The single most commonly held liberal belief is that the government can intervene in the economy without unintended consequences. It is a requisite belief of modern liberalism as it is usually defined.
The standard notion is that if the cost of labor is too low by their standards the government can raise it without any unintended consequences. What this translates to is support for various government actions that seem to have only positive consequences. For instance it is routinely believed by modern liberals that the government can pass special interest union legislation that allows one group to raise the wages of its members by excluding competition from non-members without any consequences other than the union members will receive greater benefits. This is of course not true as miscellaneous economic disasters make clear. Anybody want to buy a house in Detroit?
Undoubtedly there will be standard liberal apologetic responses to this post. Liberal beliefs about the benefits of government intervention in the economy are as deeply entrenched as any religious beliefs and I would not expect anything I might say to change that in the least, even with respect to the skeptics that participate in this forum.
Couple things up front. I'm a former staunch conservative. I also have a hobby of studying the mind, authors like Pinker, Haidt, Minsky, Blackmore, Dennett, Ramachandren and Linden to name a few. I've watched a reading of Sam Harris'
The Fire Place Delusion. I've also read Johnathan Haidt's
The Righteous Mind. A.) I'm firmly aware of how people make decisions based first on genetic predisposition coupled with indoctrination, inculcation, emotion and then rationalize those decisions. Formal logic, skepticism and critical thinking are difficult to say the least for the vast majority of us (also see
Spock Fallacy and/or watch
Julia Galef's Straw Vulcan. B.) I want to know as many true things as I can.
- I believe any action or inaction by government can and will have unintended consequences. There will always be trade offs. There is no a priori, objective beast means to meet the needs of both individuals and society.
- It should be noted that most if not all nations high in GDP, HDI and/or Economic Freedom practices to a large degree some form of Keynesian economics. The libertarian societies don't exist for a reason. They are not capable of meeting the needs of society.
- There are only trade offs. Every action or inaction will have both good and bad consequences. The question becomes "when does the good outweigh the bad?".
- I'm a Rand fan. I believe she popularized a very important aspect of human nature that was being ignored at the time. The ability to exploit human nature, the desire to improve one's lot in life along with valuing personal property rights, personal decision making, investment, personal responsibility, etc.. together these evolved traits can be used to create the greatest economic engine ever known to man and to solve problems on a massive scale (also see Julian Simon). Capitalism. I'm very much in favor of it.
- I'm also a fan of Karl Marx, Malcolm X and Keynes. It turns out that individualism isn't our only hallmark. As an evolved social species reciprocal altruism is crucial to our success. Compassion, empathy, morality, these exist because we are a social as opposed to a solitary species.
- Researchers have found that social species work best when they cooperate to some degree. This model has multiple disciplines including game theory, biology, anthropology, etc..
Take the RandFan challenge. List the top 10 nations by any index you choose.
Economic Freedom,
GDP (Nominal, PPP, etc)
HDI, or pick one you prefer.
Now, list the top nations that meet your criteria for a great nation. Some kinda of Laissez-faire capitalism or libertarian or whatever. You choose. Let's compare nations.
I'm betting you will find that the nations that are highest in most if not all indexes tend to be some form of government with intervention crucial to the success of that nation.
Our little social experiment demonstrates that the real world data matches the research and predictions made by social scientists.