The Free Market Is Not a Tool for Politicos
In a recent article published in the Wall Street Journal, editor Matthew Hennessey critiqued Vice-President JD Vance’s assertion that the market is merely a tool and not the ultimate purpose of American politics. While Hennessey’s argument that markets facilitate the free exchange of goods and services without coercion is valid, it overlooks a crucial philosophical justification of the market.
Hennessey’s assertion that markets are simply a mechanism for shared prosperity based on freedom from coercion is accurate. However, it fails to explicitly acknowledge the economically inspired philosophical argument that underpins the market. When individuals engage in trade within the market, they are pursuing their own ends and objectives, even if they claim otherwise. This pursuit of individual preferences and goals is inherent to the functioning of the market.
Classical libertarianism, as exemplified by Friedrich Hayek and James Buchanan, offers a more radical perspective on the market. Hayek argued that in a free society, individuals are free to pursue their own ends without the imposition of collective objectives by the state. The state’s role is limited to enforcing general rules that prevent the use of means that would undermine the benefits of a free society. Similarly, Buchanan proposed a social-contractarian justification for a free society, wherein individuals collectively agree on a set of rules that benefit each individual without coercive imposition of collective goals.
The radicalism of classical liberalism, as espoused by figures like Hayek and Buchanan, stands in stark contrast to the actions of governments and political figures who seek to impose their agendas on the populace. The market, as a mechanism for individual freedom and prosperity, serves as a vital component of a free society.
It is essential to recognize the philosophical underpinnings of the market and its role in promoting individual freedom and prosperity. By understanding the principles of classical liberalism and the importance of a free market, we can uphold the values of liberty and autonomy in society.
