crit3 - ISS 225: Crit3 April 2006, p.1 Political Responses...

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April 2006, p.1 Political Responses to the Problems of Markets 1 Lecture from Dahl, “Why Free Markets Are Not Enough” (not assigned!) 2 Dahl concedes a central point made by others: 3 Modern democracy requires a market economy: 4 p.82: “...a centrally directed command economy would provide political leaders with access to such powerful resources for persuasion, manipulation, and coercion as to make democracy extremely unlikely in the long term, no matter whether firms were collectively or privately owned. The only feasible alternative is some kind of market economy.” 5 This is from a man who has not, in general, been a great fan of the market economy, at least that of the U.S. 6 But: why have all democratic countries rejected strictly competitive market economies in favor of mixed economies in which markets are significantly modified by state intervention? 7 First discusses an important moral issue: 8 I have just reviewed these arguments: (9) If the initial endowments are very unequal, the final outcome of market processes may be efficient, but it may also remain very unequal. 10 In effect, then, people modify the functioning of markets because they believe that market outcomes are, in some sense, unjust . 11 For our purposes, what is more important is Dahl’s political explanation: 12 He begins with the observation that people can be injured by markets: (13)
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This note was uploaded on 04/09/2008 for the course ISS 225 taught by Professor Williams during the Spring '07 term at Michigan State University.

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crit3 - ISS 225: Crit3 April 2006, p.1 Political Responses...

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