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.
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Venkatesh Rao Retweeted Mark Ryan Sallee
“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.https://twitter.com/mrsallee/status/1193988973653196800?s=21 …
Venkatesh Rao added,
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Replying to @vgr
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.
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Replying to @Darth_Armot
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.
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Replying to @vgr
For communities below dunbar number, markets are institutions or chaos?
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Replying to @vgr
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.
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Not chaos. Graeberian credit entanglement.
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