Tag Archive | Extended Order

Government Shutdown

Andrew Cohen of Bleeding Heart Libertarians has an interesting piece up, and I largely share his views (though there is an analogy in there I find rather weak…). From the article:

People who were promised paychecks will not get them. Some will get them late. Some will get smaller paychecks (due to furlough time). Some of these people will face tremendous difficulty. I think it fair to say they will be harmed–having planned their lives given the promise of a regular paycheck, they have legitimate expectations that are being set back. Perhaps the government should not have hired those people in the first place (after all, they are “non-essential” personnel!). But the fact is they were hired and treating them this way is wrong and makes a mockery of contract.

This is a good point that many libertarians and conservatives are apt to miss. Many libertarians in particular are going to dispute the legitimacy of those obligations, but if government is a legitimate entity, then the obligations it enters into need to be taken seriously and the obligations honored. Now certainly, in the private sector, jobs are generally not seen as secure as government jobs. Perhaps thats a good thing, as it promotes increased productivity and competition, ultimately helping to serve the consumer. However, there is an implicit expectation of continued work when a full time employee gets hired by someone, whether the government, a corporation, or small business, and possibly could be considered part of their work contract. The government, currently, is not honoring that contract. However, given it’s abysmal record of honoring individuals and their rights, perhaps we shouldn’t be surprised.

Quote Of The Day

This comes from F. A. Hayek in Individualism and Economic Order:

Especially remarkable […] is the explicit and complete exclusion from the theory of perfect competition of all personal relationships existing between the parties. In actual life the fact that our inadequate knowledge of the available commodities or services is made up for by our experience with the persons or firms supplying them– that competition is in large measure competition for reputation or good will– is one of the most important facts which enables us to solve our daily problems. The function of competition here is to teach us who will serve us well: which grocer or travel agency, which department store or hotel, which doctor or solicitor, we can expect to provide the most satisfactory solution for whatever particular personal problem we may have to face. Evidently in all these fields competition may be very intense, just because the services of the different persons or firms will never be exactly alike, and it will be owing to this competition that we are in a position to be served as well as we are.

 

Quote of the Day

This passage appears in F.A. Hayek’s The Fatal Conceit, pages 112-113 under the heading Our Animistic Vocabulary and the Confused Concept of ‘Society’ (footnotes omitted):

[I]n the study of human affairs difficulties of communication begin with the definition and naming of the very objects we wish to analyse. The chief terminological barrier to understanding, outranking in importance the other terms we have just discussed, is the expression ‘society’ itself – and not only inasmuch as it has, since Marx, been used to blur the distinctions between governments and other ‘institutions’. As a word used to describe a variety of systems of interconnections of human activities, ‘society’ falsely suggests that all such systems as of the same kind. It is also one of the oldest terms of this kind, as for example in the Latin societas, from socius, the personally known fellow or companion; and it has been used to describe both an actually existing state of affairs and a relation between individuals. As usually employed, it presupposes or implies a common pursuit of shared purposes that usually can be achieved only by conscious collaboration.

As we have seen, it is one of the necessary conditions of the extension of human cooperation beyond the limits of individual awareness that the range of such pursuits be increasingly governed not by shared purposes but by abstract rules of conduct whose observance brings it about that we more and more serve the needs of people whom we do not know and find our own needs similarly satisfied by unknown persons. Thus the more the range of human cooperation extends, the less does motivation within it correspond to the mental picture people have of what should have in a ‘society’, and the more ‘social’ comes to be not the key word in a statement of the facts but the core of an appeal to an ancient, and now obsolete, ideal of general human behaviour. Any real appreciation of the difference between, on the one hand, what actually characterises individual behaviour in a particular group and, on the other, wishful thinking about what individual conduct should be (in accordance with older customs) is increasingly lost. Not only is any group of persons connected in practically any manner called a ‘society’, but it is concluded that any such group should behave as a primitive group of companions did.

Thus the word ‘society’ has become a convenient label denoting almost any group of people, a group about whose structure or reason for coherence nothing need be known – a makeshift phrase people resort to when they do not quite know what they are talking about. Apparently a people, a nation, a population, a company, an association, a group, a horde, a band, a tribe, the members of any particular place, all are, or constitute, societies.

To call by the same name such completely different formations as the companionship of individuals in constant personal contact and the structure formed by millions who are connected only by signals resulting from long and infinitely ramified chains of trade is not only factually misleading but also almost always contains a concealed desire to model this extended order on the intimate fellowship for which our emotions long. Bertrand de Jouvenel has well described this instinctive nostalgia for the small group – ‘the milieu in which man is first found, which retains for him an infinite attraction: but any attempt to graft the same features on a large society is utopian and leads to tyranny’.

The crucial difference overlooked in this confusion is that the small group can be led in its activities by agreed aims or the will of its members, while the extended order that is also a ‘society’ is formed into a concordant structure by its members’ observance of similar rules of conduct in the pursuit of individual purposes. The result of such diverse efforts under similar rules will indeed show of a few characteristics resembling those of an individual organism possessing a brain or mind, or what such an organism deliberately arranges, but is it misleading to treat such a ‘society’ animistically, or to personify it by ascribing to it a will, an intention, or a design. Hence it is disturbing to find a serious contemporary scholar confessing that to any utilitarian ‘society’ must appear not ‘as a plurality of persons… [but] as a sort of singe great person’.

Today marks the 21st anniversary of Hayek’s death. His was a great mind, and we could do well to have more thinkers like him.