Friday, April 30. 2010

ADAM Smith was not an "advocate of pure capitalism," writes Amartya Sen in New Statesman, contrary to what the political right wing would have us believe (and they would have us believe a great deal more nonsense as well). Sen is dealing with Smith's first book, "The Theory of Moral Sentiments," more than his second, more famous, "Wealth of Nations." A quotation from Sen's excellent essay:

The spirited attempt to see Smith as an advocate of pure capitalism, with complete reliance on the market mechanism guided by pure profit motive, is altogether misconceived. Smith never used the term "capitalism" (I have certainly not found an instance). More importantly, he was not aiming to be the great champion of the profit-based market mechanism, nor was he arguing against the importance of economic institutions other than the markets.

Smith was convinced of the necessity of a well-functioning market economy, but not of its sufficiency. He argued powerfully against many false diagnoses of the terrible "commissions" of the market economy, and yet nowhere did he deny that the market economy yields important "omissions". He rejected market-excluding interventions, but not market-including interventions aimed at doing those important things that the market may leave undone.

Smith saw the task of political economy as the pursuit of "two distinct objects": "first, to provide a plentiful revenue or subsistence for the people, or more properly to enable them to provide such a revenue or subsistence for themselves; and second, to supply the state or commonwealth with a revenue sufficient for the public services". He defended such public services as free education and poverty relief, while demanding greater freedom for the indigent who receives support than the rather punitive Poor Laws of his day permitted. Beyond his attention to the components and responsibilities of a well-functioning market system (such as the role of accountability and trust), he was deeply concerned about the inequality and poverty that might remain in an otherwise successful market economy. Even in dealing with regulations that restrain the markets, Smith additionally acknowledged the importance of interventions on behalf of the poor and the underdogs of society. At one stage, he gives a formula of disarming simplicity: "When the regulation, therefore, is in favour of the workmen, it is always just and equitable; but it is sometimes otherwise when in favour of the masters." Smith was both a proponent of a plural institutional structure and a champion of social values that transcend the profit motive, in principle as well as in actual reach.

Addendum ...

HERE'S a wonderful quotation from a reader of Gail Collins' column in today's Times:

Jumper
South Carolina
April 29th, 2010
1:31 am

Arizona, Oklahoma and South Carolina are dominated by a breed of Republican conservative called a “free luncher.” They believe in free lunch. They cut taxes way below levels that support necessary services and expect services to magically pay for themselves. Voters don’t ask about who is going to pay. Paychecks and operating revenue come magically.

Free lunchers cannot accomplish anything substantial since they cut their revenue streams when they cut taxes. Their substitute for accomplishment is setting up straw men for diversions whom they heroically defeat. They prove they don’t vote against Jesus, they find new ways to vote anti-abortion, and they keep the world safe from … well, just about everything different from them.

Aristotle warned that unfettered democracy would degenerate into mob rule. I don’t recall hearing what to do if those elected morphed into a mob.

Darn, and here I thought the Tea Party folks were the only "free lunchers" around.

Thursday, April 29, 2010

TRANSCRIPT of President Obama's remarks in Quincy on Wednesday, via Lynn Sweet and the Chicago Sun-Times, with applause and audience comments included.

Wednesday, April 28, 2010

Quoting:

The goal of every culture is to decay through overcivilization; the factors of decadence — luxury, skepticism, weariness, and superstition — are constant. The civilization of one epoch becomes the manure of the next.

Cyril Connolly, (1903-1974)

Luxury, skepticism, weariness, superstition: Somehow, these words have a quite contemporary feel to them.

Addendum ...

YES, "imagine if the Tea Party was black" — you might start to get an understanding of the phrase, "white privilege."

Sunday, April 25, 2010

AN essay one cannot resist: Tom Wolfe on Mark Twain.