imc indymedia

Los Angeles Indymedia : Activist News

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


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org 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

www.indymedia.org 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 9:38 AM
mbatko@yahoo.com

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."

MARKET FAILURE WHEREVER ONE LOOKS

By Conrad Schuhler

[This editorial from isw, institut für sozial-ökologische wirtschaftsforschung, July 2010 is translated from the German on the Internet, http://www.isw-muenchen.de/forschungshefte40.html.]



“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.

RELATED LINKS:

VIDEO: “21ST Century Enlightenment”

http://www.wimp.com/centuryenlightenment/

Free Internet Book “Culture Change” by Alexis Zeigler

http://conev.org/ren14x.pdf

www.grittv.org

www.informationclearinghouse.info

www.rdwolff.com

www.storyofstuff.com

www.submedia.tv

www.truth-out.org

Report this post as:

Local News

Marshall Tuck’s racist dog whistle O27 5:01AM

Marshall Tuck’s ethnocentrism contradicts Californian values O27 4:32AM

Contra Costa-Hawkins O25 3:48AM

Debunking Some Anti-Prop 10 Propaganda O12 6:56AM

Why Should California Choose De Leon Over Feinstein? O10 9:55PM

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

More Local News...

Other/Breaking News

President Trump: Hurricane Relief Should not Pay Puerto Rico Debt N14 8:54PM

94 Of Rick Scott's, Brian Kemp's, the Mississippi GOP's & Other Republican Campaign Crime N13 9:42PM

30 Of Brian Kemp's Felonious Racist Vote Suppression Crimes N13 8:42PM

Help translation of From Islam To Womanism book on IndieGoGo N13 12:04PM

COP 21, 25, 32, de l'écocide organisé N11 11:45PM

fbi & fmj are ' Lord of the Flies ' N11 8:26PM

Parangon d'une grande infestation N11 12:03AM

Video: Beautiful Country Burn Again, 39 min N10 10:19PM

OBAMA WERE POW'S LEFTBEHIND IN AFGHANISTAN IRAQ AND LIBYA N08 7:57PM

OBAMA WERE POWS LEFT BEHIND IN AFGAHNISTAN IRAQ AND LIBYA N08 7:29PM

DID BARACK OBAMA LEAVE POWS BEHIND IN AFGAHNISTAN IRAQ AND LIBYA N08 6:43PM

DID BARACK OBAMA LEAVE POWS BEHIND IN AFGHANISTAN IRAQ AND LIBYA N08 5:50PM

Paraphysique de l'Etat d'urgence N08 4:24AM

Republican Vote Fraud Reached A New Level In Midterms N07 7:50PM

Lobotomisation populationnelle N07 7:28AM

Texas Finally Ousts Culberson! N07 4:43AM

Israel Quit UNESCO, Um-Shmum, Make Ben-Gurion Proud! N06 7:37PM

Mafia City Hack Mod Generator - Generate 15.000 Gold N06 2:04AM

Ronald L. Havner & The Sleazy Corporate Whores @PublicStorage RAPED ME! N05 10:25PM

Trumponomics and Wall Street Rejoices N05 11:36AM

8 GOP Candidates For Governor Want Executions To Continue In Their States N05 10:11AM

Paraphysique de l'hybris pirocratie N05 7:40AM

Pity Yitzhak Rabin Wasn’t Israel’s Trump! N03 11:01PM

Une machine c'est crétin N03 7:45AM

Nuke Plants Cause Excess CancerDeaths When Running, Rates Decline When They Shut Down N01 10:20PM

Right-wing Populism: A Wave of Nostalgia N01 11:02AM

Paraphysique du profit de l'horreur N01 8:11AM

Trump: A Disaster For Animals As Well As People O31 10:25PM

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