Tuesday, August 14, 2018

Capitalism and Sufficient Reason

In subordinating Instrumental Reason to Passion, Hume recognizes that it is insufficient as an explanation of behavior.  Instead, it is Passion that suffices in that respect.  Hence, Passion functions for Hume as a Principle of Sufficient Reason, marking him as a Rationalist, perhaps unwittingly.  Now, the Principle of Sufficient Reason in Smith's system appears to be Profit-Maximization, on the basis of which subsequent theorists might be justified in characterizing any such behavior as 'rational'.  But, Smith himself undercuts the sufficiency that he tries to attribute to that motive--whenever he invokes the Invisible Hand.  Nor, does he therefore settle on the latter as his Principle of Sufficient Reason, since he refuses to let it compromise the supremacy of the Profit motive.  But, the unresolved inconsistency between the Profit motive and the Invisible Hand violates any concept of Rationality.  Hence, the attribution of 'rationality' to Profit-Maximization that is common to Capitalist theories is itself irrational--a condition that is not nullified because of a neglect of content that is plainly part of their source.

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