Quote Of The Day: Adam Smith

The statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted to no council and senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.

Citation: Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, ed. R. H. Campbell and A. S. Skinner, vol. 1 of The Glasgow Edition of the Works and Correspondence of Adam Smith, op. cit., book 4, chapter 2, p. 456.

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Heather MacDonald: 'Grow Up & Quit Vilifying Capitalism'

From her "post-Christmas economic vent":

The anti-business mindset . . . is worthy of a pampered adolescent who is searching for a cause with which to display his unique moral sensibility. It is not worthy of an adult who should be able to use his imagination, if not actual experience, to appreciate the extraordinary human effort that has gone into creating the delightful tools that we daily take for granted. On my desk sit various humble objects—a tiny clock, a stapler, a paper clip box, a Lucite cook book stand for holding up drafts and other papers while I type. Each object represents a fractal geometry of complexity, composed as it is of parts that themselves require enterprise to manufacture, assemble, and deliver, all born along on waves of energy and infrastructure to which yet another set of entrepreneurs contributed. The fact that all of those distributors and manufacturers tried to make a profit does not detract from the fact that they offered goods which enhance our lives. . . .

It is the ingratitude that kills me the most among anti-business types. The materials that furnish a single room in an American home required daring, perseverance, and organizational skill from millions of individuals over generations. I hope they all got filthy rich.

(via the WSJ)

Oh, and Happy New Year.

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The Democrat Party: Bought & Paid For By Wall Street

I know, I know, as opposed to all the other special interests that own that party. (subscription required)

The Republicans’ loss of Wall Street magnifies an ancient fissure in the party, a conservative contradiction: the misalignment of incentives between the party’s free-enterprise wing and its entrenched business interests.

“The problem with socialism is socialism,” Willi Schlamm famously observed. “The problem with capitalism is capitalists.” From Wall Street to Detroit, businessmen have had at best a marriage of convenience with free-market principles, a fact that often puts the Republican party in the impossible position of mediating between philosophical purists and parochial business interests that profit from expansive government, protectionism, and regulations that smother competition. Republicans have long thought of themselves as the party of Big Business and free enterprise but, as Wall Street sends its money and votes to Democrats and snuggles up in an ever-cozier relationship with the government, Republicans face the choice of being the party of Big Business or the party of free enterprise — the party of capitalists or the party of capitalism.

The Democrats have already decided which party they are. Which is to say, the Democrats have figured out that they can keep Wall Street in their coalition by offering them easygoing social liberalism, a few sweet tax breaks, and good access to government revenue streams. Republicans are not above the same deal-cutting and back-scratching, obviously, but they have a knottier coalitional contradiction to resolve: The capitalists don’t want capitalism, and neither do a lot of mid-American social conservatives. Even as Reagan talked about the miracle of the invisible hand, the blue-collar social conservatives who put him in office indulged in a near-paranoid loathing of Japan — an economic phobia that is still very much alive in Republican heartland attitudes toward trade with China and India. George W. Bush talked up free trade — except on steel, sugar, and most agricultural commodities. The Republicans’ philosophy is informed by free-market idealists who celebrate the wonders of Schumpeterian “creative destruction,” but the guys flying business class would much rather sink into a nice warm bailout and let capitalism creatively destroy somebody else’s money — the taxpayers’ money, for instance. The bankers are the last guys who want free markets right now, and so it’s no surprise to find them writing big checks to the Democrats. But against all evidence, Republicans remain the party of Wall Street in the public imagination.

Obvious & easy jabs at Democrats aside, this is an interesting quandary for the Republican party.

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Rosie O'Donnell & the Amoral Market

We read it in the aforementioned comments over at the Seattle PI about the fairness doctrine and we read it in a post our buddy made on cougarboard.com. We refer, of course, to the hokey notion that because media outlets are controlled by supposedly "conservative" business interests, that makes the media outlets they control ipso facto conservative.

Nevermind the fact that in the last several election cycles, most businesses donated almost equally to both the Republican and Democratic parties. Where they don't give equally, it is based on who they think has the best chance of winning, not ideology. They want to support whoever will eventually be sitting on the Ways and Means Committee--regardless of political party. Ignore also the fact that few businesses are controlled by some small cabal of middle aged white males who, along with trying to gain monopolistic control of their industry, work tirelessly towards their ultimate goal of playing puppetmaster with the US government. Come on. Aren't we too old for these crazy conspiracy theories?

Capitalism, markets, business--these things are neither Republican or Democrat, conservative or liberal. The market is neither moral nor immoral. It seeks only profit. This guiding principle applies equally to the media. If a corporate interest believes ratings will rise and with it their profits, they will keep Rosie O'Donnell on the air until the public tires of her. If Jon Stewart or Stephen Colbert or Keith Olbermann makes them money, they will continue to fund production of their shows. The same thing applies (obviously) to conservative media. These businesses didn't pull their advertising from Air America because of politics, they stopped buying airtime because Air America didn't have enough listeners.

Wake up. If there are dollars to be made, and one company will ignore the opportunity because of some ideological difference, you can bet your bottom dollar that their competitor will step in and take advantage of the opening. They don't care if Democrats, Republicans, Communists or Atheists buy their widgets, they just want to make a profit. That's business. That's capitalism. That's the amoral market.


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