Thursday, April 2, 2009

Unstable equilibrium

I mentioned this in class today but it bothered me I could not remember the whole quote. From an interview in Reason magazine in Dec. 1974:
From "An Interview with Milton Friedman," Nobel laureate economist

"There's a strong argument to be made that a free society is a fundamentally unstable equilibrium, in the language of the natural sciences....There's a great deal of basis for believing that a free society is fundamentally unstable--we may regret this but we've got to face up to the facts....How often and for how long have we had free societies? For short periods of time. There was an essentially free society in 5th-century Greece. Was it able to survive? It disappeared. Every other time when there's been a free society, it has tended to disappear."

Reason: It's paradoxical but...you are attributing to the collectivist intellectual a better feeling for the market.

Milton Friedman: Of course. But while there's a bigger market for Fords than there is for American Motors products, there is a market for the American Motors products. In the same way, there's a bigger market for collectivist ideology than there is for individualist ideology. The thing that really baffles me is that the fraction of intellectuals who are collectivists is, I think, even larger than would be justified by the market.

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