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The Fatal Conceit

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The main point of my argument is, then, that the conflict between, on one hand, advocates of the spontaneous extended human order created by a competitive market, and on the other hand those who demand a deliberate arrangement of human interaction by central authority based on collective command over available resources is due to a factual error by the latter about how knowledge of these resources is and can be generated and utilised.

The Fatal Conceit

Our moral traditions, like many other aspects of our culture, developed concurrently with our reason, not as its product.

The Fatal Conceit

It is no accident that many abstract rules, such as those treating individual responsibility and several property, are associated with economics. Economics has from its origins been concerned with how an extended order of human interaction comes into existence through a process of variation, winnowing and sifting far surpassing our vision or our capacity to design.

The Fatal Conceit

Information-gathering institutions such as the market enable us to use such dispersed and unsurveyable knowledge to form super-individual patterns.

The Fatal Conceit

The evolution of rules was far from unhindered, since the powers enforcing the rules generally resisted rather than assisted changes conflicting with traditional views about what was right or just.

The Fatal Conceit

No one who takes an evolutionary approach to the study of culture can, however, fail to be aware of the hostility often shown towards such approaches. Such hostility often stems from reactions to just those 'social scientists' who in the nineteenth century needed Darwin to recognise what they ought to have learnt from their own predecessors, and who did a lasting disservice to the advance of the theory of cultural evolution, which they indeed brought into discredit.

The Fatal Conceit

If morals and tradition, rather than intelligence and calculating reason, lifted men above the savages, the distinctive foundations of modern civilisation were laid in antiquity in the region surrounding the Mediterranean Sea.

The Fatal Conceit

An important aspect of this freedom - the freedom on the part of different individuals or sub-groups to pursue distinct aims, guided by their differing knowledge and skills - was made possible not only by the separate control of various means of production, but also by another practice, virtually inseparable from the first: the recognition of approved methods of transferring this control.

The Fatal Conceit

Having written of the pretence of reason and the dangers of 'rational' interference with spontaneous order, I need to add yet another word of caution. My central aim has made it necessary to stress the spontaneous evolution of rules of conduct that assist the formation of self-organising structures. This emphasis on the spontaneous nature of the extended or macro-order could mislead if it conveyed the impression that, in the macro-order, deliberate organisation is never important.

The Fatal Conceit

This 'chain reaction' sparked by new settlement and trade may be studied more closely. While some animals are adapted to particular and rather limited environmental 'niches' outside of which they can hardly exist, men and a few other animals such as rats have been able to adapt themselves almost everywhere on the surface of the earth. This is hardly due merely to adaptations by individuals.

The Fatal Conceit

To create such an order, such individuals had to be able to use information for purposes known only to themselves. They could not have done so without the benefit of certain practices, such as that of the xenos, shared in common with distant groups.

The Fatal Conceit

Indeed, by the nineteenth century, serious intellectual appreciation and discussion of the role of property in the development of civilisation would seem to have fallen under a kind of ban in many quarters. During this time property gradually became suspect among many of those who might have been expected to investigate it, a topic to be avoided by progressive believers in a rational reshaping of the structure of human cooperation.

The Fatal Conceit

Moreover, it is perhaps appropriate to remind readers in this place of my essay 'On Why I Am Not a Conservative' (1960: Postscript), lest they draw inaccurate conclusions. Although my argument is directed against socialism, I am as little a Tory-Conservative as was Edmund Burke. My conservatism, such as it is, is entirely confined to morals within certain limits. I am entirely in favour of experimentation - indeed for very much more freedom than conservative governments tend to allow.

The Fatal Conceit

Like other traditions, the tradition of reason is learnt, not innate. It too lies between instinct and reason; and the question of the real reasonableness and truth of this tradition of proclaimed reason and truth must now also scrupulously be examined.

The Fatal Conceit

There is the question of how our knowledge really does arise. Most knowledge - and I confess it took me some time to recognise this - is obtained not from immediate experience or observation, but in the continuous process of sifting a learnt tradition, which requires individual recognition and following of moral traditions that are not justifiable in terms of the canons of traditional theories of rationality.

The Fatal Conceit

There is a difference between following rules of conduct, on the one hand, and knowledge about something, on the other. (...) The habit of following rules of conduct is an ability utterly different from the knowledge that one's actions will have certain kinds of effects.

The Fatal Conceit

There is the important point that an order arising from the separate decisions of many individuals on the basis of different information cannot be determined by a common scale of the relative importance of different ends.

The Fatal Conceit

Comprehending the role played by the transmission of information (or of factual knowledge) opens the door to understanding the extended order. Yet these issues are highly abstract, and are particularly hard to grasp for those schooled in the mechanistic, scientistic, constructivist canons of rationality that dominate our educational systems - and who consequently tend to be ignorant of biology, economics, and evolution.

The Fatal Conceit

Some habits that have crept into mathematical analysis of the market process often mislead even trained economists.

The Fatal Conceit

The creation of wealth is not simply a physical process and cannot be explained by a chain of cause and effect. It is determined not by objective physical facts known to any one mind but by the separate, differing, information of millions, which is precipitated in prices that serve to guide further decisions.

The Fatal Conceit

Ignorance of the function of trade, which led initially to fear, and in the Middle Ages to uninformed regulation, and which only comparatively recently yielded to better understanding, has, then, now been revived in a new pseudo-scientific form.

The Fatal Conceit

Money, the very 'coin' of ordinary interaction, is hence of all things the least understood and - perhaps with sex - the object of greatest unreasoning fantasy; and like sex it simultaneously fascinates, puzzles and repels.

The Fatal Conceit

The disdain of profit is due to ignorance, and to an attitude that we may if we wish admire in the ascetic who has chosen to be content with a small share of the riches of this world, but which, when actualised in the form of restrictions on profits of others, is selfish to the extent that it imposes asceticism, and indeed deprivations of all sorts, on others.

The Fatal Conceit

Even now, outside the scientific examination of law, language and the market, studies of human affairs continue to be dominated by a vocabulary chiefly derived from animistic thinking.

The Fatal Conceit

Much the worst use of 'social', one that wholly destroys the meaning of any word it qualifies, is in the almost universally used phrase 'social justice'.

The Fatal Conceit

Envy and ignorance lead people to regard possessing more than one needs for current consumption as a matter for censure rather than merit.

The Fatal Conceit

So far as we know, the extended order is probably the most complex structure in the universe - a structure in which biological organisms that are already highly complex have acquired the capacity to learn, to assimilate, parts of suprapersonal traditions enabling them to adapt themselves from moment to moment into an ever-changing structure possessing an order of a still higher level of complexity.

The Fatal Conceit

Yet if the market economy did indeed prevail over other types of order because it enabled those groups that adopted its basic rules the better to multiply, then the calculation in market values is a calculation in terms of lives: individuals guided by this calculation did what most helped to increase their numbers, although this could hardly have been their intention.

The Fatal Conceit

The undoubted historical connection between religion and the values that have shaped and furthered our civilisation, such as the family and several property, does not of course mean that there is any intrinsic connection between religion as such and such values. Among the founders of religions over the last two thousand years, many opposed property and the family. But the only religions that have survived are those which support property and the family.

The Fatal Conceit