Posts Tagged ‘trade’

Difference of opinion in a free society

6 September, 2010 Leave a comment

I instinctively feel my political views rooted in the liberal tradition, in matters of both politics and economics. I identify with historic liberal politics, and in most countries would support a party clearly identified as liberal. In economics, I believe the progress in societies that openly trade with others in goods and services, without barriers, restrictions or envy, in undeniable, and that because of the dispersion of knowledge at a local level, the market mechanism is far more efficient at pricing goods than any state-controlled system would be. I also have a passing interest in science, having taken two science subjects for the leaving cert and I still like to keep in touch with developments, if at a popular level.

So it was was nice to see these combined as one outlook, the dispersion of power, in Jonathan Rauch’s defence of the expression of unpopular viewpoints in academia, speaking to the conference of the Foundation for Individual Rights in Education.

Jonathan Rauch – FIRE’s CFN 2010 from The FIRE on Vimeo.


Rational optimism

7 June, 2010 5 comments

Last week, I attended a lecture by geneticist Matt Ridley, hosted by the Irish Skeptics Society. I have before read his books The Red Queen and The Origins of Virtue, explaining the genetic origins of human instincts and society. Politically, he is a proponent of free trade and small government, having written for The Economist from 1984 to 1992, and he served as non-executive chairman of Northern Rock from 2004 to 2007. His understanding of science and human nature leaves him open to the accusation of an attempt to justify his politics, but it is not with Ridley that we’ve first seen a convergence in views on the market and evolution. Charles Darwin saw the parallels between the simplicity of natural selection and Adam Smith’s invisible hand, while Friedrich Hayek saw the same processes of emergent order in nature as in many human endeavours such as the market, language or societal customs, none of which were ever formally instituted.

Ridley’s thesis is that what makes homo sapiens fundamentally different from all other species is our capacity to trade. Recent studies in the genome code have shown that even our closest relatives, homo neanderthalensis, probably had language, and excavations have shown that they had burial customs, but no neanderthal tool has been found more than two hours from where it was made. Of course, even if we have been trading as a species for 120,000 years, the acceleration of the benefits of trade only began to take off in the relative recent past, some time in the mid-eighteenth century. As a sign of the improvements to the common man from trade in those years, Ridley compared the situation of Louis XIV of France, who had nearly 500 people to prepare food for him, to any of us today, who have hundreds of people working for us, if we want to think of like that. Once we pay them for what we want, what difference is it to us that they’re also working hundreds of other people too?

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A liberal on trade

In The Storm, Vince Cable, Deputy Leader and Shadow Chancellor of the Liberal Democrats, outlines the bizarre Alice in Wonderland nature of trade negotiations argued on protectionist assumptions.

The main trading countries have been locked for several years in negotiations that centre on the following proposition: you agree to stop shooting yourself in the foot by paying out subsidies and hurting your consumers through costly import restrictions, and we shall, reluctantly, do the same. Or, more accurately, if you refuse to stop shooting yourself in the foot, we shall also refuse to and, indeed, shoot ourselves in both feet, just to show that we are more serious.