Friday, December 4, 2009

Edmund Phelps on Capitalism

Don Boudreaux references an important view of capitalism that may shed some insight into the current "ambivalence" toward liberty and freedom. The trade off between liberty and security is a stark one, demanding some level of personal confidence as well as personal responsibility. To the extend that self confidence and acceptance of responsibility are virtues, then this trade off suggests something profound about morality and ethics.

Boudreaux writes:

True, capitalism creates disruption and uncertainty. But we should not lose sight of the other side of that coin. Capitalism is unique in stimulating entrepreneurs to dream up new commercial ideas and develop them for the market, and generating excitement for consumers in discovering the new.

The events in life are uncertain and it is this risk that informs the liberty v security trade off. Like Boyes, I wonder to what extent age influences this trade off? On this blog we have examined the role of the institutions of society, individuality and the evolution of the two.

I see some level of distrust of government in my daily interactions, but no real articulation of the virtues of liberty nor a commitment to freedom. The question that comes to mind - is this a new development or has there been a complacent view of liberty over time?

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