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Benjamin Graham

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The Reservoir plan is an engineering mechanism applied to the field of economics, and in its essence it has nothing to do with democracy or any other political philosophy.
--
Part V, Chapter XIX, The Reservoir Plan and Tradition, p. 232

 
Benjamin Graham

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We have a large reservoir of engineers (and scientists) with a vast background of engineering know how. They need to learn statistical methods that can tap into the knowledge. Statistics used as a catalyst to engineering creation will, I believe, always result in the fastest and most economical progress…

 
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The adjective “political” in “political philosophy” designates not so much the subject matter as a manner of treatment; from this point of view, I say, “political philosophy” means primarily not the philosophic study of politics, but the political, or popular, treatment of philosophy, or the political introduction to philosophy—the attempt to lead qualified citizens, or rather their qualified sons, from the political life to the philosophic life.

 
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Robbed of a foundation of political philosophy on which (how ever illegitimately) it had based itself, economics is in great danger of becoming a plaything of demagogy.

 
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To every outworn shibboleth of 19th-century economics he clung with fanatic tenacity. Economy, Free Trade, Gold - these were the keynotes of his political philosophy, and deflation the path he trod with almost ghoulish enthusiasm.

 
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The political principle that underlies the market mechanism is unanimity. In an ideal free market resting on private property, no individual can coerce any other, all cooperation is voluntary, all parties to such cooperation benefit or they need not participate. There are no values, no "social" responsibilities in any sense other than the shared values and responsibilities of individuals. Society is a collection of individuals and of the various groups they voluntarily form.
The political principle that underlies the political mechanism is conformity. The individual must serve a more general social interest — whether that be determined by a church or a dictator or a majority. The individual may have a vote and say in what is to be done, but if he is overruled, he must conform. It is appropriate for some to require others to contribute to a general social purpose whether they wish to or not.
Unfortunately, unanimity is not always feasible. There are some respects in which conformity appears unavoidable, so I do not see how one can avoid the use of the political mechanism altogether.

 
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