Sometimes I just feel like spilling my brain. I hope someone will be around to mop it up.
Sunday, July 15, 2018
The Market and Power
From the comments on a post on Brad DeLong's blog.
The market is right? The market is governed by rules created by humans. Humans are fallible. No market rule is perfect. Market rules that are "right" in some circumstances can be profoundly wrong when conditions change. Therefore, market rules should be evaluated according to outcomes produced and revised when necessary. People disagree on desired outcomes. Egalitarians value market rules that produce a strong middle class and opportunity for upward mobility. Plutocrats, legacies, fascists, mobsters and sociopaths value market rules that protect existing wealth and increase inequality. The market rules that exist are biased toward the groups with the most political power and motivation. Market rules that take a little from many and distribute it to a few will motivate the few to exert their political power over the many who have little motivation to fight over a little difference. As wealth inequality increases, the wealthy gain more political power to promote rules that increase their political power. The wealthy are motivated to study market rules in depth and know which ones promote their values. The many often do not understand which market rules are most likely to produce the outcomes they value. The many depend on the wisdom of those who share their values and have the time and motivation to study the market rules. Determining which experts share your values and which do not can be confusing because the few are motivated to disguise their true values through sowing confusion and disinformation. When wealth inequality and conditions become intolerable for the many, only then will they exert political pressure for more favorable market rules However, lack of understanding among the many of how market rules affect outcomes leads to disagreements and sometimes support for rules that have perverse effects. Experts who recommend policies need to also state what values those policies are designed to promote.
The market is governed by rules created by humans.
Humans are fallible.
No market rule is perfect.
Market rules that are "right" in some circumstances can be profoundly wrong when conditions change.
Therefore, market rules should be evaluated according to outcomes produced and revised when necessary.
People disagree on desired outcomes.
Egalitarians value market rules that produce a strong middle class and opportunity for upward mobility.
Plutocrats, legacies, fascists, mobsters and sociopaths value market rules that protect existing wealth and increase inequality.
The market rules that exist are biased toward the groups with the most political power and motivation.
Market rules that take a little from many and distribute it to a few will motivate the few to exert their political power over the many who have little motivation to fight over a little difference.
As wealth inequality increases, the wealthy gain more political power to promote rules that increase their political power.
The wealthy are motivated to study market rules in depth and know which ones promote their values.
The many often do not understand which market rules are most likely to produce the outcomes they value.
The many depend on the wisdom of those who share their values and have the time and motivation to study the market rules.
Determining which experts share your values and which do not can be confusing because the few are motivated to disguise their true values through sowing confusion and disinformation.
When wealth inequality and conditions become intolerable for the many, only then will they exert political pressure for more favorable market rules
However, lack of understanding among the many of how market rules affect outcomes leads to disagreements and sometimes support for rules that have perverse effects.
Experts who recommend policies need to also state what values those policies are designed to promote.