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That seems to be describing governance, democracy and rule of law. Before that we had feudalism for thousands of years. And before that there were informal mark
by throw2016 8y ago
That seems to be describing governance, democracy and rule of law. Before that we had feudalism for thousands of years. And before that there were informal market places where people exchanged goods and services, the ultimate 'information processors' according to Hayek, yet these marketplaces did not lead to any kind of civilization, progress, 'freedom' or modernism.
Without rule of law there is barbarism. Any law infringes 'freedom', the thief's freedom, the plunderers freedom, the polluters freedom, the arsonists freedom, the greedy fisherman's freedom, so whose freedom are you going to protect and whose freedom will you take? And if you take someone's freedom they will not consent so you need force.
That means you need planning to develop rules, to convince the majority to agree to the rules, a system to enforce the rules and reach some kind of ongoing consensus for any sustainable peaceful society. And you are back to a society with planning, rules, democracy, governance and loss of 'freedom'. Even a basic marketplace needs 'planning' and rules to function so this 'market as planner' thesis seems aspirational.
- RA_Fisher 8y agoThe main difference is whether the rules are set ahead of time or whether they're adjusted by a central authority. For example, compare the tort system to a regulatory board. Hayek explores this distinction in detail in the Road to Serfdom.