From[Bill Williams 30 June 2004 1:40 PM CST]
[From Bruce Gregory (2004.0630.0653)]
>>Bill Willliams 30 June 2004 2:25 AM CST
>>Bruce,
>>You are making use of some terms such as "individual" and
>>"public" in context in which there is massive equvocation.
>>For you a "public" is not the sum of "individuals." Neither,
>>it has to be said, is a "public" a magical super-organic
>>creature.
Fair enough. What then is a "public"?
In John Dewey's terms a public consists of a group of people organized to accomplish some purpose none of them could
accomplish by themsselves.
It seems to me that a "market" can be modeled by a set of interacting individual agents. Does an economist disagree? If so, exactly how?
Ordinarily when economists model a market in terms of "free trade" between individuals, they make an implicit assumptions concerning law and order. With out law and some means to inforce it you would have the context that economists ordinarily assume. The foundation then of "a market" is a perception of what has been called "recognized interdependence." And, the law, a judicial, and police function can not function in terms of sale to the highest bidder. The creation of laws,
the making of judgements, and the exercise of the police power can be carried out in terms of the economists notion of maximization.
In economics I can see that starting with what is ordinarily
meant by an "individual" results in readily identifiable
problems-- such as explaining how a transaction is possible,
and what determins a transaction.
Really?
Yes.
How strange.
Indeed, it is. As Solo once said, if you make it fancy enough our graduate students will believe anything.
Of course the model must include, in addition to individual agents, objects that they can exchange and services that they can perform.
Right, and lots, lots more.
The result in economics of
an individualist approach was a failure to develop an understanding of the
properties of a monetary system. This failure was particularly evident in
the incomprehension of causal factors that genrated the great depression.
The PCT sophistology and its individualism seems to have as one of its
implications the conclusion that Keynes' work-- which assumes a community --
is nonsense.
You haven't convinced me.
OK. Not too surprizing since what I have done is described the situation rather than reproduced the arguments.
I assume that markets are described by interacting agents
I don't believe that this is a warrented assumption. There is a lot more involved.
and I do not think that Keynes's work is nonsense.
Good. I wold note that neither does Milton Friedman. The income-expenditure indentity seems to have persuaded nearly all of the economists.
The problem now seems to be how to construct a viable micro-foundation for the Keynesian system-- and this effort isn't making much
progress.
>Perhaps I am the exception that tests the rule.
The Keynesian system is a large, complex and to some extent confused scheme. Different people find different aspects of it appealing.
Bill Williams
.