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
“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
Replying to
In that sense, markets are institutions. On the other hand, a hypothetical laissez faire market without support of the law will be your fourth option of chaos.
1
Replying to
I don’t really consider that a market. Too heavily distorted by guns and gangsterism. A mad max protection racket economy run on bits of gold of dubious purity is barely a market.
1
Replying to
For communities below dunbar number, markets are institutions or chaos?
1
Replying to
So chaos rules at below dunbar scale. My point is that markets are either institutions or chaos.
My four ways will be: institutions, faith/ideology, war, and chaos.
Yes, I am Hararian.
1


