RE: [Pen-l] Paul Davidson sums up

["Carl Dassbach" <dassbach@xxxxxxx>]

What is “the market” and where is it to be found.  Is it the Mercado Central of most Mexican cities or is it my local Wal-Mart.  I would also like to know how  “it” thinks, acts, and  makes mistakes.  Are you all subscribing to some notion of the Smith’s “invisible hand” (which we know is not true).  Kindly clarify. 

 

From: pen-l-bounces@xxxxxxxxxxxxxxxxxx [mailto:pen-l-bounces@xxxxxxxxxxxxxxxxxx] On Behalf Of raghu
Sent: Wednesday, March 11, 2009 2:13 PM
To: Progressive Economics
Subject: Re: [Pen-l] Paul Davidson sums up

 

On Tue, Mar 10, 2009 at 5:33 PM, michael perelman <michael@xxxxxxxxxxxxxxxxx> wrote:

Of course, we might ask Hayek what happens when the market makes a disastrous mistake???

raghu wrote:

The key question is how do you protect society when a central planner
makes a disastrous mistake? I believe this was Hayek's big argument
against socialism (at least the central planned variety) and I have to
say I have never seen a good rebuttal.

I suspect Hayekians do not have a good answer to that. ('Liquidate! Liquidate!' is not a good answer.) 

 

A more reasonable answer is that it is the government's role to step in when markets make a disastrous mistake.

 

But who can step in if the central planner screws up?? Seems to me there is a fatal flaw here.

-raghu.

 

--
Never get into fights with ugly people, they have nothing to lose.

 

 

 

 

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