In the ‘Introduction’ to Capitalism and Freedom, Friedman's stated intentions are to: establish the role of competitive capitalism as a system of economic freedom and a necessary condition for political freedom; indicate the proper role of government in a free society; and return the term ‘liberal’ ‘… to its original sense – as the doctrines pertaining to a free man’. In fact, Friedman accomplishes none of these things. This essay has three distinct, though related, objectives: first, to compare Friedman's position (...) with the liberal alternative; second, to show why Friedman's position is more properly regarded as libertarian than liberal; and third, to assess the quality of Friedman's argument in its own right. My purpose is to demonstrate that Friedman overlooks the important liberal insight that the unrestricted accumulation of private propety may limit rather than promote individual freedom. This omission is crucial. Not only does it divorce Friedman's conception from liberalism, it also vitiates his case for economic freedom as a necessary condition for political freedom. (shrink)

Epistemic arguments play a significant role in the foundations of market liberalism as exemplified, in particular, by the work of F. A. Hayek. Competition in free markets is claimed to be the most effective device both to utilize the knowledge dispersed throughout society as well as create new knowledge through innovation competition. The fast pace with which new economic opportunities are discovered and costs are reduced is considered proof of the benefits of free markets to the common good. However, with (...) its inherently unpredictable consequences, innovation competition is actually ambiguous in this respect. This feature raises questions over the stringency of market liberal pleas that oppose quests for redistribution and environmental concerns in an absolute fashion. (shrink)

Postmodernism is often characterized, among other things, as the belief in the unattainability of objective truth and as a rejection of teleological and reductionist, or essentialist, forms of thought. For instance, in his provocative book The Rhetoric of Economics, Donald McCloskey sketches the implications for economic methodology of Richard Rorty's rejection of the modernist quest for Truth, as represented by various rationalist and empiricist epistemologies. McCloskey describes modernist methodology as displaying a desire to predict and control, a search for objective–;which (...) often means measurable–;knowledge, and an attempt to develop a value-free inquiry, among other characteristics. This “methodological correctness,” McCloske suggests, is discredited by the postmodern dissatisfaction with traditional epistemology. Thus, in place of the modernist belief in a rule-guided path to truth, he advocates a “free market” approach to knowledge, in which participants in the variety of theoretical conversations agree to be earnest and listen politely to one another. (shrink)

In spite of the important discoveries made by Adam Smith and later by the economists of the Austrian School, Friedrich Hayek remained intellectually challenged by the miracle of the price mechanism. As it turned out there was still some pioneering to do in describing the price mechanism. This became clear when Hayek identified the dispersal of information relevant to exchange transactions as the central issue of economic study. In the context of his distinction between competition as a state of things (...) and as a process the price mechanism manifests itself as a powerful integrator of information which is at first sight hopelessly dispersed in modern society. In 1945 he pointed out another intellectual challenge which the miracle of the price mechanism poses: How could such a marvelous functionality come into existence? “I am convinced that if it [the price mechanism] were the result of deliberate human design, and if the people guided by the price changes understood that their decisions have significance far beyond their immediate aim, this mechanism would have been acclaimed as one of the greatest triumphs of the human mind”. It is precisely because the free determination of prices is obviously not an invention, and because actors on the market in general do not realize that their decisions are at once also signals for the information-processing system that the market is, that in general this market order is not highly estimated. The market order is nevertheless the best illustration of the dual principle that the most beautiful forms of complex functionality are not deliberately created and are not deliberately maintained. (shrink)

This article traces John Rawls’s debt to Frank Knight’s critique of the ‘just deserts’ rationale for laissez-faire in order to defend justice as fairness against some prominent contemporary criticisms, but also to argue that desert can find a place within a Rawlsian theory of justice when desert is grounded in reciprocity. The first lesson Rawls took from Knight was that inheritance of talent and wealth are on a moral par. Knight highlighted the inconsistency of objecting to the inheritance of wealth (...) while taking for granted the legitimacy of unequal reward based on differential productive capacity. Rawls agreed that there was an inconsistency, but claimed that it should be resolved by rejecting both kinds of inequality, except to the extent they benefitted the worst off. The second lesson Rawls learned from Knight was that the size of one’s marginal product depends on supply and demand, which depend on institutional decisions that cannot themselves be made on the basis of the principle of rewarding marginal productivity. The article claims that this argument about background justice overstates its conclusion, because the dependence of contribution on institutional setup is not total. Proposals for an unconditional basic income may therefore have a strike against them, as far as a reciprocity-based conception of desert is concerned. If we follow Knight’s analysis of the competitive system, however, so too does the alternative of leaving determination of income up to the market. (shrink)

Some people may think that libertarianism and meritocracy have much in common; that the libertarian's ideal world looks like the meritocrat's ideal world; and that the public policies guiding us to each are one and the same. This is wrong in all respects. In this essay I explain why. -/- After providing an overview of meritocratic justice, I argue that meritocracy is a more compelling theory of distributive justice than libertarianism. Meritocracy better protects the core value of personal responsibility; incorporates (...) efficiency-enhancing regulation which libertarianism cannot; provides more positive liberty; and solves salient, real-world debates about distributive justice. (shrink)

While libertarians affirm personal responsibility as a central moral and political value, libertarian theorists write relatively little about the theory and practice of this value. Focusing on the work of F. A. Hayek and David Schmidtz, this article identifies the core of a libertarian approach to personal responsibility and demonstrates the ways in which this approach entails a radical revision of the ethics and American politics of personal responsibility. Then, I highlight several central implications of this analysis in the American (...) political and economic status quo. First, this analysis makes a mockery of so-called libertarian/conservative ‘fusionism’, such that libertarian personal responsibility cannot partner with meritocratic conservative thought to provide a plural grounding for rejecting progressive or redistributive economic policy. Next, preferred libertarian policies threaten the status, esteem and social bases of self-respect of citizens who are worse-off through little or no fault of their own. Finally, these policies undermine the ethics of personal responsibility that Americans from across the ideological spectrum value and many conservatives and libertarians celebrate. In the American status quo, those who value personal responsibility must reserve a central place for policies that mitigate opportunity and distributive inequalities. (shrink)

Michael Dorf and Charles Sabel invoke John Dewey’s “pragmatist account of thought and action” as the “backdrop” for their theory of democratic experimentalism, an approach to governance emphasizing judicially monitored local decision making within a system of decentralized administrative authority. Little credit for influence is given to the Austrian economist Friedrich Hayek and his classic liberal ideas. Indeed, Sabel has been highly critical of Hayek’s ideas. Yet, an argument can be made that (i) democratic experimentalism is at least loosely Hayekian (...) and (ii) a combined Deweyan-Hayekian analysis of Dorf and Sabel’s theory reveals some critical mistakes. One implication of my analysis is that Dewey and Hayek’s ideas are more compatible than most democratic theorists and political philosophers will admit. Evidence of this compatibility opens the door for creating and evaluating democratic experiments within a Deweyan-Hayekian theoretical framework, as well as extending the framework to other areas of political inquiry. (shrink)

Robert Nozick addresses the idea of egalitarian redistribution in an argument standardly considered original: the “Wilt Chamberlain Argument”. However, this argument is found in David Hume's An Enquiry Concerning the Principles of Morals, first published in 1751. Placing this argument within a Humean and Hayekian, rather than a Lockean or Kantian, perspective radically changes its import for issues of economic justice. Rather than vindicating the radical individualism of Nozick and other libertarians, applied to our circumstances using Hume's conventionalist and evolutionary (...) account of justice, Hume's Wilt Chamberlain argument vindicates moderate redistribution constrained by the rule of general laws and the goal of fostering innovation and industriousness. (shrink)

This article reconsiders the work of Raymond Aron in order to explore the fracture lines that existed between conservative forms of political liberalism, as advocated by Aron, and neoliberal ideas of economic or market freedom associated with Hayek and his followers. These tensions between Aron and Hayek are analysed by assessing Aron’s involvement in the Mont Pèlerin Society and the Congress for Cultural Freedom through the 1950s, and then considering the arguments of his 1962 review of Hayek’s Constitution of Liberty (...) and his 1963 Jefferson Lectures. While Aron has been largely neglected in the existing literature on neoliberalism, it will be argued that he was the key sociological figure to engage critically with neoliberalism in its formative years and, beyond this, that the value of his work today lies in its defence of the social basis of democracy and freedom against the raw economism of neoliberal thought. (shrink)

This paper evaluates the economic assumptions of economic theory via an examination of the capitalist transformation of creditor–debtor relations in the 18th century. This transformation enabled masses of people to obtain credit without moral opprobrium or social subordination. Classical 18th century economics had the ethical concepts to appreciate these facts. Ironically, contemporary economic theory cannot. I trace this fault to its abstract representations of freedom, efficiency, and markets. The virtues of capitalism lie in the concrete social relations and social meanings (...) through which capital and commodities are exchanged. Contrary to laissez faire capitalism, the conditions for sustaining these concrete capitalist formations require limits on freedom of contract and the scope of private property rights. (shrink)

This paper applies aspects of Hugo Grotius's theologically informed theory of property to contemporary issues concerning access to the human DNA sequence and patenting practices. It argues that Christians who contribute to public debate in these areas might beneficially employ some of the concepts with which he worked--notably "common right," the "right of necessity," and "use right." In the seventeenth century, wars were fought over trading rights and access to the sea. In the twenty-first century, information and intellectual property are (...) the issues of the day. Grotius's writings serve to correct the overemphasis in modern liberalism on individual rights, and have practical application to the debate concerning the reduction of the human genome to the status of private property. (shrink)

The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have to be prioritised (...) over behavioural business ethics, which tends to analyse morality at the level of the individual and favours behavioural intervention with the individual’s value, norm and belief system, e.g. through ethical pedagogy, communicative techniques, etc. Quaker ethics is taken as an example of behavioural ethics. The article concludes that through the conceptual grounding of behavioural ethics in the economic approach, theoretical and practical limitations of behavioural ethics, as encountered in a modern context, can be relaxed. Probably only then can behavioural ethics still contribute to raising moral standards in interactions amongst the members (stakeholders) of a single firm, and equally, amongst (the stakeholders of) different firms. (shrink)

The paper reconstructs in economic terms Friedman's theorem that the only social responsibility of firms is to increase their profits while staying within legal and ethical rules. A model of three levels of moral conduct is attributed to the firm: (1) self-interested engagement in the market process itself, which reflects according to classical and neoclassical economics an ethical ideal; (2) the obeying of the "rules of the game," largely legal ones; and (3) the creation of ethical capital, which allows moral (...) conduct to enter the market process beyond the rules of the game. Points (1) and (2) position the Friedman theorem in economic terms while point (3) develops an economic revision of the theorem, which was not seen by Friedman. Implications are spelled out for an instrumental stakeholder theory of the firm. (shrink)

Modern society is challenged by a loss of efficiency in national governance systems values, and lifestyles. Corporate social responsibility (CSR) discourse builds upon a conception of organizational legitimacy that does not appropriately reflect these changes. The problems arise from the a-political role of the corporation in the concepts of cognitive and pragmatic legitimacy, which are based on compliance to national law and on relatively homogeneous and stable societal expectations on the one hand and widely accepted rhetoric assuming that all members (...) of society benefit from capitalist production on the other. We therefore propose a fundamental shift to moral legitimacy, from an output and power oriented approach to an input related and discursive concept of legitimacy. This shift creates a new basis of legitimacy and involves organizations in processes of active justification vis-à-vis society rather than simply responding to the demands of powerful groups. We consider this a step towards the politicization of the corporation and attempt to re-embed the debate on corporate legitimacy into its broader context of political theory, while reflecting the recent turn from a liberal to a deliberative concept of democracy. (shrink)

J. C. Nyiri has argued in a series of papers that Ludwig Wittgenstein is a conservative philosopher. In ‘Wittgenstein 1929-31: The Turning Back’ Nyiri cites Wittgenstein’s admiration for Grillparzer as well as overtly philosophical passages from On Certainty in support of that thesis. I argue, in opposition to Nyiri, that we should separate Wittgenstein’s political remarks from his philosophical remarks and that nothing Wittgenstein says in his philosophical work obviously implies a conservative viewpoint, or any other kind of political viewpoint. (...) In his philosophical work Wittgenstein was concerned with untangling conceptual confusions rather than with putting forward a political viewpoint and the two kinds of activities are quite different. There is, however, some evidence of elements of conservatism in the stances that Wittgenstein took on political issues although there is also some evidence of sympathy for left-wing views, particularly during the ‘late’ period of Wittgenstein’s work after he returned to philosophy at the end of the 1920s. Wittgenstein’s philosophical work cannot be claimed by people of any particular political persuasion as their own but it can be used to untangle philosophical problems in the work of a great variety of political philosophies. (shrink)

An influential strand in recent action-theory employs constitutivist arguments in order to present accounts of individual agency and practical identity. I argue for an extension of this framework into the interpersonal realm, and suggest using it to reassess issues in jurisprudence. A legal system is an instantiation of the solution to the inescapable tasks of self-constituting action and identity-formation in the presence of other agents. Law's validity and normativity can be enlightened when the constitutivist approach considers the external prerequisites of (...) individuals' self-conceptions qua agents. More specifically, this argumentative strategy allows a reassessment of Fuller's “internal morality of law.” Whereas, pace Fuller, morally substantive conclusions cannot be derived from formal criteria of legality, there are unconditional normative requirements that constrain law. (shrink)

ABSTRACTHélène Landemore's Democratic Reason marks a crucial achievement in democratic theory, as it successfully shows that democracy is about more than procedural legitimacy—and that it should be. Nonetheless, the procedural argument remains at the heart of the case for democracy. For many democratic decisions, getting the right answer is not what we ask of political institutions. Politics is often about defining what counts as a problem, and no single definition counts as the right one. Furthermore, the epistemic claim that democracy (...) is likely to get moral questions right can obscure the difficulty of getting moral questions exactly “right.” The best political approach to controversial questions is often to strike a balance of competing claims, and every actual democracy does this in ways that leave many citizens dissatisfied. This is why many citizens participate in democratic politics as partisans: they put more trust in their party than in the democratic regime to get it right. Partisanship fuels the never-ending democratic contest over what it means to get it right in politics, but it is also appropriately epistemic, in that it is prompted by the never-ending possibility that even democracy will get things wrong. (shrink)

Contemporary republicanism is characterized by three main ideas: free persons, who are not subject to the arbitrary power of others; free states, which try to protect their citizens from such power without exercising it themselves; and vigilant citizenship, as a means to limit states to their protective role. This book advances an economic model of such republicanism that is ideologically centre-left. It demands an exit-oriented state interventionism, one that would require an activist government to enhance competition and resource exit from (...) dominating relationships within markets of all types, be they marital, labour, or residential. The substantial intervention and redistribution necessitated by such an approach make it leftist, while its tendency to work with rather than against the grain of markets makes it centrist. It is, in short, a contribution to progressive republican political thought, but one that is less social-democratic than market-democratic in character. (shrink)

En este artículo se ofrece una presentación de los aspectos centrales de la concepción del hombre de Hayek y una breve refl exión sobre ella. Primero, se expone su concepción de lo que es el hombre: un ser individualista, cuya evolución histórica conduce a la "sociedad extendida", y creador de normas y tradiciones. A continuación, se caracterizan sus principales dimensiones: la ética es heterónoma y coincide con las reglas sociales; su razón es limitada; la libertad es individual, negativa, y se (...) limita a la libertad económica y, fi nalmente, sostiene que los hombres son naturalmente desiguales. We explain the main aspects of Hayek's conception of man and its intellectual background. The Austrian thinker developed this conception on two levels. On the one hand, he proffers an idea of what man is, namely, an individualist, who evolves from "tribal society" to "extended society", and a creator of norms and traditions. On the other had, he tells how man is, he spells out his chief characters: man's ethics is heteronomous and immanent to the reproduction of society; man's intelligence is limited and his central value is freedom, economically understood. Finally, Hayek maintains that me are naturally unequal. (shrink)

The aim in this article is to explore the complicated connections between standards and letting go and between rules and control. Both constitute a central tenet of Justice Roberts’Grahamconcurrence, as well as a central tenet of the minimalist approach which he implicitly adopts. The tension within Roberts’ position is not conclusive. It may depend on the actual way one uses standards. If Roberts consistently uses standardsde factoin a deferential way, and signals that he will not intervene, he may be consistent (...) with the approach. But the tension exists. Standards and minimalism do not always go hand-in-hand. Finally, the article questions the efficacy of minimalism as a workable judicial philosophy. Roberts is, after all, the first Justice who adopted minimalism whole-heartedly. The difficulties with the application of minimalism inGrahamand its inherent tensions revealed through this case raise some doubts as to the possibility that minimalism can move effectively from theory to actual judicial practice. (shrink)

A themed issue on the work of Michael Oakeshott.

In this article, we provide a broad overview of the interplay among cognition, belief systems, and institutions, and how they affect economic performance. We argue that a deeper understanding of institutions’ emergence, their working properties, and their effect on economic and political outcomes should begin from an analysis of cognitive processes. We explore the nature of individual and collective learning, stressing that the issue is not whether agents are perfectly or boundedly rational, but rather how human beings actually reason and (...) choose, individually and in collective settings. We then tie the processes of learning to institutional analysis, providing arguments in favor of what can be characterized as “cognitive institutionalism.” Besides, we show that a full treatment of the phenomenon of path dependence should start at the cognitive level, proceed at the institutional level, and culminate at the economic level. (shrink)

The article provides an overview of the basic concepts and principles of the theory of institutions as well as of the mechanisms of emergence and evolution of social institutions. It introduces a distinction between formal and informal institutions based on the the criterion of the enforcement agency of institutions. Finally it discusses the problem of path dependence.

Drawing on the built environment concept of “inclusive design” and its emphasis on creating accessible environments for all persons regardless of ability, I suggest that a central task for feminist disability theory is to redesign foundational philosophical concepts to present opportunities rather than barriers to inclusion for people with disability. Accounts of autonomy within liberal philosophy stress self-determination and the dignity of all individual persons, but have excluded people with intellectual disability from moral and political theories by denying their capacity (...) for individual autonomy, seen as a chief marker of moral personhood. This paper modifies and extends feminist theories of relational autonomy by arguing for the need to view autonomy as a feature of persons that is manifested only through relations of support, advocacy, and enablement. An “inclusively designed,” relational account negotiates the tensions encountered in attempts to apply autonomy to people with high support needs, and politicizes the concept as an advocacy tool for people with intellectual disability and their allies. (shrink)

The article is an evaluation of the economic, organizational and social theory of Luc Boltanski and Eve Chiapello’s The New Spirit of Capitalism 15 years after its publication. The role of network capitalism, state capitalism, and aesthetic capitalism in French social life is analysed. The article concludes that flexible network capitalism was largely a chimera of the 1990s and that French political and economic life today is dominated by an ailing state capitalism.

Ethical intuitionists regard moral knowledge as deriving from moral intuition, moral observation, moral emotion and inference. However, moral intuitions, observations and emotions are cultural artefacts which often differ starkly between cultures. Intuitionists attribute uncongenial moral intuitions, observations or emotions to bias or to intellectual or moral failings; but that leads to sectarian ad hominen attacks. Intuitionists try to avoid that by restricting epistemically genuine intuitions, observations or emotions to those which are widely agreed. That does not avoid the problem. It (...) also limits epistemically genuine intuitions, observations or emotions to those with meagre content, and the intuitionists offer no plausible explanation for how inference from such insubstantial propositions can engender substantial moral knowledge. Instead of moral knowledge, intuitionism offers the prospect of mutual name-calling between intellectually stagnant groups. I criticise and reject the principle of phenomenal conservatism, to which intuitionists sometimes appeal. (shrink)

In this thesis, I argue that David Hume’s political philosophy is centrally focused on the prospect of social reform. The conception of justice and politics he develops out of his theories of virtue and moral psychology stresses the pervasive effects of institutions on individuals’ abilities to live decent lives and provides criteria for determining the relative success of such institutions. While Hume’s political philosophy has been interpreted as justifying a society’s status quo, I demonstrate that the principles of merit, need, (...) and equality—commonly considered core principles of social justice—each play a vital role in his view of what constitutes a healthy, stable society. In particular, I contend that Hume’s emphasis on institutions guaranteeing equal protection of basic rights, the role of the common good in the moral justification of political institutions, and the material and social circumstances of equality that make the institution of justice possible, suggest that social reform is a central concern of his theory of justice and politics. (shrink)

The ArgumentScience consists in progress by innovation. Scientists, however, are committed to all kinds of traditions that persist or recur in society regardless of intellectual and institutional changes. Merton's thesis about the origins of the scientific revolution in seventeenth-century England offers a sociohistorical confirmation of this revisionist view: the emergence of a highly rational scientific method out of the religious-ethical sentiments of the English Puritans implies that scientific knowledge does indeed grow out of – and not really against – customary (...) modes of thought.In tracing the intellectual origins of this view back to the religious controversy between Protestants and Catholics, the essay demonstrates that the essential conflict between them with regard to natural science stemmed from their antagonistic conceptions of tradition and its function in the production of genuineknowledge– of religious as well as of natural affairs. Whereas the Protestants believed only in those truths that are immediately revealed by God to each man through his reason, the Catholics adhered to truths that are related to men or “made” by them through culture and history. (shrink)

Coercion is by its very nature hostile to the individual subjected to it. At the same time, it often is a necessary evil: political life cannot function without at least some instances of coercion. Hence, it is not surprising that coercion has been the topic of heated philosophical debate for many decades. Though numerous accounts have been put forth in the literature, relatively little attention has been paid to the question what exactly being subjected to coercion does to an individual (...) that makes it so hostile to his person. This paper develops an analysis of the subjective aspect of coercion whereby this hostility is explained. It is argued that coercion is not just a matter of interference with one's agency, but also affects one's morality. Because coercion is a form of subjugation it does more than merely limit one's freedom, it constitutes an affront to one's dignity as well. A new account of coercion is developed that pays particular attention to the subjectivity inherent in coercion. This account takes a middle ground in the ongoing debate between advocates of moralised and non-moralised conceptualisations of coercion. The paper closes by applying this account to two prominent issues in the literature on coercion: the use of coercion claims in attempts to avoid being held responsible for one's actions, and the coercíveness of the law. (shrink)

The Irish Republic's economic success story has been simultaneously regarded as antithetical to and indicative of neoliberal hegemony. The question of the neoliberal pedigree of the Irish case is explored here from the perspective of mediatized representations of political economy. The paper's argument is advanced in three distinct stages. First, it outlines a theoretical and methodological rationale for the analysis itself. Second, it formulates a summary account of neoliberalism as discourse and ideology, introducing a key analytical distinction between ‘transparent’ and (...) ‘euphemized’ neoliberal discourses. Third, it presents an empirical overview of how neoliberal assumptions are articulated through mediatized representations of political economy. The article shows how the ‘Celtic Tiger’ can be understood as a case of neoliberal hegemony, as long as it is recognised that neoliberalism is hegemonically constituted through a plurality of discursive forms and rhetorical strategies. In addition, the paper highlights the constitutive role of media representation, especially the media rhetoric of Irish political leaders, in the production and reproduction of an Irish neoliberalism. (shrink)

European constitutional traditions share a commitment to freedom of conscience and religion, but differ on their interpretation of whether such freedoms do or do not require a clear cut separation of state and church. Weiler has advocated that the writing of a Constitution for the European Union is a very apt moment to reconsider the conceptualization of freedom of conscience and religion. On constitutional and historical grounds, he has advocated that a reference to Christian values should be made in the (...) preamble of the European fundamental law, and that this will be the alternative most respectful to the pluralistic national solutions, ranging from republican non-confessionality to the establishment of an official church. But contrary to what Weiler argues, the drafting of the constitution of the European Union is not bound by the present shape of European constitutional traditions; moreover, it is hard to conclude that the present common constitutional traditions require an explicit reference to Christianity to be included in the text. Furthermore, the claim that the individual and collective identities of Europeans are unavoidably shaped by Christian values is only tenable if we uphold a rather simplistic relation between history, memory, and identity. Finally, once one moves from law and history to practical reasoning, one finds that there are good substantive reasons why our collective identity should not contain reference to Christian values. (shrink)

This article examines the question of private coercion in market societies, arguing for an unconditional basic income guarantee from a classical liberal viewpoint. It proposes three main arguments. First, classical liberals view the purpose of government to be the reduction of coercion, both public and private. Second, a proper understanding of the nature of coercion indicates that parties subject to certain types of hardship are being coerced. Third, where the total amount of coercion is reduced by eliminating the hardship, the (...) classical liberal state must do so to fulfill its purpose. Hence, this article argues that if the total amount of coercion in society can be reduced by the state employing the amount of coercion necessary to maintain an unconditional basic income guarantee, then the classical liberal state is obligated to maintain such a guarantee by its underlying justification. (shrink)

Using the arguments of Ludwig von Mises and Friedrich August von Hayek, I argue that private ownership solves the economic problem of corruption. Since private ownership discourages entrepreneurs from rent-seeking, and privately owned media provide objective and unbiased information to citizens, any legal reform establishing and enforcement of private ownership also solves the corruption problem.

Hayek developed two contradictory epistemologies. The epistemology for which he is famous attributed dispersed knowledge to economic actors and credited the price system for aggregating and communicating this knowledge. The other epistemology attributed to human and non-human organisms alike the error-prone interpretation of stimuli, which could never truly be said to be “knowledge.” Several of the paradoxes of Hayek's economic and political thought that are explored in this symposium can be explained by the triumph of the first epistemology over the (...) second, including his historical interpretation of socialism as a planning mentality; his tendentious definitions of “liberty” and “justice”; and his opposition to economic redistribution even as he endorsed all manner of economic and social regulations. (shrink)

At the end of World War II, F. A. Hayek denounced the then-popular idea of central planning by arguing that, if pursued to its logical conclusion, it would entail totalitarianism. But there were at least two problems. First, judging by his example of Nazi Germany, state control over the economy appears to be a consequence, not a cause, of the monopolization of political power. Second, he conflated socialism and mere interference in the market with central planning. Therefore, history did not (...) so much falsify Hayek's prediction as bypass it: Once the vogue for central planning faded in the West, Hayek's book became irrelevant—except, ironically, in Germany. There, it was read as a manifesto for “good planning” through the rule of law. Alongside other “neoliberal” writers, Hayek had a profound (if little acknowledged) influence on the shape of the emerging Federal Republic and, through it, on the whole European institutional framework. (shrink)

Hayek's later work on the possibility of socio-economic order in decentralized market economies is an exercise in contrastive causal explanation as conceptualized by realist social theorists and philosophers. This interpretation of Hayek's work lends support to the view that Hayek's post-1960 writings can be thought of as an example of comparative institutional analysis. It also provides a means of reinforcing Hayek's own efforts to establish the scientific credentials of his work.

There is an odd proximity between Hayek, hero of the libertarian right, and Rawls, theorist of social justice, because, at the level of principle, Hayek was in some important respects a Rawlsian. Although Hayek said that the idea of social justice was nonsense, he argued against only a particular principle of social justice, one that Rawls too rejected, namely distribution according to individual merit. Any attempt to make reward and merit coincide, Hayek argued, would undermine the market's price system, leaving (...) us all poorer and less free. Like Rawls, Hayek held that we should assess social institutions from behind a veil of ignorance, and he thought that doing so pushed us toward egalitarianism. Most of the distance between Hayek and Rawls at the level of policy stems from Hayek's optimism about the operation of markets, his equivocation about the meaning of central concepts, and his appeal to under-argued slippery slopes. Hayek wavered, however, between claiming that private property and markets benefit everyone, compared to the feasible alternatives, and the principle that they maximize the opportunities of a randomly selected member of society, i.e., aggregate opportunity. Contemporary Hayekians claim that capitalism raises the position of the worst off in the long run, in future generations, whereas Rawlsians insist that inequalities between social positions should benefit the worst off now. (shrink)

In the 1930s, socialist economists used the assumptions of equilibrium theory to argue that a central planner could coordinate supply and demand from above. This argument led Hayek, over the years, to try to explain the limitations of equilibrium theory and, conversely, to explain how capitalism functioned without the assumptions of equilibrium being met. In a changing world of agents who are ignorant of the future, how is a functioning market “order” possible? One answer can be found in Hayek's argument (...) that evolved rules make people's future behavior more predictable and, more to the point, that they contain previously accumulated knowledge that provides the building blocks for future economic growth. Hayek's evolutionary theory was flawed, however, in failing to explain how people can know which rules are responsible for their success or failure so that they persist in using those rules and pass them forward in time. However, markets provide immediate feedback about success and failure through profits and losses. An evolutionary explanation of the economy would have permitted Hayek to dispense with the metaphor of general equilibrium, which was increasingly irrelevant to his understanding of economic order. (shrink)

L’une des nombreuses définitions de la mondialisation la présente comme une dynamique ayant répandu à travers le monde entier les structures sociales modernes telles que le capitalisme, la bureaucratie, la haute technologie ou encore la philosophie du rationalisme et du libéralisme. En effet, dans ce sens, le libéralisme a en général prévalu en tant que cadre politique dominant dans la mondialisation actuelle. La plupart des gouvernements ont promu des politiques néolibérales à l’égard de la mondialisation, tandis que des organismes multilatéraux (...) influents n’ont cessé d’associer la mondialisation à la libéralisation. Les partisans de la mondialisation ont également proliféré dans les cercles commerciaux, notamment sur les marchés financiers, et su multiplient parmi les dirigeants d’entreprises transfrontalières. Les associations d’entrepreneurs et les mass-médias tournés vers la finance représentent de même des bastions du néolibéralisme qu’ils considèrent globalement comme une autorité en ce qui concerne la politique de la mondialisation. Autrement dit, les idées néolibérales sont depuis quelque temps acceptées comme une vérité absolue dictée par le « bon sens ». Le texte élabore la thèse suivante : le néolibéralisme – une sorte de théorie philosophique, politique et économique, appelée libertarianisme, qui s’est imposée dans la mondialisation contemporaine en tant qu’approche dominante – ne coïncide pas avec l’idéal de la société bien ordonnée de la démocratie libérale qui découle des idées, des aspects et des dimensions de la philosophie libérale diamétralement opposés. La philosophie sociale du libéralisme, développée dans l’oeuvre de Kant, Hayek, Dworkin et Rawls, considère la conception de la démocratie libérale moderne, fondée sur le règne de la loi, la protection des droits de l’homme et des droits civiques ainsi que sur les idées d’égalité, de justice et d’équité. Dans ce sens, les programmes de « discrimination positive » des couches sociales les plus basses sont en parfait accord avec cette philosophie libérale qui protège les droits individuels. Partant de là, la mondialisation économique et culturelle devrait faire l’objet d’une analyse conceptuelle claire avec pour impératif normatif la mondialisation de la responsabilité dont l’objectif serait de protéger l’avenir mondial de l’humanité. Une sorte de contrôle démocratique et de règne du droit sont tout aussi nécessaires dans notre monde globalisé. Le devoir central de la politique mondiale – à savoir de stopper le chaos global qui menace d’être une conséquence inévitable d’une mondialisation non contrôlée – implique, entre autres, un ordre légal international avec une sorte de gouvernance démocratique mondiale. Cependant, une question décisive, à laquelle il est difficile de répondre, se pose à propos de la construction démocratique mondiale : comment bâtir une politique de gouvernance mondiale dans notre monde divisé ? (shrink)

In this article the author tries to answer the difficult question of the roots of the welfare state. The study of the French example shows that if some roots are ideological, at the same time they are sociological, too. In the article the main streams of ideological roots are described and conclusion is drawn that nowadays sociological issues are very important. The popularity of the welfare state shows that dismantlement is impossible in the democratic States. Yet, its crisis due to (...) its cost in a globalized world asks the question of the balance point between the fight against assistantship and maintenance of the redistributive nature of the welfare state. The answer to that question still remains the key challenge for European politicians. (shrink)

The article discusses the conditions under which can we say that people enter the economic system voluntarily. “The Need for an Exit Option” briefly explains the philosophical argument that voluntary interaction requires an exit option—a reasonable alternative to participation in the projects of others. “The Treatment of Effective Forced Labor in Economic and Political Theory” considers the treatment of effectively forced interaction in economic and political theory. “Human Need” discusses theories of human need to determine the capabilities a person requires (...) to have an acceptable exit option. “Capability in Cash, Kind, or Raw Resources” considers what form access to that level of capability should take—in cash, kind, or raw resources, concluding that a basic income guarantee is the most effective method to ensure an exit option in a modern, industrial economy. (shrink)

Neural activity and social activity share close parallels, particularly the fact that spontaneous adaptations are paramount in both realms. Environmental pressures require organisms and societies to adapt to new and uncertain situations. Adaptations create, respectively, stronger neural and social networks that may, in turn, make the system more resilient to future uncertainties—but only if the adaptations are beneficial to the system.

Over recent years support for deliberative democracy as a regulative ideal against which political and economic institutions should be judged has become the dominant tradition within political theory. Deliberative democrats such as Amy Guttman and Dennis Thompson argue that deliberative public decision making would bring with it important epistemological and ethical gains. Closer inspection of these claims, however, suggests that deliberative democratic arrangements are not only impractical but are fundamentally at odds with the epistemic and ethical goals that their supporters (...) seek to advance. Arrangements based on ?exit? rather than ?voice? may be better placed to meet these challenges in a world characterized by complexity and conflicting moral values. (shrink)

Hayek's attack on the ideal of social justice, though long ignored by political theorists, has recently been the subject of a number of largely unsympathetic studies (those of Lukes and Johnston being the most recent) in which his critique is dismissed as at best simply mistaken and at worst frivolous. The responses to Hayek's case against social justice, however, fail to draw any blood, for they do not seriously deal with Hayek's central claim that the very notion of social justice (...) is incoherent. (shrink)