Re: Veblen and Hayek

[BILL MITCHELL <ECWFM@xxxxxxxxxxxxxxxxxxx>]

Herb says

>	I think Hayek is a mouch more important evolutionary
>thinker--Veblen used the term, but was really an anthropologist whose
>methods were not then and are not now much used in economics. Hayek,
>although wrong on some critical points, is an incredibly deep
>inspiration for evolutionary and dynamic economics. If you don't
>believe that, reread him, and don't get upset at his (unfounded)
>hostility to the state.

Following jim's pointers on how to have a debate i delete about 30 lines of
invective and start my point now(!).  [note: this was on pen-l - i for one
sometimes forget which list i am on]

hayek not only did not believe in the state, he also does not believe in any
empirical basis to reasoning.

on the first (1) how do we get sustainable (green) activity levels with
equitable distributional outcomes when the capitalist system is exactly geared
for the opposite? (this being just a normal bill-type gripe against n/c,
austrian, new-c, etc etc type reasoning.

but on the second, IMO there is nothing theory can say about dynamics without
reference to the data-generating-processes (DGPs) which are the object of the
theoretical discourse. orthodox, heterodox whatever can only hint at the nature
of dynamic processes. Hayek, and the rest of the austrians who eschewed
econometric type activity, can never understand the complexity of dynamic
interactions among time-series.

nor should i add can the post-keynesians who claim to be realists and
anti-econometrics. so I fail to see how Hayek can provide a source of
inspiration to anyone trying to understand DGPs. maybe evolutionary economists
fail to understand what dynamics are.

maybe this is my disagree with Herb month. [another pen-l reference]

kind regards
bill
*******************************************************************************
 William F. Mitchell            Telephone: +61-49-215027      .-_|\
 Department of Economics                   +61-49-705133     /     \    about
 The University of Newcastle    Fax:       +61-49-216919     \.--._/*<-- here
 Callaghan   NSW  2308                                            v
 Australia                      Email : ecwfm@xxxxxxxxxxxxxxxxxxx
*******************************************************************************