Coase on Friedman's Methodology

Coase was an admirer of Friedman. Here’s what he had to say to Tom Hazlett in 1997 about the famous ‘debate’ on what Stigler called the Coase Theorem;

I remember at one stage, Harberger saying, “Well, if you can’t say that the marginal cost schedule changes when there’s a change in liability, he can run right through.” What he meant was that, if this was so, there was no way of stopping me from reaching my conclusions. And of course that was right. I said, “What is the cost schedule if a person is liable, and what is the cost schedule if he isn’t liable for damage?” It’s the same. The opportunity cost doesn’t shift.

There were a lot of other points too, but the decisive thing was that this schedule didn’t change. They thought if someone was liable it would be different than if he weren’t. This meeting was very grueling for me. I don’t know whether you’ve had a conversation with Milton Friedman, but an argument with Milton Friedman is a pretty strenuous affair. He’s very good. He’s very fair, but he doesn’t let you slip up on anything. You’re constantly being pressed. But when at the end of whatever the time was–say, an hour–I found I was still standing, I knew I’d won. Because if Milton can’t knock you out in a few rounds, you’re home.

Actually I think the theory – that the US government hates Americans, America, and itself, does produce broadly successful predictions.

Progressivism says we should all be utilitarians, and that the US government has an equal duty to savages in far away lands, as it has to Americans. But, alas, the evil influence of the voters inclines the government to wickedly pander to those vile selfish redneck Americans.

The way to power is to be lefter than thou, so, the way to power is to furtively pursue policies that are more favorable to savages in far away lands than to Americans, if you can get away with fooling those vile selfish redneck American voters.

I endorse Moldbug’s Cathedral model of governance. Progressivism is a state religion, Harvard is the ruling elite at prayer. Consensus and the continual struggle to be lefter than thou causes the Cathedral to be evil, insane, destructive and self destructive. The ruling doctrine, the religion of the elites, hates Americans, and hates themselves, wishes them all dead, every American dead in the most horrible possible fashion, and is moving to achieve this worthy goal.

For this belief system in full deranged suicidal masochistic flower, see Amy Elizabeth Biehl and her parents, and the works of David Foster Wallace.

A government that bestows sainthood on Wallace and Biehl, is a government that will intentionally harm Americans to benefit their enemies.

Wallace wanted very much to be utilitarian, and indeed more utilitarian than thou – but it was easier to hate himself and those near to him, than to love those far away and different from himself.

Of course few of the elite are really as crazy as Wallace or Biehl, but the way to power is to appear to endorse such madness. Amy Biehl and Foster Wallace have officially been deemed official saints, like the Holy child Martin Trayvon.

Your piece in the WSJ was excellent. It gave a good overview and left the reader with a desire to learn more.

@LD Bottorff,
Thanks.
@Jason Scheppers,
Thanks for the photo.