Not only in economics people often talks about markets in fairly different
circumstances. What does that mean? The Britannica Online Encyclopedia serves us
with the following definition:
“A market is a mean by which the exchange of goods and services takes place
as a result of buyers and sellers being in contact with one another, either directly
or through mediating agents or institutions.”1
What they call ‘means’ could also be named as a social arrangement. Analogously to
the physical location of a street market every other form of markets is a man-made
institution in order to organize trade. Thereby it is in addition to the right of own
property probably the most salient feature of every capitalist system.
But as long as markets are not natural but social constructs, they and the way they
are shaped have to be subjects of human monitoring. Although this seems self-
evident from an impartial point of view, free markets and their results are often taken
for granted by some economists. This article focuses on the results of markets, the
so called market outcomes. More precisely it is about the justice of market outcomes
with special attention to the ideology and thought of Neo-liberalism with respect to
this subject.
During this article I will continue along the following structure: First I will expose the
possibility of market failures and distinguish these failures into traditional market
failures and another form of undesirable market outcomes, the failures-of-market
outcomes. After that, we will devote attention to the upswing of the New Right and its
ideological background. After focusing on two extremely influential thinkers –
Friedrich von Hayek and Robert Nozick – we will examine the justice of free markets.
I will finally end up with a conclusion in which I resume the most important results
and give an overview about the implications.
[...]
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Market Failure versus Failure-of-Market Outcome
- Ideological Background
- What is an Ideology?
- New Right
- Robert Nozick and the Libertarianism
- Friedrich August von Hayek
- About the Justice of Market Outcomes
- Responsibility for intended/unintended outcomes
- Inequality and Injustice
- Negative versus positive Freedom
- Social Justice as a rhetorical metaphor
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper provides a critical analysis of neoliberal thought, specifically challenging the notion of free market outcomes and their justification. It examines the concept of market failures, contrasting traditional market failures with "failures-of-market outcomes." The paper delves into the ideological background of the New Right, focusing on the philosophies of Robert Nozick and Friedrich August von Hayek. Finally, the paper explores the issue of justice in market outcomes, considering responsibility, inequality, freedom, and the metaphorical nature of social justice.
- Market failures and failures-of-market outcomes
- The ideological underpinnings of the New Right
- The justice of market outcomes
- The role of responsibility in market outcomes
- The relationship between inequality and injustice
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins by defining the concept of a market as a social arrangement for exchanging goods and services. It emphasizes the man-made nature of markets and the importance of human monitoring. The introduction argues that free markets and their outcomes are often taken for granted, particularly by some economists.
The second chapter explores the concept of market failure, distinguishing between traditional market failures and what the author terms "failures-of-market outcomes." Traditional market failures include market power, externalities, and public goods, while failures-of-market outcomes refer to situations where markets are functioning efficiently but the results are undesirable. The chapter highlights the limitations of mainstream economic thinking, which emphasizes allocative efficiency over distributional equity.
The third chapter delves into the ideological background of the New Right, providing an overview of the concept of ideology and examining the philosophies of Robert Nozick and Friedrich August von Hayek. Nozick's libertarianism and Hayek's theories are presented as influential examples of neoliberal thought.
The fourth chapter focuses on the justice of market outcomes. It examines the question of responsibility for intended and unintended outcomes, the relationship between inequality and injustice, the distinction between negative and positive freedom, and the metaphorical nature of social justice.
Schlüsselwörter (Keywords)
The primary focus of this paper is on neoliberal thought, market failures, failures-of-market outcomes, the New Right, the philosophies of Robert Nozick and Friedrich August von Hayek, and the question of justice in market outcomes. Key themes include responsibility, inequality, freedom, and the metaphorical nature of social justice.
- Quote paper
- Simon Kehrer (Author), 2007, Provide free markets just outcomes?, Munich, GRIN Verlag, https://www.grin.com/document/114563