politics and Humanities
17Nov/140

Amor Mundi 11/16/14

Arendtamormundi

Hannah Arendt considered calling her magnum opus Amor Mundi: Love of the World. Instead, she settled upon The Human Condition. What is most difficult, Arendt writes, is to love the world as it is, with all the evil and suffering in it. And yet she came to do just that. Loving the world means neither uncritical acceptance nor contemptuous rejection. Above all it means the unwavering facing up to and comprehension of that which is.

Every Sunday, The Hannah Arendt Center Amor Mundi Weekly Newsletter will offer our favorite essays and blog posts from around the web. These essays will help you comprehend the world. And learn to love it.

amor_mundi_sign-up
Place As Destiny

neighborhoodIf Charles Murray's book Coming Apart chronicles the vast divergences between the richest and poorest communities in America, Claude S. Fischer gathers a series of studies and new books to argue that the places we live and grow up have an outsized impact on our future. Writing in the Boston Review, Fischer reports that "the places-the communities, neighborhoods, blocks-where people live act as a factor in slowing economic mobility." There are many reasons that poor and dysfunctional neighborhoods pass on poverty. "Consider the ways that the immediate environment shapes a child's development. It does so physically. Air and soil pollution, noise, and traffic, for example, measurably affect children's health, stress, and cognitive development. Local institutions and resources, such as the policing, quality of the schools, availability of health services, food options, parks, and so on matter, as well. And the social environment may matter most of all. Growing up in a community with gangs, dangerous streets, discouraging role models, confused social expectations, and few connections to outsiders commanding resources is a burden for any child. Just getting by day-to-day can be a struggle. In a pair of studies, Sharkey found that a violent crime occurring near black children's homes in the days before they took a standardized test reduced their scores on the test, presumably because of anxiety and distraction." One major difference between Murray and Fischer is their consideration of race. Murray focuses on white poverty and the incredible rise of white inequality to argue that the decadence and disconnect of the new poor happens regardless of race. Fischer demurs: "No discussion of neighborhood effects can ignore the racial dimension, because the residential segregation of blacks has been and, though reduced, continues to be extreme: 41 percent of the African-American parent-child pairs in the study grew up in poor neighborhoods in both generations; only 2 percent of white families did. Poor whites were less likely to live in concentrated areas of poverty and are more likely to get out of them if they did. The weight of the past is much heavier for some than others."

Will The Masses Procrastinate By Writing Papers

leisureContrarian poet and uncreative writer Kenneth Goldsmith is going to spend next semester teaching 21st century leisure. He explains: "Come January, fifteen University of Pennsylvania creative-writing students and I will sit silently in a room with nothing more than our devices and a Wi-Fi connection, for three hours a week, in a course called 'Wasting Time on the Internet.' Although we'll all be in the same room, our communication will happen exclusively through chat rooms and listservs, or over social media. Distraction and split attention will be mandatory. So will aimless drifting and intuitive surfing. The students will be encouraged to get lost on the Web, disappearing for three hours in a Situationist-inspired dérive, drowsily emerging from the digital haze only when class is over. We will enter a collective dreamspace, an experience out of which the students will be expected to render works of literature. To bolster their practice, they'll explore the long history of the recuperation of boredom and time-wasting, through critical texts by thinkers such as Guy Debord, Mary Kelly, Erving Goffman, Raymond Williams, and John Cage. Nothing is off limits: if it is on the Internet, it is fair play. Students watching three hours of porn can use it as the basis for compelling erotica; they can troll nefarious right-wing sites, scraping hate-filled language for spy thrillers; they can render celebrity Twitter feeds into epic Dadaist poetry; they can recast Facebook feeds as novellas; or they can simply hand in their browser history at the end of a session and present it as a memoir."

Forget Privacy

online privacy12 years ago, Felix Stalder could already see how the rise of a networked society would lead individuals to trade privacy for personal service: "We live in a surveillance society. The creation, collection and processing of personal data is nearly a ubiquitous phenomenon. Every time we use a loyalty card at a retailer, our names are correlated with our purchases and entered into giant databases. Every time we pass an electronic tollbooth on the highway, every time we use a cell phone or a credit card, our locations are being recorded, analyzed and stored. Every time we go to see a doctor, submit an insurance claim, pay our utility bills, interact with the government, or go online, the picture gleaned from our actions and states grows finer and fatter." For Stalder, the traditional idea of privacy - that I control my information and data-is simply impossible to uphold in the modern world. Instead of talking about privacy - which he thinks an antiquated idea-we need to begin asking how to prevent the abuse of information. "Rather than continuing on the defensive by trying to maintain an ever-weakening illusion of privacy, we have to shift to the offensive and start demanding accountability of those whose power is enhanced by the new connections. In a democracy, political power is, at least ideally, tamed by making the government accountable to those who are governed and not by carving out areas in which the law doesn't apply. It is, in this perspective, perhaps no co-incidence that many of the strongest privacy advocates (at least in the US) lean politically towards libertarianism, a movement which includes on its fringe white militias that try to set up zones liberated from the US government. In our democracies, extensive institutional mechanisms have been put into to place to create and maintain accountability and to punish those who abuse their power. We need to develop and instate similar mechanisms for the handling of personal information - a technique as crucial to power as the ability to exercise physical violence - in order to limit the concentration of power inherent in situations that involve unchecked surveillance. The current notion of privacy, which frames the issue as a personal one, won't help us accomplish that."

Fail Quicker

age of failureAdam Davis says that our present and sped up culture of disruptive innovation is really as much a culture of failure: "An age of constant invention naturally begets one of constant failure. The life span of an innovation, in fact, has never been shorter. An African hand ax from 285,000 years ago, for instance, was essentially identical to those made some 250,000 years later. The Sumerians believed that the hoe was invented by a godlike figure named Enlil a few thousand years before Jesus, but a similar tool was being used a thousand years after his death. During the Middle Ages, amid major advances in agriculture, warfare, and building technology, the failure loop closed to less than a century. During the Enlightenment and early Industrial Revolution, it was reduced to about a lifetime. By the 20th century, it could be measured in decades. Today, it is best measured in years and, for some products, even less.... The closure of the failure loop has sent uncomfortable ripples through the economy. When a product or company is no longer valued in the marketplace, there are typically thousands of workers whose own market value diminishes, too. Our breakneck pace of innovation can be seen in stock-market volatility and other boardroom metrics, but it can also be measured in unemployment checks, in divorces and involuntary moves, and in promising careers turned stagnant. Every derelict product that makes its way into Weird Stuff exists as part of a massive ecosystem of human lives - of engineers and manufacturers; sales people and marketing departments; logistics planners and truck drivers - that has shared in this process of failure."

amor_mundi_sign-up
The Eternal Jew

eternal jewIn "Antisemitism," Part One of The Origins of Totalitarianism, Hannah Arendt discusses the emergence of the Jewish Type, the Jew in General, as it came to be in Germany in the 19th century. "Jewishness," she wrote, "became a psychological quality and the Jewish question became an involved personal problem for every individual Jew." And yet it is also the case that the Nazis still imagined Judaism as a physical attribute and not simply a psychology. As Sara Lipton reminds us in the New York Review of Books, "In 1940 the Nazis released a propaganda film called The Eternal Jew. The film claimed to show the Jews in their 'original state,' 'before they put on the mask of civilized Europeans.' Stagings of Jewish rituals were interspersed with scenes of yarmulke- and caftan-wearing Jews shuffling down crowded alleys, all meant to show the benighted nature of Jewish life. Above all, the filmmakers focused on Jewish faces. They trained their cameras in lingering close-up on their subjects' eyes, noses, beards, and mouths, confident that the sight of certain stereotypical features would arouse responses of loathing and contempt."

The Human Sciences

botsteinIn an interview with the Yale Daily News, Leon Botstein speaks about his lecture "Beyond Fashion and Fear: The Future of the Humanities and the Arts in the University." Botstein advises that we stop the high-minded defenses of the humanities and focus on teaching them in ways that are meaningful: "If we really believed that the humanities were vital, how would we organize them?" It may well be that what is most useful about the humanities is not the most advanced and critical research but the reading and consideration of foundational texts and works of art. The humanities, as Hannah Arendt understood, are important insofar as they preserve and conserve the common world. An example of their importance is visible in Botstein's answer to a question about the STEM fields of science, technology, engineering, and math: "My position is that the STEM fields cannot exist without the humanities, and that the humanities cannot exist without the STEM fields. The separation is purely bureaucratic; it's purely a structural separation having to do with the way it's 'easier' to organize things within a university. My view is that anybody who is interested in the humanities is at his or her peril to not think about the fundamental role of science, technology, engineering and the character of science, and vice versa; there's no serious scientist in the world that isn't confronted with - that doesn't deal with - the non-'purely scientific' or nontechnical motivations or consequences of their work. The separation of the two is nonsensical."

Why So Serious?

zizekIn a review of Slavoj Zizek's two newest books, Terry Eagleton considers the Slovenian philosopher's sense of humor: "There is a dash of the Dubliner Oscar Wilde in Zizek, a man who couldn't hear a pious English sentiment without feeling an irresistible itch to reverse its terms, rip it inside out, or stand it on its head. Zizek, who has the grim appearance of a hired assassin in a Jacobean tragedy, lacks Wilde's stylishness and elegance. He also lacks his distinctive brand of humour. Zizek is funny but not witty. He tells some excellent jokes and has a well-honed sense of the absurd, but one couldn't extract a book of epigrams from his writing, as one can from Wilde's. Both men, however, are natural-born debunkers and deconstructors, allergic to high moral tones and good clean fun. That Zizek should be a skilled exponent of Jewish black humour, the Woody Allen of Ljubljana, comes as no surprise. Even so, his urge to deface and deflate is a long way from cynicism. Remarkably, he combines the tragic vision of Freud with a Marxist faith in the future."

amor_mundi_sign-up
Featured Events

Alexei GloukhovLunchtime Talk with Alexei Gloukhov

Arendt and the Question of Positive Freedom

Tuesday, November 18, 2014

The Hannah Arendt Center, 12:30 pm - 2:00 pm

 

 


Film Screening & Director's Discussion: Killing Kasztner: The Jew Who Dealt with Nazis

Thursday, December 4, 2014

Reem-Kayden Center Laszlo Z. Bito '60 Auditorium, 5:00 - 8:00 pm


Roundtable on Academic Freedom

Tuesday, December 9, 2014

Bard College Campus Center, Multipurpose Room, 7:00 pm

 


Film Screening & Director's Discussion: A Snake Gives Birth to a Snake

Wednesday, December 10, 2014

Bard College Campus Center, Weis Cinema, 5:00 - 8:00 pm

 


From the Arendt Center Blog

This week on the Blog, Thomas Wild discusses Arendt's conception of freedom as a state of being experienced only in public in the Quote of the Week. Victor Hugo provides this week's Thoughts on Thinking. In our Video Archives, we remember a 2012 discussion between historian Deborah Lipstadt and Roger Berkowitz on Arendt's treatment of the Eichmann trial. And we appreciate Arendt's deep love of art in our Library feature.

The Hannah Arendt Center
The Hannah Arendt Center at Bard is a unique institution, offering a marriage of non-partisan politics and the humanities. It serves as an intellectual incubator for engaged thinking and public discussion of the nation's most pressing political and ethical challenges.
21Oct/112

The Robin Hood Tax?

Occupy Wall Street has been looking for issues to coalesce around. Now the Canadian group Adbusters—the group that issued the initial call that began the protests—has proposed that Occupy Wall Street adopt a Robin Hood Tax on financial transactions as its first issue. Here is their call to action.

The Financial Transaction Tax (FTT) is an idea that has lots of support amongst some economists. My friend David Callahan has been arguing for the FTT for a while now. By far the best and most balanced analysis of an FTT is by the IMF, here. On the positive side, the FTT has the advantage of being simple and intuitively attractive. But is a Financial Transaction Tax really a good issue for Occupy Wall Street to coalesce around?

The main problem is that the FTT employs a sawed off shot-gun approach to a real but specific problem and unintended consequences. Thus, the IMF study cited above concluded that a FTT would not clearly target financial excesses:

Where the goal is to curb financial market excesses, [FTT] offer a less specific remedy for the excessive leverage that is believed to cause them than other tax and/or regulatory solutions. Financial complexity does not derive solely or even primarily from trading activity. The buildup of hidden financial risks in the recent crisis resulted predominantly from excess leverage, risk concentration, and product innovation such as asset securitization, which would have been largely unaffected by a transactions tax. An [FTT] also does not directly address systemic risk.

The point is that the real problem in speculation is leverage and volatility. The FTT doesn't address leverage, and it doesn't target the high frequency traders who drive volatility. Instead, the FTT taxes ALL transactions.

What is more, the FTT will penalize smaller and retail investors—precisely those in the 99%. As the chart below shows, most stock in the U.S. is held by middle-class investors—those between the 80th percentile and the 99th percentile. They are responsible for the vast majority of financial transactions (this is especially true since a large percentage of the equity holdings of the 1% in the chart are enormous trusts containing dividend paying stocks that have been held for generations and which never trade).  Thus, the FTT falls most heavily on the people who own the most stock in the country and depend on that stock for our retirements and investments.

Another problem is that if the Financial Transaction Tax is not adopted globally, it may well drive trading off shore to even less well-regulated markets than our own. The U.S. tried a similar tax in the 1960s and repealed it when trading moved to London. Sweden tried a FTT tax in the 1980s and 1990s and repealed it later when trading fled to other countries.

Finally, the IMF concludes that the FTT would increase consumption and reduce savings by lowering the returns of investment and savings—a result directly opposite to at least some of the goals of Occupy Wall Street. In addition, the FTT discourages the rebalancing of portfolios, thus depressing total returns on mutual funds investments and 401ks.

So what might be some other ideas for Occupy Wall Street—and also our political leaders (such as they are)—to consider? Here are a few ideas that a number of professionals I spoke with mentioned:

1. Ban all High Frequency Trading. It has no purpose except to make some very big and wealthy firms money while increasing volatility for the rest of us. High frequency traders justify the practice as increasing market efficiency. But there is no economic justification to prefer a system that makes 1000 trades per second to one that makes 10 trades per second. Such trading is disruptive and very profitable. Ban it outright. Doing so would be much easier than getting the global cooperation needed to make a Financial Transaction Tax workable. And doing so would also make the U.S. markets more stable and thus give them a competitive advantage over other markets worldwide.

2. A Cancelled Order Tax. It turns out nearly 99% of the orders placed on Wall Street are never filled, but cancelled. A small percentage of these cancellations are just people changing their minds. But the vast majority of cancelled orders are used to manipulate prices by tricking other traders into thinking that a stock is moving in a particular direction. According to one study on an average trading day in 2010, only 1% of all the 89.7 billion orders were executed, which means that nearly 99% of all orders placed can be attributed to high frequency traders trying to manipulate stock prices. A tax on cancelled-orders has distinct advantages over a tax on all financial transactions. First, it will fall primarily on hedge funds and large high-frequency traders, and will not affect retail investors. Second, it will specifically target the casino-like aspect of Wall Street. A cancelled-order tax is not as simple or sexy as a financial transaction tax. Less has been written on it. But it actually seems like a better idea. Read more about the idea here and here.

3. Reinstate the Uptick Rule. Nearly every market professional I polled supports the re-instatement of the "Uptick Rule," a rule that was imposed in 1938 during the Depression and repealed in 2007—just before the market crash and the financial crisis. The Uptick Rule prevents hedge funds and traders from betting on falling stock prices when the markets are already falling, thus reducing volatility and reducing the ability of traders to make money by encouraging market panics. There is a debate about how effective the Uptick Rule is, but there seems to be little or no downside to reinstating it. The only people who oppose doing so are traders.

4. Taxing Corporate Debt and Leverage and Raising Margins. The IMF proposes taxing not financial transactions but corporate debt, thus discouraging corporations from using debt and leverage to finance their activities. As part of this approach, it would be wise to raise margin requirements, the amount of money that someone has to put up before buying a stock or financial instrument on credit.

While Hannah Arendt may not have been much interested in the minutiae of Wall Street regulation, she did care deeply about the importance of facts in thoughtful and reasoned argument.  In just one week, on Friday Oct. 28, the Hannah Arendt Center will open our two-day conference on Truthtelling: Democracy in an Age Without Facts. When facts and opinions blur, reasoned argument falls prey to spin and deception. Politics is a realm of conflicting opinions, Arendt argued, but the opinions must necessarily be grounded on facts.

Whether or not the Financial Transaction Tax is a good idea, the debate around it should be based on solid knowledge of the financial system, the affects of such a tax, and also the alternatives. These are very complex issues and, in all honesty, much of the debate so far has traded in simplifications, soundbites, and falsehoods.

If Occupy Wall Street really wants to distinguish itself from the Tea Party and change our political culture, let's use this first foray into politics as an opportunity to model adult argument, something that has been absent from our public life for far too long. If they do want to model a future of fact-based decision making, they will do well to look deeply into the cons as well as the pros of a financial transaction tax. They would also do well to consult those people who work in financial markets daily. Many of these people—both those in the 99% and the 1%—want to eliminate market excesses and reign in the speculation and insanity that helped lead to the recent financial crisis. In the name of common sense and a way forward, let's have a real debate based in both fact and expertise.

-RB

The Hannah Arendt Center
The Hannah Arendt Center at Bard is a unique institution, offering a marriage of non-partisan politics and the humanities. It serves as an intellectual incubator for engaged thinking and public discussion of the nation's most pressing political and ethical challenges.