So where’s the problem? The problem is that it’s all lip service on the right! Those who most-loudly proclaim Faith In Blind Markets (FIBM) are generally also those proclaiming
idolatry of private property as a pure, platonic essence, a tenet to be clutched with religious tenacity, as it was in feudal societies. Obdurate, they refuse to see that they are conflating two very different things.
Private property - as Adam Smith made clear - is a
means for encouraging the thing he really wanted: fair and open competition. Indeed, the propertarian reforms that Peru instituted under the guidance of Hernando de Soto, vesting the poor in the land they had always farmed, resulted in a boom that delighted both libertarians and socialists. Safe and secure property rights are a boon... up to a point.
But anyone who actually reads Adam Smith also knows that he went on and on about that "fair and open" part! Especially how excessive disparities of wealth and income
destroy competition. Unlike today's conservatives, who grew up in a post-WWII flattened social order without major wealth-castes, Smith lived immersed in class-rooted oligarchy, of the kind that ruined markets, freedom and science across nearly 99% of human history. He knew the real enemy, first hand and denounced it in terms that he never used for mere bureaucrats.
When today's libertarians praise the creative power of competition, then ignore the unlimited propertarianism that poisoned it across the ages, we are witnessing historical myopia and dogmatic illogic, of staggering magnitude.
The Irony of Faith in Blind Markets
When Adam Smith gets over-simplified into a religious caricature, what you get is "faith in blind markets" - or FIBM - a dogma that proclaims the state should have no role in guiding economic affairs, in picking winners of losers, or interfering in the maneuvers or behavior of capitalists. Like many caricatures, it is based on some core wisdom. As Robb points out, the failure of Leninism shows how state meddling can become addictive, excessive, meddlesome and unwise. There is no way that 100,000 civil servants, no matter how well-educated, trained, experienced, honest and well-intentioned, can have enough information, insight or modeling clarity to replace the market's hundreds of
millions of knowing players. Guided Allocation of Resources (GAR) has at least four millennia of failures to answer for.
But in rejecting one set of knowledge-limited meddlers -- 100,000 civil servants -- libertarians and conservatives seem bent on ignoring market manipulation by 5,000 or so aristocratic golf buddies, who appoint each other to company boards in order to vote each other titanic "compensation packages" while trading insider information and conspiring together to eliminate competition. Lords who are not subject to inherent limits, like each bureaucrat must face, or rules of disclosure or accountability. Lords who (whether it is legal or not) collude and share the same delusions.
Um... in what way is this kind of market "blind"? True, you have gelded the civil servants who Smith praised as a counter-balancing force against oligarchy. But the 5,000 golf buddies -- despite their free market rhetoric -- aren't doing FIBM at all! They reverting to GAR. To guided allocation, only in much
smaller numbers, operating according to oligarchic principles of ferocious self-interest that go back at least to Nineveh.
If you want to explore this further, including how the notions of "allocation" and "faith in blind markets" get weirdly reversed, and how Smith and Hayek are betrayed by the people who tout them the most, see:
http://davidbrin.blogspot.com/2006/06/allocation-vs-markets-ancient-struggle.html
Hence, at last, the
supreme irony. Those who claim most-fervent dedication to the guiding principle of our Enlightenment: competition, reciprocal accountability and enterprise -- our neighbors who call themselves conservative or libertarian -- have been talked into conflating that principle with something entirely different. Idolatry of private wealth, sacred and limitless. A dogmatic-religious devotion that reaches its culmination in the hypnotic cantos of Ayn Rand. Or in the Norquist pledge to cut taxes on the rich under all circumstances -- during war or peace, in fat years or lean -- without limit and despite the failure of
any Supply Side predictions ever, ever, ever coming true.
An idolatry that leads, inevitably to the ruination of all competition and restoration of the traditional human social order that ruled our ancestors going back to cuneiform tablets --
Feudalism.