Hayek & Postmodern Philosophy (was Re: fresh hot Slavoj)

Charles Brown CharlesB at CNCL.ci.detroit.mi.us
Fri Apr 14 09:43:20 PDT 2000



>>> Yoshie Furuhashi <furuhashi.1 at osu.edu> 04/14/00 12:11PM >>(3) Prices do not work as signs & incentives if the government does
not allow the market to discipline inefficient firms by failures and bankruptcies. As Hayek notes, "The remunerations which the market determine...will produce a viable order only because they often disappoint the expectations they have caused when relevant circumstances have unexpectedly changed. It is one of the chief tasks of competition to show which plans are false" (_Law, Legislation and Liberty_). In other words, the market = discipline through failures & disappointments; no discipline, no "market efficiency."

___________

CB: And of course, the history of the actually existing market system, i.e. capitalism, and its inevitable development to monopoly capitalism, demonstrates that marketeers have enormous incentive to completely exempt themselves from any kind of market discipline; that a certain elite in this competition for privileged exemption from market discipline succeed in exempting themselves; that this elite dominates the state (state-monopoly capitalism), which more and more works to make the elite completely exempt from market discipline (while putting the entrepreneurial suckers born everyday under the war of all against all, monopoly competition and discipline, cannon fodder for the market), like bailing out Chrysler, S & L banks and that big hedge fund, etc.

Get real Hayek. Everything real capitalists do is to get the market to exempt themselves and "discipline" others.

CB



More information about the lbo-talk mailing list