Tuesday, April 7, 2009

Keynes and Altruism

I saw the following query on simplycapitalism.com:
As an individual, let’s say you have no savings, owe more money on your house than it is worth, and have a 50% chance of losing your job in the next 12 months. Would it make more sense to:

a) cut your spending and save more money
b) take out another loan and spend more money

It made me observe the following:

In order to choose A, you need to be able to choose your own good above what you are told is the good of others (and thus yourself) by Keynesian mouthpieces. And, you would have to place your individual judgment above the voices of others.

Choosing B would not only indicate that you do not understand cause and effect in economics (that you cannot borrow your way out of debt). It would also indicate that you are willing to gamble your own individual financial well-being for the supposed collectivist promise that if you don't jump off the ship into shark-infested waters of your own accord, that the entire ship will sink and you will drown anyway. Though it is primarily pragmatist (that is to say, dogmatically unprincipled), the self-sacrificial effect of altruism is fully evident in Keynesian ideology.

Reason and Capitalism are inseparable. Taking some part of it on faith is required for any other politico-economic system you can name.