Name That Principle
Anti-StatismIt’s not merely important to have principles, it’s important to name them.
Name them well.
One of the central insights of the French Liberal School of economics — and, since that school’s heyday, all of free-market economics — has not, to my knowledge, been given a technical name. Or, at least, a technical term that’s good enough. The principle in question is that of overlooking the unseen effects of an event or a policy in favor of the immediate, positive effects on the chief beneficiary. Bastiat wrote about it in “That Which Is Seen and That Which Is Unseen.” Classic essay.
The basic notion has been recently described in a fairly rigorous way as the problem of dispersed costs and concentrated benefits. Surely someone has called this The Principle of Dispersed Costs and Concentrated Benefits, or somesuch. But I’m not aware of a pithier academic formulation that sticks. In my head, anyway.
And, getting it to stick is important. People forget, otherwise. And what’s the use of a principle that people forget?
So I’ve reformulated the problem as a cognitive bias …
Name That Principle Read Post »