Behavioral Economics and Irrational Voters

Mises Daily: Monday, February 03, 2014 by Julian Adorney

The rise of behavioral economics has long been seen by statists as a body blow to libertarianism. By arguing that people are irrational consumers who are easily manipulated, behavioral economics seems to argue for state intervention to save us from ourselves. In his best-seller Predictably Irrational, behavioral economist Dan Ariely claims that irrational consumers invalidate arguments in favor of the free market, namely those that argue that free consumer choice leads to the most efficient and productive economy. Since consumers are irrational, Ariely claims, we need the government to step in and regulate the economy.

For many, more government is a reasonable conclusion from Ariely’s premise of consumer irrationality. If consumers can’t rationally select the goods and services they need, then perhaps government can choose more wisely for them. But when you look deeper, behavioral economics provides a convincing indictment of the political system.

Behavioral economists claim that consumers cannot rationally pick products in the free market. But if that’s the case, what makes us qualified to pick the elected officials who promise to run our lives for us? ……To Read More…..