Lindblom - The Market as Prison

8/17/2019 Lindblom - The Market as Prison

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The Market as PrisonAuthor(s): Charles E. LindblomSource: The Journal of Politics, Vol. 44, No. 2 (May, 1982), pp. 324-336Published by: on behalf of theThe University of Chicago Press Southern Political ScienceAssociationStable URL: http://www.jstor.org/stable/2130588Accessed: 22-03-2016 19:33 UTC

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The M rk e t AP r on

CHARLESE LNDBLOM

SU PPOSE u t t o mb eru p ou rmn d t h t w e f c e d t he f n c f u

t k o f de g n n g p o t c y t em o r p o t c / ec on om c y t em

th t w ou db e h gh yre t n t t o c h n ge H ow t od o t ? On e w y

t h t c n b e m g n e d b u t o n y m g n ed t o de g n n t t ut o n

of u c h e x ce e n c e w ou d t f yu w t h ou t f urt he rme n dme nt

n d wo u d do o u nd er p o b e c r cu m t n ce n r p d y c h n g

n g wo r d To d e nt fy u c h p o b t y t o d c r d t h op e e y

v on ryAn oth e rpo b t ymgh t b e omeh ow top c e p owe r

n t h e h n d of d e p o t oro g rc h w h ow ou d t he re f te rd e ny

c t ze n n y c p c t y f orc h n gn g t he y t e mB u t d on g ow ou d

of c ou re e n b e t h e e t e t o c h n ge t h e y t e m n dw e k now t h t

ome e t e re more e g e rf orc h n ge t h n ome m e

A no th er p o b t y m p e n d f e nd h y c e v e r t t o de g n

n t t u t on o t h t n y t t e mp t t o t ert h e mu t omt c y t rgg er

pun h me nt B y u t omt c me n t h t t h e p un h me n t foow

fromthevery ctntendedtochngethey temPun hmentdoe

n o t w t f or n y on e d e b e rt on on w he t he rt he c h n g e c c ep

t b e orn o t S u c h c h n ge re p re n gy t e mwoudb e t h e

moreeffectve fthepunhment weretrong ftheytooktheform

o f ov er r e p on e k e th e t nt ru m o f p o e d ch d r g n g t e v en

md t te mpt t p re n t c ont ro

H ow f n cf u t h t po b t y? t n ot t c e r h ow u c h

mpe c onc ep t c ou db e md e e ff e ct v e n c t u p r c t c e C on

de rome of ou rn t t u t on Th ere e e mt ob e n ow y t omk e

u ch m ec h n m w o rk n t h e c e o f c ho o W e r e n d ee d

omet me pun h ed n ou rt t e mp t t o mprov e th em n t h t t h e t

t em pt o me t me f n d m k e th e t u t on w or e B u t t h t n ot

*An n f orm t k re con t ruc te d byLn db omf romh ou t n e n dn o t e g v e n t

e c h of f ou r r eg o n p o t c c e nc e o c t o n n n u m ee t ng


http://www.jstor.org/page/info/about/policies/terms.jsphttp://www.jstor.org/page/info/about/policies/terms.jsp


3/14

THEMARKETASPRSON325

a bu t-n feature of the schoo system or of our attempts to mprove

t There may be no way even f we sought one to bud n an

automatc punshng reco The same seems to be true for abor

unons Unons possess a capacty for reta atory punshment

through strkes but t s a weapon they must use sparng y And t s

a weaponrareyusedtopunshattemptsofsocetyto changethe n-

sttut ona roe of unons but s nstead argey an adunct to bargan-

ng over terms of empoyment for members There appears to be no

easy perceved possb ty for automatca y punshng ourseves

e v e ry t me w e t ry t o e g t e on un on

fweg o d ownthe neo f s oc a ns t tut o ns thep os s b t e s fo r

repressng change through an automatc pun shng reco appear to

be ether nonexstent or mpossbe to magne For the church the

famy orthevarousnsttutonsof governmentfor exampe un-

punshedchangecontnues nfactfromyeartoyeareven f agan

we may sometmes construe a fa ure n reform as a punshment No

methodforguaranteengautomatc punshment s nevdence

Whenwecomehowevertothatc usterof nsttutonscaed

busness bus ness enterprse or the market ust such a mechansm

s n fact aready operat ng Many knds of market reform

automatca y trgger punshments n the form of unempoyment or

a sugg sh economy Do we want busnesses to carry a arger share

of the naton s tax burden? We must fear that such a reform w

d scourage busness nvestment and curta empoyment Do we

want busness enterprses to reduce ndustra po uton of ar and

water? Agan we must bear the consequences of the costs to them of

ther do ng so and the resutant decnes n nvestment and empoy-

ment Woud we ke to consder even more fundamenta changes

n busness and market - worker partc paton n management for

exampe or pubc scrutny of corporate decsons? We can hardy

mag ne puttng such proposas as those on the eg sat ve agenda so

d t urbn gw oud t h eyb e t ob un e more n dn c e nt v e

n the t ownn whch v e a chemca p a ntd s charge s s ome -

thng nto the atmosphere that carres both a bad odor and rr tants

to the eyes Town and state governments are both reuctant to put

a nend to thep r ob emfo rfea r that thep a ntw fnd t a dv an-

tageous to move to a new ocaton n another state Natona y we

have recenty seen that a re- nvgorated Federa Trade Commsson

has been crpped by new restrctve egs aton and presdenta n-

structons for fear that effectve regu aton of monopo y by the Com-

mssonw undercutbusnessncentvesto nvestandprovdeobs




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326 THE JOURNAL OF POLITICS, VOL. 44, 1982

All this is familiar. One line of reform after another is blocked by

prospective punishment. An enormous variety of reforms do in fact

undercut business expectations of profitability and do therefore

reduce employment. Higher business taxes reduce profitability.

Bearing the costs of pollution control reduces profitability. Build-

ing safer automobilites reduces profitability. Countless reforms

therefore are followed immediately - swiftly - by the punishment of

unempoyment

Change is repressed, not wholly stopped. Businessmen some-

times learn to live with reforms. Sometimes also we escape the

punishment because we attach to the reforms new offsetting benefits

to business to keep up their incentives to provide jobs. To a growing

number of environmental controls over business we attach new tax

benefits or, as in the case of Chrysler, new loan guarantees. But the

conflict between reform and its adverse effects on business that

punish us through unemployment is a long standing and real repres-

sant of change. As for the ubiquity of punishment, its swiftness and

severity, there is nothing like it elsewhere in the social system. No-

where else is there so effective a set of automatic punishments

estabshedasa barrertosoca change

Business people often exaggerate the conflict. Chrysler, for ex-

ample, argued that its financial difficulties, for which it sought

relief from government, were largely caused by environmental regu-

lations, which is almost certainly not the case. And business people

often predict dire consequences from regulations that they know

they can accept if they must. Nevertheless, change in business and

market institutions is drastically repressed by the frequency with

which change will in actual fact produce unemployment. This is a

familiar phenomenon as old as markets themselves

Punishment is not dependent on conspiracy or intention to

punish. If, anticipating new regulations, a businessman decides not

to go through with a planned output expansion, he has in effect

punished us without the intention of doing so. Simply minding

ones own business is the formula for an extraordina ry system for

e p re n g c h n ge

The mechanism that accounts for this extraordinary state of af-

fairs is the same one that I referred to in Politics and Markets to ex-

plain the related phenomenon of the privileged position of business

in the political system of all market oriented societies. In all market

New Y ork B c B ook 1977




5/14

THE MARKET AS PRISON 327

oriented societies, the great organizing and coordinating tasks are

placed in the hands of two groups of responsible persons, func-

tionaries, or leaders One group consists of government officials at

sufficiently high levels The other group consists of business people

The tasks assigned to business people are of no l ess importance than

those assigned to government officials To business people is

assigned the organizing of the nations work force, and that task in

itself is perhaps the largest and most basic specific problem in social

organization faced by any society Businessmen direct capital ac-

cumulation, income distribution, and resource conservation, as well

as discharge more particular tasks such as organizing the production

of steel, bicycles, armaments, pots and pans, and housing Busi-

nessmen also undertake specific coordinating tasks as, for example,

thebrngngoffarmproductstourbanconsumers

The defining difference between a government official and a

business entrepreneur is not that one discharges important functions

and the other only secondary functions, for both perform maor and

essential services for society The difference is that one is directed

and controlled through a system of commands while the other is

directed and controlled by a system of inducements Why societies

use both systems of direction and control is a l ong story that we shall

not undertake But a market society is one that makes heavy use of

an i nducements system for directing and controlling many of its ma-

or leaders Market systems are inducement systems Put out of

your minds the question of whether or not societies ought to use in-

ducement systems for controlling and directing top leadership The

fact s that some do and that s what market systems are

Playing their roles in a command system, government officials can

be commanded to perform their functions Playing their roles in an

inducement system, business people cannot be commanded but must

be induced Thus inducement becomes the nub of the automatic

punishment system Any change in their position that they do not

like is a disincentive, an anti-inducement, leading them not to per-

form their function or to perform it with less vigor Any change or

reform they do not like brings to all of us the punishment of

unempoymentor uggh economy

Again, the system works that way not because business people

conspire or plan to punish us, but simply because many kinds of in-

stitutional changes are of a character they do not like and conse-

quently reduce the inducements we count on to motivate them to

provde ob ndperformtherotherfuncton




6/14

328THEJOURNALOFPOLTCS VOL44 1982

T he r e u t t h t c r o t he e nt r e r r y o f n t t u t on c h ng e

t h t b u n e m e n th em e v e d o n ot k e n u t o m t c pu n h n g

re co w ork t ore pre c h n ge n t h t b rod c t e g ory c h n g e

ndofteneventheuggeton ofchnge dverey ffect perfor

mn c e h e nc e d v e re y f fe c t e mpoyme nt An t c p t on of

chnge reenoughtotrggerunempoyment

C h dre n myu k w h en t h eyd on o t k e t h e w y t h e y re b e n g

t re t ed P rof e or mygrumbe Work e rmy ow t he rw ork

B ut t h e rre p on e d f f e rf romt he re p on e of d t f e d

b u n e m e n n c r t c w y T h e d t f c t on o f th e e o th er

g rou pd on o t re u t n d n c en t v e n d re du c ed p e rformn ce t h t

mpoe b rod e v ere n d obv ou p e n t y t hrough ou t t he o c e ty

w h c h w h t un empoyme nt d o e Ag e ne r ze d g rdu

ow dow n of worke r f t w ere t o o c cu rw ou d ordn r yb e

n e t he rme u rb e n orob e rvb e An yg en e r bun e ow dow n

m e u r b e n d hu rt fu n o b o t n d m o t e ve ry on e w r e

o f t A p ec f c o c z ed w or k o wd ow n or t op p g e y d ec

o n of t r n m en t o wo rk b y th e ru e b o ok o d uo u y t o

p r y ze r t r f f c c n be f e t n u ry t o m o n o f p eo p e B ut

t t c t c th t c n o n y n ow n d t h en b e mo b z e d n t e d t h e

p en t y o f u ne mp o ym en t v t ed o n u b y b u n e d n ce nt v e n

n y t u t on n w h c h bu n e p eo p e e e t he m e v e d v er e y f

f ec t ed b e c u e b un e p e op e re m ororgn ze r n d c oor

dn t or

B un e p e op e d on o t h v e t od eb t e w h et h erorn o t t ompoe

t he p e n t yTh e yn ee d d on omore db e fore t h n t e nd t o

t h e rown bun e e w h c h me n t h t w t h ou t th ough t of ef f ec

t n g pun h men t on u t he y re t rc t n v e t me nt n d ob mpyn

thecoureofbengprudentmnger oftherenterpr e

D o n e ed t op on t out h ow brodybu n e d n c en t v e n u re

p opu t on ? The un empoye du f f er t h t obv ou S o od o

youngpropectveentrnt ntothe borforcewhofndth tthey

c n no t ob t n o b w he nb u n e c k So o d o bu n e m e n

t he m e ve r ge n d m p ro du ct on r ed uc ed S o o d o

t oc kh o de r w ho e e r n n g d e c n e S o o d o f r me r b u

n e me n t h eme v e w hof n dmrk e t f ort h e rout p ut d e pre e d

Wh t b out g ov ern me nt of f c ? t c rt c t o t he e f f c c y of

u tomt c pun h me nt t h t t b e v t ed on t h emF or t t he yw ho

mme d t e y orp roxmt e yd ec d e t op er t n p o c y c h n g e ort o

w th d rw f romu c h n t t v e Th e pe n t yv t ed on t h emby

b u n e d n ce nt v e c u e d b y p ro po e d p o c e t h t de c n n g




7/14

THEMARKETASPRSON329

b u n e c t v ty t hr e t t o th e p r ty n d th e of f c n p ow er

Wh en d e c n e n p rop e rt yn d e mpoyme nt b rou ght b out by

d e c on of c orp ort e n d o th e rb un e e x ec u t ve t n o t th ey

butgovernmentoffc whoconequenty reretredfromtherof

fce

Th t re u t t he n w hy t h e mrk et mgh t b e c h rc t erze d

p r o n F or b ro d c t e go ry o f po t c / ec on om c f f r t m

p ron p o c ymk n g n dmpron ou rt t emp t t omprove ou r

n t t ut on t g re t y c rpp e ou rt t emp t t omprove t h e o c

w ordb ec u e t f f c t u w t h uggh e c onomc p e rf ormn c e n d

unempoyment mpybecu ewebegnto debteorundertke

reform

n h G re t T r n f o rm t o n K r P o n y m k e t he p o nt t h t

e ry En gh e x pe re nc e w t h p o c yd e gn e d t o of te n t he h r h ne

ofthemrket ytem n18thcenturyEngnddemontrtedhow

e y re gu t on of t h e mrke t c ou dd e rn g e t he e c on omyB u t h e

d d n ot g o o f r t o r g ue t h t m r ke t y t e m m p r o n o r c r pp e

t h e po c ym k n gproc e n dn d e ed t h ou ght t h t more n t e g e n t

p o c ymk n g c ou d u c ce e dwh ere e r e rt t e mp t f e d m

rgung t h t t h e c rppn g of p o c ymk n g n mrk e t o c e t ymy

bemoreer ou thnhethought

Y oumyb e t e mpt ed t ob e e v e t h t t h e re ob t c e t o o c

ch ng e we oft en c re e y er t k nd of o c ner t o r

t en de nc y of o c e t e t o r em n t he y r e B u t t n ot t c e r

t h t n e rt o f th t k n d e x t n t he o c w or d M n y p e op e c on

t nt y t ry t o c h n ge t h e o c w ordAn e x pn t on of t h e r

f u re m or e p u b e t h n t h t of n e rt t o be f ou nd n t h e g re t

numberofotherpeopewhore vgorouy tryngtofrutrte oc

c h ng e My n y p o nt t o o c m ec h n m th t f ru t r te t

t h g h y e e ct v e me ch n m y o u h o u d no te t h t p e rm t

ch n g e of ome k n d n dmpoe p owe rfu ob t c e t o o t he rk n d

C e r y f w e o ok t d f fe re nt r e o f o c f e e e o f ch n ge

v r e g re t y f r om r e t o r e n r ec en t ye r w e h ve e e n r ge

c h ng e n e xu m or e f o r ex m p e w e o f co ur e m u tp e

c h n g e p re e d on u by t ec h noog c d e ve opme n t n

po t c / e con omc f e o c e ty ov ert h e w ordh g one t h rou gh

or n ow gon g t h rou gh on e of t he w ord gre t e t o c re vou

t on t h e orgn zt on of mot e v ery f ormof o c c o op e rt on

t hrough f orm orgn zt on e p e c ybu re u crt c orgn zt on

Th e bure u c rt c re vou t on e nou gh t o t e t f y t o t he c p c t y of

o c e ty f or p o t c n d ec on om c c h n ge t t he m or e m




8/14


p re v e t h t t he re ex t me ch n mof u t omt c pun h n gre co

t h t u cc e f u y re t rd orre p re e c h n ge n o t he r p e ct of

p o t c n d ec on om c f e

n u t w h t p ec t o f p o t c / e co no m c f e th t m ec h n m

op e rt e h v e n o t y et d e x c e pt t on o te t h t t h e n c u d ed p e ct

r e t ho e n w h ch b u n e m e n o r n y r ge o r c r t c n u mb er

of th em e e c h n ge h u rt fu t o t he row n prop ec t Y ou c n f

n w h t th o e p ec t r e T he y n c ud e n t t u t on n d po c e

t h t p ro te c t th e d ec on mk n g u t hort y of bun e me n n t h e r

ow n bu n e e n d t he c u t omryprerog t v e of mn g e me nt n

c u dn grgh t t o e f re c ru t men t n t o c orp ort e e t e Th ey n

c u d e p o c e t h t m n t n t h e e x t n gd t rbut on of n c ome n d

w e t h o ng w t h n t t u t on n d po c e t h t ho d t he b or

movementncheckTheeffccyof thereco mechnm

e vd en c ed by t h e con t nun gh t orc f u re of eq u t r n p r

t o n t o c h e ve g n f c nt c h n ge n t h e d t r b ut o n of w e t h

n dn c ome mong oc t rt n dby t he c ont n un gu t onomyof

c orport e mn g e me nt n w ordn w h c h n c re n gn umber of

thoughtfu peopere rgungon envronment ndother

g roun d t h t n og rou p of e d e r c n b e ow ed t o e x erc e o

u t on omou c ont roov erou r v e An e w t u dy of corport e

powerbyHermn openoureye totheextentn whchbu ne

u t on omyh b e en u t n edd e p t e d e c d e of pp re nt g rowt h n

t h e regu t on of t 2

t o th ec e t h t n o f r po c y h uc ce f u y pu hed

n to r e o f wh c h bu n e p eo p e d p pr ov e t h o ft en h d t o b e

of f e t byn e w b en e f t or u pport t ob un e Wh en t h t h pp e n

p o c y mpron edn o t n t h e e n e t h t t c n n o t bre k ou t of t

c onf n e me nt bu t n t h e e n e t h t t ore e e t w e mu t py r n om

W he re t he re r e p r o n h ow ev er t h er e r e o b re k A g n

t h ere fore d on ot rgue t h t t h e mrk et e c p e p roof

Th e mpron n gof n t t u t on n dp o c ymk n g n mrk e t

o r en te d o c e ty t h nk o r d n r y b r u h ed d e n e mb r

r n gf e t ure of o t e n byd e mocrt c y t e m We re n o t c om

f ort b e n c kn ow edgn g t h t p opu r c ont ro c rpp e dn t h e e

y t em b y n u to m t c p un h n g r e co n t he U S t o d y

h ow ev e rn t h e Re gn dmn t rt on w e n ow h e rre mrk by

c n dd c k now e dg e me nt t h t w e mu t e rn t ob e h ppyn ou r

2Edwrd S HermnCorporteContro CorportePowerNewYorkC m

brdg e Un v e rt yP re 1981




9/14

THEMARKETASPRSON331

pr o n T he n ew d m n t r t o n te u b o d y n d b d y t h t w e

c n no t h v e g row th c n no t h v e p rc e t b t y n d c n n ot h v e

f u e mpoymen t un e w e t op un de rmn n gbu n e n c en t v e

Hence theyhvetodu thtwec nnothve neffectveFeder

Trd e C omm on t re ce n t en ergyh vn gh rme dbu n e Nor

c n w e p e r t n re ce nt p rogrm of u t omob e f e ty w h c h mu t

n ow be re x e dNorc n w e p rot ec t t he n d c p e g n t t rp

mn e On e f t er n o th erof ou rre ce nt re form re b e n g c urt e d

of r t h e dmn t rt on c n c h e ve t h e re u t on t h e g roun d

t h t ou re con omc y t e m t he mrk e t y t em doe n o t ow u c h

re form f w e re t o e n oyp rop e rtyWe c n not e ve n h od t o

p o c y o f hu m n r g ht b ro d A D v d R o ck ef e e r e r y n

n oun ce dn dme mbe rof t h e Re gn dmn t rt on h v e re pe t e d

n c e ou rp o c y of p rot ec t n gh umn rgh t b rodh t ob e u b or

dn t e d t o ou rn e ed f orfore gn mrke t w t h w h ch t h b ee n n

nterference

Th e Re gn dmn t rt on t ryng t omk e t h e u t omt c re co

me ch n me v en more ob t ru ct v e t o o c c h n ge t h n t n e ed b e

B u t c red t t h e dmn t rt on w t h un de rt n dn g t h t u c h

m ec h n m e x t n n y m r k et y t em T h ey r e r g ht n p

p re c t n g t h t p o c ymk n g mpron ed e v en w t h out t h e re f

f or t t o b u d t he w h g he r

F n y t k e no te t h t m y r g um en t t h t po c y m pr o n ed n

m r k et o r en te d y t e m w h ch b ro d e r ge ne r z t o n t h n f

h d d t h t t m pr o n e d n p r v t e en te rp r e y t em T he

f e t ure of mrk et y t e mt h t t t h e c ore of t he re c ome c h n m

thenducementy temthtweu etomotv teonegretc tegory

of orgn zer n d c oordn t ort od o t h e rw ork f w e w ere t o

operte mrket ytemcompoedexcu veyofgovernmentowned

n d ope rt e dmrk et e n te rpr e t he re c ome c h n m w oud t

operte Thenducementnece rytogettherequredperfor

m n ce ou t of pub c mn g e r mgh t b e f ew eror e h en c e th e

p rob e mof u t omt c pun h n gre c om ght b e re du c edB u t t

w ou dn ot b e e mn t e d un e w e b n d on ed t h e n duc e me n t

y t e mn f v orof c ommn d y t e mt h u re movng t h e o c ze d

enterpr efrom mrket ytemof nducement

On e of t he c u e b e e v e of S ov e t bn d onme nt of t h e rt

tempt nthe1960 to ntroducemorem rketeement ntothe

S ov et e c on omy t h t t h e re r e t mov e w e re b ru pt yp e rce v e d

r eq u r ng t op p o t c e d er h p t o t o n t h n d t h t n ot t o

n te rf er e w th m r k et t m u t ed m n g e r d ec o n A t e t




10/14

332THEJOURNALOFPOLT CS VOL44 1982

dmy theypercevedthatthegrowthofthe market mped con-

strctons on ther own ab ty to make po cy They top Sovet

authort es woudbe mprsonedbyther commtmenttothe

mrket

Someofyouw hearmyremarkstodayasconsttutngan argu-

ment for gettng r d of the market system so that po cy can escape

fr om ts p r s on But thatwo ud b ep ut tngwo rd s n my mouth

do bee ve that the fact that the market system mpr sons po cy

through an automatc punshng reco s a serous d sadvantage of

market systems woud not want to deprecate m nm ze or

obscure that nference We pay a b g prce for the use of a market

system But whether the market ought to be manta ned or aban-

doned cas for a wegh ng of ts advantages and dsadvantages And

t h t t k mn ot und e rt k n g t ody

nanycase thereatonbetweendemocracyandmarkets more

compex than we hear t to be from cassca beras ke Hayek and

Fredman No democrat c naton state has ever arsen anywhere n

the word except n conunct on wth a market system -surey a

hstorca factofenormousmportanceBut accordngto myargu-

ment today no market socety can acheve a fuy deveoped

democracybecausethemarketmprsonsthepo cy-makngprocess

We may be caught n a v se For mn ma democracy we requre a

market system For fu er democracy we requre ts e mnaton

But ts e mnaton m ght pose more obstaces to a fu er democracy

than does ts contnung mpr sonng of pocy makng t may

therefore be that a fu er democracy s never to be ours Or f t can

b e a chev ed t w comeo ny whenwed s cov erhowto p ro v d e

wthout a market system those mn ma supports for democracy

whch so far n hstory on y market systems have provded Our

d emma or dffcut es are extraordnary -and are not carfed for

usbythecurrentstatee therofmarkettheoryordemocratctheory

ForAmercansandmanyWesternEuropeansthemarket sa

p r s on na nother s ens e a s we Bo tha s a n ns t tut o na nd as a nn-

te ectua concept t seems to have mprsoned our thnkng about

p o t c n d e con omc

Forme anearyandmemorabedemonstratonof mprsoned

thought was many of the revews of Unons and Captasm a book

based on my doctora dssertat on and pub shed n 1949 n t had

arguedthatcertan ncompatb tesbetweentwomaor nsttutons




11/14

THEMARKETASPRSON333

of ou ro c e t y c o e c t v e b rg n n gon on e h n d n d t he mrk e t

ytem ontheother woud nthefutureproduce erou probem

n c u dng mu t n e ou une mpoymen t n d n f t on Not kn ow ng

w h t t od ob ou t t he p rob em mpyof fe red d gno w t h ou t

re me d p re c r p t on n v e y u m ng t h t t he d g n o m p e d

t h t omet h n gh d t ogv e e t h eron t h e d e of c o e c t ve b rg n n g

oron t h e d e of t he mrk e t y t emA mot re v ew er h owe v er

mpy t ook t f org rn te d t h t mypurp o e w t omk e c e

g n t c o e ct v e b r g n n g o r c e f or t r e tr c t on A t e t

conventon cdemcrevewer eemedunb etocontemptethe

p o b t y t h t c onf c t b e t we e n tw on t t u t on r e d q ue t on

b out b o th of t h em n d pror n omore b out t h e one t h n t h e

other

H vn gb e e n e n t ze d by t h t e r y e x pe re nc e h v e n o te d e ve r

ncethtthe tndrd formu tonofoneof oureconomcprobem

t h t un on p re u re on w g e c u e n f t on orre t rc t on of ob

op p ort un t e n t h e mmed t e y f f e ct e dn du t r f rmG v en

mrk e t y t e mt h t p robby t rue B u t e t me u gge t t h e o t he r

p o b e f ormu t on gv e n t h e n e v t b e n dund e rt n db e d e re

of w ork er t on c re e t h e r h re of n t on n c ome mrk e t

ytemw producenf tonorunempoyment Theecondprop

o t o n n o e t ru e th n t h e f r t T he m t ed c p c t y o f ou r

th n k n g re ve e dn ou rc ommtme nt n h b t of m n d t o t he f rt

propoton tothenegectoftheecondWeh vecometothnknot

of h umn n e e dn d p rt on bu t of t h e mrke t y t em t he f x e d

e e me nt n t h e gh t of w h c h we t h n k b ou t p o c yWe f n d t d f

f c u t t o t h n k of th e mrk et t h e v r b e

M u ch o f o ur t h nk n g n o th er p o c y r e m r y m p r o n ed

forexmpe ourthnkngonenvronment protectonTh t

p o c y m d e n C on gr e n d n t he W h te H ou e c r f ce e n

vronment protectontotheneedofm rketenterpre one

t hn g Th t t ho e c d em c n d ot he r c ho r n y t n d

crtc whore tryngtothnkcontructvey bouttheopton open

t o u o f te n th em e v e c n n ot e e th e m r ke t v r b e b ut t re t t

t he f x e d e e men t roundw h c h p o c ymu t b e f h on ed

n o t he rt h n gTh e t t e r w h t me n bympr on ed t h ou ght

Amore t rk n g e xmpe t h e t t e of t h n k n gb ou t te e v on

On e of t h e g re t h p e rof c on te mporry c u t ure n dp o t c

co mm er c b ro d c t n g e p ec y t e ev o n Y ou h v e h e r d

w h t on ce w ou dh v e b e en t h ou ght of t on h n gf gu re on t h e

n umbe rof h ou r du t n d c h d ren p e ndw t c h n gn dh e rn g




12/14


w h t c omme rc dv ert ze r n d t he rc e n t d e c d e we w e e n d

h e rTh t n t h e Un t e d S t t e w e h v e p e rmt t ed orc h o e n

b rod c t n g y t e mt h t c onf e r u c h u t hort y on p eop e w h oe

mot ve re t o e omet h n g t ou t h t w e c c e p t fre qu e nt u rg en t

n t errup t on n mot p rog rm ot h t w e c n b e e xh ort ed t o

b uy t h t w e m u t o h e r t e dy d e t o f pr e f or t he c or po r t e

n t t u t on t h t e xh ort u t ob uy t h t w e grn t w t hou t ch rg e

brodc tngr ghtto thoefortunteenoughtog ntheenor

m ou y p ro f t b e b ro d c t c en e n d th t w e d o no t ev en k n

e xc h n ge f or gn f c n t u e of b rod c t t me f ore du c t on pu r

p o e t he e f e tu re o f A me r c n br o dc t n g r e p u b e

e v de nc e o f n n t y t he y r e o f n te g en ce n p u b c p o c y

F orw e t h y oc e t y th t c n f fordn y of v re t y of u p e ror

y t em n d fo r o ce ty t h t n n y c e p y t he c o t o f th e

p re e nt y t e mon e mgh t t h nk t h t p o t c c e n t t n d o th er

n y t w ou d t t e nd t o t h e mert n dd eme rt of c omme rc

br o d c t n g t h t o c r t c h p er o f p o t c n d cu t ur e wo u d

b e on t he g e nd f orp rt e d d e b t e t n o t Ou rth ough t

mproned Wecnnotventurente ectu y fewexcepton

d e be yo nd w h t e e m n o rm n d n t ur W e un cr t c y

c ce p t wh t t h e mrk et p rovde F orAme rc n o c c e n ce t

c n d t h t t re m n e nt o n o g re t n u e An d t o m ke

t he p o nt p re c e y t n ot t h t c om me rc t e ev o n u n cc ep

t b e T h t n ot t he p o nt T h e po n t t h t wh et he r t o r no t

g re t u e on w h ch w e re n c pb e of t h ough t ompr on ed

reourmnd

Y ou w n ot e th t m y n g n d he re m k e t ex p c t t h t

t h e pr on t ron g e nou gh t on c rc e rt e n ot on yp opu rt h ough t

b ut p rofe on t h n k ng n t h e o c c e n ce F u rt h ere v d e nc e

e n t h e c on t rov ery ov e rp u r m n t h e t f f t ee n oro y e r

D omn n t pu r t t h ou ght n Amerc n p o t c c e n ce d e c rb e

p o c ymk n g re u t of v e c to r e c h v e ct oroft e n con

t n g of t he n f u e n ce of ome groupA grou pw h ow h t ob e

dmt te d re c c ordn g t op u r t t h ou ght dmt te d t o t he p ro c

e Th e t t c k on pu r t t h ou ght t h t e v e nt u y e merg ed

r gu ed u cc e f u y t h nk t h t n o me p o c y r e o r fo r c er

t n k n d o f p o c y u e t h e p ur t c om pe t t on o f gr ou p d d n o t

w or k n d th t c n fu en ce t r d to n b e n th e po t c

c u tu re o r p r oc e e c e d m o b z t o n o f b m d e c er t n

p o c y po t o n d o m n nt n d o t he r m po b e t o d v n ce B u t on

t h e wh oe t h e e c rt c m e d t he ph en ome non mde c rbn g t he




13/14

THEMARKETASPRSON335

e x te n t tow h c h p o c ymk n gh t ob e n d c on tr n edby t h e

p ec u r c h r c te r t c o f n n du ce me nt y t em n m r k et y t em

P u r m t m o t o pe r t e o n y n n u n mp r o n ed z o ne o f po c y

mk n gH e n ce t h e c on t n ungd e b t e on pu r m t h ou gh t h

g r e t y m p ro ve d ou r u nd er t n d n g of p o t c t g n f c nt y

c on t r n ed or mpron ed

Eventodynteretgrouptheoryforthemotp rttret bune

n te re t y mm et r c w t h b o r n d o t he r n te re t b e r n g on

p o c y m k n g t h n ot y et g en er y r ec og n ze d th t b u n e n

t er e t o c cu py p ec p c e n m p r o n ed p o c y m k n g

M ore n d re ct y t h e mrk et h t k e n h od of ourt h n k n gn oc

c e n ce n w y t h t c rpp e u t hou gh more c omp e t e c c oun t of

w h t h h pp en e d tou w ou dh v e t o c k n ow e dge t h e n f u en c e

o f p ro fe o n e co no m c t e f m o r n f ue nc e F or e x m p e

n r eg r d n g th e m r ke t y t e m p e ce o f o c m c h ne ry f or

o rg n z n g t he n t o n r e o ur ce n r e p on e t o n d v d u w n t e x

p re e d t hrough purc h e e con om t h v e d rf t ed n to n e t h c of

p re fe re nc e n o f r p o b e e th c u e r e e tt ed b y

re fe ren ce t on dvdu p ref e re nc e t k e n gv e n xg ood or x

bd ? A d e pe n d on t h e p t te rn of n dvdu p ref e re nc e

mpre e d b o th by t h e mrk et n n t t u t on n dby t he t dyn e

o f ec on om t n te rp re t t o n of t m n y p o t c c e nt t h v e

d op te d t he e t h c of p re f ere nc e t k e n gv e n t h p o c y

g ood one ? t d e p en d on t h e p t t ern of n dvdu p o t c

preference whteverthey re democrcy goodthng?Ye

b e c u e t y t e mf or e tt n gn dvdu p ref ere nc e w h t ev e r

t he y r e g o ve rn p o c y m k n g D em oc r cy p o t c m r k et

Or S c humpe te rw h o m orou rc e of th c u rre nt of t h ou ght

p u t t d e mocrc y c omp e t t ve p o t c

W h t w ro ng n t h v er o n of d em oc r cy m r k et k e pr oc

e n w hc h nd v du p re fe re nc e d e y p re v n n d e

m r k et t h t t he p ow er fu n d p er v v e ef fe ct o f p o t c o n

t he f ormt on of p re fe ren ce gn ore d F rom t e t M on t o

u t b e f ore S ch umpe te r om v e n dp e r t en t p roc e of

p ref ere nc e f ormt on c on t t ut ed by t h e p o t c y t e mt e f

w n ev e rgn ore dn ow n g t he mrk e t t od omn t e ou r

p o t c t hou gh t n c e th en w e h v e mpf e d ou rp o t c

t h eore w t h ome g n n c rt yB u t w e h v e mpove rh e d ou r

t h ou ght bympr on n g t n n un t f c t orymode of p ref ere nc e

t k en g v en




14/14


Mym n pon t h ow ev e rh b ee n t h t mrk e t y t e m mpron

p o c yTh o e of u w h ov e n t h o e mrk e t ore n te dy t e mt h t

r e c e d b e r d em oc r t c e xe rc e g n f c nt y e c on tr o o v er

p o c y t h n w e h v e t h ought An dw e re o e f ree t h n w e my

h v e t h ou ght S u c h re t h e n e v t b e c on e q ue nc e of mpron

m en t T h t o ur t h nk n g t e f m p r o n ed e p r t e

phenomenonof mportnceGven howeverthecompextyof

h umn t h ough t n d t h e mpo b t y of d e n t n gn g t ou rc e

t h e con dphe nomen on c n no t b e o c on f d en t y rgu e d t he f r t

A g n w ou d k e to e v e c u t o n b ou t n fe re nc e W h t

h v e d e cr b ed c on t t ut e e r ou d d v nt g e n m k n g u e o f

m r k et y t em B u t th e c e f o r n d g n t m r k et e xt r o r

d n r y c om p ex n d my n y o ng w y f ro m c e e th er

fo r or g n t t o o ng w y f ro m n n w e r to n y q ue t o n

b o ut w h t t o be d on e f t he p ro b em p o ed b y m y n y r e c

c ep t ed gn f c n t on e

Documents

Lindblom - The Market as Prison