34
THE COASE THEOREM
The inability of anyone to make scientifically valid interper-
sonal comparisons of subjective utility has once again smashed
all the hopes of the free market’s humanist defenders to deal
scientifically (i.e., without any appeal to either civil justice or
morality) with a problem of social policy. The more astute
“anarcho-capitalists” have understood this, and have thereby
abandoned the very idea of social utility and social costs. They
have also abandoned the idea of civil government.2a But they
have not been able to demonstrate how people can deal success-
fully with the problems created by such technological develop-
ments as the internal combustion engine. But at least they are
consistent. They do not search for “fools’ gold” intellectual
solutions to “scientifically” insoluble problems. They do not
search for pseudo-market solutions - “What would the correct
market price be in the absence of a market?” - or solutions
involving the hypothetical (and scientifically impossible) ability
of judges to make scientifically valid social cost-benefit analyses
in settling disputes. There can be no scientifically valid answers to
such socizd problems, given the presuppositions of modern, subjectivtitic,
individualistic economic theo~. Yet the approach used by Cease
and his academic followers to deal with these questions assumes
that there m-e scientifically valid answers to them.
Conclusion
Since there are no “neutral, scientific” answers, Cease’s
whole essay is an exercise in intellectual gymnastics – an illusion
of scientific precision.29 Nevertheless, it is considered a classic
28. “There is no government solution to potlution or to the common-pool prob-
lem because government is the problem.” Gerald R O’Dnwoll, Jr., “Pollution,
Libertarianism, and the Law,” ibid., p. 50.
29. This same illusion of scientific precision is at the heart of virtually every
professional journal in eeonomics, every mathematical equation, and every cdl for
scientific poticy-making issued by members of the economists’ guild. The day an
economist admits to himself that no economist can make interpersonal comparisons
of subjective utility is the day that his public claims of economics’ objective, scientific
preeision make him a charlatan. The day before, he was simply ignorant.