Go Back   Bloggingheads Community > General comments on Bloggingheads.tv
FAQ Members List Calendar Search Today's Posts Mark Forums Read

Notices

General comments on Bloggingheads.tv Post comments about our website here.

Reply
 
Thread Tools Display Modes
  #1  
Old 02-25-2012, 06:09 PM
Unit Unit is offline
 
Join Date: Aug 2008
Posts: 1,713
Default 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".
Reply With Quote
  #2  
Old 02-25-2012, 07:18 PM
handle handle is offline
 
Join Date: Apr 2008
Posts: 1,986
Default Re: What's competition?

Quote:
Originally Posted by Unit View Post
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.
__________________
"God is a metaphor for that which trancends all levels of intellectual thought. It's as simple as that." J. Campbell
Reply With Quote
  #3  
Old 02-25-2012, 07:36 PM
Unit Unit is offline
 
Join Date: Aug 2008
Posts: 1,713
Default Re: What's competition?

Quote:
Originally Posted by handle View Post
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.
Reply With Quote
  #4  
Old 02-25-2012, 08:58 PM
handle handle is offline
 
Join Date: Apr 2008
Posts: 1,986
Default Re: What's competition?

Quote:
Originally Posted by Unit View Post
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?
__________________
"God is a metaphor for that which trancends all levels of intellectual thought. It's as simple as that." J. Campbell
Reply With Quote
  #5  
Old 02-25-2012, 10:50 PM
Unit Unit is offline
 
Join Date: Aug 2008
Posts: 1,713
Default Re: What's competition?

Quote:
Originally Posted by handle View Post
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?
Reply With Quote
  #6  
Old 02-26-2012, 02:06 PM
badhatharry badhatharry is offline
 
Join Date: Jul 2009
Location: eastern sierra
Posts: 5,413
Default Re: What's competition?

you either hate it or love it...but few really understand it.
__________________
"By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it." Adam Smith
Reply With Quote
 


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 04:02 AM.


Powered by vBulletin® Version 3.8.7 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.