11 April 2005

Can a good Libertarian hate to shop?

The idea of a free market providing democratic, consumer-driven solutions to problems our society faces sounds rosy in principle, but the view rests on at least one major, very contentious assumption, which is that consumers are rational agents that can be expected to act in their best interests. And that they won't get tired of shopping. No, really.

But even if a majority of us act a majority of the time rationally, I would think a minimal requirement for libertarianism, there is evidence that a plethora of choices - a remarkable attribute of a free market indeed - does not necessarily translate into the best choice chosen. President *'s plan to inject some of this free market choice into retirement pensions assumes, of course, that we all have the time and interest to devote to managing stocks. Of course, we would let a pro handle the details, but nevertheless a private pension still requires a degree of involvement far beyond the current system, which is pretty much nothing.

Personally I like the fact under the current system that I don't have to worry about were my money is, whether it is growing, or by how much, or whether I am "on target" to retire with my nest egg as planned. But that's just me. Personal finance is important to me, but it is not up there with other things, like making sure my wife is happy, or keeping fit, or staying educated.

The idea that people will take responsibility for their future and community if they are presented with choices in a free market makes sense, but only if we have ample time (and interest, or simply wherewithall) to study each choice so that we can make our so-called rational decision. The fact is, we - or I - rarely do that.

For my wedding my wife and I visited all of two catering companies. The reason we did not consult with more is that doing so would have been painfully tedious. Would we have found an even better caterer? Perhaps, but do I care? Not really. So how "rational" I am being here? Where libertarians are wrong is that they don't acknowledge that people more often than not make decisions that are "just good enough" rather than "the very best" for them at that time, and "just good enough," by definition is relative. In some cases it might actually be pretty bad, but how would I know without having explored every other possibility ad infinitum?

I for one have grown weary of the choices I am confronted by these days. Even buying a cup of coffee, at one time a banal activity, has become a major process involving a barrage of questions and options. The complexity of contemporary life is quite directly the result of having so many choices. With more choices you always have the possibility of having something better than you have, or than your neighbor has. With more choices comes the stress of never quite knowing if you made the right decision. With more choices, our lives become more and more consumed by a lifestyle of shopping.

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