Human Nature and Human Action; E. Asmus and D. Billins

E. Barry Asmus Donald B. Billings Human Nature and Human Action "Why should it be," asked Walter Lippmann, a famous observer of the American scene, "that in a time when men are making the prodi gious claim that they can plan and direct society, they are so profoundly impressed with the unmanageabil ity of human affairs?" Especially in the twentieth century, we have seen more elaborate attempts through government to manage and control the private actions of individuals, yet, as Lippmann observed, " ... this more elaborate organization can be operated only if there is more intel ligence, more insight, more disci pline, more disinterestedness, than exists in any ordinary company of Dr. Barry Asmus is an economist and national speaker living in Phoenix, Arizona. Dr. Don Billings is Pro fessor of Economics at Boise State University. This article is taken from their book, Crossroads: The Great American Experiment, published in 1984 by University Press of America. Reprinted by per mission of the pUblisher.

600 men. Unfortunately this is the sick ness of an overgoverned society, and at this point the people must seek re lief through greater freedom if they are not to suffer greater disasters." Even the casual observer senses that government actions to solve prob lems are not working, and that as government attempts to do more, the less successful it becomes. Human Action Much of the reason for this can be understood by looking at how, we as individuals, organize ourselves in society. The rise, decline, and resto ration of the market economy is in large part about the relative advan tages and disadvantages of two overarching principles of social or ganization. Following the work of the German sociologist Franz Op penheimer, Albert Jay Nock distin guishes between the "political HUMAN NATURE AND HUMAN ACTION 601 means" and the "economic means" as social organizers or delivery sys tems. Which of these institutions works better when organizing social and economic behavior and which most closely conforms to the basic nature of man?

The political means necessarily re quires the use of the coercive appa ratus of government. It forces indi viduals to take actions which are contrary and in opposition to their own desires and goals. After all, the essential characteristic of govern ment is its claim to a monopoly right on the use of force in society. As in dividuals, you and I would be ar rested if. we attempted to do those things which governments do as a matter of course. The Economic Means versus The Political Means The "economic" or market means refers to social arrangements in which only voluntary transactions between persons are permitted. In a market economy involuntary or forced exchanges would be criminal acts legitimately subject to appro priate penalties and government ac tion. The fundamental distinction is between mine and thine. Individu als would pursue their own goals through the voluntary exchange of justly acquired rights in property.

The market means is consistent with both human nature and the purposeful action of individuals. In contrast, the political means oper ates at cross-purposes to human na ture and individual choice. Mini mum wage laws, rent controls, usury laws, price controls, tariffs, subsi dized rents, interest rate ceilings, agricultural price supports, Federal loan guarantees, passenger rail ser vice subsidies, and fixed public util ity rates are just a few of the ways that government tries to alter hu man behavior. In every case it limits the number of exchanges that would have normally taken place and nec essarily involves government force to ensure compliance. Constraining the purposeful behavior of individ uals reflected in the laws of supply and demand, government tries to supersede the market in the name of the "public good." But, the use of government force to restrict private actions presents im portant difficulties. Before govern ment can create a miracle for one group, for example farm price sub sidies for agriculture or rent subsi dies for current renters, the money must first be taken away from some one else. Taxes are the anti-miracle imposed on people who would rather spend their money in a different way.

This raises a fundamental question regarding the morality of allowing person A to meet with person B to determine how the money of person C will be used to help person D. The issue is a matter of justice in the ac quisition of things (i.e., property) and 602 THE FREEMAN therefore an important topic of discussion. There is also the question of eco nomic efficiency. Does government intervention in fact produce the in tended consequences? Do minimum wage laws really help the poor? Have price supports in agriculture helped the farmer in the long run? Did price controls on energy solve the "energy crisis" or create it? Although many of government's actions are sincere and well intended, they have for the most part been disastrous in their unintended consequences. Govern ment inherently demands that in dividuals act contrary to their per sonal objectives. This creates a situation analogous to the problem of forcing water to run uphill; al though it can be done, it is very costly in terms of economic effi ciency. But more importantly, the process involves a continual and growing abridgment of liberty.

In contrast, the market means en courages the spontaneous and mu tually beneficial exchange of prop erty which is in perfect harmony with the purposeful actions of free and sovereign human beings. As Adam Smith pointed out more than two hundred years ago in his Wealth of Nations, if the organizing princi ples of society agree with and are complementary to human nature, then "... the game of human society will go on easily and harmoniously, and is very likely to be happy and Crossroads is an important and comprehensive presentation of the rise, decline, and restora tion of freedom and the market economy. The authors do an outstanding job of introducing readers to the history and na ture of the American free mar ket experiment. Copies can be ordered from the American Studies Institute, 3420 East Shea, Suite 266A, Phoenix, Ar izona 85028: Paper $14.25, Cloth $26.75. Please add $1.50 for shipping and handling.

successful. If they are opposite or dif ferent, the game will go on misera bly and the society must be at all times in the highest degree of dis order." The mystery, posed by Walter Lippmann in The Good Society, re garding the simultaneous increase in the growth and power of govern ment and our receding confidence in government's ability to deal with so ciety's ills, disorder, decay, and ma laise should be no surprise. Chaoti cally, we have come to rely on coer cive institutions of social organiza tion that operate at cross purposes to the essential nature of purposeful human beings. Every individual has his or her very own principle of mo tion. There is no mystery at all; pushing square pegs into round holes simply does not produce socially ben eficial results. ~ Kenneth McDonald Routing the Fabians I can still hear Sidney Webb explain ing to me that the future belonged to the great administrative nations, where the officials govern and the po lice keep order.