Ignorance and Want: Forever Present
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Adam Smith is often acknowledged as the father of modern economics, and perhaps as often as the first champion of Free Market Capitalism. What many don’t realize is that Smith was not an economist (the study did not even exist before his Wealth of Nations was published in 1776), but rather, a moral philosopher.
This is important because Smith didn’t argue for freedom of the individual and in favor of the righteousness of mutually beneficial transactions unimpeded by the Sovereign (or, “the State”) because he thought that would be the best thing for business development (they didn’t really have that concept back then, either). No, Smith proposed his system of equitable exchange between free men as a moral thesis — a necessary evolution in late-Enlightenment thinking — that would make for a more equitable and civilized society. Truly, Smith was far more about “The Golden Rule” here, than he was about “the gold.”
I posit that this misunderstanding of capitalism — especially by those who believe in the guiding hand of the Monarch (now, merely “the State“) over the Invisible Hand of the market — continues today. Moreover, I’d posit further that the misunderstanding is one of basic definitions.
Monarchists, Feudalists, Fascists, Socialists, and other government-first adherents tend to believe that the key to capitalism is physical capital associated with wealth — cash, land, equipment, etc. In fact these are mere wasting assets, the by-product of capitalism, rather than its key ingredients. They are nothing without the spark of human ideation — the intellectual capital that drives all progress and increased standards of living.
For there is no arguing that innovation drives human progress, and it’s by-product in a free society is wealth. It is no coincidence that those countries that respect and even seek to attract intellectual capital are among the wealthiest in the world.
To provide an example, it’s no coincidence that health care has become one of our greatest economic pillars. We are among the very few nations left that will invest directly in health care innovation, and, as a result, we are providing innovation for most of the world. That creates an enormous market for U.S. health care entrepreneurs and venture capital investors, because they are in essence, innovating for a global market with very little competition outside our own borders.
Sometimes I wish someone could sit down with the Congressional Delegation of California — with their state’s enormous reputation for cutting edge innovation — and explain this paradigm to them, veeeerrrry slowly. Perhaps then they would not be so quick to take a hatchet to the golden goose’s valuable neck.
Ah well.
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I wonder also that if our friends who favor a heavier hand of government could finally understand that it is people acting in freedom that make for a vibrant and successful economy, and therefore, people are our most precious asset, would they continue to be such proponents for Malthusian population control?
Would they, who purport to stand for the “little people,” be so non-chalant about layering on increased taxes and regulations on the idea-laden, but cash-light small business community?
I am willing to give them the benefit of the doubt. I am willing to believe it’s all just a matter of fundamental misunderstanding, and they “know not what they do.”
Let’s take on the responsibility then. This holiday season, let’s do something truly for our fellow man.
Let’s pledge together to be the instrument of education in our communities and our states.
Only active participation can help turn a tide of creeping government that threatens to separate the country irreparably from its roots in individual freedom. Let us rather return to those roots, by blowing the horn of innovation, progress, and freedom for all free men and women — and those seeking to be free.
Slante.
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Never give anyone the benefit of the doubt. People comport themselves as garbage men and should be treated as such.
Then we must educate those around them to reject their economy stultifying backwards philosophies.
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Amen, or better yet, agreud! Eloquent prose Sir!
I have to say that this is by far the most pure conservative post I have read by you. I wish for the reduction of the federal government’s role in business, however believe that any of it’s involvement should be for the betterment of the people that continue to produce revenue for it. A longer life means more taxes, more revenue generated in all facets. Medicare/Medicaid is another way of generating revenue from the avg tax payer. We, as a country, do pay less social taxes, although we make our businesses pay for it by having one of the highest corporate tax codes in the world. Isnt this the definition of irony from the greatest proponent of free-market capitalism?
I define myself as a constitutionalist. I do believe that the state is there to ensure human rights and services. I also believe that there is a marked difference between the state and the federal government and wish that the feds keep their hands off me. The downside to a free market economy within a state specific representative government is the factor of “open” business. To promote cross state business (interstate), the federal government had to unify this commerce. Yes, there were many states that were progressive and promoted trade within the developed colonies (states) prior to and even as the constitution was born. However, those that entered as states much later were immature states, not truly understanding the origination of statehood, and using the statehood definition to manage a larger geography lacking populace. A geography that needed to be connected for trade but lacked the means to do so.
We are now at a point far from where we started, with the federal government being granted greater and greater powers over society. Often I believe we have arrived where we are because our states, the whole intention to creating statehood vs federal government, have lost their voice.
Its not to say that any single party or person is responsible, but like you say, it is us, the PEOPLE, that have lost our voice, or have voluntarily given it up because we are busy trying to produce, and grow.
There’s a lot in there, and I like most of it. I am a little concerned about your finding a promise of “services” in the Constitution (outside the typical coinage/courts/defense roles, I mean).
JFK had a couple of things right. One important one was “Ask not what your country can do for you…”
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I’d disagree with that Jake, but only because by today’s standards “country” has become synonomous with “government”. We should really encourage people to ask what what our “country” can do for us more often…if we were honest with ourselves, we would undoubtedly move to have a much smaller government.
Great post Jake
Grazie.
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excellent post.
quality post attract quality debate. … even with the ad hominem.. it makes for comedy. which we all need.
I do that part mostly for the gigs.
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Well said, my son.
Sounds good ….that is, if the world had the same population as it did when the Wealth of Nations was written.
But the world has over six billion of your blessings, all to many of whom are as arrogant, selfish and short-sighted as you. To save free market capitalism we must make sure that those who consume things that are not in unlimited supply (e.g., clean air, clean water) pay to clean-up the effects of their consumption. Decent people should not tolerate spawning assholes who callously and happily shift those costs to their own children.
Separately, the health care system in this country is very far from a free market. The innovations that are made here are funded, less by those to whom we export our stuff (as you incorrectly imply) than by Americans who are denied the benefits of a free market for health care and are forced (e.g., law against re-importation) to pay at above free-market rates for health care.
Anyway Jake, people like you who worship dead revolutionaries might be surprised that, if those thinkers were around today, they would very likely have the wits to see the world as it actually is and would laugh at dogmatic slaves like you. Does anyone imagine that, when Adam Smith is advised “don’t to eat the fish out of that stream”, he’d defend those “free marketers” who put the heavy metals into the waters?
That’s a whole lot of straw men in one bilious post, even for you, komrade.
In between your lies about my coddling polluters (basement boy not quite familiar with criminal and civil law, it appears), you alleged:
… that if the Founders were around today, they’d have been supportive of government run healthcare rather than innovative market driven service?
… That with the inclusion of six billion (or so) extra people, life today is worse for living humanity than it was in 1776, and only promises to get better with an immediate reduction in poisonous human life?
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I submit to you that Purdy is the exact Malthusian misanthrope so often found on the Left–and for centuries now– and to whose ideas which I have addressed (above) the pressing need for education to combat.
Their “idealism” does not extend past the arid soulessness of an academic theory, and their Utopia is best engineered without the typical messy interference of humanity. With arguments like the above, is it really any wonder that such callousness has led to bloody tyranny over the last 100 years?
Vigilance and hard work are our only succor.
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Confirmed, you cannot read for comprehension.
Whatever I wrote was merely paraphrasing you, so the problem is likely with your literacy.
Not that that’s any surprise.
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What is it with you guys and your ad hominem attacks positioned as responses to IDEAS. ???!!!
Comments such as “dogmatic slaves like you” and “Are you insane?” drown out any lucidity you might otherwise have.
You give him too much credit.
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I know, but its Jakes house …when in Rome.
Translation — “I gots nada.”
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To save the free market, we must rigorously impede it? My mind is stuck with the image of you suffocating a “helpless” puppy.
Malthusians are all about ending life. In their twisted ego-centric worldview, the world is better off with one tenth the people it has now.
That they would volunter for the nine-tenths eradication plan never crosses their mind, however.
A minor chuckle example — the Purdyite in the article I linked calling for a “China-like* one child policy in Canada?”
She has two children already.
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* Irony alert — China Rethinking One Child Policy.
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There you go again.
In Jakeland, messenger flawed = message wrong.
population control spokeswoman is a hypocrite = population is not an issue for China
Al Gore is an asshole = climate change not an issue
It is a technique that is as old as language, but convinces only the simple-minded.
Of course, dimwit misses the points I made on all those subjects (and laughably, misses the point COMPLETELY on China, which is now worried about the unintended though predictable consequences of it’s radical policies, lol) in order to LEAP to make his own simplistic fill in the blank left wing straw man arguments once again.
Word to the cluetard — making an ironic aside about the fact that this draconian Sheila — like you — like rules “for thee but not for me”, has nothiong to do with the essential insipidity of her argument for population control, which I destroyed in my arguments above.
But then again, you’ve never once actually addressed an argument I’ve actually MADE, so I don’t know why I’d expect things to change with this more thorough debunking of your bent ideology.
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Mr Gint,
I would disagree with your assertion with regards to capitalism that;
I posit that this misunderstanding of capitalism — especially by those who believe in the guiding hand of the Monarch (now, merely “the State“) over the Invisible Hand of the market — continues today. Moreover, I’d posit further that the misunderstanding is one of basic definitions.
Monarchists, Feudalists, Fascists, Socialists, and other government-first adherents tend to believe that the key to capitalism is physical capital associated with wealth – cash, land, equipment, etc. In fact these are mere wasting assets, the by-product of capitalism, rather than its key ingredients. They are nothing without the spark of human ideation — the intellectual capital that drives all progress and increased standards of living.
For there is no arguing that innovation drives human progress, and it’s by-product in a free society is wealth. It is no coincidence that those countries that respect and even seek to attract intellectual capital are among the wealthiest in the world.
Rather I would posit the question: which is the more scarce resource, intellectual innovation, or, capital? I would argue that in a world of scarce resouces, capital has always been the limiting factor in creating wealth, and thus improvement in the human condition.
regards
george
George, let me introduce to the wonders of html, which will help you in better organizing your critique discussions above.
For example, with the addition of the “i” for italics, placed in the very simple html carrots, (the triangle thingies above your comma and period on your keyboard), you can distinguish between my stuff that you are quoting, and your own words.
See above, fixed:
Mr Gint,
I would disagree with your assertion with regards to capitalism that;
I posit that this misunderstanding of capitalism — especially by those who believe in the guiding hand of the Monarch (now, merely “the State“) over the Invisible Hand of the market — continues today. Moreover, I’d posit further that the misunderstanding is one of basic definitions.
Monarchists, Feudalists, Fascists, Socialists, and other government-first adherents tend to believe that the key to capitalism is physical capital associated with wealth – cash, land, equipment, etc. In fact these are mere wasting assets, the by-product of capitalism, rather than its key ingredients. They are nothing without the spark of human ideation — the intellectual capital that drives all progress and increased standards of living.
For there is no arguing that innovation drives human progress, and it’s by-product in a free society is wealth. It is no coincidence that those countries that respect and even seek to attract intellectual capital are among the wealthiest in the world.
(then, George, to signify your own words, I left them in plain type) —
Rather I would posit the question: which is the more scarce resource, intellectual innovation, or, capital? I would argue that in a world of scarce resouces, capital has always been the limiting factor in creating wealth, and thus improvement in the human condition.
regards
george
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See how much easier that is to read? And it doesn’t take me five minutes to figure out what I said and what you said, either. 😉
Now, onto my response…..
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George asks (very politely I might add… Purdyites might want to take note)–
Rather I would posit the question: which is the more scarce resource, intellectual innovation, or, capital? I would argue that in a world of scarce resouces, capital has always been the limiting factor in creating wealth, and thus improvement in the human condition.
By far, intellectual innovation is the more scarce resource. Capital is available in abundance, and in most cases very little capital is required in order to get an idea to a “value state.”
I am in the business of seeking value, and let me tell you — no let me promise you — that the world is awash in capital seeking value additive ideas. Literally awash — desperate even.
I take 20 calls a week from buyers seeking sellers. If I were to wait at my office for calls to come in from valuable companies seeking to sell (or valuable entreprenurial ideas to appear at my door), I would starve.
Capitalism is 95% intellectual property. Even the simple stuff.
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If you absolutely dying to go long something… NGAS will be “BTFO” at $1.83, ovah heah.
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A lot of the energy plays are moving…I especially like CHK on a closed gap because of it’s longer trend line. SD is interesting too.
Tomorrow looks like it could be a decent down day
Mmmm… noticing the same thing. Each of those looks appetizing, but I’d like to see some follow through in a breakout over most-recent highs….
NGAS didn’t make it either…..
(Jackie Gleason voice) Missed it by that much! (/Jackie Gleason voice).
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The true spirit of Christmas
Always, always fill the kettle, with whatever you can.
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Obviously we disagree on many things but, I’m stopping by to give you the proper respect you deserve for this well written post.
‘Well written”? Nah, just cleanly spun. Congrats on the smooth rhetoric Jake, but drizzle treacle on ‘provides bread with no moral basis’ and you still end up with cavities: ie someone will be goin’ hungry, surplus of ‘innovative’ flour or no, if Monstrous Santa can’t make a buck off ’em.
Thanks very much Cuervo. Appreciated.
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GF — what?
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A well written post and interesting connection between Monarchsists and Socialists. It boggles my mind that the human species has developed a cult within itself that wants to vastly limit it’s own future when there are major scientific discoveries ahead and a whole universe to explore. Examining history, this cult has morphed over time, but seems ever present and is as powerful and extreme as ever:
http://www.guardian.co.uk/commentisfree/cif-green/2009/dec/14/climate-change-battle-redefine-humanity
Reducing everything to Darwinian components, this cult either has some history that provided the human species a biologic advantage or it is simply a confiscatory tactic of the parasitic elements of society. Given the propensity for pockets of the human species to devolve dramatically as recently as the 20th Century (e.g. under Stalin, Mao, Castro), the battle is never over.
It’s not biologically unusual actually. Mankind has a will to power, and given the the majority — the vast majority — doesn’t have the biological utility belt to actually dominate anyone, the next best thing is the cult of personality… which gives the dominated a feeling of inclusion, security, and yes, righteousness.
It’s far less natural for a human being to seek individual achievement without the concommitant will to dominate his surroundings.
“American values” — as defined by the Constitution — are the historical outliers here.
Long may they reign.
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We are a naturally hierarchical species, and the majority lacking tool belts are certainly susceptible to being duped into believing simplistic claims and arguments by those seeking to be leaders in order to enjoy vicarious domination of the individual achievers. It may not be biologically unusual, but I don’t see biological advantage, except to argue that it is a relic of a less advanced time where critical thinking/individuality was unnecessary. I have no doubt Monarchism/Socialism springs forth from something as simple as the ant colony model buried deep in our genetic code where individualism is snuffed out in favor slavery to the State/elites. There can be no argument that ants aren’t successful, albeit lacking critical thinking skills. It thus becomes an ever-present background model ready to takeover when individualists collectively lose their vigilance/will.
I’m fully onboard with the American exceptionalism due to individualism argument, but pesky roadblocks like Constitutions don’t stop these insidious cult-like forces (or biologic relics). After all, they just killed the last remnants of the Magna Carta (an even older celebration of the individual document) in the apparently devolving towards Big Brother police state once known as Britain:
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6744787/Its-a-return-to-the-Star-Chamber-as-Europe-finally-tramples-Magna-Carta-into-the-dust.html
The tyranny of the cult-like majority is ever-present and insidious.
Thunderpup, we’ve missed your presence here, very nice.
Where in the heck have you been?
In Australia, maybe?
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That really is an amazing piece, and the comments below it even better. This one gave me some hope:
… It becomes so hard for people with power to not want more of it; let alone let it slip away. Governments across the World are usurping liberties and, ultimately, they all fail. They also prove they have learnt nothing over the past 200 years.
The trouble is the later we realise the dangers and the more powerful they become the worse the damage they inflict. If we speed the process we may speed the nation’s ability to notice the damage done.
I can’t believe it has come to this but with the state of UK (and EU) politics the whole EU project is virtually fait accomplis. Without reference to the British electorate our sovereignty has been surrendered – part coup d’etat part treason.
What I would give for a Jefferson and a Declaration of Independence. Read that and compare it to the Treaty of Lisbon. Those founding fathers realised the importance of the restraint of government power and defence of the rights of the individual. They also proved that any political union – if not wanted by the people – can be broken.
God Bless them.
Bob D
on December 06, 2009
at 07:59 PM