Tag Archives: Institute for Economic Affairs

Socialism, Free Markets, Capitalism and Christopher Snowdon

Bustling market in Xi'an, China. <a href='http://www.diarmidweirphotography.co.uk'>www.diarmidweirphotography.co.uk</a>
Bustling market in Xi’an, China. www.diarmidweirphotography.co.uk

Why do I consider myself to be of the ‘left’ rather than the ‘right’, despite the tendency for each term to be converted to a straw-man for all the pet hates of those attaching to the opposing label? For me, to be of the left designates a prioritisation of co-operation over competition. It is to believe that human satisfaction and happiness depends more on the former than on the latter and it is to believe that co-operation comes logically and practically before competition. Co-operation should therefore be actively promoted. How much competitive superstructure is to be placed on the co-operative base is then entirely up for debate, much of it empirical in nature.

Free exchange of goods, services and labour is the essence of co-operation, and as such genuinely free markets, which being an expression of ‘the propensity [in human nature] to truck, barter, and exchange one thing for another’ (Adam Smith) are completely compatible with maximum co-operation and thus, I would argue, with any viable conception of socialism. The competition that arises from free exchange, to provide better quality goods at lower cost, is on the face of it, also pure social benefit. This can be misleading, however, if reliance is placed on the abstract economic concept of perfect competition – where all market participants are equal in access and power, fully informed, infinitely lived and have perfect foresight. This concept requires isolation of the market from the human, the social and the physical world. To harness markets for benefit therefore requires a huge degree of co-operation in terms of setting up the infrastructure and regulation of market institutions. Continue reading Socialism, Free Markets, Capitalism and Christopher Snowdon