Sunday, August 16, 2009

A big hand ...

... Formulas built in myth.

Bryan, in this post, quotes this passage from Midgley's article:
The mythology of how markets work, of how money can do things on its own, is as remote from solid physical reality as these other things. And of course whatever the mythology of the time is, those inside it don't recognise it as such; they think they're just noticing facts.
But to think of markets in terms of money doing anything on its own is to think of markets incorrectly. Markets are places where people choose to do things with their money, not where money does anything on its own. I am not suggesting that Midgley thinks this, only that anyone who does is wrong, and is dealing, not in myth, but in error. So-called market forces are large numbers of people making decisions for all sorts of reasons. Perhaps Adam Smith's "invisible hand" also guides what Darwin called the "economy of nature."

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