tag:blogger.com,1999:blog-6245381193993153721.post1853964017147641370..comments2024-03-28T17:08:15.784-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Hayek on Market-Clearing Prices and Wages in his 1975 Talk to the American Enterprise InstituteLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6245381193993153721.post-64602934955027381152014-02-09T06:48:12.078-08:002014-02-09T06:48:12.078-08:00"Irony of ironies: real firms are, in an ulti... "Irony of ironies: real firms are, in an ultimate sense, pricetakers, too!"<br /><br /> Or not so ironic-it suggests that the alleged Austrian denial of perfect competition is more skin-deep than real. Mike Saxhttps://www.blogger.com/profile/01360689916550576484noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-81149594912953887212014-02-08T20:46:01.454-08:002014-02-08T20:46:01.454-08:00In your comment:
"Prices (or the lack of sal...In your comment:<br /><br /><i>"Prices (or the lack of sales) will inform people about what they should be making for whom in what amounts and in what styles at what prices. "</i><br /><br />So what? <br /><br />Is this supposed to be an admission that flexible wages and prices that agents move towards market clearing levels <i>is</i> a fundamental element in Austrian economics?<br /><br />Yes or no?<br /><br />(1) If yes, then Hayek is <i>obviously</i> using that very concept above:<br /><br /><i>"The primary cause of the appearance of extensive unemployment, however, is a deviation of the actual structure of prices and wages from its equilibrium structure."</i><br /><br />equilibrium structure = set of market clearing prices and wages.<br /><br />(2) if no, your comment is irrelevant.<br />Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-16292188440855222482014-02-08T18:38:58.925-08:002014-02-08T18:38:58.925-08:00Yet according to you AUSTRIANS DO NOT HAVE ANY ROL...<i>Yet according to you AUSTRIANS DO NOT HAVE <b>ANY ROLE</b> FOR FLEXIBLE PRICES AND WAGES CLEARING MARKETS?? lol.</i><br /><br />LK, you lying bastard.<br /><br />http://mikenormaneconomics.blogspot.com/2013/06/lord-keynes-gardiner-means-on.html?showComment=1371833114818#c7176591288250891901<br /><br />Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-39394175999441342242014-02-08T10:31:56.538-08:002014-02-08T10:31:56.538-08:00Nor does he know what a "market clearing"...Nor does he know what a "market clearing" price or wage is.<br /><br />Or what supply and demand equilibrium via flexible prices means. <br /><br />And I strongly suspect that we have only scratched the surface of what Bob Roddis does not know about Austrian economics.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-42851022095982691552014-02-08T10:28:07.394-08:002014-02-08T10:28:07.394-08:00Here's an example from physics. We cannot solv...Here's an example from physics. We cannot solve the n body problem, but we know the system will follow the path of least action. Add a constraint and it will follow a path of higher action that it would have. Yet we cannot know what that lower action would have been. <br /><br />I should post this at Murphy's and watch MF tell me about action!!Ken Bhttps://www.blogger.com/profile/12976919713907046171noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-29538280921333206002014-02-08T10:21:39.565-08:002014-02-08T10:21:39.565-08:00A complaint LK. You have this annoying check to fi...A complaint LK. You have this annoying check to filter out robotic postings. Yet there Roddis is. If it doesn't work just remove it. Ken Bhttps://www.blogger.com/profile/12976919713907046171noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-51429423076177351112014-02-08T10:19:49.435-08:002014-02-08T10:19:49.435-08:00Occam's Razor, pictured, suggests Roddis does ...Occam's Razor, pictured, suggests Roddis does not know what a "price vector" is.Ken Bhttps://www.blogger.com/profile/12976919713907046171noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-25779478830131853442014-02-08T08:51:05.221-08:002014-02-08T08:51:05.221-08:00Yes, that is a very interesting post, but I think ...Yes, that is a very interesting post, but I think he's not entirely convincing. <br /><br />E.g., Mises's action axiom does not entail or really anticipate the New Classical "rational expectations" thesis, and Mises actually did have a role for fundamental uncertainty.<br /><br />Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-2005068013881053062014-02-08T08:40:04.848-08:002014-02-08T08:40:04.848-08:00(1) "Hayek's quote does not concern "...(1) <i>"Hayek's quote does not concern "impediments to a price vector that will clear all markets"</i><br /><br />Yes, it does. <br /><br />Hayek thinks that unemployment can be reduced by bringing wages closer and closer to the equilibrium (market clearing) wage in each labour market.<br /><br />(2) <i>"A MARKET MAY VERY WELL CLEAR DURING THE BOOM STAGE WITH DISTORTED PRICES"</i><br /><br />Clear in what sense? Austrians refer to market clearing by means of price adjustments,<br /><br />Hayek's theory is that flexible wages will tend to clear markets by bringing wages to their equilibrium levels so that labour supply and demand will be equated, just as <br /><a href="http://consultingbyrpm.com/blog/2014/02/my-econlib-article-on-the-minimum-wage-debate.html" rel="nofollow">Robert Murphy rejects minimum wage laws here in this post by postulating that minimum wages cause wage levels to rise <i>above</i> market clearing levels.</a><br /><br />Yet according to you Austrians do not have any role for flexible prices and wages clearing markets?? lol.<br /><br />In short, you are the king of all vulgar internet Austrians, Bob Roddis. <br /><br />You are grossly ignorant of the very theory you say nobody else understands.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-50152938605806830082014-02-08T07:56:40.379-08:002014-02-08T07:56:40.379-08:00Out of context as always. As I said long ago:
Eco...Out of context as always. As I said long ago:<br /><br /><i>Economic calculation refers to prices providing information. Keynesian policies interfere with the creation of unadulterated prices. LK should already know that. Distorted prices caused by FRB and fiat money loans lead to the ABCT (factor 1). Price distortions caused by government spending, deficit spending, central bank fiat money creation, price controls, subsidies, income policies impair the pricing process. (factor 2) Cantillon effects are the result of new money entering society at different points in time and space. New money creation artificially distorts the pricing process thereby impairing economic calculation. (factor 3) All of these concepts are purposefully ignored by MMT because they render MMT preposterous. <br /><br />Hayek's quote does not concern "impediments to a price vector that will clear all markets". <b>A MARKET MAY VERY WELL CLEAR DURING THE BOOM STAGE WITH DISTORTED PRICES</b> [emphasis added]. Because prices are distorted, investments have been made into lines of production that only appear profitable in the long term due to the new money and credit. Those investments will ultimately be exposed as unsustainable because they were not based upon a true pricing representing true supply and demand. In Hayek's quote, the "equilibrium structure" is merely the structure that would have obtained without the artificial injection of new money and credit. Since it never existed, it cannot be measured. Read the top of page 7 of the Hayek interview.<br /><br />http://www.flickr.com/photos/bob_roddis/7534880182/in/set-72157630494776170<br /><br />This isn't that complicated, you lying bastard. .</i> <br /><br />November 1, 2012 at 9:13 PM <br /><br />http://mikenormaneconomics.blogspot.com/2012/11/lord-keynes-my-posts-on-origin-of-money.html?showComment=1351818805656#c8785862406979614590<br />Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-39460737923121292722014-02-08T03:02:45.438-08:002014-02-08T03:02:45.438-08:00Have you seen this?
http://noahpinionblog.blogspo...Have you seen this? <br />http://noahpinionblog.blogspot.com/2014/02/how-new-classicals-drank-austrians.html<br /><a href="http://noahpinionblog.blogspot.com/2014/02/how-new-classicals-drank-austrians.html" rel="nofollow">How the New Classicals drank the Austrians' milkshake</a>Larry Hamelinhttps://www.blogger.com/profile/08788697573946266404noreply@blogger.com