Human = Magnetized Particles

In the discussion of Adam Smith, Heilbroner makes the argument that the rules of the market, or the market mechanism are worth dissecting. However “dry” they may be (and I am not entirely convinced that he thinks they are) an understanding of the “worldly philosophers” goes hand in hand with these laws. The laws are based around competition—it keeps everyone in check and allows everyone in a society to attain what they need without much proscription.

Heilbroner later asks the question of “what is it that drives society to this wonderful multiplication of wealth and riches?” If it is the market mechanism—which he leaves as an open possibility, then doesn’t that reflect poorly on capitalism if one believes that material pursuits beyond that which is absolutely necessary are frivolous or wrong? Heilbroner states the “market harnesses man’s creative powers in a milieu that encourages him, even forces him, to intent, innovate, expand, take risks.” However, these risks are all a means to an end that is not necessarily happiness: wealth. A great metaphor shows up on page 71, where he states that humans are full of magnetized particles attracted to profit and repelled by loss. This system in which the magnetic people lie is of course Capitalism, and it works because the dear elements of man (self-interest and competition) fit in with this system well to make it flourish. But is that true? Perhaps people have become conditioned over time to act a certain way, but really our nature could be molded by any tradition, our rationale affected by any outside source of historical guidance or attractive morale. Could Owen be right?—is “mankind no better than its environment and if that environment was changes” could real paradise be achieved? In his experimental practice perhaps not, but different sorts or cultures of small societies or social cohesion do work in various places.