Date: Wed, 19 Oct 1994 09:24:09 -0400 (EDT) From: "Paul W. Cockshott" <cockshpw-AT-wfu.edu> Subject: Re: Just a comment... Chris says that his only objective in using Hayek to attack Marx is to seek the truth. Well, who among us believes themselves to be motivated by a love of lies. The point remains that Hayek is a current pinnacle of what Marx called vulgar political economy and if one holds to that, one is forced to attack Marxism, since the purpose of vulgar political economy has always been to defend the bourgeois social order. First Chris said that Hayek did not think that the problem of socialism is the impossibility of one mind comprehending the details of the economy. Then when I show Hayek saying just that, Chris says that we must take the good with the bad, the late with the early Hayek, perhaps he did say all these things before 1955 but we should not place too much emphasis on these youthful writings. Then the key issue was not the impossibility of calculation of a plan, but the irreducibly subjective character of knowledge. Since this could not be captured by any formalised decision procedure and thus automated, there was no alternative but to use the market to capture the information. When I point out that the very areas that Hayek holds out as paradigmatic examples of the subjectivity of knowledge have now been computerised, he shifts his gounds again and says that the computerisation only works because these areas are embedded in a market. But this was not the original argument. Originally the assertion was made that a market is needed because so much knowledge is subjective and uncapturable. But if this original justification for the market is abandoned, then what is the basis for the assertion that airline booking systems only work because they are within a market economy. There is no reason why a similar flight booking system could not be made to work even better in a socialist economy. For a start one could get over the incompatibility of the software systems that are currently operated by competing airlines. The information systems that exist today are designed to tie you in to one airline with the result that you may have to follow the most tortuous route from start to destination. Create one integrated flight booking system for all flights and the passenger will get a better choice. The other functions of such a system - providing objective information on flight loadings, calculating the optimum scheduling of flights at minimum cost etc, will work equally well under communism as under capitalism -- costs would just be computed in labour hours not dollars. Chris is right that arbitrage operations can only be computerised because they are in a market economy, but for the simple reason that they are an unproductive overhead of the market system that will perish with it. ------------------
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