Economics in Ithilien

I apologize for those who visit daily, I lost my satellite link for a while again the past few days.

Markus has gone on ahead while Cedric stayed for fishing lessons.

I ended up having quite a conversation with Markus while he has here. I mentioned that I had just finished a book on economics and public policy and Markus wanted to know what I thought. It turns out that Markus is a militant socialist – an advocate of planned economy and the governmental direction of economic resources.

Having just read and agreed with Hayek, who highlights the connection between political and economic freedom and the connection between plannedeconomyy and totalitarianism, I couldn't resist the tendency to engage Markus. We had a spirited conversation that spanned three days. In fact, at one point Camilla and Cedric got frustrated with it and went for a hike.

The basic question on the table was whether the society, the individual and/or both are better off under a limited government that enforces the rule of law and interferes only minimally in economic choices or under a government that takes as its conscious and philanthropic aim the betterment of society through the direction and redistribution of wealth.

I was arguing that the freedom that is achieved under the rule of law and a regulated but free market creates the conditions for individuals and free associations to pursue their own aims and choose their own ultimate ends, while he was arguing that such freedom did not deliver on its promise of equal opportunity for all but merely protected the interests of the socially advantaged.

It was an interesting and helpful discussion, but one of the most interesting dimensions was that the conversation was carried on between two people who have essentially dropped out of the daily ebb and flow of society. There's something to be said for that ...