This article argues that cruelty, as a willingness to see or orchestrate the suffering of others, is not an unfortunate side-effect of neoliberal theories put into practice but is constitutive of the neoliberal project from its theoretical inception. Drawing on Lisa Duggan’s concept of ‘optimistic cruelty’ and treating the canonical texts of neoliberal economic theory as literary artefacts, the article develops this argument through a close reading of one of the central architects of the neoliberal project, the philosopher and economist (...) Friedrich Hayek. The first part of the article examines how Hayek attempts to justify the brutality of the market order he imagines – the catallaxy – by arguing that this brutality is the natural consequence of the spontaneous evolutionary processes that move civilisation forward. The second part brings to the fore the eugenicist undertones that suffuse this vision, despite Hayek’s apparent rejection of Social Darwinism. I analyse how Hayek’s market order operates through a series of disciplinary and biopolitical technologies that use pain, frustration, punishment and stigmatisation to eliminate bad habits, practices and subjectivities. These cruel mechanisms enable the catallaxy to sort between productive and unproductive lives to ensure that available resources are directed towards the former – even if it means that the others might be left to die. As such, cruelty is an affective atmosphere that permeates the catallaxy. (shrink)

Critical theory has long resisted the notion that an “invisible hand” can operate within the real social dynamics of a free market. But despite the most radical desires of the socially critical imagination, the optimization of that “spontaneous order” or depersonalized way of ordering things known as “the economy” has become the dominant playing field and decisive electoral issue of modern politics. Within this broad contemporary context, Michel Foucault made a strange theoretical intervention that, to this day, continues to baffle (...) readers. During a lecture, he argued that Adam Smith’s invisible hand was, after all, truly and purposively, that is, for technical rather than ideological reasons, “invisible.” This article argues that there is a counter-positivism or tactical irony contained within the logic of such a controversial thesis; namely, that when one acknowledges that the principle of economic competition encourages an efficient self-organizing effect at all times, regardless of context, one is also immediately in a position to appreciate why the art of government should always maintain its political primacy over the spontaneous order of the market. (shrink)

According to Streeck and Vogl, the neoliberalization of the state has been the result of political-economic developments that render the state dependent on financial markets. However, they do not explain the discursive shifts that would have been required for demoting the state to the role of an agent to bondholders. I propose to explain this shift via the performative effect of neoliberal agency theory. In 1976, Michael Jensen and William Meckling claimed that corporate managers are agents to shareholding principals, which (...) implied that their main task was the procurement of shareholder value. Agency theory subsequently prescribes a series of measures to ensure the alignment of principal and agent interests in corporations. The diffusion of agency theory, however, moved beyond corporate governance to reconfigure the state. Due to its reliance on capital markets, the state supposedly likewise becomes an agent of the investment public and should procure bondholder value. (shrink)

Friedrich Hayek’s defense of neoliberal free market capitalism hinges on the distinction between economies and catallaxies. The former are orders instituted via planning, whereas the latter are spontaneous competitive orders resulting from human action without human design. I argue that this distinction is based on an incomplete semantic history of “economy.” By looking at the meaning of “oikonomia” in medieval providential theology as explained by Giorgio Agamben and Joseph Vogl, I argue how Hayek’s science of catallactics is itself a secularization (...) of providential theology. This exposes Hayek to three criticisms: he unjustifiably neglects the possibility of tendencies toward spontaneous disorder in free markets, he condemns the “losers” of neoliberal competition to being providential waste on the road to general prosperity, and he imposes on people the duty to consent to a neoliberal order that hinders them from cultivating their inoperativity. (shrink)

In this paper, we draw attention to the epistemological assumptions of market liberalism and standpoint theory and argue that they have more in common than previously thought. We show that both traditions draw on a similar epistemological bedrock, specifically relating to the fragmentation of knowledge in society and the fact that some of this knowledge cannot easily be shared between agents. We go on to investigate how market liberals and standpoint theorists argue with recourse to these similar foundations, and sometimes (...) diverge, primarily because of normative pre-commitments. One conclusion we draw from this is that these similarities suggest that market liberals ought to, by their own epistemological lights, be more attentive towards various problems raised by feminist standpoint theorists, and feminist standpoint theorists ought to be more open to various claims made by market liberals. (shrink)

This article sets out the contours of a Marxist hermeneutic approach to political economy. It begins by outlining how such a critique of political economy would function, with a particular emphasis...