Human Action

Giulio,

To me “neoliberal” is a loaded word. One that I am not ashamed to cast about myself, particularly for “Supply Siders” and other assorted Friedmanites. I do not put myself in that camp, though as an Austrian School lay-enthusiast, I see some common ground, though not as much as I would otherwise like.

I don’t know much about what neoliberals think in terms of whether “the market is the only place where true spontaneous and un-biased information may be witnessed and analyzed.” I guess it really comes down to how you define “market”.

Markets in the purely economic sense? Or markets in the more abstract sense?

If the former, and if your claim is correct, I would say that neoliberals are quite narrow minded. If the latter, I would tend to agree with the neoliberals. If this more abstract, conceptual marketplace, essentially an (I am loathe to use the word) aggregation of human action is indeed the only place to witness spontaneous and unbiased information, it is precisely because of how broad an idea it is. This is where the Austrian School often faces the most criticism: the theory that all human action can be deduced using the same (or superficially dissimilar) axioms as purely economic action.

So basically, ALL human action, spontaneous or otherwise is seen as part and parcel of the marketplace (which could, in effect really be an infinite amount of smaller marketplaces). Given this axiom, it is impossible for human action to exist outside of the marketplace, by definition. Based on this, the market would be the only place to witness spontaneous information.

And then there is the question of bias. Bias exists in the market. Whether this is desirable or not depends entirely on the human actors themselves. This includes those acting spontaneously and those acting more deliberately. Those acting deliberately (such as the state, regulators, corporations) are able to cause undesirable bias by distorting the market. They cannot do this without committing, perpetuating, or taking advantage of some form of coercion, explicit or implicit. At which point the FREE part of the Free Market goes out the window.

Under ideal circumstances, which may not even be attainable on a large scale, biases that occur are simply a reflection of the decisions of market actors. I fail to see the problem. If there is good, good. If there is bad, the fault is in the actors, not the system.

I don’t think most libertarians believe in the perfectibility of the human condition, which to me is the defining characteristic of a utopian ideology. And certainly most would not suggest that the Free Market alone could accomplish this. Most hold that the Free Market, whether it might be considered to have inherent flaws or not, at least is the best allocator of resources and cause of economic growth. But the main reason some prefer the Free Market has little to do with how effective it is in these areas, but instead the fact that it is the most consistent with what are seen as natural rights. Some, myself included, would still advocate the Free Market even if it was not the “best” system for allocating resources and spurring growth. It is not the practical implications that are our chief concern. It is the ethical ones.

I agree that Markets are not, as you say, “perfectly working, self-regulating and unbiased”. I do hold, however that Markets are the best of all possibilities, but this is not perfection. That markets self-regulate to a point, which happens to be the same point at which the word FREE goes out the window. That bias is not undesirable, per se.

I am sure that you and I agree more than we would disagree on many an issue, this one included. It is not my intent to argue, though I would happy to engage in discussion. I am only here to express another point of view for the benefit of this blog’s readers and to, in someone else’s words, engage in a civil exchange of ideas between bloggers.

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4 thoughts on “Human Action

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