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It's worse than that. If you go to a blog like Stumbling and Mumbling, written by someone with a reasonable sense of justice (on average) but steeped in "economania" you will find that Public Choice theory is absolutely gospel.

Further (and contrary to the empirical evidence, but absolutely necessary for public choice theory) there is the notion (reified to the Nth degree by Caplan in the links I posted) that people are more rational when they are paying than at any other time.

The irony is of course, that in fact "rational" is in this construct simply a synonym for "miserly." In reality "generosity" is sometimes the "rational" action, but economics does not allow for that.

This is most evident in discussions over intellectual property, where the introduction of the question of payment creates largely artificial scarcity.

by Metatone (metatone [a|t] gmail (dot) com) on Sun May 27th, 2007 at 11:04:39 AM EST
[ Parent ]
Whilst I'm remembering ironies, there's another "one way valve" in economics. The first, as I mentioned is that for them "rationality = miserly" but the other is that only positive utility is measurable. Money is the means to measure utility, but it largely exists only in positive space. I know there is debt, but that's not the same thing.

If I gain 100 pounds by exploiting someone who has nothing and they continue to have nothing, by economics there is only gain. No loss is measured. Sure you can construct "opportunity costs" models for simple situations, but no-one bothers to do this on a large scale. This is part of why various democratic decisions are so mystifying to economists, they are too lazy to attribute any value to the ending of widespread exploitation that seems (to them) to come at the cost of economic growth.

by Metatone (metatone [a|t] gmail (dot) com) on Sun May 27th, 2007 at 11:41:34 AM EST
[ Parent ]
Not all economists are enthusiastic about the artificial scarcity of intellectual (so-called) "property" rights. For example, Judge Richard Posner and William Landes [pdf]:
Whether the increases in the legal protection of intellectual property since 1976 have conferred net benefits on the U.S. economy is uncertain.

For another, F. A. Hayek:

A slavish application [to intellectual property] of the concept of property as it has been developed for material things has done a great deal to foster the growth of monopoly and...here drastic reforms may be required if competition is to be made to work. In the field of industrial patents in particular we shall have seriously to examine whether the award of a monopoly privilege is really the most appropriate and effective form of reward for the kind of risk-bearing which investment in scientific research involves.

From a leading advocate of property rights, a radical attack on patents!


Words and ideas I offer here may be used freely and without attribution.
by technopolitical on Mon May 28th, 2007 at 04:45:45 PM EST
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