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Societies for the History of Economics

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Subject:
From:
Fred Foldvary <[log in to unmask]>
Reply To:
Societies for the History of Economics <[log in to unmask]>
Date:
Thu, 8 Oct 2009 13:31:05 -0400
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Michael Perelman wrote
 > Most of the examples of spontaneous
 > order actually seem to occur outside of
 > the market, often in the context of a community's
 > willingness to accept a convention.
 >
 > Such events have little to do with the working of a market;
 > only a decision that is non-governmental.
 >


That uses a narrow definition of "market" as buying and selling.

In a pure market economy, all activity is voluntary for 
everyone.  Thus more broadly, all freely chosen human action is 
spontaneous, in that it is of one's own free will, not directed or 
altered by an imposed governmental authority.

In today's mixed economies, governmental intervention alters human 
action so much that few acts are completely spontaneous.  For 
example, someone who decides to buy a house may be responding to a 
governmental subsidy for the purchase of real estate, and so his 
altered act is not purely freely chosen.  Government directs actions 
mostly by altering costs, as well as by prohibitions and commands.

Fred Foldvary

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