from the site:  The  Umlaut
 
 
Nassim Taleb’s Probabilistic Minarchism
 
_Adam  Gurri_ (https://theumlaut.com/@adamgurri?source=post_header_lockup) 
 

Nov  25, 2013
 
Nassim Taleb is known mostly for his treatises  on _randomness_ 
(http://www.amazon.com/gp/product/0812975219/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=178
9&creative=9325&creativeASIN=0812975219&linkCode=as2&tag=adagur-20)  and  
the impact of extreme but rare events — ”_black swans_ 
(http://www.amazon.com/gp/product/081297381X/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creativ
e=9325&creativeASIN=081297381X&linkCode=as2&tag=adagur-20) ”. However, 
throughout his work, and especially  in _his last book_ 
(http://www.amazon.com/gp/product/0812979680/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=93
25&creativeASIN=0812979680&linkCode=as2&tag=adagur-20) , one gets a hint of 
a political philosophy. He’s  been quite careful to openly swear allegiance 
to no particular philosophy or  ideology that is in currency today, always 
emphasizing that he is doing his own  thing. However, he has _recently 
clarified his position_ (http://storify.com/afg85/taleb-s-theory-of-government) 
 
somewhat, and I think at this point it  is safe to put him in the 
_minarchist_ (http://en.wikipedia.org/wiki/Minarchism)  camp — that is, those 
who 
believe in a  minimal state with a specifically enumerated but very limited set 
of  responsibilities. Rather than endorsing the classical justifications 
for  minarchism, however, Taleb comes at the subject from a probabilistic 
point of  view. 
Taleb’s popularity among libertarians has been  somewhat greater than his 
general popularity for many years now. He has  made _many appearances on 
EconTalk_ (http://www.econtalk.org/archives/_featuring/nassim_taleb/) , hosted 
by the very much libertarian Russ  Roberts, and he has been_interviewed at 
Reason_ 
(http://reason.com/reasontv/2013/01/20/interview-with-nassim-nicholas-taleb) . 
Yet he explicitly denies identifying  as a libertarian. And there 
have been a few cases where he has staked out an  opinion that clearly runs 
counter to straight libertarianism. For instance,  after the shootings at 
Newtown, he came down _in favor of strict gun control_ 
(http://www.businessinsider.com/nassim-talebs-super-simple-argument-for-banning-semi-automatic-and-au
tomatic-weapons-2012-12)  against assault rifles and  semi-automatics. 
Moreover, though he did not come out and say that he favored  banning GMO 
research, it’s clear from _the arguments he did make_ 
(http://theumlaut.com/2013/08/19/the-risks-and-rewards-of-genetically-modified-organisms/)
  that he at 
least leans that  way. 
Taking _a recent set of tweets_ 
(http://storify.com/afg85/taleb-s-theory-of-government)  on the  role of 
government in conjunction with his work and 
arguments he has made on  social media, his position is now quite clear. The 
argument of the book _Antifragile_ 
(http://www.amazon.com/gp/product/0812979680/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=08
12979680&linkCode=as2&tag=adagur-20)  is  that when you have a lower bound 
on bad outcomes, volatility can only be good  for you, as the most extreme 
variation can only occur in the direction of good  outcomes. As such, it 
should not come as a surprise that Taleb believes in a  strong government role 
for bounding us against tail risks such as being  conquered, having a rogue 
GMO wipe out all of agriculture, or permanently  damaging the environment. 
Other than that, he believes that our policies should  be as libertarian as 
possible. Bound the negative outcomes, unbound the positive  ones; often the 
opposite of _what governments actually do  today_ 
(http://theumlaut.com/2013/07/15/what-can-the-pharmaceutical-industry-learn-from-dungeons-and-dragons/)
 
. 
One can be both pro-strong government for tail  risks (wars, environment, 
safety net) & libertarian in the positive  domain.[barbell]

— Nassim N. Taleb (@nntaleb) _November 13, 2013_ 
(https://twitter.com/nntaleb/statuses/400758037025021952) 
At first glance this appeared even more  extreme than your typical 
minarchism, as minarchists also believed in a role for  the state in protecting 
property rights and policing violent crimes. Here, Taleb  is not anarchist but 
rather something like an extreme federalist; such things  should be _left to 
local governments_ (https://twitter.com/nntaleb/statuses/401353572018696192) 
. Indeed, if Antifragile is any indication, it should be even  more local 
than we are presently willing to consider; we should be more like the  Swiss, 
atomized into a large number of tiny cantons run on the basis of direct  
democracy. This is _another way of bounding negative  outcomes_ 
(http://theumlaut.com/2013/08/12/towards-a-probabilistic-libertarianism/)  — 
any 
extremely bad  local policy can only have an impact on a very limited number of 
 
people. 
The problem with relegating all policy to this  decentralized arrangement, 
as Taleb sees it, is that human beings create tail  risks that do not stop 
at the borders of policy-making entities. If Texas allows  the development of 
a GMO that cross-breeds with our global food supply and  renders all of it 
inedible, Texans will not be the only ones affected by it. If  the New York 
government starts manufacturing nuclear bombs and selling them to  countries 
that might use them to conquer other countries, New Yorkers would not  be 
the only ones affected. And if the US were to entirely adopt a  
Switzerland-like structure but without a central government, and another 
country  with a 
central government came along and conquered us, we would be right back  
where we started — or worse. 
One problem I see with this is that so long as there  are any countries 
that do not control tail risks, there are big holes through  which we could all 
face terrible black swans. So by the logic of Taleb’s  argument, it seems 
to me that the ideal world governance arrangement would have  every country 
atomized like Switzerland, and then one big global government with  a 
monopoly on military force that was responsible for blocking any tail risks  
anywhere. But he did not make that claim, so I will not attempt to defend or  
criticize it. 
There are inherent problems when talking about ideal  governance 
arrangements, of course, which may be why Taleb has mostly avoided  it — 
reality 
constrains you both by how hard it is to get to where you want to  be from 
where 
you are, and by what you would set in motion if you were even able  to get 
to your ideal. Taleb rightly identifies tail risks as the greatest  dangers 
to mankind and the planet, but aren’t there tail risks inherent to  
centralized government? 
I asked something like this when discussing the  extent of the _risks 
inherent in social  variation_ 
(http://theumlaut.com/2013/08/26/catastrophic-social-change/)  of all sorts. 
The most obvious risk to  me is nuclear war. The 
possibility of nuclear war seems to me to be not only  technological, but 
institutional — you need a couple of institutional bodies  that can marshal 
the resources to produce enough warheads to annihilate life on  Earth, and 
you need them to be susceptible to crossing that line. This is  something 
which large, central governments seem more likely to engage in than  the 
atomized, direct-democracy governments along Swiss lines. They can marshal  
more 
resources and require a lower threshold of consensus to  act. 
Moreover, even if we could start with central  governments that did nothing 
but bound us against negative tail events, there  would be nothing to bound 
the variation of those governments themselves. What we  know suggests that 
volatility would not improve these institutions, but _increase their bloat 
and  overreach_ 
(http://theumlaut.com/2013/10/21/ratchet-roulette-a-probabilistic-theory-of-the-growth-of-government/)
 , and increase the  chance that 
they would abandon or work at cross-purposes from the original goal  of 
bounding tail risks. 
Perhaps it is not fair to criticize Taleb’s  point of view from an ideal 
governance perspective. He could simply be saying  that, to the extent that we 
can influence our current policies within our  current institutional 
arrangements, we should push for more control over tail  risks and less control 
over everything else. If so, this seems more reasonable;  and this would be a 
valuable modification of minarchist  philosophy.

-- 
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