The Hayekization of modern society

6 Feb, 2015 at 10:01 | Posted in Economics, Politics & Society | 5 Comments



  1. Very interesting analysis of the dynamics of debt and its effects in the current international financial landscape. Given the failure of the financial system to deliver the peaceful and egalitarian discourse advocated by the democratic discourse; I can’t help to wonder why we continue tying economic welfare to finding an optimal way of controlling government budget balances and finding the optimal debt ratios in a financial system whose systemic risk is too high for any given government to ‘control.’
    While looking backwards into historical economic performance, we run the risk of ignoring the current technological revolution that will render existing economic theories obsolete. Looking backwards to find the answer to present problems is comparable to predicting the frequency of international travel in the 21st century using 19th century technology and statistics as a baseline. How is the velocity of money being affected by virtual currency and electronic trade? How is the money multiplier being affected by virtual currency leakage? What will happen to the labor and free market theory as 3D printing replaces manufacturing and the need for transportation or even farming? If we focus our efforts in finding the optimal ratio of taxation but we find a world where demand for labor is 20 percent of the available supply due to technological advances. Will there be a taxation base? how do we keep the system from crumbling under our feet?
    I agree that a new system is needed soon, but given the speed of technological advancement and the level of environmental degradation, we may need to look beyond creating profits as a social incentive. It is time to leave behind political labels of democracy, socialism, dictatorship. This crisis is an opportunity to bring sustainability of economic practices, survival and structural peace into the conversation for this new model.

  2. He totally lost me with his weird story about the debt ceiling debat.

    It is weird how radicals think that interest rates are market driven, when in fact it is the number one admnistered price in the economy.

    Japan and the US do not have low rates because they are seen as good creditors, but because they are soveriens with stagnant economies and their CB’s have set the interest rate low.

    Europe is a different story because of the idiotic set up of the Eurozone. Europe does fit the consolodation state story better, but it is set up that way because Germany wanted it to, and the other countries were convinced they needed to become germany.

    Finanical markets actually don’t care that much about the amount of soverign debt as the failure of bond vigilantes to materialize has proven.

  3. Reblogged this on forwardeconomics.

  4. Streeck wrote an article in the latest Die Zeit, No 6, where he argued for the dissolution of the EMU.

  5. Excellent presentation. This fits in quite will with Sheldon Wolin’s idea of Invereted Totalitarianism.

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