Thursday, December 04, 2008

What Pragmatic Thinking Gets You

I couldn't pass this one up. Hat tip: Carpe Diem

It's funny, yes, but at the same time there is a fundamental there I'm trying to figure out. I'll write more on it as well, but I've been amazed at the number of people who advocate some aspect of this ongoing government intervention in the economy. A recent Wall Street Journal Op-Ed by noted economists Oliver Hart and Luigi Zengales, entitled "Economists Have Abandoned Principle" articulates the same thing. I'm also seeing the same phenomena on a vast array of economics blogs.

Is the integration required to be able to trust Adam's Smith's invisible hand that much more difficult to make than the direct (although deeply flawed) action of government?

1 comment:

Ghaki said...

Personally I'd like to see the "Invisible Hand" phrase stricken from capitalist's lexicons.
It grants ground to the socialists' charges that free marketers have misplaced "faith" that markets will just "magically" work.
It is the socialists who believe that laws can magically defy reality and the requirements of man's existence, but governments can no more succesfully legislate against Say's Law than they can against Newton's.
We should not be giving them ammunition to charge us with the very mysticism they are embracing.