Friedman vs. Plato

Game, Set, Match: Milton!
TCS Daily - Plato's Republic or Milton Friedman's Market?

I call this the Fundamental Problem of Political Economy. How do we limit the power that idiots have over us?

One solution, that might be traced to the expression "philosopher-king" associated with Plato, is to hand the reins of government to the best and the brightest. Since the late 19th-century, the Progressive Movement in American politics has championed this approach. The Progressive vision, which DeLong embraces, is to channel brains and technical know-how through government in order to improve people's lives. One hundred years ago, they sought to prohibit alcohol. Today, they are going after trans fats. One hundred years ago, they favored eugenics, based on the then-new science of evolution. Today, they embrace anti-growth economic policies, based on the contemporary science of happiness. Indeed, we get headlines like 'Tories promise to make happiness a priority'.

The other way to avoid having our lives run by idiots is to limit the power that others have over us. This is the approach that was embedded in our Constitution, before it was eviscerated by the Progressives. It is the approach for which Milton Friedman was a passionate advocate.

Friedman's insight is that a market limits the power that others have over us; conversely, limiting the power that others have over us

Not too harp on the Pigovians too much, but this is my fundamental problem with punitive taxation.

NOTE: The column also reminds that PBS is airing a documentary on Friedman tonight. It's received very good reviews.

NOTE II: I am still forced to view TCS through a proxy (I have alerted both my ISP and TCS; both responded but neither seem too concerned). If the link does not work, click to TCS on the blogroll.

UPDATE: Larry Kudlow informs that it is Milton Friedman Day -- Happy MFD!

Economics and Markets Posted by jk at January 29, 2007 12:27 PM