On Ego - A Response to a Comment from Philip

On Ego – A Response to a Comment from Philip

Philip asked me some thoughts about ego in a recent comment. Several years back I read and wrote about Ryan Holiday’s book Ego is the Enemy and it has been fundamental in shaping how I see and understand myself within our complex social world. In addition to Ego is the Enemy, Robin Hanson and Kevin Simler’s book The Elephant in the Brain and Daniel Kahneman’s work in Thinking Fast and Slow dramatically shape the way I understand the idea of the self, how we think, and the role of ego in our lives. Here are some of my thoughts on ego, and some specific responses to questions that Philip asked.
 
 
First, Philip said that he sees, “ego as a closed loop of sort, independent of the acting self.”
 
 
I wouldn’t agree with Philip on this point, but that is because I reject the idea of an independent acting self. Yuval Noah Harari is a great person to read on meditation and the idea of the self. If you ever try meditating, you will quickly learn that you don’t truly have control over your thoughts. This suggests that we don’t have an independent self that is doing the thinking in our minds. “Thoughts think themselves,” Harari has said, and if you meditate, you will understand what he means. Thoughts frequently pop into our head without our control. Ego, and the kinds of thoughts we associate with ego and megalomania, are all just thoughts swirling around in what appears to be a chaos of thoughts. Given the nature of thought, I don’t think we should think of ego as anything independent of the other thoughts within our mind.
 
 
Second, Philip says, “if you are in a state of security, you can choose not to act on ego.”
 
 
I also wouldn’t agree with this point. In his Meditations, Aurelius writes about Epictetus, a slave and a pioneer of stoicism. Epictetus was not exactly secure, but he was able to put aside ego and focus on the present moment. His particular brand of stoicism has resonated with prisoners of war and involves the dissolution of personal ego for survival. We can put aside ego at any point, regardless of how secure we are.
 
 
Also pushing against Philips thoughts is Donald Trump. Certainly, at many points in his life, Trump has been secure in terms of money, fame, power, and influence. Yet Trump is clearly an egomaniac who is unable to set his ego aside and will pursue even the smallest slights and insults against him. I don’t think that a state of security is really an important consideration for whether we act in an egotistical way.
 
 
Philip’s third observation on ego is “as a self preserving mechanism, protecting you and helping you in motivating living the life you do.”
 
 
This is a view on our ego that I would agree with. When we think about how the mind works, I think we should always approach it from an evolutionary psychology standpoint. Very likely, our brains are the way they are because at some point in the history of human evolution it was beneficial for our minds to function in one way over another. There could be some accidents, some mental equivalents to vestigial organs, and some errors in our interpretations, but we probably didn’t develop many psychological traits and maintain them throughout generations if they were not helpful for survival somewhere along the way.
 
 
When we view the ego through this lens, it is not hard to see how the ego could help improve our chances of surviving and passing down our genes. If we are egotistical and think that we deserve the best and that we deserve larger amounts of resources, we will be more likely to advocate for ourselves and fight for a better lot in life. This could help our survival, could help us find a better mate, and could help ensure we pass more genes on to subsequent generations. Without the ego, we may chose to settle, we may be complacent, and we may not strive to pass our genes along or ensure that those subsequent genes have sufficient resources to further pass their genes into the following generation. Ego can push us to strive toward the higher salary, the fancier car, more exclusive golf clubs, and other things that are not really necessary for life, but could help ourselves amass more resources and help our kids have better connections to get into Stanford and ultimately find a spouse and have kids. Ego could certainly be antisocial and harmful for us and society, but it could also be important for genetic survival.
 
 
Philip’s fourth point is about a guy who is hurt because his wife forgot his birthday.
 
 
It is possible that an inflated ego is what made this guy upset when his wife forgot his birthday, but it could also be a number of other psychological or relationship issues between him and his spouse. He may have larger issues of self-worth and value independent of his ego. He may be codependent and perhaps need counseling to better manage his relationships with others. Or his wife could have just been having a bad day. This didn’t seem like a great avenue for discussing and understanding ego to me.
 
 
The fifth point that Philip brings up ties back to his third, by viewing ego as a “fairness calculator.”
 
 
I also think this could be a useful way to view ego and it also seems like it could be understood through a cognitive psychology perspective. We don’t want to feel like we are being cheated, yet we would be happy to bend the rules and cheat a little if we thought we could get away with it. This is a lot of what Robin Hanson and Kevin Simler discuss in The Elephant in the Brain. If we can signal that we are honest and trustworthy, without actually having to be honest and trustworthy, then we are at an advantage. However, if we suspect that another person is all signal and no actual behavior to back up those signals, then we may act in an egotistical way by being defensive and pushing back against the other. Ego does seem to help fuel this mindset and does seem to encourage a type of fairness calculator behavior.
 
 
The final point that Philip makes is that, “ego needs to be controlled in a civilized society.”
 
 
I think here Philip is also correct. We live in very complex social societies and ego helps us individually, but also has negative externalities. Ego certainly helped push Trump to the presidency and the history books, but I’m not sure the world was better for it. By pursuing our own self-interest and acting based on ego, we can damage the world around us.
 
 
Hanson and Simler would argue that much of these harmful effects of ego are moderated by our signaling ability. Hanson has said that his estimate is that up to 90% of what we do as humans is signaling, at least in rich countries like the United States. Signaling both helps us get ahead and tempers our ego. Overt displays are frowned upon, leaving less overt signaling as the way we display how amazing we are. An unchecked ego is going to break the rules for signaling, and unless it is Donald Trump in the 2016 election, such overt egotism will be punished. Ultimately, we do have to control ego because of negative externalities if we want to cooperate and live in complex social communities.
 
 
I hope this helps explain some of how I think about ego!
Steven Pinker On Morality

Steven Pinker on Morality

According to Steven Pinker, in his book The Better Angels of Our Nature, morality comes from our ability to reason and our need to cooperate together. Without interactions and dependence on other human beings, we wouldn’t have a sense of morals. We would only have our individual self-interest. However, humans live in complex social groups within complex social communities and we have to live and work together for survival and general life satisfaction. As Robin Hanson and Kevin Simler argue in The Elephant in the Brain, social and political tribes drove the evolution and need for large rational brains, which Pinker argues allow us to reason from a point of mutual unselfishness, ultimately creating our ideas of morality.
 
 
To demonstrate, Pinker writes, “if I appeal to you to do something that affects me – to get off my foot, or not stab me for the fun of it, or to save my child from drowning – then I can’t do it in a way that privileges my interests over yours.” All humans are self-interested, which conflicts with our social lives. We all want to act in our own self-interested ways, but we have to cooperate with others and work with others to get what we desire or need for survival. Therefore, you must demonstrate that your interests go beyond simply your own self-interest in order to get people to respect you, respect your interests, and to cooperate with you. Pinker continues, “I have to state my case in a way that would force me to treat you in kind. I can’t act as if my interests are special just because I’m me and you’re not.” To work together we have to find ways in which our interests align. I may have to pay you to do some physical effort that I don’t want to do. I may have to agree to respect your property if I want you to respect my property. I may have to give up some level of individual rights if I don’t want you to abridge liberties of mine. “Mutual unselfishness is the only way we can simultaneously pursue our interests,” Pinker writes.
 
 
What Pinker argues, flowing from this discussion of mutual unselfishness, self-interests, and social cooperation, is that our morals are not given to us by a supernatural power and that our morals do not exist separate from humans. Morals are created through human rationality and through our ability to recognize that we have individual feelings and preferences, and therefore other people who are like us probably have the same capacity for all the feelings, emotions, preferences, and desires that we have. Our morals exist because we have to work together, to interact in social groups and organizations, and to rely upon institutions to order our relationships and collective efforts.
 
 
Pinker writes, “Morality, then, is not a set of arbitrary regulations dictated by a vengeful deity and written down in a book; nor is it the custom of a particular culture or tribe. It is a consequence of the interchangeability of perspectives and the opportunity the world provides for positive-sum games.” By interchangeability of perspectives Pinker is referring to the human ability to consider that other people have thoughts and feelings and the human ability to imagine or adopt other perspectives. Positive-sum games are situations where everyone is made better through cooperation. By all working together and combining inert pieces of material, we can create a house which which shelter us, keep us warm in the winter and shaded in the summer, and will give us a place to meet and hang out. The total value of the house is greater than the individual value of each component piece. Much of our world is structured around positive-sum interactions that occur when we cooperate through mutual unselfishness. Our morals derive from our ability to reason and help us harness these positive-sum moments. But it all comes back to our desire to pursue our own self interests while having to compromise as part of a larger social group.
Violence and Convenient Mysticism

Violence and Convenient Mysticism

Mysticism in the United States doesn’t really feel like it lends itself to violence. When we think of mystics, we probably think of someone close to a shaman, or maybe a modern mystic whose aesthetic is very homeopathic. Mystics don’t seem like they would be the most violent people today, but in the past, mysticism was a convenient motivating factor for violence.
 
 
In his book The Better Angels of Our Nature, Steven Pinker describes the way that mysticism lends itself to violence by writing, “the brain has evolved to ferret out hidden powers in nature, including those that no one can see. Once you start rummaging around in the realm of the unverifiable there is considerable room for creativity, and accusations of sorcery are often blended with self-serving motives.”
 
 
There are two important factors to recognize in this quote from Pinker, and both are often overlooked and misunderstood. First, our brains look for causal links between events. They are very good and very natural at thinking causally and pinpointing causation, however, as Daniel Kahneman wrote in Thinking Fast and Slow, the brain can often fall into cognitive fallacies and misattribute causation. Mystical thinking is a result of misplaced causal reasoning. It is important that we recognize that our brains can see causation that doesn’t truly exist and lead us to wrong conclusions.
 
 
The second important factor that we often manage to overlook is our own self-interest. As Kevin Simler and Robin Hanson explain in The Elephant in the Brain, our self-interest plays a much larger role in much of our decision-making and behavior than we like to admit. When combined with mysticism, self-interest can be dangerous.
 
 
If you have an enemy who boasts that they are special and offers mystical explanations for their special powers, then it suddenly becomes convenient to justify violence against your enemy. You don’t need actual proof of any wrong doing, you don’t need actual proof of their danger to society, you just need to convince others that their mystical powers could be dangerous, and you now have a convenient excuse for disposing of those who you dislike. You can promote your own self-interest without regard to reality if you can harness the power of mystical thinking.
 
 
Pinker explains that the world is becoming a more peaceful place in part because mystical thinking is moving to smaller and smaller corners of the world. Legal systems don’t recognize mystical explanations and justifications for behaviors and crimes. Empirical facts and verifiable evidence has superseded mysticism in our evaluations and judgments of crime and the use of violence. By moving beyond mysticism we have created systems, structures, and institutions that foster more peace and less violence among groups of people.
Cyncial Greed - Yuval Noah Harari Sapiens - Kevin Simler Robin Hanson the Elephant in the Brain - Joe Abittan

Cynical Greed?

Why do humans push so hard to amass as much wealth, fame, influence, and recognition as possible? Why do people who have become incredibly successful continue to push for more, and why do they often fight so hard to control the narrative around success? For many of us, the answer may seem to be cynical greed. That individuals who are incredibly wealthy are greedy, and they use cynicism to put others down while continuing to prop themselves up. They don’t really believe in the system and narrative they promote – they only believe in their own gain. However, Yuval Noah Harari suggests this may be an incomplete answer in his book Sapiens. Further, Robin Hanson and Kevin Simler offer a better explanation in their book The Elephant in the Brain to explain our insatiable appetite for more wealth, power, and influence.
 
 
I think it is pretty common these days to see the super wealthy as a flaw in the system or as cynical and greedy people who take advantage of the less fortunate. We imagine the super wealthy to be Scrooges who don’t believe in anything but their bank account, who they get to go to dinner with, and by the number of people who know their name. We see them as empty narcissists. But Yuval Noah Harari challenges this view by writing, “a cynic who believes in nothing is unlikely to be greedy. It does not take much to provide the objective and biological needs of Homo sapiens.” So if we can satisfy our basic biological needs relatively easily, why do so many people, not just the super wealthy, push to have so much? Cynical greed doesn’t seem to be the answer.
 
 
The pursuit of status to enhance our chances of passing our genes along, and then ensuring that subsequent generations of our genes are passed along, may be the answer. Kevin Simler and Robin Hanson make this argument in The Elephant in the Brain. Much of what we do, they argue, is some form of signaling to indicate our virtues or the advantages that mating with us or teaming up with us would offer. Having incredible wealth and material resources shows to other partners and the potential future partners of our decedents that we have resources to take care of them and ensure their genes are passed along successfully. Being incredibly famous and well connected shows that we are a powerful ally and that we have many compatriots that will help and protect us if needed. Again, this demonstrates that our genes are likely to be passed along for several generations since aid will be provided in emergencies or difficult situations.
 
 
We evolved these instincts when living in small tribal bands and small communities where a drought could leave our ancestors without enough food. A flood could have dislocated our tribe, and we would have been dependent on the help of others to live. Or, we could have had a feud with another member of our tribe or a neighboring tribe, and if we had enough allies that could rally to our defense, then we might survive rather than be killed. To pass their genes along, our ancestors had to show that they had resources to survive periods where resources were scarce. They had to show they had the right connections to be worthy of saving. And they had to be a strong ally to others so that they would also be protected if needed. We continue to push beyond our biological needs because our ancestors evolved to signal their worthiness and ability to pass their genes along. That is why we buy massive homes, electric hummers, and attend cultural events where we may see other important and powerful people. It is more than cynical greed that drives our desire for more.
More on Human Language and Gossip

More on Human Language and Gossip

In my last post I wrote about human language evolving to help us do more than just describe our environments. Language seems helpful to ask someone how many cups of flour are in a cookie recipe, where the nearest gas station is, and whether there are any cops on the freeway (or for our ancestors, what nuts are edible, where one can find edible nuts, and if there is a lion hiding near the place with the edible nuts). However, humans use language for much more than describing these aspects of our environment. In particular, we use language for signaling, gossiping, and saying things without actually saying the thing out loud.
We might use language to say that we believe something which is clearly, objectively false (that the emperor has nice clothes on) to signal our loyalty. We may gossip behind someone’s back to assess from another person whether that individual is trustworthy, as Yuval Noah Harari argues in his book Sapiens. And we might ask someone if they would like to come over to our house to watch Netflix and chill, even if no watching of Netflix is actually in the plans we are asking the other person if they are interested in engaging in. As Robin Hanson and Kevin Simler explain in The Elephant in the Brain, we are asking a question and giving the other person plausible deniability in their response and building plausible deniability into the intent of our question.
These are all very complicated uses of language, and they developed as our brains evolved to be more complicated. The reason evolution favored brain evolution that could support such complicated uses of language is due to the fact that humans are social beings. In Sapiens, Harari writes, “The amount of information that one must obtain and store in order to track the ever-changing relationships of even a few dozen individuals is staggering. (In a band of fifty individuals, there are 1,225 one-on-one relationships and countless more complex social combinations.)” In order for us to signal to a group of humans, gossip about others, or say things that we know will be commonly understood but plausibly denied, our brains needed a lot of power. History suggests that tribes typically ranged from about 50 on the low end to 250 people on the high end, meaning we had a lot of social interactions and considerations to manage. Our brains evolved to make us better social creatures, and language was one of the tools that both supported and drove that evolution.
Using Language for More than Conveying Environmental Information - Yuval Noah Harari Sapiens - Kevin Simler and Robin Hanson The Elephant in the Brain - Joe Abittan

Using Language for Conveying More Than Environmental Information

In the most basic utilitarian sense, our complex human languages evolved because they allowed us to convey information about the world from one individual to another. Language for early humans was incredibly important because it helped our ancestors tell each other when a predator was spotted nearby, when fruit was safe to eat, or if there was a dead water buffalo nearby that our ancestors could go scavenge some scraps from.  This idea is the simplest idea for the evolution of human language, but it doesn’t truly convey everything we have come to do with our language over a couple million years of evolution.
Yuval Noah Harari expands on this idea in his book Sapiens, “a second theory agrees that our unique language evolved as a means of sharing information about the world. But the most important information that needed to be conveyed was about humans, not lions and bison.” What Harari means in this quote is that human language allowed our ancestors to gossip. This is an idea that Kevin Simler and Robin Hanson share in their book The Elephant in the Brain. They argue that language is often more about showing off and gossiping than it is about utilitarian matters such as conveying environmental information. They also argue that the use of language for gossip and signaling was one of the key drivers of the evolution of the human brain, rewarding our ancestors for being smarter and more deceptive, hence rewarding larger and more complex brains.
In Sapiens, Harari explains that many species of monkeys are able to convey basic information through specific calls that are recognized among a species, such as when a predator is nearby or when there is ample food nearby. Playbacks of sounds identified as warnings will make monkeys in captivity hide. However, studies haven’t been able to show that other species are able to communicate and gossip about each other in the ways that humans do from a very young age. Our use of language to convey more than basic information about our environment allowed humans to develop into social tribes, and it has sine allowed us to develop massive populations of billions of people all cooperating and living together.
The Elephant in the Brain with Psychics and Mediums - Kevin Simler - Robin Hanson - Mary Roach - Joe Abittan - Spook: Science Tackles the Afterlife

The Elephant in the Brain with Psychics and Mediums

In the book The Elephant in the Brain, Robin Hanson and Kevin Simler argue that our own self-interest drives a huge amount of our behavior. On the surface this doesn’t sound like a huge shock, but if you truly look at how deeply our self-interest is tied to everything we do, you start to see that we like to pretend that we don’t act purely out of our own self-interest. Instead, we lie to ourselves and others and create high minded reasons for our beliefs, behaviors, and actions. But our self-interest is never far behind. It is always there as the elephant in the room (or brain) influencing all that we do even if we constantly try to ignore it.
This is likely what happens when people visit psychics and mediums with the hopes of learning about their future or reconnecting with the spirit of a lost one. Mary Roach describes what is going on with psychics, mediums, and their clients in her book Spook, and I think her explanation is a strong argument for the ideas presented by Hanson and Simler in The Elephant in the Brain. She writes:
“It seems to me that in many cases psychics and mediums prosper not because they’re intentionally fraudulent, but because their subjects are uncritical. The people who visit mediums and psychics are often strongly motivated or constitutionally inclined to believe that what is being said is relevant and meaningful with regard to them or a loved one.”
Both psychics/mediums and their subjects are motivated by self-interests that they don’t want to fully own up to. They both deceive themselves in order to appear to genuinely believe the experience. If you can fool yourself then it becomes much easier to fool others, and that requires that you ignore the elephant (your self-interest) in your brain.
Clients want to believe they are really interacting with the spirit of a lost one and not being fooled or defrauded. Critical thinking and deliberately acknowledging that they are susceptible to being fooled are ignored and forgotten. Instead, the individual’s self-interest acts behind the scenes as they help create the reality they want to inhabit with the help of the psychic or medium.
The psychics and mediums also don’t want to be viewed as fraudsters and quacks. They hide the fact that they have economic and social motivations to appear to have special powers and signal their authenticity. If a client is uncritical, it helps the entire process and allows both parties to ignore their self-interest acting below the surface. Ultimately, as Roach argues, the process is dependent on both practitioners who are willing to believe their subjects are having authentic experiences and on subjects to then believe their psychics and mediums are genuinely communicating with the dead. Without either, and without the self-deception for both, the whole process would fall apart.
More Information Can Make the World More Confusing

More Information Can Make the World More Confusing

“In my experience,” writes Mary Roach in Spook, “the most staunchly held views are based on ignorance or accepted dogma, not carefully considered accumulations of facts. The more you expose the intricacies and realities of the situation, the less clear-cut things become.”
This quote from Mary Roach is something I have experienced in my own life over and over. I have met many people with very strong views about subjects, and they very often oversimplify an issue and reduce arguments against their position to a straw man. Rather than carefully considering whether their opinions and perspectives are valid, they dismiss arguments against their favored position without real thought. And to be fair, this is something I have even caught myself doing.
I generally seem to be one of those people who can talk about challenging subjects with just about anyone. I think the reason why I am able to talk to people about difficult topics is because I always try to understand how reach the perspective they hold. I also try hard to understand why I hold my own opinions, and I try not to reduce either my own or another person’s opinion to a simple right or wrong morality judgment. I think we come to our opinions through many convoluted paths, and straw-manning an argument does an injustice to the opinions and views of others.
At the same time, I have noticed that those who hold the most oversimplified beliefs do so in a dogmatic manner, as Roach suggested. They may be able to consider facts and go through deeper considerations, but they ultimately fall back on simple dogma, rather than live with the complex cognitive dissonance required to accept that you believe one thing in general, but cannot always rely on that one thing to explain the particulars. Personally, I have found that I can have conversations with these people, but that I feel frustrated when they then turn around and post things on social media that are reductive and ignore the complex perspectives we previously talked through.
Like Roach, I find that those with more detailed and nuanced views, built out of an accumulation of facts, generally are less emotionally invested in a given topic. Perhaps it is a lack of passion for a topic which allowed them to look at facts in such detail, rather than adopting a favored view and immediately dismissing anything that doesn’t align with that view.
Ultimately, I think much of this behavior can be understood by reading Kevin Simler and Robin Hanson’s book The Elephant in the Brain. We are all smart and capable of self-deception in order to more strongly believe the thing we want to believe. Over simplified dogmas simply help us do that better. I think we are often signaling our loyalty to a group or signaling some characteristic that we think is important when we make reductive and dogmatic statements. We recognize what identity we wish to hold and what is in our self-interest, and we act our part, adopt the right beliefs, and signal to others that we are part of the right in-group. In this way, the dogma is a feature and not a bug.
Personally and Politically Disturbed by the Homeless

Personally and Politically Disturbed by the Homeless

On the first page of the preface of The Homeless, Christopher Jencks writes about the responses that many Americans had to the rise of homelessness in American cities in the 1970s. He writes, “The spread of homelessness disturbed affluent Americans for both personal and political reasons. At a personal level, the faces of the homeless often suggest depths of despair that we would rather not imagine, much less confront in the flesh. … At a political level, the spread of homelessness suggests that something has gone fundamentally wrong with America’s economic or social institutions.”
I think the two books which most accurately describe the way that I understand our political and social worlds are Thinking Fast and Slow by Daniel Kahneman and The Elephant in the Brain by Kevin Simler and Robin Hanson. Kahneman suggests that our brains are far more susceptible to cognitive errors than we would like to believe. Much of our decision-making isn’t really so much decision-making as it is excuse making, finding ways to give us agency over decisions that were more or less automatic. Additionally, Kahneman shows that we very frequently, and very predictably, make certain cognitive errors that lead us to inaccurate conclusions about the world. Simler and Hansen show that we often deliberately mislead ourselves, choosing to intentionally buy into our minds’ cognitive errors. By deliberately lying to ourselves and choosing to view ourselves and our beliefs through a false objectivity, we can better lie to others, enhancing the way we signal to the world and making ourselves appear more authentic. [Note: some recent evidence has put some findings from Kahneman in doubt, but I think his general argument around cognitive errors still holds.]
Jencks published his book long before Thinking Fast and Slow and The Elephant in the Brain were published, but I think his observation hints at the findings that Kahneman, Simler, and Hanson would all write about in the coming decades. People wanted to hold onto beliefs they possibly knew or suspected to be false. They were disturbed by a reality that did not match the imagined reality in which they wanted to believe. They embraced cognitive errors and adopted beliefs and conclusions based on those cognitive errors. They deceived themselves about reality to better appear to believe the myths they embraced, and in the end they developed a political system where they could signal their virtue by strongly adhering to the initial cognitive errors that sparked the whole process.
Jencks’ quote shows why homelessness is such a tough issue for many of us to face. When we see large number of people failing and ending up homeless it suggests that there is something more than individual shortcomings at work. It suggests that somewhere within society and our social structures are points of failure. It suggests that our institutions, from which we may benefit as individuals, are not serving everyone. This goes against our beliefs which reinforce our self-interest, and is hard to accept. It is much easier to simply fall back on cognitive illusions and errors and to blame those who have failed. We truly believe that homelessness is the problem of individuals because we are deceiving ourselves, and because it serves our self-interest to do so. When we see homeless, we see a reality we want to ignore and pretend does not exist because we fear it and we fear that we may be responsible for it in some way. We fear that homelessness will necessitate a change in the social structures and institutions that have helped us get to where we are and that changes may make things harder for us or somehow diminishing our social status. This is why we are so disturbed by homeless, why we prefer not to think about it, and why we develop policies based on the assumption that people who end up homeless are deeply flawed individuals and are responsible for their own situation. It is also likely why we have not done enough to help the homeless, why it is becoming a bigger issue in American cities, and why we have been so bad at addressing the real causes of homelessness in America. There is definitely some truth to the argument that homelessness is the result of flawed individuals, which is why it is such a strong argument, but we should accept that there are some flawed causal thoughts at play and that it is often in our self-interest to dismiss the homeless as individual failures.
Who Wants Market Regulation?

Who Wants Market Regulation?

“Those who profit from the current situation – and those indifferent to it – will say that the housing market should be left alone to regulate itself. They don’t really mean that,” writes Matthew Desmond in his book Evicted.  In the world that Desmond investigated, the world of low-income housing, the ones who don’t think any government action needs to be taken to regulate or stabilize the market are the landlords and people able to make money from slum housing. The people exploiting market failures and extracting rents say they don’t want any changes in housing policy because they favor a free market, but what Desmond’s quote hints at is that they don’t really exist within a free-market, and they currently profit from existing government action (not just inaction) on housing policy.
The quote from Desmond reminds me of senior citizens who protest changes to Medicare with signs that say “Keep your government hands off my Medicare,” seemingly unaware that Medicare is a government run health program. The line between government and markets is not always clear to people, and what people actually want in terms of government market regulation doesn’t always line up with people’s stated political beliefs or stated beliefs about government intervention. We can have high minded opinions about the proper role of government relative to markets, and we sound better and more impressive when we do, but the bottom line is that we are all likely driven more by our own self-interest than our high minded opinions of governments and markets.
I am currently listening to Ron Chernow’s Hamilton biography on audiobook. I am struck by how our nation’s founding fathers quickly broke down into self-interested policy quarrels that were couched in high minded political rhetoric, but seemed to perfectly back the self-interest of the given founding father. Jefferson in particular seemed to be a master of this kind of deception, arguing that America should have a minimal government and reflect a populist standpoint. However, Jefferson owned slaves and had a vast agrarian plantation and his policies seemed to clearly favor his own lifestyle. His actions can be well understood when viewed through the lens of The Elephant in the Brain by Kevin Simler and Robin Hanson who suggest that most of our behavior is signaling and that we generally (and deceptively) act on self-interest more than we would ever admit.
All of this is to suggest that most people don’t really have any independent and objective views of government regulations of markets. Desmond’s quote about housing markets shows that people are driven by self-interest, that they discount regulations that favor their financial interests, and that they misrepresent government policies that make them better off. When our own self-interest, our own bottom line, and our social status are on the line, we are willing to compromise our high minded positions to adopt the view that is expedient to our own interests. This was true of Jefferson and Hamilton in the first Presidential Administration after the adoption of the Constitution, and it is true today in housing, Medicare, and other government and market areas. Landlords, real-estate agents, and others who currently profit in the housing market are in favor of government tax breaks on mortgage interest, of housing vouchers, and other policies that help ensure people can afford high rents. They view the market as being free without fully acknowledging these interventions and how they benefit from them.