To the neoliberals of the world who show no regard for human life…Posted: June 8, 2012
Henry Farrell (George Washington University)
Cosma Rohilla Shalizi (Carnegie-Mellon/The Santa Fe Institute)
“But the economical advantages of commerce are surpassed in importance by those of its effects which are intellectual and moral. It is hardly possible to overrate the value, in the present low state of human improvement, of placing human beings in contact with persons dissimilar to themselves, and with modes of thought and action unlike those with which they are familiar. Commerce is now what war once was, the principal source of this contact.
However, such contact is largely incidental—- people engage in market activities to buy or to sell to best advantage, not to learn. As markets become purer, in both the Hayekian and neo-classical senses, they produce ever less of the contact between different modes of life that Mill regards as salutary. The resurgence of globalization; the creation of an Internet where people who will only ever know each other by their account names buy and sell from each other; the replacement of local understandings with global standards; all these provide enormous efficiency gains and allow information about supply and demand to flow more smoothly. Yet each of them undermines the Millian benefits of commerce, by making it less likely that individuals with different points of view will have those perspectives directly exposed to each other. More tentatively, markets may themselves have a homogenizing impact on differences between individuals and across societies, again reducing diversity. As Albert Hirschman shows, there is a rich, if not unambiguous, literature on the global consequences of market society. Sociologists such as John Meyer and his colleagues find evidence of increased cultural and social convergence across different national contexts, as a result of exposure to common market and political forces.
In addition, it is unclear whether markets in general reduce power inequalities or reinforce them in modern democracies. It is almost certainly true that the spread of markets helped undermine some historical forms of hierarchy, such as feudalism (Marx). It is not clear that they continue to do so in modern democracies. On the one hand, free market participation provides individuals with some ability (presuming equal market access, etc.) to break away from abusive relationships. On the other, markets provide greater voice and choice to those with more money; if money talks in politics, it shouts across the agora. Nor are these effects limited to the marketplace. The market facilitates and fosters asymmetries of wealth which in turn may be directly or indirectly translated into asymmetries of political influence (Lindblom). Untrammeled markets are associated with gross income inequalities, which in turn infects politics with a variety of pathologies. This suggests that markets fail in the broader task of exposing individuals’ differing perspectives to each to each other. Furthermore, markets are at best indifferent levelers of unequal power relations.”