Over in the comments section discussing the First Principle of limited charity, Patrick offers an observation which is entirely relevant and insightful. What Patrick points out is that I “seem to be relying on your ideal government governing an ideal people.” The easy answer to this charge is that it is certainly true; I have spent this series discussing the principles which I feel belong at the foundation of post-Bush conservatism, which necessarily requires me to expound a world which does not currently exist. Each of the First Principles, however, draw strength from the practicality of the system they would produce and the liberty that would be secured.
The challenge for conservatives in bringing about any of the principles I have elaborated is the need to change the incentive system which has developed in the realm of politics. It is a well known axiom that people will do what they are rewarded for doing; a fact which has been verified by years of study and experience in the realms of psychology, economics, business, politics, and elsewhere. Conservatives have allowed themselves to fall into the trap of using an incentive system which is fundamentally misaligned with nearly every foundation of conservatism. Small government, personal responsibility, charitable acts, fiscal responsibility, and freedom in general have all suffered.
Perhaps nowhere is the incentive system more fundamentally misaligned than with respect to small government. Americans of nearly any political stripe evaluate political leaders on the basis of which laws their politicians work to pass. To phrase that differently, Americans, including most conservatives, reward politicians for passing laws. If ever there was a greater impediment to small government, it is hard to imagine. Every new law which does not repeal an old law is an expansion of government. Even laws which at first appear to restrict (rather than remove) previous laws are really expansionary in nature as the addition of restrictions implies adding government authority to evaluate and enforce those restrictions. As a coercive force, every new law, every expansion of government, eliminates choices and restricts liberty. Yet, we as a society cheer for our politicians when they enact some new law in order to make us “more” free.
What conservatives have forgotten, and liberals have never understood, is that most bad ideas do not need to be prohibited by law. They are, after all, bad ideas. Assuming that people are held personally responsible for their actions, very few bad decisions will ultimately pay off, and people will generally learn to avoid making them in the future. The zealous enforcement of property rights will generally act to deter externalities by transferring much of the social cost of bad decisions directly back onto the decision maker. Further, because the socialized cost of a bad decision can often be extensive, individuals affected have an incentive in the form of a first-mover advantage to enforce their rights quickly, before others who are harmed drain the decision maker’s bank account and leave late comers with nothing. Because the effects of bad decisions compound with time, an incentive to catch problems sooner will reduce the ultimate costs.
While strong property rights would reduce or eliminate the supposed need for the regulatory state, not all bad ideas have a strong connection to economics. Social issues, in particular, tend to resist being converted into a matter of dollars and cents. Even liberals claim to agree that the government has no right to legislate a moral agenda, which immediately puts nearly every social issue beyond the authority of law. Filling the gap are social organizations (churches, youth groups, athletic clubs, etc.) which are perfectly capable of promoting an agenda and winning or losing converts in the marketplace of ideas. If laws were truly capable of changing people’s opinions, prohibition would never have happened after the enactment of the 18th Amendment and America’s prisons would not be filled with people arrested for drug crimes. However, as nearly every minority group can attest, there is a significant social cost associated with being outside the mainstream; but as civil rights activists know, the definition of mainstream can change with a sufficiently good argument made consistently over time.
Social organizations also have other roles beyond promoting their social ideas to society. They are also centers of charity. Social organizations can only exist when members have built up a certain level of interdependence. Once entangled, people have a natural tendency to help their friends. The organizations themselves have a further incentive to help their members because people who are having trouble with life have a tendency to withdraw from non-essential activities, citing a lack of time, resources, or both. An organization which helps its members is more likely to keep its members. At the same time, very few groups are willing to prop up a defective member forever.
I once debated with a friend of mine about the propriety of the assumption in economics that capitalist greed can be leveraged as a force for good. My answer at the time was weaker than it should have been, and we quickly moved on to discussing the difficulty economics has at addressing non-economic values like the good feeling that comes from helping a fellow man. The real answer to his charge is that law is no different; it merely adds extreme artificial costs to any decision disfavored by the government and assumes that most people will follow along. There is nothing magical about the First Principles, save for the recognition that people can take care of their own, and that force can never be freedom.
Tags: First Principles