ŏ Ŕ ō Ŝ Š ő Ş ȘȟEconomics and Principles*
Ļe title does not announce a talk about the Principles of Economics
course. Instead, I am going to deliver a sermon—and I use the word in
a self-deprecatory sense. So far as my sermon champions principle over
expediency, it is directed more toward academics in their roles as self-
appointed policy advisers than toward practicing politicians. Politicians
could not function without making compromises. Senator Everett Dirk-
sen used to say, quite aptly, “I am a man of principle, and my chief prin-
ciple is flexibility.”
Now, a sermon is not required on an occasion like this one. Some of my
predecessors have talked about technicalities of their special fields. On the
other hand, there is plenty of precedent for talking more about the inter-
relations of topics than about the details of any, for making broad obser-
vations and sweeping conjectures, and for including a personal element.
My theme is the two-way relation that exists between economics and
general principles of behavior. Economics helps us understand the nature
and basis of such principles, their serviceability, and the conditions that
tend to support or undermine them.Ȁ
ŠŔő őŏśŚśřŕŏş śŒ ŜŞŕŚŏŕŜŘőş
Economists can help explain the value of respecting principles not only
in the realm of economic policy but also in other interactions among
human beings. Relevant strands of economic theory refer to: the concept,
made familiar by Hayek (ȀȈȅȆ, chap.ȅ) of “results of human action but
not of human design” (ethical codes and languages, as well as money and
other economic institutions, being prime examples); the importance, for
*Presidential address at meetings of the Southern Economic Association, printed in
Southern Economic Journalȃȁ(AprilȀȈȆȅ):ȄȄȈ–ȄȆȀ.
ȀĻe section “Principles and Policy” in the original version of this article was removed
for brevity. Its major points are addressed in chapterȀȆ, “Is Ļere a Bias Toward Overreg-
ulation?”.
ȂȃȈ