Saturday, April 15, 2017

Capitalism meets Democracy (or at least government) in the 21st century




Since you are reading this on a computer it is safe to say that, as ruggedly independent as you think you may be, you overwhelmingly make buy choices over make choices. As a result you trade your property (time and money) for what for you, you hope, is someone else’s property (time or material goods) that is of at least equal value to you. Since you don’t (nor do any of us) have the means to assess, enforce, (freedom to) the quality of these transactions you are protected by a blizzard of standards and regulations (freedom from) that allow us all to conduct these transactions with piece of mind.

You go out most days and earn your daily bread.  When you actually buy the bread you can be sure that it is the pound of bread you expect it to be because we have a Bureau of Weights and Measures that has long since set a standard we all agree to and accept without question. We can be certain it is the advertised grain and not sawdust because we have an FDA inspection system that oversees both food and medicine so that we can consume these with almost perfect confidence.

When you buy a prescription, that drug has survived a gauntlet of regulatory hurdles, so that your doctor can help you make an informed decision as to the safety and effectiveness of that drug for your condition.  Furthermore, you can be certain that you are getting the amount of the drug that is printed on the label.

Contrast this with the recent experience with the unregulated herbal supplement industry.  In 2015 the New York attorney general reported that several large retail chains were selling health supplements that did not contain any of the supplement (Echinacea, for example) that was supposed to be in it.[1] [2] Whether they work or not an individual is getting cheated out of their property if they are not getting what is labeled on the bottle.

The regulatory environment we live in is far more ubiquitous than this and even effects (intrudes) in our life without transactions. The government has something to say about the air we breath, the water we drink, and the food we eat and it does all these things to our benefit. For those who say government doesn’t do anything for me try breathing the unregulated air of Beijing, or drink the unregulated water of a Mumbai slum, or eat the unregulated food from a Mogadishu street vendor.

In summary up to this point, as labor divides we overwhelmingly make buy choices and surrender to the salutary servitude of the fruits of others’ labor. As we depend more on the goods and services of others, we surrender to the salutary servitude of a massive regulatory system that ensures without us thinking about it (freedom from) that the most basic interactions we have with the world and with the market are fair. I would say that this is a most fundamental characteristic of civilization.



All that said, I can understand where the ultra-libertarian feels that the statement, “The government has something to say about the air we breath.” is positively Orwellian. And as much as the ultra-liberal may cheer the regulatory framework that engulfs us it may be a fundamental part of the discontent we all feel toward the civilization we have been born into. In a future post, I may look more closely at this particular source of discontent. For now I only hope to give a way of looking at the world we live in that may be helpful for you to see where you stand in it.













2 comments:

  1. Free market fundamentalism is a fine idea. So is Socialism. But in the real world, in real governments in actual history, neither of these CONCEPTS can be found in their PURE forms. And therefore, arguing about these ideas in the abstract seems like a terrific waste of time to me.

    On the other hand, we know this much: hybrid systems work. We can observe a wide spectrum of successful hybrid governments in the real world -- so called "natural experiments." And finally, we also know that benefits accrue to high-functioning, collaborative societies all along that spectrum. In other words, it's TEAMWORK and EXECUTION that matters, not philosophy.

    If I'm right about this, we're screwed of course.

    PS. Mark Twain once quipped that the 'self-made man' made about as much sense as a self-laid egg.

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  2. "salutary servitude". Love the idea and phrase. Is it yours?

    Regarding the above excellent comment, I agree if teamwork and execution are the key we seem screwed. Yet civilization has gotten this far despite the workings of an imperfect homo sapiens. So I have hope.

    Thanks for writing this excellent blog.

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