imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
latest news
best of news




A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Market Failure Wherever One Looks

by Conrad Schuhler Wednesday, Oct. 20, 2010 at 2:38 AM

7-8 million jobs lost in two years, 150,000 public sector jobs lost in September, are signs of total system incompetence. It's time to redefine state and market and adopt alternative economic policy with reduced working hours and infrastructure investment.

"The real market economy leads to problems. Prominent representatives of this economic system admit the market economy has no prescriptions to avoid or make up for its life-threatening damage..

The invisible hand, the organization of an economy as a market economy, burdens society with enormous costs. Belief in the market economy theory and holding to the real market economy is expensive for us."


By Conrad Schuhler

[This editorial from isw, institut für sozial-ökologische wirtschaftsforschung, July 2010 is translated from the German on the Internet,]

“Climate change is the greatest case of market failure ever seen by the world” (Blatter 2006). The former chief economist of the World Bank (from 2000 to 2003) and advisor of the British government Nicholas Stern wrote this sentence in his widely-publicized study on the costs of climate protection and the expected climate catastrophe. “Ackermann said he no longer believed the markets alone can solve the financial market crisis. In light of the international turbulences, he doubts the self-healing powers of the market” (Tagesschau, 3/18/2008). Josef Ackermann outed here as a market skeptic is head of Deutsche Bank and of the IIF (The Institute of International Finance, the union of national bank associations and one of the most important managers at the center of the German economy.

What is special in these two quotations of the scholar and the capitalist is not simply the admission that the real market economy leads to problems. Prominent representatives of this economic system admit the market economy has no prescriptions to avoid or make up for its life-threatening damage. [1] [“It was a mistake to believe the market is always right. We must correct our view of the world.” Nicolas Sarkozy, SZ, 1/28/2010]

These judgments were printed by hundreds of newspapers and journals. Given these events, one would think the followers of the market economy would be completely shocked to raise elementary questions or to speak out. But nothing like that happens. The two judgments are trivialized as very witty remarks. The followers are protagonists.

The market economy theoreticians developed the well-known idea of an “invisible hand” that orderly guides the conduct of individual market actors and the economy altogether to the best. This invisible hand as a figurative idea for the central elementary claim of the theory that the market mechanism guides the conduct of selfish individual market actors to an optimal and just economic result – without any special expense or coordination costs.

This view that the market and competition are superior to other economic systems is widespread in the population. On account of their school- and university education and the constant daily media exposure, many people have a vague idea that – somehow free and pure – markets can stabilize the economy, that they are efficient (achieve the best possible use of resources) and bring about an optimal distribution.

The basic theory about the stability, efficiency and optimality of a market economy is the so-called general equilibrium theory. This theory should be tested for its conclusiveness. To back its assertions, this theory depends on assumptions and presuppositions about economic relations and actors in the economy which are false – compared to reality. Thus the whole theory must be rejected as unsuitable for the analysis of the real market economy.

This theory is an ideology. A theory is more than a simple thought and the observation and ordering of particular facts. An economic theory must be able to make the logical connection of social and economic facts and events. A theory proposes a set of statements that are free of contradiction to one another and can explain the totality of observable facts: referring back to preceding causes and predicting and showing the consequences and conclusions for further events. This last capability of theory turns into instructions on goal-directed conduct. Theoretical findings are used to reach goals. This is a central feature of theories.

Theories can prove false, outmoded or incomplete. But false theories do not simply dissolve in thin air because they are false. They do not simply dissolve when they are permanently propagated at enormous expense and have an appearance of plausibility on first view. That the sun goes around the earth was a consensus for a thousand years. Hard struggles were needed to correct this.

False theories in areas where material interests play a great role (like economics and unlike pure mathematics) can continue existing as ideologies. By ideology, I understand a false opinion or theory that covers conditions of social rule (cf. Hofmann 1969). Thus ideologies are not mere errors but false statements with justification tendencies justifying existing conditions. This does not always mean supporters of an ideology are active conscious liars. Ideologies are not obviously ridiculous but can correctly explain isolated phenomenon torn out of the total context like the bankruptcy of a certain business after high increased wage- or raw material costs. Real market economies doubtlessly make usable products, growth and income so that the possible view that markets freed from all deficiencies are optimal in some way is not ridiculous from the start. To examine its ideological content, the theory must be tested on its ability to explain a real market economy before one asks about the interests that vigorously justify the maintenance and diffusion of such a theory.

The following questions must be raised and discussed regarding theory and ideology: How did this market theory arise? What are its basic ideas (chapter 2)? What makes this theory so attractive? What does it claim? How does the “invisible hand” guide everything to the best (chapter 3)? Where is the reasoning wrong? To what extent does the market theory treat what is not a real market economy (chapter 4)? This 4th chapter will claim most of the space. Why is such a failed theory maintained? How is it exploited for the ideological stabilization of the existing economic system (chapter 5)? Finally, can it be that this theory contributes nothing to explaining a market economy? Then we may not live in the best of all theoretically conceivable economic systems even if the real market economy is experientially the best of all possible economies. The invisible hand, the organization of an economy as a market economy, burdens society with enormous costs (chapter 6). Belief in the market economy theory and holding to the real market economy is expensive for us.


VIDEO: “21ST Century Enlightenment”

Free Internet Book “Culture Change” by Alexis Zeigler

Report this post as:

Local News


lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

Prohibiting Micro-Second Betting on the Exchanges A09 4:18AM

Prosecutors treat Muslims harsher than non-Muslims for the same crimes A08 10:33PM

Amy Goodman interview on cell phone safety A08 10:29PM

Mesa, Arizona police officer kills unarmed white man A08 9:50PM

Israeli leaders should be prosecuted for war crimes A08 9:48PM

Paraphysique de l'autorité A08 12:11AM

Two Podcasts on fbi corruption A06 10:13PM

Fbi assassins assault & try to kill DAVID ATKINS A06 7:29PM

EPA Head Scott Pruitt: Of Cages And Sirens A06 2:15PM

The Shortwave Report 04/06/18 Listen Globally! A05 4:25PM

Nicaraguas Conflic with native Peoples on the Caribbean Coast Near Bluefields in Decade80 A05 12:14PM

Millions Boycott The Sponsors Of Laura Ingraham A05 11:36AM


The US, the Dollar, IS and Saudi Arabia A05 3:34AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy