The Montaigne Dogma

the AZEL PERSPECTIVE Commentary on Cuba's Future, U.S. Foreign Policy & Individual Freedoms - Issue 184

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Michel de Montaigne (1533-1592), who devised the essay as a literary genre, was one of the most erudite and sceptic humanist philosophers of the XVI century. He personified the French Renaissance’s spirit of freely embracing doubts.  Admired as a statesman, and author of three books of Essays, he coined the sceptic motto: What do I know? Montaigne has had a direct influence on Western thinkers including Francis Bacon, René Descartes, Blaise Pascal, Jean-Jacques Rousseau, and many others. But perhaps his most widespread and toxic influence has been by what Austrian School economist Ludwig von Mises labeled as the “Montaigne dogma.” In a brief chapter of his Essays, Montaigne claims that “…no profit whatever can possibly be made but at the expense of another...” Montaigne applied this same belief to trade between nations.  This fallacious idea that the gain of some must be at the loss of others, has become known as the Montaigne dogma. It is an idea that continues to find its way into political discourse and lawmaking. And yet, it is demonstrably false. At first consideration, the proposal that the gain of some must be at the loss of others seems in line with our everyday experience. In sports, when one team wins, the adversary loses; the same is true in political campaigns, military conflicts, court cases, and many other instances. These are examples of zero-sum games where, indeed, the gain of one must be the loss of another. But in these examples we are considering an ex post, or after the fact, evaluations of the events.  Before the events (ex ante), all of the participants in these examples expect to win. In voluntary exchanges, both the buyer and the seller must believe the transaction is in their best interest.  That is, they must expect to win, or they would not enter into the transaction in the first place. In a free-market gains result, not by creating stress for others, but by alleviating that stress with products and services. If you bought this newspaper for $1.00, you and the seller both benefited from a voluntary exchange. This is because you and the seller valued the goods differently; the seller preferred your dollar, and you preferred the newspaper. In modern game-theory language this exchange results in a positive-sum, rather than a zero-sum, or negative-sum. Economists, rely extensively on the study of human action (Praxeology) in their economic theories. Praxeology is based on the concept that we engage in purposeful behavior rather than in reflective behavior such as sneezing. From this idea of purposeful behavior, economist can develop an understanding of human behavior.  Our intentional behavior expresses our preferences. Montaigne dogma fails to recognize that poverty is what results if wealth is not produced. Or as economist Peter Bauer has phrased it: “Poverty has no causes. Wealth has causes.” Poverty is what we get when we do not generate wealth. For much of human history, poverty has been the norm. It has only been a few centuries since we learned to create wealth. It is that knowhow in creating wealth that has allowed us to make progress in reducing worldwide poverty. A graphical depiction of this phenomenon shows an uninterrupted horizontal line of human poverty for 1,800 years. It is only in the last three centuries that we see a near vertical increase in wealth. (See for instance the graphical representations of economist Max Roser in “Our World in Data”). Given that poverty is the natural occurring condition, then wealth must be produced to mitigate poverty. The erroneous Montaigne dogma has misdirected the attention of governments into expensive and ineffectual “Wars on Poverty”, and wealth redistribution policies, rather than on strategies to promote wealth acquisition. Poverty can be reduced with policies to incentivize productivity and profit. Unfortunately, the entire regulatory and taxation frameworks of most nations demonize profits and are designed to do just the opposite. If nations are serious about reducing poverty, they must discard the harmful Montaigne dogma and embrace passionately the freedom for citizens to create and keep wealth. Please let us know if you  this article. We welcome your feedback. Abrazos,  Lily & José  (click on the name to email Lily or Jose) José Azel, Ph.D. José Azel left Cuba in 1961 as a 13 year-old political exile in what has been dubbed Operation Pedro Pan - the largest unaccompanied child refugee movement in the history of the Western Hemisphere. He is currently dedicated to the in-depth analyses of Cuba's economic, social and political state, with a keen interest in post-Castro-Cuba strategies. Formerly, a Senior Scholar at the Institute for Cuban and Cuban-American Studies (ICCAS) at the University of Miami, Jose Azel has published extensively on Cuba related topics. In 2012 and 2015, Dr. Azel testified in the U.S. Congress on U.S.-Cuba Policy, and U.S. National Security.  He is a frequent speaker and commentator on these and related topics on local, national and international media.  He holds undergraduate and masters degrees in business administration and a Ph.D. in International Affairs from the University of Miami. José along with his wife Lily are avid skiers and adventure travelers.  In recent years they have climbed Grand Teton in Wyoming, trekked Mt. Kilimanjaro in Tanzania and Machu Pichu in Peru.  They have also hiked in Tibet and in the Himalayas to Mt. Everest Base Camp. They cycled St. James Way (El Camino de Santiago de Compostela) and cycled alongside the Danube from Germany to Hungary. They have scuba dived in the Bay Islands off the Honduran coast and in the Galapagos Islands. Their adventurers are normally dedicated to raise funds for causes that are dear to them.  Watch Joe & Lily summit Kilimanjaro. Books by Dr. José Azel "Liberty for beginners is much more than what the title promises. It is eighty themes touched with the wisdom of a master, and the charm of an excellent communicator. Anyone that wishes to understand why countries do, or do not progress, will find in this book the best explanations. If it was in my power, this work would be required reading for all college and university students, and I would recommend its reading to politicians, journalists, and policymakers. With this book Azel accomplishes what was achieved in France by Frédéric Bastiat, and in the United States by Henry Hazlitt: brings together common sense with intelligent observation, and academic substance. Stupendous" Carlos Alberto Montaner Buy Now "Libertad para novatos es mucho más de lo que promete el título. Son ochenta temas tocados con la sabiduría de un maestro y la amenidad de un excelente comunicador. Cualquier adulto que desee saber por qué progresan o se estancan los pueblos aquí encontrará las mejores explicaciones. Si estuviera en mis manos, esta obra sería lectura obligatoria de todos los estudiantes, tanto de bachillerato como universitarios, pero, además, se la recomendaría a todos los políticos y periodistas, a todos los policy makers. Azel logra con este libro lo que Frédéric Bastiat consiguiera en Francia y Henry Hazlitt en Estados Unidos: aunar el sentido común, la observación inteligente y la enjundia académica. Estupendo." Carlos Alberto Montaner Compre Aqui In Reflections on Freedom, José Azel brings together a collection of his columns published in prestigious newspapers.  Each article reveals his heartfelt and personal awareness of the importance of freedom in our lives.  They are his reflections after nearly sixty years of living and learning as a Cuban outside Cuba. In what has become his stylistic trademark, Professor Azel brilliantly introduces complex topics in brief journalistic articles. Buy Now En Reflexiones sobre la libertad José Azel reúne una colección de sus columnas publicadas en prestigiosos periódicos. Cada artículo revela su percepción sincera y personal de la importancia de la libertad en nuestras vidas. Son sus reflexiones después de casi sesenta años viviendo y aprendiendo como cubano fuera de Cuba.  En lo que ha resultado ser característica distintiva de sus artículos, el Profesor Azel introduce con brillantez complejos temas en  breves artículos de carácter periodístico. Compre Aqui Mañana in Cuba is a comprehensive analysis of contemporary Cuba with an incisive perspective of the Cuban frame of mind and its relevancy for Cuba's future. Buy now Pedazos y Vacíos is a collection of poems written in by Dr. Azel in his youth. Poems are in Spanish. Buy now

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