From: "na.devine" <na.devine@xxxxxxxxxxxxxx>
Date: Wed, 29 Jul 1998 16:39:26 +1200
Sorry this is hasty:
the point about markets for Hayek is that they create information, not
that they allow pre-existing information to be uncovered, although in
the process of the market the preferences of individuals are revealed.
Its the preferences, the extent to which people are prepared to pay,
which creates the price which is really a coding for the value people
put upon things.
The weird thing though really is the Darwinian bit: through the
'spontaneous order' of the market, a form of evolution takes place.
Because no individual is all-knowing, no one can take responsiblity for
the progress of humanity, but because of the amalgamation of myriad
decisions in the market place human progress is achieved. The market has
evolved, like the church and family as a result of this kind of process,
as well as being an instrument of it.
To most economists the market is about allocation: this doesn't really
seem to be important to Hayek.
The best thing about Hayek is his insistance on the subjectivity of the
individual, so he avoids the mechanistic nature of home economicus. I
think this is an unexplored possibility in contemporary governmentality.
Even Hayek tends to abandon it when the going gets rough, and says that
the indivudial is 'rational', and we recognise rationality when we see
it, that 's how we know it is rational.
I too would really like to know the Hayek-Foucault connection. It could
be an earlier one though - Menger or Mises or Wieser.