“economic idiotarianism”

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.