Sometimes A Christmas Carol is read as a critique of capitalism, which is understandable. Dickens had, for example, seen firsthand the horrors of 19th-century English coal mines, where young children sometimes slaved away in darkness and despair. Rather than throw out capitalism, however, Dickens may have sought to soften its harsher edges. The Economist magazine once suggested the tale was not so much a Karl Marx-style attack as it was the work of a reformer.
After all, Tiny Tim and the street children of London don’t run Scrooge out of town like a pariah. Nor does Scrooge abandon his business to dedicate his life to eastern philosophy. Rather, he learns to voluntarily spread his wealth around, not so differently than Bill Gates or MacKenzie Scott might do today.
One could draw the conclusion, therefore, that a businessman who has accumulated vast wealth can do many great things through charity. Today, the “Giving Pledge” signed by Warren Buffet and others, as well as elements of the “Effective Altruism” movement, adopt a model of this sort, which essentially says the best way to do good is to make a lot of money. Scrooge’s belated charitability never would have been possible if London had been home to communist breadlines.
The idea goes beyond charity. In The Constitution of Liberty, the great economist Friedrich Hayek argued that it’s socially beneficial to have a leisure class of wealthy individuals pursuing their idiosyncratic passions or even vanities. Today, Jeff Bezos and Elon Musk plan to take us to the stars with SpaceX and Blue Origin. Will they make it to Mars or beyond? They might not beat the odds, but it can’t happen if they don’t try.
One might apply the same logic to cryptocurrencies. Like Scrooge’s wealth, they make some people uncomfortable, and at the moment they can resemble online gambling. But that doesn’t mean they should be banned or replaced by a boring, government-run alternative. Like Musk and Bezos’s space aspirations, there’s potential for the technology to revolutionize an aspect of life — in this case, financial transactions on the internet. That potential is just as-of-yet unfulfilled.
James Broughel, “The Hidden Economic Lesson in A Christmas Carol“, Foundation for Economic Education, 2021-12-24.
December 26, 2023
QotD: The economic lessons of A Christmas Carol
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