Social Progress and the ‘Invisible Hand’: It’s Not All About the Economy Stupid
Posted by Tom Bridge
There seems to be a constant battle between those who think that all social progress comes from good economic management and those that think the government needs to be responsible for most if not all social progress. The truth is that the solution (and solution is probably the wrong word) lies somewhere in between a completely free market/economic response to social progress and a government response which can either be to get out of the way or to legislate for social improvements.
In all likelihood on the ‘free market/it’s all about the economy in social progress and government intervention is the best way to ensure social progress’ pendulum the best answer would likely be very close toward the ‘let the economy sort out social disadvantage’ end of the pendulum. Note that it’s only the best answer. Not one single political ideology offers a solution that will completely solve pretty much every single problem and that is both a political and electoral reality.
Now back to that pendulum. While it is self-evidently true that much social progress comes from a strong economy there is also a need for limited government intervention, be it legislating in an attempt to benefit society or stepping away from legislating in areas that might act to prevent the advancement of the people, most importantly the individual regardless of social group.
So what work does the economy do as regards social progress? Well, a strong economy provides many with the opportunity to be employed in a meaningful job. A strong economy means that more jobs are created and more people will have the opportunity to live at the very least a modest and comfortable lifestyle in what is becoming an increasingly expensive world.
More jobs too means more tax being collected by the government without having to raise taxes for any one group and that means for those who do happen to fall through the cracks, and there will always be people that do regardless of effort and exertion and economic circumstances in the nation and the world, it means that there will be assistance available for them for as long as they need it.
So having a job or a business and earning an income is certainly a big part of social progress but there are things which cannot be provided for by a strong economy or the free market.
A free market does not, will not and cannot stop forms of discrimination, particularly relating to participation in the economy, though in some small way the more people able to be given jobs then it flows that less discrimination may well exist because some ordinarily discriminated against may well be invited into employment opportunities.
Ordinarily though, discrimination will exist and will continue to exist and should at the very least be responded to by educating people about diversity and difference.
Anti-discrimination legislation is also a necessary evil though in many cases it is nigh on the impossible to determine when real discrimination, particularly in employment exists, even though the statistics on minorities show in a broad sense that it is clearly an issue. But again this kind of government intervention needs to be coupled with educating people of the capabilities that people from all works of life possess.
One thing that a free market can never bring, not at all, though I’m sure we’d like to see it happen is the very topical issue of marriage equality. Try as it may, the ‘invisible hand’ just cannot bring about people being able to take the tangible hand of their same-sex partner in marriage.
Same-sex marriage is one area in which the government can either intervene to legislate for marriage equality or completely bugger off from the whole process. Reality says that government, in an eventual move would vastly prefer to legislate for same-sex matrimony rather than to say “hey we really have no place here” and that is okay as long as it is inevitable and you’d have to say it is.
For the most part many of us would love for the government to stay out of our lives and the biggest forms of social progress can be provided for with little or no government intervention, but there will always be a place for government particularly when that means correcting ills that they have fostered or fomented, but that power cannot be unlimited.
About Tom BridgeA perennial student of politics, providing commentary for money and for free. Email me at email@example.com or contact me on 0435 035 095 for engagements.
Posted on July 9, 2012, in Federal Politics and tagged 'invisible hand', discrimination, economics, economy, employment, government, liberalism, marriage equality, political ideology, politics, same-sex marriage, social progress, the individual. Bookmark the permalink. Leave a comment.