I, Pencil, Conspiracies, and Incentives

in #economics5 years ago

The point of Leonard Read's essay I, Pencil is simple and important. No one person is capable of making something as simple as a pencil. You need the wood, lead, paint, etc. all of which have inputs that need to be grown or created over years and years, and gathered from every corner of the earth to be assembled. Nobody knows every step that has to be taken to create a pencil, but we have them anyway. They, like everything else, are a product of individuals pursuing their own self interest, or in other words, they are reacting to incentives.

This is a massive interconnected web of people and organizations doing all this just dictated by their own incentives. This is also pretty mainstream, basic economic stuff, especially to people in Austrian/libertarian circles, so why am I making a big deal out of it?

Because if incentives can do all that by people following their own incentives, there's no reason to believe they couldn't also some of the time turn out to do certain things that might seem rehearsed.

This is why I don't buy into the "leftists have a conspiracy to destroy us and take our freedom." They are just acting according to their incentives, and yes it can establish what looks like coordinated movements and talking points, but to people who value more than anything their social standing, making sure to have all the "right" opinions etc., they have every incentives to seem like they are copying talking points or all working in conjunction with each other directly.

If people can work together to coordinate the making of every product in the world without a central planner coordinating all of them, why is it any more unbelievable to think that these people are just following their own incentives?

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