RECOMMENDED READING
American Compass Releases Conservative Economic Agenda for 118th Congress
Hayek’s Broken Promise
Comparative Disadvantage

In unwitting homage to Congressman Barney Frank’s line that “government is simply the name we give to the things we choose to do together,” Senator Pat Toomey recently defined “the market” as “just the name that we assign to the sum total of all the voluntary exchanges that occur every day.” These equal and opposite platitudes share more than a formulation and a woeful inadequacy. Each represents, for the ideologues who adopt it, a comfortably absolute view of the world that either validates or invalidates whatever policymakers might attempt. If government is nothing more than voluntary collaboration, who could object? If the market is nothing more than the sum of voluntary exchanges, why should the government ever get involved?

Toomey’s market reductivism is widely embraced on the right-of-center, imposing blinders that limit the economic-policy menu to the task of avoiding interference — so, tax cuts, perhaps served with a side of “occupational licensing reform.” This abdication scorns the American tradition. It lacks support in economic theory. And it deprives policymakers of the tools for sustaining a well-functioning market economy and widespread prosperity.

Continue Reading at National Review
Wells King
Wells King is the research director at American Compass.
@wellscking
Oren Cass
Oren Cass is the executive director at American Compass.
@oren_cass
Julius Krein
Julius Krein is the editor of American Affairs.
@juliuskrein
Recommended Reading
American Compass Releases Conservative Economic Agenda for 118th Congress

Today, American Compass is releasing New Direction: Conservative Principles & Policies for the 118th Congress, an agenda for economic renewal, focused on the interests of worker, their families and communities, and the nation.

Hayek’s Broken Promise

It is a tragedy that Friedrich Hayek’s excesses, invested with the authority of his (deserved) reputation, became the unexamined default for right-of-center economic thinking in America.

The resulting orthodoxy too often combines a Panglossian insistence on defending market outcomes regardless of their quality with a reflexive belief that policy intervention can only be distortive for the worse.

But when it comes to international trade’s effect on the American economy, a knowing assertion that nothing should be done, followed by yet another “analysis” working backward to an argument that nothing needs doing, will no longer do.

Comparative Disadvantage

If comparative advantage is created rather than discovered, refusing to play the game has consequences.