Burning Violin #20 - Markets and Ethics

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"You cannot legislate the poor into freedom by legislating the wealthy out of freedom.  What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else.  When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it." -Adrian Rogers

The inherent flaw in that quote is that it assumes a system that is just, that the poor are poor because they deserve to be and the rich are rich because they deserve to be. It assumes that an individual's wealth is directly proportional to his earning of that wealth. But the free market system, like any system, rewards neither superior ethics, nor superior effort, nor superior merit. Like all systems, it simply and blindly rewards those that play the game the best.

No economic system in human history has produced the raw creativity, output and progress of free market capitalism, but it is easy to forget why America championed free markets in the first place: because they are more just, more right than any other economic system. Sometime during the Cold War, we lost sight of that original motivation and our means became our ends as our economies created unimaginable wealth and prosperity. We defended free markets because they worked the best instead of because the nature of their freeness made them the ethically superior system. In forgetting those ethical grounds, we have lost the ability to intervene in the market when ethically necessary. If the reason for the market is its superior performance, then intervention on ethical grounds that affect performance is against everything the market stands for. If the reason for the market is its ethically superior outcome, then intervention on ethical grounds helps the market achieve its purpose.

The best education money can buy. The best medical care money can buy. The best car money can buy.

There are things that it is simply ethically wrong to have determined by the availability of money. There are certainly things that should be. Better house, better car, better TV, a bigger stack of DVDs, eating tenderloin instead of pork chops. These are things that can be determined by money, that working hard and earning money should allow you to upgrade. There are certain categories of expense that should not ethically be determined by money. Money should not be able to buy you better medical care or a better education or better legal representation.

This isn't an unrealistic utopian impulse. It's something that can and should be designed and legislated. Being able to cut checks for $50,000 per year should not get your child a prestigious education at a private liberal arts school. Access to education should not be a financial decision, it should be a strictly merit based decision. The best students should go to the best schools, and on down the line, regardless of their financial status. Likewise, the mediocre students should go to the mediocre schools, regardless of their ability to pay for an exclusive private school. Medical care should be determined by need not by money. The Mayo clinic should be where the most severe and hopeless cases are sent, not simply the ones with incredible insurance.

The bottom line is that there will always be differences in quality, whether it is education, medical care, or simply the type of car that you drive. But it is utterly unethical to have some of those differentials determined by money.

What society can do is make decisions on which resources should be allocated by free market supply and demand, and which should be allocated on the basis of different criteria. In an ethical society, the first decision should not be what is possible, it should be a determination of what should be. The question of how it must be limited or compromised is a fundamentally different question than what the world should be like. We can say outright, without a financial commitment, that we think that all citizens should have health insurance and free access to medical care. It is entirely possible that this ideal is not within the reach of our resources, that no matter what we do at present, there simply isn't enough money, doctors or hospitals to achieve the ideal. The question then is how to decide who gets access to those resources. Simply saying that we only have the resources to give 80% of Americans health care and determining that therefore the poorest 20% will be the ones that miss out is the most unethical way imaginable for determining access to resources. Even a lottery would fundamentally be more ethical, at least then we are not pretending that the hourly rate you bill out at is an appropriate measure of how much you deserve medical care.

Decide on the world you want, and if it is not feasible, decide on how to compromise without compromising the integrity of the ideal. The poor will always be with us, but we have the power to decide what poverty means in our society.

The end of a nation does not come when it cares about the poor. Indeed, the strength of character of any nation is best measured by the lots of the least within it. When the richest society in human history decides that it is a perfectly just and deserved outcome for CEOs to make a thousand times what their employees earn and that 10 million children deserve to not have health insurance, then we are not far removed from the only place that sustained injustice ever leads: blood and fire in the streets.

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56 Comments

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This page contains a single entry by Steven Lloyd Wilson published on July 1, 2009 6:56 AM.

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