Human nature is imperfect. It always was, and so long as we remain human, it always will be. The American Founders built a government system adapted to our imperfect human nature. No other system of government contains mechanisms to mitigate the harmful effects of our imperfect human nature.
The free market also resolves human imperfections. Suppliers and demanders imperfectly attempt to maximize their worth by agreeing on a price for a given exchange of goods or services. Price is the flexible point where they voluntarily meet, and price can be moved by either party to a transaction depending on how each deals with their imperfect circumstances.
The market flexibly harmonizes imperfections while providing the necessary incentives for trade to occur. Without trade, without a market, no substantial incentives exist. Without incentives, goods do not get made and trade does not occur. When trade does not exist, buyers don’t have anything to buy, and everyone stays poorer.
Humans are motivated by the opportunity to benefit themselves more than they are motivated by the opportunity to benefit others. The Left use the pejorative of greed when speaking of our human nature of self interest. But this is our nature. It is neither good nor bad. It’s just the way humans generally are.
With equal validity you could say that it’s human nature to have sex and therefore sex is bad. Oh wait a minute; a lot of people do say that. Let’s not kick that sleeping dog just now.
Which makes more sense to advocate – political and economic systems that offend our human nature, or ones that work with our human nature? The question answers itself and the overwhelming evidence affirms the answer.
Where humans have worked out their differences, their disequilibriums, their inequalities, and their variances through objective, constitutional, rule-of-law-based governments and associated free markets, they have done best.
Where humans have had their political and economic incentives removed through command economics and totalitarian governments, they have done worst.
This is the most important lesson of history, and the Left has still not learned it.
I read Jean Ziegler‘s Betting on Famine. Ziegler is a Social Democrat who worked for the UN and answers the question in his book, “Why the World Still Goes Hungry?”
He reasons that global corporate food oligarchies control food and associated supply-chain product markets to maximize profits, that these same markets inhibit subsistence farming around the world because it competes with their control of food, that sufficient food is a basic human right, that there is more than enough food produced to go around so that no one should starve, and that the free market misallocates food and causes starvation.
Aye yai yai.
Ziegler’s solution – “In parliaments, in international regulatory authorities, we can decide that there must be change; we can decide to make the right to food a priority, to remove food from the realm of market speculation, to protect subsistence agriculture in the name of national heritage and invest in improving it worldwide. The solutions exist; the plans and projects are already drafted. What is lacking is the will of governments.”
Ziegler, the Social Democrats, and the Left think we can just decide to change human nature. You might think, “But this has never been done.” And you’d be right. It’s never been done because it can’t be done. Our nature is our nature. Denying it will only result in predictably negative consequences that come from denial.
If you want to see starvation really take off and become much worse than it already is, put government in control of the food supply. Governments have already re-allocated food resources toward energy production. Governments are funding the growth of food, only to turn around and burn it up.
When governments make mistakes, they create invested constituencies who have financial incentives to resist changes to the government policy. Moreover, government programs are funded from taxpayer revenue which continues to flow regardless of the success of the program. There’s no outcome feedback loop to correct a government mistake. And there’s always the shouting constituency narrowly focused on their government benefit to drown out more sober analysis.
When markets make mistakes, they quickly self correct because no one buys the mistake and it quickly becomes unfunded and goes away.
Unsubsidized markets would have abandoned wind, solar, and food-robbing ethanol long ago. And fewer people would be starving today.