Re: [OPE-L] Non equilibrium & Austrians

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Fri Apr 20 2007 - 08:09:33 EDT


   Alejandro wrote: 

Austrians put the accent on price channel to transmit information and
let the entrepreneur's creativity and local knowledge to search for
profitable ways of production. C&C put the accent on objective channels
to transmit information about technical data in order to produce use
values previously chosen by consumers.

 

C&C`s statistical equilibrium is too a never ended phenomenon. That's
because in any form of economic organization what constitute the primary
data are on women and men' minds.

 

So, answering the initial question: yes and no, Ja! Ja! Ja! It seems to
be a missing piece in C&C`s statistical equilibrium: the entrepreneur's
creativity propelled by rivalry.

 

Is that good or bad? That's the question.

 -------------------

 

 

Paul

 

I think that the Austrian predilection for the individual entrepreneur
reflects a fixation with an early stage of capitalism.

 

Consider current   consumer goods. For decades the a large fraction of
these have been produced and designed by the

great Japanese kieretsu's like Mitsui, Nissan etc. These have completely
out competed consumer goods produced by companies

headed by individual entrepreneurs. The latter are restricted to the
production of small niche markets making luxury goods

for the rich.

When it comes to efficient mass production, efficient production line
output of new designs, the individual entrepreneur can not compete with
the kieretsu of Japan.the chaebol of Korea, or in due course,
conglomerates like Tata.

When socialists propose models of economic organisation for a future
society what they have to measure up against are these sort of
organisations, not small mittleres Europa family firms of the type that
seem to have formed the conceptual model of the Austrian school.

 

The large Asian conglomerates show the approach towards socialist
organisation of production which is necessary even under advanced
capitalism.

 

 

 

 

 

w

 

 

.

 

 

 

 


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