Why Free Market Ideology is a Double Lie

The free market, it appears, is not about freedom. It’s about power.
By Blair Fix – As social animals, humans live and die by the success of our groups. This raises a dilemma. What’s best for the group is often not what’s best for individuals within the group. If you’re surrounded by a group of trusting individuals, it’s best for you to lie and cheat. You’ll increase your relative fitness. And in evolutionary terms, that’s what matters.

Given that selfish behavior is often advantageous, why aren’t more of us liars and cheaters? One reason, paradoxically, is that we lie to ourselves. We tell ourselves that what’s best for groups is also what’s best for individuals within the group. I’ll call this the noble prosocial lie.

Propagating this noble lie, I believe, is one of the principle roles of ideologies. A good ideology convinces individuals that selfless behavior is in their self interest. This promotes prosocial behavior, making groups more cohesive. And since cohesive groups tend to beat out incohesive groups, the noble lie tends to spread.

Given the benefits of equating altruism with self interest, you’d think that all ideologies would do it. Yet some do the opposite. They promote selfish behavior as good for the group. I’ll call this the Machiavellian lie.

Now here’s the paradox. The Machiavellian lie should be caustic to social cohesion. So you’d expect that group selection would kill it off. But for one Machiavellian lie, that’s not what happened. Instead of dying out, this lie has thrived. In fact, it’s become the dominant ideology of our time. What is it?

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The belief in the free market.

Free-market ideology claims that to help society, we must help ourselves. If we all act selfishly, the thinking goes, the invisible hand will make everyone better off. So here we have an ideology that promotes selfishness in the name of group benefit. It’s a Machiavellian lie that should be caustic to social cohesion. And yet free-market thinking has beat out many other ideologies. How can this be?

Here’s what I think is happening. Free-market ideology, I propose, is a double lie.

First, it’s a lie in the sense that its central claim is false. Acting selfishly does not maximize group well being. Modern evolutionary theory makes this clear. Second, and more subtly, free-market thinking is a lie in the sense that it does not lead to greater freedom and autonomy. Quite the opposite. The evidence suggests that free-market thinking actually leads to greater obedience and subordination. The spread of free-market thinking goes hand in hand with the growth of hierarchy.

So the free market, it appears, is not about freedom. It’s about power. Free market thinking is successful, I argue, because it uses the language of freedom to cloak the accumulation of power. more>

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