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Unit 02-25-2012 07:09 PM

What's competition?
 
Matt Lewis and Robert Costa don't know what the free-market is.

Free-market competition is a process of discovery. Maybe Matt and Robert would benefit from reading Hayek's description of what the role of competition really is in the context of free-markets. One would hope that they would then refrain from referring to the "daily grind" and other cut-throat vicissitudes as "free-market competition".

handle 02-25-2012 08:18 PM

Re: What's competition?
 
Quote:

Originally Posted by Unit (Post 237146)
Matt Lewis and Robert Costa don't know what the free-market is.

Free-market competition is a process of discovery. Maybe Matt and Robert would benefit from reading Hayek's description of what the role of competition really is in the context of free-markets. One would hope that they would then refrain from referring to the "daily grind" and other cut-throat vicissitudes as "free-market competition".

Yes, the decline of the British empire certainly benefited from those who read and followed Hayeks free market process of "discovery". Perhaps ours could too!
These are the rotten fruits of their blissful ignorance:

Quote:

Thatcher loved Britain of that there is no doubt. But her administration will surely be seen as a chapter in that country's decline. This is a tragedy in the classical sense that human actions can have catastrophic consequences. It differs, however, from the orthodox model in that its denouement is the misfortune, not of one, but of millions.
Quote:

Thatcher adopted the ideas of the New Right a revolutionary free market agenda thoroughly unfamiliar to traditional conservatives. It was a brutal and simplistic doctrine: massive liberalisation of the free market combined with the ruthless disciplining of labour; the beginnings, in other words, of neoliberalism, the utopian and delusional character of which became apparent in 2008.

Unit 02-25-2012 08:36 PM

Re: What's competition?
 
Quote:

Originally Posted by handle (Post 237147)
Yes, the decline of the British empire certainly benefited from those who read and followed Hayeks free market process of "discovery". Perhaps ours could too!
These are the rotten fruits of their blissful ignorance:

Thatcher said she was taking her ideas from Hayek, but Hayek never endorsed her policy decisions, nor was he ever her advisor.

This aside, Hayek is describing what is, he's making a positive statement, in his opinion competition should be understood as a process of discovery. The policy consequences of this framework are far removed at this point and I bet hosts of "liberal" economists such as Delong or Krugman would agree that prices emerging from such a process are one of the main feature of free-markets.

handle 02-25-2012 09:58 PM

Re: What's competition?
 
Quote:

Originally Posted by Unit (Post 237148)
Thatcher said she was taking her ideas from Hayek, but Hayek never endorsed her policy decisions, nor was he ever her advisor.

This aside, Hayek is describing what is, he's making a positive statement, in his opinion competition should be understood as a process of discovery. The policy consequences of this framework are far removed at this point and I bet hosts of "liberal" economists such as Delong or Krugman would agree that prices emerging from such a process are one of the main feature of free-markets.

I see, just like the "positive thinking" movement, when the practice fails, it is because the practitioner didn't follow the practice closely, or doggedly enough.

That aside, the idea that competition reveals what a free market will bear, you shouldn't need Hayek or anyone else to do that, as you have pointed out. But that's just the teaser to get one to buy into much more of the ideology, isn't it?

Unit 02-25-2012 11:50 PM

Re: What's competition?
 
Quote:

Originally Posted by handle (Post 237149)
I see, just like the "positive thinking" movement, when the practice fails, it is because the practitioner didn't follow the practice closely, or doggedly enough.

Never heard of that movement. Practice fails if it's practiced. Politicians have other agendas, we know that. I'm sure the current administration has let down some of your ideals as well.

Quote:

That aside, the idea that competition reveals what a free market will bear, you shouldn't need Hayek or anyone else to do that, as you have pointed out. But that's just the teaser to get one to buy into much more of the ideology, isn't it?
Yes in fact. I believe in my ideology more than the alternative and Hayek's point is quite important. For instance it goes against the so-called "equilibrium" point-of-view in economics, and the notion of "perfect knowledge", etc... What was striking to me though was that here were two supposedly "conservative", "free-market", pundits associating free-market competition with "the rat race", namely the worse of all common stereotypes. Competition happens to be a concept of fundamental importance. At the theoretical level there are competing models and interpretations of competition. One of these point-of-views was advanced by Hayek and that's the one I believe is more insightful. Did you read the article?

badhatharry 02-26-2012 03:06 PM

Re: What's competition?
 
you either hate it or love it...but few really understand it.


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