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Thought provoking diary!  Thanks andre.

Off the cuff ruminations ....

The rigidity and bifurcative (Exclusive Or) essence of the neo-lib argument is striking.

"The Road to Serfdom" -- the title of Hayek's book, as if there is only one

Ignoring what doesn't fit.

"the state cannot adequately plan an economy" -- oh really?  The US economy in World War II was unable to produce the munitions needed by its armed forces?  My point: under certain circumstances the State can adequately plan an economy for a certain period of time.  In fact, one can make the argument the basis of the post-war expansion was the capital garnered, through deferred consumer consumption, during the enforced restriction of consumption as well as the higher level of demand over a short period of time for those consumer goods 'kicked' the US economy into a virtuous postivie feedback loop.  Additionally, the Marshall Plan - more State intervention - led to a virtuous cycle in Europe as well as increased demand for industrial goods from the US -- due to its factories were not bombed.

The point here is narrow: under war and post-war conditions the State can achieve Public Goals through central planning.  Thus the general statement, made above, is false.  

Myth of the Rational Actor

This is as exploded as a theory can be.  Notice, tho', the Exclusive Or:  Rational XOR Irrational.  In fact human decision making is a convoluted, complex, process even when confined to its purely cognitive aspects.  

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sun Mar 18th, 2007 at 12:34:07 PM EST

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