THAT, my good friends, is what living in the “good society” is all about. This pertains as much in business, family, church and government as anywhere else. The problem in economics is that it is waaaayyyy toooooo eaassssyyyyy to try to model this out with a couple of reaction functions and a contract curve. Sure, I love the market process because of the numerous feedback loops embedded in it – this is what keeps me from playing golf on this fine morning and instead showing up to the office to work on my classes. But there needs to be more than just a contractual commitment, more then just the formal feedback of profit and loss, to tighten up the threads which hold our great human institution together.
I don’t exactly have a name for what it is I am talking about, and I do not mean to suggest that capitalism makes it harder for these sorts of virtues to emerge, I just wanted to remind folks that we cannot simply write a really nifty constitution, we cannot really just hope to get good people to represent us, we cannot really try to make a broad set of rules to govern ourselves, for this whole thing to work. We need more. Thanks to David Rose for reminding me of this.