Adam Smith and election funding

For some time I have been saying capitalism as we practice it should be defined as a system in which governments pass legislation which allows some people to make profits by restricting competition.

I hate to admit it but I have never read Adam Smith’s Wealth of Nations although some years ago I purchased a second-hand copy.

Therefore I perked up when I read a column in The Guardian that Adam Smith said something similar.

 

However, what is less well known is that Smith shared some of the key concerns of today’s critics of neoliberalism. His most famous work, The Wealth of Nations, offered a powerful political critique of the “one per cent” of his day, to borrow the terminology of the Occupy movement. In what he himself described as a “very violent attack” on an unjust status quo, Smith repeatedly emphasised the role of power, influence and class in distorting economic policy to serve the interests of a narrow elite.

 

Smith noted that the “English legislature has been peculiarly attentive to the interests of commerce” because policymakers were continually “imposed upon by the sophistry of merchants”. The vested interests “like an overgrown standing army … have become formidable to the government, and upon many occasions intimidate the legislature”. They argue their case “with all the passionate confidence of interested falsehood”, predicting national ruin if their demands are not met.

 

Now take a look at this item from The Huffington Post which reports on some aspects of financing for the current U.S. election.  It appears a lot of people with an interest in restricting competition are putting a lot of money into the election campaign.

I figure one of the most neglected features of the perfect competition model is that there should be perfect knowledge.

Therefore rather than restricting election financing I would suggest all parts of the campaign should include the source of funding and what legislation the source is interested in influencing or retaining.

I have now downloaded Adam Smith’s book onto my ereader.  That was a lot quicker than trying to find the hard copy.

 

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