Tuesday, 6 December 2016

The 'Silly Consumer' Problem

Free-market capitalism is an economic system that is highly suited to catering to the desires of the consuming public, as expressed through their purchasing decisions. Free-market advocates consider this to be one of its most praise-worthy features; but not everyone agrees with this assessment. The argument is made that the consumers often make very poor purchasing choices (due to ignorance, short-sightedness, addiction, marketing, etc…), and because of this, a system that is designed to cater to such desires is not actually all that great. Is this a fair criticism of the free-market? Let’s take a look.

First off, I would like to acknowledge that consumers do often make decisions that seem pretty silly to me. But the key part here is ‘to me’. At the time of making the decision, the consumer in question thinks it makes perfect sense to them; otherwise, they would not have made it. If another person were to prevent this consumer from making that decision through force, the consumer would probably feel frustration and annoyance; rather than the satisfaction of having their desire fulfilled.

This, of course, only holds with high certainty in that moment. It is very possible that the consumer who is prevented from making a decision that is considered silly by an outsider, while feeling frustrated at the time, will actually feel thankful later on. For instance, the consumer who is intent on spending $1000 on prostitutes one day, may feel grateful that he was prevented from doing so the next. But here, we run into a quandary: how do we really know that the consumer is better off without the prostitutes than he would have been with them? Sure, he may be happy to still have his $1000 the next day, but is that happiness greater in magnitude than the happiness he would have received had he gone through with his hedonistic plans? It being impossible to compare the magnitudes of two ‘happinesses’, especially when speaking of someone other than yourself, it is impossible to say with any degree of certainty. Perhaps the man would have been best off had he blew all his life savings on prostitutes, and then gone out in a cloud of cocaine that very night! We really have no idea whatsoever about these things.

Given all of this indeterminacy, it is wise to just forget about other people’s happiness, and to just focus on your own (which is already difficult enough). What kind of society would you rather live in? One where you are free to make your own choices, or one where your choices are made for you by the wielders of political power? Would you rather be a sovereign individual, or a slave? Many people, if they are being honest with themselves, will recognize that they would actually prefer to be a slave, and there are no objective grounds on which to say that this is an inferior preference. However, it is not my preference, and if these people are intent on imposing their slave society on me, I shall fight back.

Alright, so I will fight their slave society, but then can I really fault them for fighting my sovereign individual society? After all, am I not trying to impose my idea of a good society on them, just as they are on me? Not entirely. Because the thing is, micro slave societies can exist inside a sovereign individual, free-market society. Under free-market arrangements, it is likely that entire city neighborhoods will be owned by either a single landlord or a single condominium association. As owners, they would have the right to set rules that tenants or condominium members must follow in order to live in this neighborhood. These rules could include some paternalistic ones (no smoking, no consorting with prostitutes, no drinking sugary pop, etc…), provided there were a demand for it from real estate consumers, which there could well be if enough people had a slave mentality.

Thus, in this way, people with a slave mentality could opt-in to a micro slave society within the larger free-market society, simply by moving in to a neighborhood with a paternalistic rule set. By contrast, if the larger society is a slave society, it is impossible for a person with a sovereign individual mentality to opt out of it. They must obey the paternalistic dictates of the government, or be subjected to harsh physical punishment. The conclusion, therefore, is that a larger free-market society, with the potential for micro slave societies within it, caters to people with both kinds of mentality better than a larger slave society would.

But wait! A final objection emerges! A slave society that one can opt in and out of; this still leaves an important choice in the slavish person’s hands! They are continuously faced with the choice of whether they wish to continue living in such a society or not! Faced with this ‘stressful’ choice, they may long for the larger slave society; featuring a slavery that is all-encompassing and inescapable. I grant that people like this are right to be enemies of the free-market society. I can only hope that their numbers are slight enough to be overcome by the lovers of individual sovereignty.
                      


     


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