The Political Economy The Political Economy of Forgiveness: of - PowerPoint PPT Presentation

The Political Economy The Political Economy of Forgiveness: of Forgiveness: The Necessity of Post- -Atrocity Reconciliation Atrocity Reconciliation The Necessity of Post Peter J. Boettke Peter J. Boettke Department of Economics, George Mason University Department of Economics, George Mason University Christopher J. Coyne Christopher J. Coyne Department of Economics, Hampden- -Sydney College Sydney College Department of Economics, Hampden

Central Questions Central Questions • How do people who are forced to “live a lie” move forward? • What is the policy toward those who compelled them to live a lie? Nuremberg trials

To Forgive is to Forget? To Forgive is to Forget?

To Forgive is to Forget? To Forgive is to Forget? Stalin’s Gulag

To Forgive is to Forget? To Forgive is to Forget? “We live in a contaminated moral environment. We have fallen morally ill because we became used to saying one thing and thinking another. We have learned not to believe in anything, to ignore each other, to care only about ourselves. Notions such as love, friendship, compassion, humility, or forgiveness have lost their depth and dimensions.” - Václav Havel

Does Time Heal All Wounds? Does Time Heal All Wounds? • Operationalizing rectification • Time discounting • Compound interest • Knowledge problem and just acquisition • Time and subsequent investment

Let Sleeping Dogs Lie? Let Sleeping Dogs Lie? Honor 4 4 1 Trust 5 1 Renege 2 1 3 Don’t Trust

Let Sleeping Dogs Lie? Let Sleeping Dogs Lie? “When they set out to deal with the lawless practices of the past, they do not want to do it in a lawless manner. Their desire to demarcate themselves from the old regime may constrain, however, the satisfaction of their desire to punish the agents of the regime. It may be impossible, for instance, to punish what appears to be obvious acts of wrongdoing without introducing retroactive legislation, thus embracing the lawless practices of the previous regime.” - Jon Elster

Let Sleeping Dogs Lie? Let Sleeping Dogs Lie? Extra- Planned Plan Economy Black Market Human capital embedded in the system

A General Model A General Model Establishment of New Liberal Regime Moral Intuition that All Members of the Previous Oppressive Regime Should be Prosecuted Likelihood of establishing new liberal regime % of Old Oppressive Regime Prosecuted *P

The Model Explained The Model Explained � Likelihood of Establishing Liberal Regime is a Likelihood of Establishing Liberal Regime is a � function of: function of: � Decisive Action to Break from Previous Oppressive Decisive Action to Break from Previous Oppressive � Regime; Regime; � Quality of the Signal of the Break from Previous Quality of the Signal of the Break from Previous � Oppressive Regime Oppressive Regime � Minus: Minus: � � Financial cost of restitution Financial cost of restitution � � Costs associated with sorting out rectification claims Costs associated with sorting out rectification claims � � Loss of human capital that was embedded in the system Loss of human capital that was embedded in the system � � Noise in the signal associated with engaging in retroactive just Noise in the signal associated with engaging in retroactive justice ice �

Conclusion Conclusion As a practical matter we must not let demands for retribution bankrupt the future ability of the social system of exchange and production to serve as the basis for peaceful social cooperation.