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The problem of Social Order

The problem of Social Order. Social system. Order – elements and relations that form a knowable pattern Causes of conflict: Plurality Diversity Scarcity Free access. Solutions to conflict: Unity organization Consensus cooperative Abundance no system Property competitive order.

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The problem of Social Order

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  1. The problem of Social Order

  2. Social system • Order – elements and relations that form a knowable pattern • Causes of conflict: • Plurality • Diversity • Scarcity • Free access

  3. Solutions to conflict: • Unity • organization • Consensus • cooperative • Abundance • no system • Property • competitive order

  4. Socialism x liberalism • Classicalliberalism property • Modernliberalism  abundance/consensus • Socialism  unity • Communism  abundance/consensus

  5. Role ofPoleconomy • Thenatureoforderdepends on howitemerged… • Propertyand unity solutionsgiverise to differenttypesoforders… • Wecanaskthreetypesofquestionsabout society: • Whatshouldpeopleaimat? • Whatrulesifanyexist? • How do individualactionsgiverise to socialsystems?

  6. Politicaleconomy • Production as a problem • Science placinglimits on utopia • Wealth • Human behavior • Vaueadded? Unintended consequences

  7. Normative implications • Natural liberty (property)  ORDER as ifcreated by the Great artist; harmony • PROPERTY  ORDER / (concatenate) COORDINATION

  8. Karl Marx • Harmony X class struggle (exploitation) • Coordination X anarchy of production

  9. Economiccalculation • Without private property in the means of production, there will be no market for the means of production. • Without a market for a means of production, there will be no monetary prices established for the means of production. • Without monetary prices, reflecting the relative scarcity of capital goods, economic decision-makers will be unable to rationally calculate the alternative use of capital goods. • Isitright?

  10. NO property NO calculation NO catallacticorder • Spontaneousorders (conviviality/naturalorder/competitiveorder) • Vs. • Plannedorders (organization)

  11. Writers on Political Economy profess to teach, or to investigate, the nature of Wealth, and the laws of its production and distribution: including directly or remotely, the operation of all the causes which the condition of mankind, or of any society of human beings, in respect to this universal object of human desire, is made prosperous or the reverse. • J. S. MillPrinciples of Political Economy

  12. Indeed, itisprobably no exaggeration to saythateconomicsdevelopedmainly as theoutcomeoftheinvestigationandrefutationofsuccessiveUtopianproposals–if by ‘Utopian’wemeanproposalsfortheimprovementofundesirableeffectsoftheexistingsystem, basedupon a completedisregardofthoseforceswhichactuallyenableit to work. • Hayek 1933, s. 123

  13. PoliticalEconomyorEconomicsis ...on theoneside a study of wealth; and on theother, and more importantside, a part of the study of man. • A. MarshallPrinciplesofEconomics

  14. Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. • Robbins, 1932, s. 15 • The nature of Economic theory is clear. It is the study of the formal implications of this relationship of ends and means. • Robbins, 1932, s. 37

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