Posted by
Andrews on Monday, June 29, 2009 12:05:24 PM
As regular readers know from my many posts, I am writing a far too long explanation of the free market and all the benefits of it. It probably will turn out less comprehensive than its size, and my pre-publication hype, would suggest, but we will have to wait and see if that proves true. Still, before I publish it, let me make here a simple argument.
The free market is, very simply, a mechanism to allow us to give each individual the ability to follow his own rational self-interest. Whether or not one supports the free market depends on two things. First, a proper understanding of what the free market is, and how economics works in general. Second, one's view of humanity. My upcoming post is intended to deal with the first, showing that there is no reason to fear the free market, provided one agrees that man is basically competent and generally follows his self-interest in a sensible manner. (For older arguments see "
The Limits of "Scientific" Management" and "
Planning For Imperfection
". Or wait for me to publish my long argument, coming soon.)
The second, on the other hand, is something I just cannot correct. One's view of others is a fundamental, the basic question of politics, as I described it in "
The Citizen Dichotomy" and "
Man's Nature and Government". If you believe people are basically competent, know their own needs and wants, and can be trusted to watch out for themselves, then I can argue that the free market is the best system available.
On the other hand, if you believe that people are basically incompetent, that they need to be told what to do, to be watched over by a protector, then I cannot convince you the free market is the best solution, as the free market is premised upon two things, the fact that the actors can recognize what they want and can be expected to pursue their own interests.
However, before you think that this makes a strong argument against the free market, allow me to ask one question: In everyday life, do you truly live by your political views, or by the opposite philosophy, applying your beliefs only to politics?
When you go through life, do you assume everyone else is too stupid to fend for themselves? Or do you think they know what they want? Do you see sinister forces at work in every corner of your life? Do you think your neighbors would poison or murder you to make a buck? Do you think your family members would sell you out for a few dollars? Do you think those you see on the street will suddenly break into violent action for no reason?
Or do you act in everyday life as if most people are, for the most part, rational, reasonable, competent individuals. Yet, in your politics then assume that everyone is incompetent? The philosophy I described in "
Those Other People" and "
Our View of Our Fellow Citizens".
Even if you do really think everyone is incompetent, I have a second question: Then who should rule? If everyone is incompetent to make their own decisions, then letting them elect leaders will not improve things. Why would incompetents suddenly become competent by being elected? If any is truly irrational and incompetent, then why would it be better to let a government of such men rule? If I can't tell what is "too low" a salary, how would equally incompetent individuals be able to set a proper minimum wage?
Or do you think there is some elite which should rule over us all? (Obviously one to which you must belong, if you alone know of its existence.) And if so, then why allow democracy? If there is only a small elite, why shouldn't they be given total control so that we incompetent beings can't vote them out of office?
You see now why I say that allowing regulation, on the basis that we can't be trusted with our own decisions leads to nothing but totalitarian solutions? ("
Inescapable Logic", "
The Endless Cycle of Intervention", "
Appealing to Arrogance") Is there a single flaw in this thinking? If not, then how can you argue for regulation but not for absolute dictators? How can you draw a line? Either man is incompetent or not, and if he is, then why shouldn't he be entrusted to the elite? No other answer makes sense.
POSTSCRIPT
These arguments are hardly new on this blog, having been made before in the following posts:
The Essence of Liberalism
Arrogance and Gun Control
A Very Simple Truth
Mainstreaming hate
Our View of Our Fellow Citizens
Those Other People
Seeing People As Stupid
The Virtue of Humility
The Costs of Understanding
Man's Nature and Government
The Important Lesson of Racism
Lying Politicians and "Other People"
Two Kinds of Liberal
The Citizen Dichotomy
How Democrats Keep the Poor Poor
My Vision of Government
My Vision of Government Part II
Economic Versus Social
Inescapable Logic
Eurocentrism? Racism? Liberal Traits All
Smaller Government , Fair Weather Friends and Special Cases
The Benefits of Federalism
A Question for Liberals
Fairness and the Free Market
A Question of Perception
The Endless Cycle of Intervention
An Analogy For Government
Planning For Imperfection
The Intellectual Elite
Appealing to Arrogance
Nuclear Disarmament and Gun Control
Conservatives and the "Big Picture"
Conspiracy Theories
Pseudo-Homophobes and Silent Assent
Tolerance? Really?
Government's Abusive Behavior
Very Brief Gun Control Post
Conservatism, Incremental Change and Federalism
"Empathy" Threatens not "Justice" but Predictability
Liberal Bait and Switch
"Fair Trade"
A Question About the Two State Solution
Why Does the Public Own the Airwaves?
Great Minds?
Something to Bear in Mind
Inescapable Logic II
Living Large During the Good Times
A Strange Reaction
Acting Against Interests
It Is Possible...
Specious Argument
Keeping You Safe
Special Cases
Modern Marius and Sulla
Cognitive Dissonance Part 2
Another Take on the WSJ Editorial
A Question for Artists of the Left
In addition, my argument about looking at your neighbors actually made its first appearances in "
Revival of an Old Absurdity" and "
Your Fellow Man", arguing against the absurdity of conspiracy theories, though it works here just as well. (If you have an interest in conspiracy theories, my writing on that topic can be found by following the links contained in "
False Flag Theories and 9/11".)