Date: Mon, 3 Feb 1997 17:13:13 -0500 (EST)
From: Gerald Levy <glevy-AT-pratt.edu>
Subject: Re: M-TH: Whether Freedom Has Any Chance


Russell Pearson wrote:

> What is a rational mind, is it some sort of spook or a spectre? 

Not quite.

Rationality means, within the context of mainstream economics, that 
people are motivated by self-interest and will behave in a manner  
consistent with that objective. For instance, firms are motivated by 
profit-maximization. Consumer rationality means, in the above context, 
that consumers through their expenditures desire to maximize their 
utility and satisfaction.

Since these goals can come into conflict, most mainstream economists 
(libertarians exempted) believe that the "neutral" state must enact laws 
which protect the "public interest." Consequently, the state acts 
rationally -- from that perspective -- when it defends the public/social 
interest.

It goes without saying that Marxists view the above processes very 
differently.

Jerry


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