K-12 Tax & Spending Climate: The Intellectuals’ Hostility to the Market Economy

Matt McCaffrey:

The intellectuals are a paradoxical product of the market economy, because “unlike any other type of society, capitalism inevitably and by virtue of the very logic of its civilization creates, educates and subsidizes a vested interest in social unrest.” Like Hayek, Schumpeter described intellectuals broadly as “people who wield the power of the spoken and the written word.” More narrowly, “one of the touches that distinguish them from other people who do the same is the absence of direct responsibility for practical affairs.” That is, intellectuals do not participate in the market (at least not in the areas they write about), and do not generally rely on satisfying consumers to earn a living. Add to this their naturally critical attitude—which Schumpeter argues is the product of the essential rationality of the market economy—and it is easy to see why intellectuals would be hostile to the market.

In other words, intellectuals are often out of place in entrepreneurial societies. The growth of the intellectual class is not a response to consumer demand, but to the expansion of higher education. Passing through the higher education system does not necessarily confer valuable skills, but it often does convince graduates that work in the market is beneath them:

  • Let the record show: “Matt McCaffrey is a post-doc in Liberal and Integrative Studies at the University of Illinois, Springfield. He received his PhD in economics from the University of Angers.”