Index Investing News
Sunday, May 31, 2026
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Giving Their Due – Markets versus the Welfare State

by Index Investing News
July 7, 2023
in Economy
Reading Time: 4 mins read
A A
0
Home Economy
Share on FacebookShare on Twitter


When reading, I often have an experience of a small phrase triggering my memory and making a connection between the page in front of me and something I’ve read previously, either recently or many years ago. One example of this came from David Schmidtz’s recent (and excellent) book Living Together: Inventing Moral Science. The phrase in question was about giving someone their due, and it brought to mind a time when I read that phrase being used to characterize a very different mindset than the one Schmidtz describes. 

The older example, brought back to my memory while reading Schmidtz’s book, comes from an essay written by the British physician Theodore Dalrymple years ago. Dalrymple writes how doctors from impoverished countries will regularly come to England “to work for a year’s stint at my hospital.” He describes how these doctors start out “uniformly enthusiastic about the care that we unsparingly and unhesitatingly give to everyone, regardless of economic status.” Yet, says Dalrymple, by “the end of three months my doctors have, without exception, reversed their original opinion that the welfare state, as exemplified by England, represents the acme of civilization. On the contrary, they see it now as creating a miasma of subsidized apathy that blights the lives of its supposed beneficiaries.”

One step along the process Dalrymple outlines is when these doctors begin to ask “why so few people seemed grateful for what was done for them.” Dalrymple in turn suggests when “every benefit received is a right, there is no place for good manners, let alone for gratitude.” Dalrymple uses an example of one patient who arrived near death, and who “required intensive care to revive him, with doctors and nurses tending him all night.” Upon awakening, this patient treated the staff with a continuous stream of contempt and abuse. These transfer doctors initially “assume that the cases they see are a statistical quirk, a kind of sampling error, and that given time they will encounter a better, more representative cross section of the population. Gradually, however, it dawns upon them that what they have seen is representative.” As for this patient, Dalrymple says, there was “no acknowledgment of what had been done for him, let alone gratitude for it. If he considered that he had received any benefit from his stay at all, well, it was simply his due.”

Simply his due. That was the mindset many come to absorb from a lifetime of living in a welfare and entitlement state. The idea that the labor and efforts of other people is something one is entitled to benefit from, by right, while owing them nothing in return. Because why would I owe anything to these people, when I’m entitled by right to receive the benefits of their work? They aren’t doing anything special for me deserving of compensation, gratitude, or even acknowledgement – they’re just giving me what I’m already owed, what is by right mine to take and which third parties can properly force them to provide if they won’t do it willingly. 

A very different picture of giving one their due comes from Schmidtz’s work, where he points out that Adam Smith’s famous phrase “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages,” is not, as some careless readers have taken it, a suggestion that people are only motivated to help each other out of self-interest. As Schmidtz puts it:

Second, it makes perfect sense for the author whose first book treated benevolence as primary to subsequently ask how to respond benevolently to trading partners. Why, as a benevolent person hoping to truck and barter with brewers and bakers, do you address their self-love? Answer: because you want them to be better off for having come to you. Notice that Smith does not say bakers are motivated solely by self-love. He says we address ourselves not to their benevolence but their self-love (WN, Book I, chap. 2). This is a reflection on our psychology, not theirs. He is offering insight not into the self-love of bakers but into what it takes to be benevolent in our dealings with them.

In sum, the author of Moral Sentiments gives center stage to virtue and benevolence, but, in elaborating what benevolence means, the author of Wealth of Nations belabors the obvious: namely, a man of true benevolence wants his partners to better off with him than without him. The point of addressing other people’s self-love is to give other people their due. That is what it’s like to succeed in one’s attempt to be sympathetic.

Here, Schmidtz highlights what is wonderfully humanizing and noble about markets and market exchange. Markets encourage us to see other people not merely as servants to our needs, from whom we are entitled to take and to whom we own nothing in return. Markets encourage us to make ourselves better off by making other people better off as well, by providing them what they want and what they value. Some of the less insightful critics of capitalism charge markets with encouraging greed and selfishness – but it’s not so. Markets profoundly encourage us to treat people as they want to be treated and makes improving the lives of those around us the central means by which we improve our own lives in turn. 

The welfare state, by contrast, is a means by which we seek to better our own situation at the expense of our neighbors, and at the expense of our community. And as Adam Smith well understood, and as David Schmidtz correctly reiterates, a person of true benevolence and true sympathy, who wishes to give other people their due, will clearly see the dignity of market exchange and the vanity of the welfare state.



Source link

Tags: dueGivingMarketsstatewelfare
ShareTweetShareShare
Previous Post

SEC seeks rule change that could cause fund managers to take less risk

Next Post

500!

Related Posts

Sam’s Links: May Edition – Econlib

Sam’s Links: May Edition – Econlib

by Index Investing News
May 31, 2026
0

Sam Enright works on innovation policy at Progress Ireland, an independent policy think tank in Dublin, and runs a publication...

Transcript: Vimal Kapur, Chairman and CEO of Honeywell

Transcript: Vimal Kapur, Chairman and CEO of Honeywell

by Index Investing News
May 27, 2026
0

https://www.youtube.com/watch?v=sVqE7bsmtA0https://www.youtube.com/watch?v=sVqE7bsmtA0     The transcript from this week’s MiB: Vimal Kapur, Chairman and CEO of Honeywell, is below. You can...

Development by Consent – Econlib

Development by Consent – Econlib

by Index Investing News
May 23, 2026
0

March 2026 marked the 250th anniversary of the publication of An Inquiry into the Nature and Causes of the Wealth...

Transcript: Shelia Bair, former FDIC Chair

Transcript: Shelia Bair, former FDIC Chair

by Index Investing News
May 19, 2026
0

https://www.youtube.com/watch?v=Y-mjUH1lHg4https://www.youtube.com/watch?v=Y-mjUH1lHg4     The transcript from this week’s, MiB: Shelia Bair, former FDIC Chair, is below. You can stream and...

AI and Comparative Advantage – Econlib

AI and Comparative Advantage – Econlib

by Index Investing News
May 15, 2026
0

It was a fact universally acknowledged that a young man or woman in 1800s Lancashire could find gainful employment as...

Next Post
500!

500!

LEVI Earnings: Levi Strauss slips to loss in Q2 on lower revenues

LEVI Earnings: Levi Strauss slips to loss in Q2 on lower revenues

RECOMMENDED

Vitalik Buterin Outlines Stealth Address Possibilities on Ethereum

Vitalik Buterin Outlines Stealth Address Possibilities on Ethereum

January 24, 2023
5 Software Efficiency Monitoring Shares

5 Software Efficiency Monitoring Shares

July 10, 2022
Insider Job? Chainalysis Report Suggests Multichain Attacker Had Inside Connections

Insider Job? Chainalysis Report Suggests Multichain Attacker Had Inside Connections

July 12, 2023
What Is A Late Rent Notice And How To Write One

What Is A Late Rent Notice And How To Write One

February 16, 2023
The Fairness Benefit: Reinvestment of Earnings

The Fairness Benefit: Reinvestment of Earnings

June 19, 2022
Tense Police Standoff with Armed Brothers, 7 and 9, Captured on Video as Photographs Fired

Tense Police Standoff with Armed Brothers, 7 and 9, Captured on Video as Photographs Fired

May 14, 2025
Techint emerges as potential major bidder for U.S. Steel assets By Investing.com

Techint emerges as potential major bidder for U.S. Steel assets By Investing.com

November 3, 2023
Putin calls for closer ties with Arab states — RT World News

Putin calls for closer ties with Arab states — RT World News

November 2, 2022
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In