loquasagacious
NCAP Mooderator
- Joined
- Aug 3, 2004
- Messages
- 3,636
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- Undisclosed
- HSC
- 2004
Simple question do you believe that humans are rational?
The idea of a rational human underpins economics and indeed the concepts of a free society and a free market generally, so I think it is worth debating.
What are your thoughts?
Off the cuff my thoughts are that on the interventionist side of the fence the argument is typically that humans are not rational creatures because all of the time people make bad choices. However I reject this because people can quite rationally make bad choices.
For a start, what is a bad choice? I think that this is largely a subjective concept which involves people making normative assumptions about what a good choice is, and the good choices are conveniently the ones which align with their world view. Having children, not having children, choice of university, choice of career, choice of a partner, having sex, having unprotected sex, choice to drink/smoke/take drugs.... all seemingly fraught with bad choices - and often contradictory ones depending on the politics of whoever is judging.
On this basis I think that the concept of other people making bad choices reeks of an ivory-tower paternalism.
In addition to this even where a seemingly objective choice is presented and someone makes a bad choice this does not prove irrationality. Say for example that there are two bank accounts, A and B. A pays higher interest and has lower fees, it is objectively the better of the two. The customer choses B, are they irrational? No.
They may simply not have sufficient information, such as not knowing that A existed. Or they may have more information that our ivory-towered observer, such as knowing that bank A is going to go bankrupt.
From the ivory tower we can never know all of the information that a person uses to make decisions, we can never know the importance that they place on the various pieces of information. We can only guess. The inclination when guessing is to assume that everyone has the information that we have and makes the choices that we do. When people don't make the same choices we then label them as bad choices and the person as irrational.
And of course an irrational person can not be trusted to make decisions for themselves and therefore we, through the state, should make them for them.
The idea of a rational human underpins economics and indeed the concepts of a free society and a free market generally, so I think it is worth debating.
What are your thoughts?
Off the cuff my thoughts are that on the interventionist side of the fence the argument is typically that humans are not rational creatures because all of the time people make bad choices. However I reject this because people can quite rationally make bad choices.
For a start, what is a bad choice? I think that this is largely a subjective concept which involves people making normative assumptions about what a good choice is, and the good choices are conveniently the ones which align with their world view. Having children, not having children, choice of university, choice of career, choice of a partner, having sex, having unprotected sex, choice to drink/smoke/take drugs.... all seemingly fraught with bad choices - and often contradictory ones depending on the politics of whoever is judging.
On this basis I think that the concept of other people making bad choices reeks of an ivory-tower paternalism.
In addition to this even where a seemingly objective choice is presented and someone makes a bad choice this does not prove irrationality. Say for example that there are two bank accounts, A and B. A pays higher interest and has lower fees, it is objectively the better of the two. The customer choses B, are they irrational? No.
They may simply not have sufficient information, such as not knowing that A existed. Or they may have more information that our ivory-towered observer, such as knowing that bank A is going to go bankrupt.
From the ivory tower we can never know all of the information that a person uses to make decisions, we can never know the importance that they place on the various pieces of information. We can only guess. The inclination when guessing is to assume that everyone has the information that we have and makes the choices that we do. When people don't make the same choices we then label them as bad choices and the person as irrational.
And of course an irrational person can not be trusted to make decisions for themselves and therefore we, through the state, should make them for them.