Saturday, October 11, 2014

Les bêtes noires de laissez-faire

As the ideology of laissez-faire capitalism becomes ever more influential in our society, it becomes important to investigate the intellectual coherence of the theory that underlies it. In the capitalist utopia, the most abhorrent institution is the table of fixed prices. Prices must be set by free actions of individuals, not legislated by the force of a central authority. But when a crime is committed, how is the punishment determined? By a table of fixed prices for deviance legislated by the central authority—precisely the sort of table libertarians most abhor. The statute of limitations is another example of a fixed table set by the central authority. The tendency of capital to beget capital means the effects of arbitrary decisions are amplified with every passing year.

Although libertarians are wary of central authority, they concede that a central authority must exist to keep track of who owns what. When dissenters question the decisions of the central authority, libertarian theory never has had an intellectually coherent way of dealing with them. The examples by which the beneficence of free trade are demonstrated always assume we're unanimous in regard to who owns what to begin with. In reality there is no such unanimity. Our prices may one day be free from arbitrary authority. But what good is that if the distribution of property is rife with arbitrary authority to begin with?

When I assume without question that I should buy the biggest house I can afford, take the most lavish vacations I can afford, I show a deference to the central authority it doesn't deserve. The central authority doesn’t know if I really deserve these privileges. And I don’t know if I really deserve them. Because of my skepticism, the idea of pampering myself while other human beings suffer is abhorrent to me, whether the central authority tells me it's acceptable or not.

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