It's called Discovery -- A Memoir and I enjoyed it very much. If you, like me, wish that more books were just a bit wilder, weirder (I mean that in the good sense), and real, you will like this one. Here's one brief bit:
...I will grow up to be a loner, protecting myself from distractions, but thereby projecting an image of aloofness that was never part of what I felt inside.
It's a hard book to summarize.
If you think you might be interested, you probably are, One Amazon reviewer writes:
'Discovery' is an unfiltered, entertaining read. There is no spin, no self-serving revisionism here. A most original and influential economist tells the reader what happened, what he thought, and how he thinks.
http://www.marginalrevolution.com/marginalrevolution/2009/05/vernon-smiths-autobiography.html
Sunday, May 31, 2009
The Case for Doing Little - Greg Mankiw
As readers of this blog know, I have long been an advocate of Pigovian taxes, such as carbon taxes to deal with global climate change. On this topic, I was disappointed with the Bush administration, which did little to address the issue.
http://gregmankiw.blogspot.com/2009/05/case-for-doing-little.html
http://gregmankiw.blogspot.com/2009/05/case-for-doing-little.html
Individualism and Economic Order
The Mises Institute has made a free PDF edition of F. A. Hayek’s book Individualism and Economic Order available for download here. The collection includes some of the most influential articles every written in economics.
Hayek and the spontaneous order
The discovery that there exist in society orders of another kind which have not been designed by men but have resulted from the action of individuals without their intending to create such an order, is the achievement of social theory—or, rather, it was this discovery which has shown that there was an object for social theory. It shook the deeply-ingrained belief of men that where there was an order there must also have been a personal orderer. It had consequences far beyond the field of social theory since it provided the conceptions which made possible a theoretical explanation of the structures of biological phenomena.4 And in the social field it provided the foundation for a systematic argument for individual liberty.
This kind of order which is characteristic not only of biological organisms (to which the originally much wider meaning of the term organism is now usually confined), is an order which is not made by anybody but which forms itself.
It is for this reason usually called a “spontaneous” or sometimes (for reasons we shall yet explain) a “polycentric” order. If we understand the forces which determine such an order, we can use them by creating the conditions under which such an order will form itself.
Source: New Individualist Review, editor-in-chief Ralph Raico, introduction by Milton Friedman (Indianapolis: Liberty Fund, 1981). Chapter: F. A. HAYEK, Kinds of Order in Society
http://oll.libertyfund.org/index.php?option=com_content&task=view&id=1269&Itemid=280
This kind of order which is characteristic not only of biological organisms (to which the originally much wider meaning of the term organism is now usually confined), is an order which is not made by anybody but which forms itself.
It is for this reason usually called a “spontaneous” or sometimes (for reasons we shall yet explain) a “polycentric” order. If we understand the forces which determine such an order, we can use them by creating the conditions under which such an order will form itself.
Source: New Individualist Review, editor-in-chief Ralph Raico, introduction by Milton Friedman (Indianapolis: Liberty Fund, 1981). Chapter: F. A. HAYEK, Kinds of Order in Society
http://oll.libertyfund.org/index.php?option=com_content&task=view&id=1269&Itemid=280
Friday, May 29, 2009
General rules
In reading Smith's Theory of Moral Sentiments I am struck by the infuence he played on the idea of emergent and evolutionary order and Hayek's analysis of order and general rules.
It seems clear that these "important rules of conduct" which Smith ties to duty and Hayek to justice have shaped the development of society. In developing countries, these general rules have evolved in such a way to shape wealth enhancing incentives.
Smith writes:
"But upon the tolerable observance of these duties, depends the very existence of human society, which would crumble into nothing if mankind were not generally impressed with a reverence for those important rules of conduct."(http://www.econlib.org/cgi-bin/searchbooks.pl?searchtype=BookSearchPara&id=smMS&query=generally+impressed+with+a+reverence)
Hayek write:
"Men in society can successfully pursue their ends because they know what to expect from their fellows. Their relations, in other words, show a certain order. How such an order of the multifarious activities of millions of men is produced or can be achieved is the central problem of social theory and social policy."
and
"And it is an order which, though it is the result of human action, has not been created by men deliberately arranging the elements in a preconceived pattern. These peculiarities of the social order are closely connected, and it will be the task of this essay to make their interrelation clear. We shall see that, although there is no absolute necessity that a complex order must always be spontaneous and abstract, the more complex the order is at which we aim, the more we shall have to rely on spontaneous forces to bring it about, and the more our power of control will be confined in consequence to the abstract features and not extend to the concrete manifestations of that order."
Source: New Individualist Review, editor-in-chief Ralph Raico, introduction by Milton Friedman (Indianapolis: Liberty Fund, 1981). Chapter: F. A. HAYEK, Kinds of Order in Society
It seems clear that these "important rules of conduct" which Smith ties to duty and Hayek to justice have shaped the development of society. In developing countries, these general rules have evolved in such a way to shape wealth enhancing incentives.
Smith writes:
"But upon the tolerable observance of these duties, depends the very existence of human society, which would crumble into nothing if mankind were not generally impressed with a reverence for those important rules of conduct."(http://www.econlib.org/cgi-bin/searchbooks.pl?searchtype=BookSearchPara&id=smMS&query=generally+impressed+with+a+reverence)
Hayek write:
"Men in society can successfully pursue their ends because they know what to expect from their fellows. Their relations, in other words, show a certain order. How such an order of the multifarious activities of millions of men is produced or can be achieved is the central problem of social theory and social policy."
and
"And it is an order which, though it is the result of human action, has not been created by men deliberately arranging the elements in a preconceived pattern. These peculiarities of the social order are closely connected, and it will be the task of this essay to make their interrelation clear. We shall see that, although there is no absolute necessity that a complex order must always be spontaneous and abstract, the more complex the order is at which we aim, the more we shall have to rely on spontaneous forces to bring it about, and the more our power of control will be confined in consequence to the abstract features and not extend to the concrete manifestations of that order."
Source: New Individualist Review, editor-in-chief Ralph Raico, introduction by Milton Friedman (Indianapolis: Liberty Fund, 1981). Chapter: F. A. HAYEK, Kinds of Order in Society
The New Socialism: Global Collectivist Society Is Coming Online
My colleague Debbie Henney forwarded to me the following article from Wired.
http://www.wired.com/culture/culturereviews/magazine/17-06/nep_newsocialism?currentPage=1
The author of the article writes:
But there is one way in which socialism is the wrong word for what is happening: It is not an ideology. It demands no rigid creed. Rather, it is a spectrum of attitudes, techniques, and tools that promote collaboration, sharing, aggregation, coordination, ad hocracy, and a host of other newly enabled types of social cooperation. It is a design frontier and a particularly fertile space for innovation.
In my reply to her I wrote:
This is an interesting, if very confused article. The author talks about the libertarian elements of digital communities and the collaboration that wiki and blogs foster seem more in line with the Hayekian emergent and evolutionary search than any socialist collectivism.
I guess where this author lost me was his failure to distinguish between the coercion that lies at the heart of socialism and the personal liberty that lies at the heart of a system of natural liberty. I see the internet as an example of the latter and not the former.
http://www.wired.com/culture/culturereviews/magazine/17-06/nep_newsocialism?currentPage=1
The author of the article writes:
But there is one way in which socialism is the wrong word for what is happening: It is not an ideology. It demands no rigid creed. Rather, it is a spectrum of attitudes, techniques, and tools that promote collaboration, sharing, aggregation, coordination, ad hocracy, and a host of other newly enabled types of social cooperation. It is a design frontier and a particularly fertile space for innovation.
In my reply to her I wrote:
This is an interesting, if very confused article. The author talks about the libertarian elements of digital communities and the collaboration that wiki and blogs foster seem more in line with the Hayekian emergent and evolutionary search than any socialist collectivism.
I guess where this author lost me was his failure to distinguish between the coercion that lies at the heart of socialism and the personal liberty that lies at the heart of a system of natural liberty. I see the internet as an example of the latter and not the former.
Thursday, May 28, 2009
FTE online classes
You can’t afford to wait any longer to take advantage of the fastest growing opportunity in economics education!
Dear Colleague,
The FTE is pleased to announce its online course offerings for Fall 2009, including the new Economics of Disaster Online, offered for the first time. We are hoping that you'll be among the first to take advantage of these tremendous professional development courses. These courses provide teachers with:
* Economics curriculum, including lectures and accompanying activities
* Instruction by nationally-acclaimed instructors
One past participant proclaimed, "I would definitely take another online FTE course. . . . The curriculum and instruction in this online course was of the highest quality - rich, robust and interactive".
Course Offerings:
Economics Online for Teachers - Part 1 (EOFT 1)
* Dates: September 15 to November 30, 2009
* 2 Semester Hours of Graded Graduate Credit
Economics Online for Teachers - Part 2 (EOFT 2)
* Dates: September 15 to November 30, 2009
* 2 Semester Hours of Graduate Credi
Deadline to apply: September 4, 2009 for both EOFT 1 & EOFT 2. Applications will be accepted on a first come / first serve basis. Enroll today - programs fill quickly.
Note: Students in EOFT-1 may not be concurrently enrolled in either EOFT-2, CAPO or EoDO
Is Capitalism Good for the Poor? Online (CAPO)
* Dates: September 8 to December 8, 2009
* 3 Semester Hours of Graded Graduate Credits
Economics of Disasters Online (EoDO)
* Dates: September 8 to December 8, 2009
* 3 Semester Hours of Graded Graduate Credits
Deadline to apply: August 31, 2009 for both EoDO and CAPO. Applications will be accepted on a first come / first serve basis. Enroll today - programs fill quickly.
Note: Applicants must have successfully completed one of the other FTE Online courses as a prerequisite for EoDO and CAPO enrollments. Applicants with non-FTE online experience in graduate level courses may request an exception to this policy.
For more information and to apply, visit our website at www.fte.org/teachers/programs/online/
Please distribute this email to colleagues who may be interested in taking an Economics Online course.
If you have any questions, please call me at: 800-383-4335.
Sincerely,
Cecily Bailey, Online Program Manager
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Monday, May 25, 2009
The Invisible Hand
Thanks to Jane Shaw at Liberty and Power for the heads up about a wonderful discussion between Gavin Kennedy and Dan Klein over the meaning and significance of the invisible hand in the Econ Journal Watch
Peter Minowitz concludes his essay, “Adam Smith’s Invisible
with the following words: “Centuries after Smith’s death, we are still struggling
fathom a two-word phrase that stands out in a thousand-page book.”
Gavin's position
Gavin asserts:
The metaphor of an invisible hand is just a metaphor and modern wonder over
its meaning is, well, meaningless.
Klein' response
William D. Grampp contends:
There are nine different interpretations of it that I have seen (which cannot be all of them), and there is a tenth.
the force that makes the interest of one the interest of others,
(2) the price mechanism,
(3) a figure for the idea of unintended consequences,
(4) competition,
(5) the mutual advantage in exchange,
(6) a joke,
(7) an evolutionary process,
(8) providence, and
(9) the force that restrains the export of capital.
from
What Did Smith Mean by the Invisible Hand?
Author(s): William D. Grampp
Source: The Journal of Political Economy, Vol. 108, No. 3 (Jun., 2000), pp. 441-465
Published by: The University of Chicago Press
Peter Minowitz concludes his essay, “Adam Smith’s Invisible
with the following words: “Centuries after Smith’s death, we are still struggling
fathom a two-word phrase that stands out in a thousand-page book.”
Gavin's position
Gavin asserts:
The metaphor of an invisible hand is just a metaphor and modern wonder over
its meaning is, well, meaningless.
Klein' response
William D. Grampp contends:
There are nine different interpretations of it that I have seen (which cannot be all of them), and there is a tenth.
the force that makes the interest of one the interest of others,
(2) the price mechanism,
(3) a figure for the idea of unintended consequences,
(4) competition,
(5) the mutual advantage in exchange,
(6) a joke,
(7) an evolutionary process,
(8) providence, and
(9) the force that restrains the export of capital.
from
What Did Smith Mean by the Invisible Hand?
Author(s): William D. Grampp
Source: The Journal of Political Economy, Vol. 108, No. 3 (Jun., 2000), pp. 441-465
Published by: The University of Chicago Press
Thursday, May 21, 2009
What Does Social Theory Study?
From Taking Hayek Seriously
The discovery that there exist in society orders of another kind which have not been designed by men but have resulted from the action of individuals without their intending to create such an order, is the achievement of social theory — or, rather, it was this discovery which has shown that there was an object for social theory. It shook the deeply-ingrained belief of men that where there was an order there must also have been a personal orderer. It had consequences far beyond the field of social theory since it provided the conceptions which made possible a theoretical explanation of the structures of biological phenomena. And in the social field it provided the foundation for a systematic argument for individual liberty.
From F. A. Hayek, “Kinds of Order in Society”, New Individualist Review.
The discovery that there exist in society orders of another kind which have not been designed by men but have resulted from the action of individuals without their intending to create such an order, is the achievement of social theory — or, rather, it was this discovery which has shown that there was an object for social theory. It shook the deeply-ingrained belief of men that where there was an order there must also have been a personal orderer. It had consequences far beyond the field of social theory since it provided the conceptions which made possible a theoretical explanation of the structures of biological phenomena. And in the social field it provided the foundation for a systematic argument for individual liberty.
From F. A. Hayek, “Kinds of Order in Society”, New Individualist Review.
Friday, May 15, 2009
Understanding Liberty and Choice: Free Trade and Globalization
Featured speaker:
Russell Roberts, author of The Price of Everything: A Parable of Possibility and Prosperity and The Choice: A Fable of Free Trade and Protection.
Co-sponsored by Liberty Fund, Inc.
When: May 14-16, 2009
Where: Washington D.C., Hotel TBD
What: Working conference, including:
* Keynote address and extended Q and A with Russell Roberts.
* Required pre-conference readings (298 pages) and 2.5 hours of podcasts.
* Small group Socratic seminars.
Who: PTA members only, by application (limited to 30 participants)
* Deadline: Applications must be received by February 25, 2009.
* Selected attendees notified via email February 27, 2009.
* $200 deposit due with application. (Deposit refunded after the program or upon notification of non-acceptance to the program.)
* Participants responsible for their own travel.
2 nights single occupancy lodging and meals plus $500 travel stipend.
(Attendance at all sessions required to receive stipend.)
Selection from the applicant pool will reflect the FTE's desire to assemble a conference group with the following characteristics:
* commitment to excellence in teaching economic reasoning;
* diversity of teaching experience, background, current economics-related teaching assignment, and school type; and
* geographic/demographic diversity (regional, rural/urban, etc.).
Apply on-line Here
Questions: Ken Leonard, kleonard@fte.org
206-910-9374
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260 Russell Blvd. Suite B · Davis, CA 95616 · Phone: 530-757-4630 · Fax: 530-757-4636 · information@fte.org
The World Economy
On June 1 I begin teaching The World Economy, a fully online 5 week summer session class. Our primary text will be The Travels of a T-Shirt in the Global Economy.
Saturday, May 9, 2009
Sunday, May 3, 2009
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