2020-03-03

Principles of Economic Planning and Justice

The reason the socialists (and populists in general) have been winning as much as they have is that they are they only major faction that doesn’t tell a particularly stale set of lies about economics. In particular, they hold a few important truths hostage:

These are important truths that no other major faction is willing to speak. Many actively deny them. That said, the smarter libertarians have recently conceded on “state capacity”, which is their word for state directed economics.

But the socialists also get some stuff catastrophically wrong. They would deny these other truths:

There is much more that can be said; there is enough nonsense from all corners in economic discourse that even contradicting them, let alone refuting them, would be a full time job. Without a new paradigm, enterprising demagogues are going to continue to score points against political order and economic sanity, and semi-automated economists will continue to chop up and liquidate the economy for forgotten reasons.

The new paradigm needs to start with insights like the above, especially recovering the organizing role of the state in the economy, without losing the insights of Hayek etc, and the positive role of the billionaire hero entrepreneur.