Re: [OPE-L] Non equilibrium & Austrians

[Paul Cockshott <wpc@xxxxxxxxxxxxx>]

   Alejandro wrote: 

Austrians put the accent on price channel to transmit information and let the entrepreneur’s creativity and local knowledge to search for profitable ways of production. C&C put the accent on objective channels to transmit information about technical data in order to produce use values previously chosen by consumers.

 

C&C`s statistical equilibrium is too a never ended phenomenon. That’s because in any form of economic organization what constitute the primary data are on women and men’ minds.

 

So, answering the initial question: yes and no, Ja! Ja! Ja! It seems to be a missing piece in C&C`s statistical equilibrium: the entrepreneur’s creativity propelled by rivalry.

 

Is that good or bad? That’s the question.

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Paul

 

I think that the Austrian predilection for the individual entrepreneur reflects a fixation with an early stage of capitalism.

 

Consider current   consumer goods. For decades the a large fraction of  these have been produced and designed by the

great Japanese kieretsu's like Mitsui, Nissan etc. These have completely out competed consumer goods produced by companies

headed by individual entrepreneurs. The latter are restricted to the production of small niche markets making luxury goods

for the rich.

When it comes to efficient mass production, efficient production line output of new designs, the individual entrepreneur can not compete with the kieretsu of Japan.the chaebol of Korea, or in due course, conglomerates like Tata.

When socialists propose models of economic organisation for a future society what they have to measure up against are these sort of organisations, not small mittleres Europa family firms of the type that seem to have formed the conceptual model of the Austrian school.

 

The large Asian conglomerates show the approach towards socialist organisation of production which is necessary even under advanced capitalism.

 

 

 

 

 

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