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Pragmatism in Economics

If the CEO of a floundering company can continue to decorate his office while things are going to hell, and eventually collect a golden parachute while somebody else picks up the pieces, where, exactly, is his incentive to not fvck up? I mean, the whole argument for capitalism is that the profit motive is supposed to get people to solve problems and make stuff work. Conversely, the whole argument against communism was that with no profit motive nobody will do anything productive.
No, Thoreau. The argument for capitalism has nothing to do with making stuff work. All manner of horrific social systems make things work. How productive were the commies who sought to arrest and detain Threats to the State? How much paperwork does the Federal Register produce each quarter?

The proper argument for capitalism emphasizes individual freedom as the political endpoint of a whole philosophy that only spares a glance for "making things work" at the end of our analysis because, well, of course things that adhere to reality work! A drafter who ignores the implications of two planes intersecting at 90ยบ is a drafter whose building will not work. A corporate executive who ignores basic issues like not producing things people want to buy so he can offset the costs of producing them is an executive whose company will not work.

The profit motive may be a nifty way social freedom reinforces itself but it isn't the reason we advocate for that freedom in the first place.

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Lucky you, try living here in the third world where asking for stuff to work makes you a racist.


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