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I disagree with the followers of Marx and those of Adam Smith: the reason free markets work is because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or "incentives" for skill.
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p. xxi

 

Nassim Nicholas Taleb

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It's a real shame that only Mr. Chomsky's tedious harangues against America get any attention. His body of work deserves more serious treatment. The interesting yet overlooked aspects of his political philosophy cannot easily fit into the left-right dichotomy. What makes Mr. Chomsky unique is that his criticism of the capitalist economic order takes its point of departure from the classical liberal thinkers of the Enlightenment. His heroes are not Lenin and Marx but Adam Smith and Wilhelm von Humboldt. He argues that the free market envisaged by these thinkers has never materialized in the world and that what we have gotten instead is a collusion of the state with private interests. Moreover he has repeatedly stressed that the attacks on democracy and the market by the big multinationals go hand in hand. The rich, he claims, echoing Adam Smith, are too keen to preach the benefits of market discipline to the poor while they reserve for themselves the right to be bailed out by the state whenever the going gets rough. As he puts it: "The free market is socialism for the rich. Markets for the poor and state protection for the rich." He has spoken positively about the work of Peruvian liberal economist Hernando De Soto who sees the problem of poverty in the Third World as being related to the fact that the poor usually lack clearly defined property rights.

 

Noam Chomsky

 

Cobden's international ideas were based on patriotism and peace, the harmony of classes, reform by constitutional methods, goodwill among men and nations. Cobden...believed in individual liberty and enterprise, in free markets, freedom of opinion and freedom of trade. [His] whole creed was anathema to Karl Marx. He had no sense of patriotism or love of country. He urged what he called "the proletariat" in all countries to overthrow society by a violent revolution, to destroy the middle classes and all employers of labour, whom he denounced as capitalists and slave drivers. He demanded the confiscation of private property and a new dictatorship, the dictatorship of the proletariat. Just as Cobden interpreted and practised the precepts of Adam Smith, so Lenin interpreted and practised the precepts of Karl Marx. These two great men though dead yet speak. They stand out before the civilised world as protagonists of two systems of political economy, political thought and human society...when this war is over, we in Britain will certainly have to choose whether our Press and Parliament are to be free, whether we are to be a conscript nation, whether private property and savings are to be secured or confiscated, whether we are to be imprisoned without trial; whether we are again to enjoy the right of buying and selling where and how we please—in short whether were are to be ruled as slaves by the bureaucracy of a Police State or as free men by our chosen representatives. This conflict will be symbolised and personified by Richard Cobden and Karl Marx.

 

Richard Cobden

 

If I were five-and-twenty or thirty, instead of, unhappily, twice that number of years, I would take Adam Smith in hand—I would not go beyond him, I would have no politics in it—I would take Adam Smith in hand, and I would have a League for free trade in Land just as we had a League for free trade in Corn. You will find just the same authority in Adam Smith for the one as for the other; and if it were only taken up as it must be taken up to succeed, not as a political, revolutionary, Radical, Chartist notion, but taken up on politico-economic grounds, the agitation would be certain to succeed; and if you apply free trade in land and to labour too—that is, by getting rid of those abominable restrictions in your parish settlements, and the like—then, I say, the men who do that will have done for England probably more than we have been able to do by making free trade in corn.

 

Richard Cobden

 

Ricardo's "science" was founded on the principle that capital is more or less immobile and labor highly mobile. We are enjoined today to worship the consequences of Ricardo's science, despite the fact that the assumptions on which they are based have been reversed: capital is highly mobile, and labor virtually immobile -- libertarian conservatives lead the way in rejecting Adam Smith's principle that "free circulation of labor" is a cornerstone of free trade, in keeping with their contempt for markets (except for the weak).

 

Noam Chomsky

 

Hey, that's not a bug, that's a feature! You know what the most complex piece of engineering known to man in the whole solar system is? Guess what – it's not Linux, it's not Solaris, and it's not your car. It's you. And me. And think about how you and me actually came about – not through any complex design. Right. "Sheer luck". Well, sheer luck, and:
• Free availability and crosspollination through sharing of "source code", although biologists call it DNA.
• A rather unforgiving user environment, that happily replaces bad versions of us with better working versions and thus culls the herd (biologists often call this "survival of the fittest").
• Massive undirected parallel development ("trial and error").
I'm deadly serious: we humans have never been able to replicate something more complicated than what we ourselves are, yet natural selection did it without even thinking. Don't underestimate the power of survival of the fittest. And don't ever make the mistake that you can design something better than what you get from ruthless massively parallel trial-and-error with a feedback cycle. That's giving your intelligence much too much credit. Quite frankly, Sun is doomed. And it has nothing to do with their engineering practices or their coding style.

 

Linus Torvalds