At Tech Central Station, Arnold Kling on Economic Idiotarianism, citing Steven Pinker citing A.P.Fiske:

In a Communal Sharing transaction, such as a family dinner, every member of the relationship is entitled to share in what is available.

In an Authority Ranking transaction, such as a decision made in a traditional corporation, there is a linear hierarchy, with people lower in the hierarchy deferring to those who are higher up.

In an Equality Matching transaction, such as taking turns going through a four-way stop, people operate according to an intuitive sense of balance and fairness.

In a Market Pricing transaction, such as buying a used car, people make decisions on the basis of calculating costs and benefits.

Of course, it is the Market Pricing mode of interacting that is studied in economics. However, Market Pricing requires techniques and thought processes that have not always been available to mankind. . . .

The idiotarian approach to debating economic policy is to frame an issue as a conflict between Authority Ranking (bad) and Communal Sharing (good).

Like most great insights, it’s obvious in hindsight. And it makes me that teeny bit more likely to buy Pinker’s new book (having enjoyed The Language Instinct, after Russell prodded me to read it).

2004 Oct 05: On re-reading, I think some of Kling’s examples overreach.

“Remaking the World in Our Image: Interventionist Globalism vs. Libertarian Localism,” by Lee McCracken. (From Rational Review again.)

asparagirl had some peevish things to say about the then-looming New York transit strike.

It wouldn’t be a problem if public transportation were open to competition – but neither the city nor the union wants that, obviously.

My hi-skool’s alumnal newsletter came this week. I am pleased to learn that my fellow escapees include someone more eminent than that guy who writes about baseball for Newsweek, namely the late economist James Tobin, whose autobiography names two previous Nobelists from the same school.
In other news, the new Miss America transferred out of there because of a bully.

Ever wonder about the economy of Middle-Earth? Like: What do Rangers eat, where do their children sleep, and how do they pay for their beer at the Prancing Pony? What do the goblins of the Misty Mountains eat between dwarves? Why has Eriador – which ought to be hospitable to nomadic shepherds if nothing else – been mostly empty for a thousand years despite being defended by the Rangers?

This week KTEH showed a Lovejoy episode in which the owner of a splendid collection of Jewish antiques is made to crawl for having acquired it by bartering food and supplies to the ghetto of Cracow during the war. Heaven knows I don’t watch Lovejoy for profundity (Q.: Why the heck do you watch it? A.: Quiet, you.) but still – where in pop entertainment is any character with the character to stand up and say, “If you think my profit was excessive – and of course it was high, which is why I risked my life and reputation – you should encourage and honour the smuggler, so that in the next war there will be more of us, to drive prices down. But I suppose the moral thing, in your eyes, would have been to let people starve, and let all this fine work be melted down by the Nazis.”

Vampire Population Ecology (pdf).

2006: New improved link.