Macro thinkers tend to assume there are 3 basic ways to solve problems: institutions, markets, and organized military conflict (war). No, there are 4. The fourth way is extended chaos, allowing the natural dynamics to play out and create a new default equilibrium condition.
Conversation
Replying to
People want to believe in futures marked by active agency and willful action, but sometimes the desire for willful action is wishful thinking. Institutionalists want to create new institutions. Marketists want to give markets time to operate. Militarists want to shoot people.
2
9
Replying to
But if you have a preferred outcome entropy would suggest this approach is the least likely to work
1
Replying to
There is no "work". Your problems don't have to get solved. They can just be replaced with new problems, and certain constituencies might simply die out without their problems ever being solved.
6
Replying to
“Laissez-faire was planned, planning was not” — Polyani.
Markets in practice assume more institutional structure not less. Courts to enforce contracts, rule of law, stable monetary system, Foreign trade being enabled, sovereign bonds not being junky.
Quote Tweet
Replying to @vgr
How is this differentiated from a market?
3
2
20
A big misconceptions of free-market ideologues is that markets are some sort of natural space that expands endlessly as institutional spaces contract. A “natural” market based on informal commerce unlinked to state-organized commerce would be a fraction of the size.
4
16
For a considerable number of problems and situations, doesn't 4 simply mean more disorganized (not in a good sense), brutal, and truly destructive versions of 1, 2 and 3? Smashing a million eggs in hope that an omelette may somehow emerge
Replying to
Somehow the last solution resembles Russian revolution and the equilibrium turned out to be not so great for many.
1
Replying to
Yep. Pretty sure “permanent chaos stability” is the strategy being employed in Syria at this time. If you don’t like any of the contenders, rig the game to never end.
1





