I want to talk about the profit motive, because despite being the cornerstone of capitalism it is highly misunderstood. All sorts of proclamations about the profit motive's success as a social and economic model are published in the media daily. Other causes for social and economic conditions are often avoided, and where profit has a clear negative bias, it is generally de-emphasized.
The profit motive is a simple form of the incentive model. Incentives are conditions in a system which reward or punish different kinds of behavior. Profits refer to one subset of incentives: those which resolve in positive or negative changes to net worth. Needless to say, human incentives are more complicated than this, and strictly for-profit business models still need to account for more different changes which may not be clearly linked to positive or negative account balances. But the capitalist system tends toward this model of profit, and incentives processes are typically explained in this way as well.
Showing posts with label Civil Society. Show all posts
Showing posts with label Civil Society. Show all posts
Monday, July 18, 2011
Monday, July 11, 2011
Alex Tabarrok Doesn't Get It: Why Civil Society is a Victim of Capitalism and Statism
Why don't Americans think that they use government services?
In citing Yglesias, Bartlett and Rampell, Alex Tabarrok attempts a moralization about coercion - without seeing that his attack on the government is no different than an attack on capitalism. See the following:
In citing Yglesias, Bartlett and Rampell, Alex Tabarrok attempts a moralization about coercion - without seeing that his attack on the government is no different than an attack on capitalism. See the following:
"What Rampell et al. implicitly imagine is that the natural state is slavery and any departure from that state a government benefit. Thus, if the government taxes your saving for a college education less than your other savings, you should be grateful for how government has benefited you and your children.Some of these are forgivable - I enjoy the Home Mortgage Interest Deduction, for instance, but I don't think of it as a social program, or rather, I wouldn't have thought to include that if I were asked the question. But by the time you get to Social Security, Unemployment and Medicare, it is shocking that people don't consider them government programs. At face value, one can only speculate that the preeminent narrative - that Tabarrok reinforces here - is successful in claiming that the market can solve problems where the state has been the only actor - since its usually unprofitable to provide services to those who cannot pay out of pocket for them. Implicitly, Tabarrok is creating a distinction between government and market forces - the latter as civil society - in an attempt to make the ignorance of government-mediation (and I use this term purely for his own benefit) of economic functions a "virtue" of our "lack of deference" to the government. But capitalism is just as prevalent in these structures, perhaps just as misrepresented, and certainly worse for civil society in creating disproportionate power relations.
And if the government doesn’t jail you today, you should be grateful for how government has granted you the benefit of liberty.
This is the attitude of a serf not an American."
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