2008 Woodie Awards
Modern economics is about more than just the benjamins
Ian Parker '10
Issue date: 9/12/07 Section: Opinion
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In watching debates, news shows, and reading the paper lately, I have been struck by the depth of resistance in our country to the idea of true, free, unadorned capitalism. The average American's idea of the ideal economic system is now something closer to that of Europe's. In this worldview, capitalism is a bogeyman that makes the poor poorer, the rich richer, and goes totally against many people's idea of virtuous human nature. Many believe that capitalism allows greed to be lionized, rapaciousness to be rewarded, and the good of the common man to be thrown out along with last week's newspapers. In many ways, it is the fault of our leaders - the economists, financiers, and politicians - that so many Americans feel this way. Market capitalism has been explained away with ubiquitous phrases like "the invisible hand" and "let the market decide" for so long that no one really knows or cares what these phrases mean anymore. The contempt for the common man that people in power have shown by not bothering to explain the fundamental beauty of our system - yes, beauty, for capitalism is beautiful in the complex way of a starry night sky - is unforgivable, and has led directly to the hostility to it we can see so often now in our world. The only way for our system to remain sustainable is for people to have a dialogue, and to truly understand, not about Adam Smith or his invisible hand, but about the qualities of love, value, and family in the "marketplace". There is more to do with economics than money, and the sooner people realize this, the sooner we can get back to a civilized, knowledgeable discussion.
Last week I was talking to someone whose opinions I respect. He told me that people misunderstand what Adam Smith meant by the "invisible hand" of the marketplace. It got me thinking that he was right. People so often believe that the study of economics is all about money, and how to screw over the guy next to you and take the rewards. In reality, it is about something very different. Economics is about value, in the way you value your best friend or your community or your laid-back English professor. Economics and the capitalist system allowed you to choose that friend, to settle in that town, to pick that professor. The same man I was arguing with also told me that if capitalism worked, no family would have children because they are an additional expense. Capitalism, in its purest form, does explain it. Families have children because they value seeing their children grow up enough that they are willing to pay whatever cost is necessary to see it. Economics explains love; it explains mercy; it explains the very best of the human race.
Last week I was talking to someone whose opinions I respect. He told me that people misunderstand what Adam Smith meant by the "invisible hand" of the marketplace. It got me thinking that he was right. People so often believe that the study of economics is all about money, and how to screw over the guy next to you and take the rewards. In reality, it is about something very different. Economics is about value, in the way you value your best friend or your community or your laid-back English professor. Economics and the capitalist system allowed you to choose that friend, to settle in that town, to pick that professor. The same man I was arguing with also told me that if capitalism worked, no family would have children because they are an additional expense. Capitalism, in its purest form, does explain it. Families have children because they value seeing their children grow up enough that they are willing to pay whatever cost is necessary to see it. Economics explains love; it explains mercy; it explains the very best of the human race.
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