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truth and Truth

Summary:
Smiley-faced authoritarianism is rarely announced with dire, thundering rhetoric. Instead, it is delivered with smiles and hashtags. It is celebrated as an achievement. It is tweeted with the perfect celebratory photo, tinted with just the right filter, Twitter handle watermark in just the right place. If the composition of the photo can frame the idea of ‘speaking truth to power’, all the better. If it can superimpose self-praise in bold text, we are in the smiley-faced sweet spot. If that self-praise can incorporate an Orwellian euphemism like, say, “legitimize a growing industry,” it is hard to see how we can do better. Perfect. There are powerful memes here: ‘legitimizing’ an industry isn’t just a creepy paternalistic turn of phrase – in this case it is also a

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truth and Truth

Smiley-faced authoritarianism is rarely announced with dire, thundering rhetoric.

Instead, it is delivered with smiles and hashtags. It is celebrated as an achievement. It is tweeted with the perfect celebratory photo, tinted with just the right filter, Twitter handle watermark in just the right place. If the composition of the photo can frame the idea of ‘speaking truth to power’, all the better. If it can superimpose self-praise in bold text, we are in the smiley-faced sweet spot. If that self-praise can incorporate an Orwellian euphemism like, say, “legitimize a growing industry,” it is hard to see how we can do better.

truth and Truth

Perfect.

There are powerful memes here: ‘legitimizing’ an industry isn’t just a creepy paternalistic turn of phrase – in this case it is also a meme of equality! Safety! Protection! But the memes attached to the bill itself were even worse. Around the same time that Rep. Gilchrest proposed CT HB 5754 earlier this year, another bill was proposed and referred to committee – HB 6742. That second bill was introduced with the following description: AN ACT CONCERNING THE ERADICATION OF HUMAN TRAFFICKING AND FORCED AND EXPLOITED LABOR IN STATE CONTRACTS. What came out of committee? Narrative, of course, in the form of the new frankenbill: AN ACT CONCERNING HUMAN TRAFFICKING AND STATE CONTRACTS AND THE LICENSING OF ESTHETICIANS, NAIL TECHNICIANS AND EYELASH TECHNICIANS.

Yes, you read that correctly.

The original bill had all of the usual trappings of occupational licensing legislation: high school diploma requirements for professions with no conceivable justification. Big recurring fees paid to the state. Huge fines (i.e. $25,000) for violations. Absurd training requirements. In this case, the state of Connecticut felt it was necessary to impose all of these requirements on people who wanted to become hairdressers, makeup specialists and nail salon workers.

Occupational licensing laws are almost universally terrible. They ought to be one of those rare Widening Gyre-crossing miracles that unite both market liberals and full-on socialists. They disproportionately harm the poor. They disproportionately harm women. They disproportionately harm minorities. They promote anti-competitive behavior that reduces the rewards for well-run businesses and entrepreneurs and protects poorly run enterprises. They protect petty cartels. They make no one safer. They produce almost no advantages for anyone other than (1) poorly run incumbents looking to raise barriers to entry, (2) rent-seekers looking to profit from new educational requirements and (3) the politicians who receive funding from them. For all of those reasons, there is a strong movement to pull back these cartelization rituals in most states, and in most jurisdictions a bill like this would undergo far more challenge.

But what is truly terrible, and what permitted the bill to advance at all, was the cynical adaptation of the human trafficking angle, a gift from the narrative gods. By grafting it to the early language of the bill, it permitted supporters to present opposition to it as support for a vile thing. It abstracted the nuts and bolts of a purely bureaucratic proposal into unassailable concepts. And the bill sailed through committees and amendments.

There is Truth-with-a-capital-T in the horror of human trafficking. It happens. It is detestable and ought to be resisted with all the force we can muster. And it has been facilitated in the past through nail salons in particular. And yet the truth-with-a-lower-case-t, the facts, are that there is no evidence that the paltry ‘notice-posting’ requirements of the draft bill or any of the licensing would do anything more than provide lip-service to the very real problem that was used to adorn the legislation for narrative purposes. There is also a growing body of evidence that politicians, prosecutors and police are increasingly adorning other charges with public assertions of human trafficking on the front-end of processes to quickly convert public opinion, after which (because the truth belied the Truth) those claims have often fallen apart (e.g. Bob Kraft investigation).

The final bill is, thankfully, more limited, and requests feedback from the incumbents in the affected industry prior to drafting the scope and specifics of licensing requirements that will be promoted in whatever final legislation emerges. Still disappointing that it passed, but that’s a political opinion of mine, and not an observation on the cynical manipulation of narrative, which has largely been removed.

The lesson, however, remains: beware those who shout Truth and ignore truth.

In the Widening Gyre, I suppose this will be an informally recurring series.

Rusty Guinn
Executive Vice President of Asset Management, Salient. Rusty Guinn is the executive vice president of asset management at Salient. He oversees Salient’s retail and institutional asset management business, including investment teams, products, and strategy. Rusty shares his perspective and experience as an investor on the Epsilon Theory website.

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