Stumbling and Mumbling: Left vs right: out of date - The Diigo Meta page

• 19 Mar 12
  

  Todd Suomela

  "In other words, the issue is not one of “markets vs. state” - “free” markets vs. “sand in the wheel” transactions taxes. It is: how can banks be better organized? And not just banks. The issue of NHS or schools reform poses the same questions.
  
  In this sense, the traditional statist left and free market right are both wrong."

  organization organizations sociology banking business management

  • The right is wrong because it overlooked issues of the organization of private companies because it believed that the market would select against bad forms of organization and in favour of good ones. This belief ran into two problems - that bad organizations were (are) widespread*, and that selection against them can be a hugely disruptive and costly process.

     

    The statist/Keynesian left is wrong because its faith that the state can manage the economy by macroeconomic policy and regulation ignored the organizational failings of the state - that there’s a danger of regulatory capture, or that inadequate knowledge would yield bad regulation and policy.

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