Thursday, February 10, 2011

Buchanan makes a small step

The framework rules within which either market or political activity takes place must be classified in the non-partitionability set under the Samuelson taxonomy. Therefore there is nothing comparable to the profit-loss dynamic of the market that will insure any continuing thrust toward more desirable rules. ‘Public choice’ has at least partially succeeded in getting economists to remove the romantic blinders toward politics and politicians as providers of non-partitionable goods. It is equally necessary to be hard-nosed in evaluating markets as providers of non-partitionable rules.
From a new paper.

When he talks about the non-partitionability as defined by [The real] Samuelson, he is hinting at the necessity of quantization, economies of scale. As my hoards of readers are familiar, the problem that economists have had is they cannot get economies of scale, the concept of the factory, the city, the container. They cannot model that because that got lost when Keynes deluded them.

Now that we have dumped the ignorant Keynes, we are looking at networks, and behold, they do compute, they have a polynomial method that accurately defines transaction rates down a minimal distribution path. The Austrians are taking very hesitant steps in network theory, a little paranoid about giving up their philosophical method.

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