invisible hand is a myth

Dave Winer:

I’m not a libertarian, although at one time I was. I believe in liberty, but I also believe we need to have a collective consciousness that isn’t completely insane. I think we’re driving off a few cliffs, others do too, and what are we supposed to do? Keep our mouths shut? Permanent link to this item in the archive.

I think the difference can be traced back to what Adam Smith called The Invisible Hand. It’s a beautiful idea. One that Ronald Reagan picked up on, and marketed very well. So well, that I voted for Reagan twice. I liked what he was saying. Trust in the goodness of people and the Ouija board of self-interest, and all will be good. Permanent link to this item in the archive.

That doesn’t work because the world is too complicated, and I didn’t appreciate that at the time. As a very young person, I hadn’t experienced much of the complexity. That’s part of what’s so great about being young. Permanent link to this item in the archive.

Self-interest was a very good thing to depend on when the world was simpler. When global warming wasn’t an issue. Or nuclear weapons. When the collective insanity of the American people didn’t lead them to the conclusion that the economy works like their household budget. Yet a lot of people, including apparently a lot of our elected officials, do believe that. Permanent link to this item in the archive.

They also doubt evolution. Permanent link to this item in the archive.

I’m fairly pessimistic about this system’s ability to kick out the right answers. Permanent link to this item in the archive.