Friday, November 25, 2005
Invisible hands - the point
The net result of individuals selfishly pursuing self interest can make society "better". That is Adam Smith's economic tenet. In theory, greed should instead cause a lot of exploitative and abuse of power kind of behaviour. Economic structures such as competition policy, free trade, property law tend to lessen exploitative behaviour because it becomes less profitable. Dr Clam is theorising that because "voters" pursue selfish interests, the greater good can't be served. He also says that because we don't vote daily, the competitive pursuit of votes doesn't have a day to day influence on government policy. On both counts, my point is that economic and democratic process policies, have indirect effects far greater than the direct effects of any one mandate or another. These are somewhat measurable by experts, and many of the indirect effects are counter-intuitive.