Deirdre N. McCloskey Quotes

Thus, it is suggested, a deeper understanding of the conditions affecting the speed and ultimate extent of an innovation's diffusion is to be obtained only by explicitly analyzing the specific choice of technique problem
which its advent would have presented to objectively dissimilar members of the relevant (historical) population of potential adopters.

Virginia Woolf wrote famously, "About December 1910 human nature changed." Well, one doubts it. What did change, and has been changing all through the closing decades of the 19th century, is that the intelligentsia became increasingly alienated from the bourgeois world from which it sprung, and wished to become something Higher. It wished to make novels difficult and technical – think of Woolf or Joyce – to keep them out of the hands of the uneducated and to elevate the intelligentsia to a new clerisy, a new aristocracy of the spirit. Similarly in painting, music, and philosophy. It wished to make everything difficult and technical, and it succeeded. [Economists Lawrence] Klein, [Paul] Samuelson, and [Jan] Tinbergen were middle-period modernists.

The vices of modernism come from the master vice of Pride, the vice so characteristic of an actual or wannabe aristocracy. It is prideful overreaching to think that social engineering can work, that a smart lad at a blackboard can outwit the wisdom of the world or the ages, that a piece of machinery like statistical significance can tell you how big or small a number is.

That businesspeople buy low and sell high in a particularly alert and advantageous way does not make them bad unless all trading is bad, unless when you yourself shop prudently you are bad, unless any tall poppy needs to be cut down, unless we wish to run our ethical lives on the sin of envy.

The change in rhetoric has constituted a revolution in how people view themselves and how they view the middle class, the Bourgeois Revaluation. People have become tolerant of markets and innovation.

For reasons I do not entirely understand, the clerisy after 1848 turned toward nationalism and socialism, and against liberalism, and came also to delight in an ever-expanding list of pessimisms about the way we live now in our approximately liberal societies, from the lack of temperance among the poor to an excess of carbon dioxide in the atmosphere. Antiliberal utopias believed to offset the pessimisms have been popular among the clerisy. Its pessimistic and utopian books have sold millions. But the twentieth-century experiments of nationalism and socialism, of syndicalism in factories and central planning for investment, of proliferating regulation for imagined but not factually documented imperfections in the market, did not work. And most of the pessimisms about how we live now have proven to be mistaken. It is a puzzle. Perhaps you yourself still believe in nationalism or socialism or proliferating regulation. And perhaps you are in the grip of pessimism about growth or consumerism or the environment or inequality. Please, for the good of the wretched of the earth, reconsider.

The emotional pattern seems to be something like, "[Karl] Polanyi, a person of the left like me, says many true things, beautifully. Therefore his tales about what happened in economic history must be true." Marx before him got similar treatment. Lately the more eloquent of the environmentalists, such as Wendell Berry, get it too. People want to believe that beauty is truth. A supporting emotional frame on the left arises from the very idea of historical progress: "We must be able to do so much better than this wretched capitalism." It is not true, but it motivates.

Nor during the Age of Innovation have the poor gotten poorer, as people are always saying. On the contrary, the poor have been the chief beneficiaries of modern capitalism. It is an irrefutable historical finding, obscured by the logical truth that the profits from innovation go in the first act mostly to the bourgeois rich.