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Toward a Hayekian Theory of Commodification and Systemic Contradiction: Citizens, Consumers, and the Media

  • Gus diZerega
Abstract

F. A. Hayek's theory of spontaneous order applies to more than the market. One implication is that different systems of rules generating different spontaneous orders are biased in favor of different values. Markets serve the values of consumers; democracies serve the values of citizens. No spontaneous order perfectly reflects human values because they simplify the context of choice in favor of core systemic values. This insight enables us to distinguish between systemic and individual resources, and tensions between them. It also enables us to develop models of systemic conflict. Of particular interest are interactions between democracies and markets whose rules reflect different values but influence one another. The increasing commodification of the press shifts this institution from reflecting both democratic and economic values more and more to purely economic values, undermining its capacity to serve citizens. Examples illustrating this argument are explored.

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I am grateful to Chirag Kasbekar, James Hess, the George Mason Workshop in Philosophy, Politics, and Economics, and referees for the Review of Politics for valuable criticisms and insights that have made this a better essay than it otherwise would have been.

1. Hayek, F. A., Law, Legislation and Liberty, vol. 3, The Political Order of a Free People (Chicago: University of Chicago Press, 1979), p. xii; Dobuzinskis, Laurent, The Self-Organizing Polity, (Boulder: Westview Press, 1987), diZerega, Gus, Persuasion, Power and Polity: A Theory of Democratic Self-Organization, (Cresskill, NJ: Hampton Press, 2000); Macy, Joanna, Mutual Causality in Buddhism and General Systems Theory: The Dharma of Natural Systems, (Albany: State University of New York Press, 1991); and Johnson, Steven, Emergence: The Connected Lives of Ants, Brains, Cities, and Software, (New York: Scribner, 2001). Perhaps the first time the term was used in this sense was by Mill, James in his essay “Nature,” Collected Works, volume 10, p. 381. I am grateful to Linda Raeder for this information.

2. Hayek, F. A., Law, Legislation and Liberty: Rules and Order (Chicago: University of Chicago, 1973).

3. Rummel, R. J., Power Kills: Democracy as a Method of Nonviolence (New Brunswick, NJ: Transaction, 1997); diZerega, Gus, “Democracy as a Spontaneous Order,” Critical Review 3:2 (1989): 206–40.

4. Hayek, F. A., “The Theory of Complex Phenomena,” Studies in Philosophy, Politics and Economics (New York: Simon and Schuster, 1967).

5. Radnitzky, Gerard, “Hayek on the Role of the State: A Radical Libertarian Critique,” Policy (2000): 1620; Hoppe, Hans-Hermann, “F. A. Hayek on Government and Social Evolution: A Critique,” in Contending With Hayek, ed. Frei, Christoph and Nef, Robert, (New York: Peret Lang, 1994), pp. 127–59.

6. Hayek, , Political Order of a Free People, p. 43.

7. Ibid., p. 44.

8. Ibid., p. 45. There is an ambiguity here. Benefiting proportionately to one's contributions and benefiting more than one contributes are different standards. I can benefit proportionately and still regard myself as worse off. I can benefit less than anyone else and regard myself as better off. Hayek's argument depends upon the latter meaning, which is also central to his defense of the legitimacy of market inequality, see Law, Legislation and Liberty, vol. 2 The Mirage of Social Justice (Chicago: University of Chicago Press, 1976), pp. 73–4, 94, 9899.

9. Hayek, , p. 46.

10. Hayek, F. A., Mirage of Social Justice, p. 7.

11. Ibid., p. 87; see also Political Order of a Free People, p. 55.

12. Hayek, , Mirage of Social Justice, p. 129.

13. Aristotle, , Politics, ed. Barker, Ernest (London: Oxford University Press, 1958), p. 120.

14. Hayek, , Mirage of Social Justice, p, 131.

15. Ibid.

16. Hayek, , Political Order of a Free People, p. 61.

17. Ibid.

18. On the importance of autonomy over both liberty and equality in early liberal thought, see Spragens, Thomas A., Civic Liberalism: Reflections on Our Democratic Ideals (Lanham, MD: Rowman and Littlefield, 1999), pp. 113–45.

19. Hayek, F. A., The Constitution of Liberty (Chicago: University of Chicago Press, 1960), pp. 374–75. This way of putting the matter suggests that there can be more than a single public good for a single person because a person may be a member of more than a single public. Other than bringing this to attention, this paper will not explore these observations. But see diZerega, , Persuasion, Power, and Polity, p. 266.

20. Anderson, Terry L. and Leal, Donald R., Free Market Environmentalism, rev ed. (New York: Palgrave, 2001), pp. 5974.

21. Hayek, , Political Order of a Free People, pp. 153–76.

22. Ibid., pp. 50–51. See also Cornuelle, Richard C., Reclaiming the American Dream: The Role of Private Individuals and Voluntary Associations (New Brunsick: Transaction, 1993), pp. 3541.

23. Hayek, , Constitution of Liberty, pp. 108109.

24. Ibid., pp. 109–10.

25. Sagoff, Mark, The Economy of the Earth: Philosophy, Law and the Environment, (Cambridge: Cambridge University Press, 1990), pp. 5051.

26. Crick, Bernard, In Defense of Politics (Harmondsworth, England: Penguin, 1962).

27. On democracy as a spontaneous order, see diZerega, Gus, “Elites and Democratic Theory,” Review of Politics 53:2. (1991):340–72; “Democracies and Peace: The Self-Organizing Foundation of the Democratic Peace,” Review of Politics 57:2 (1995): 279–309, and Persuasion, Power, and Polity.

28. Kingdon, John, Agendas, Alternatives, and Public Policies, 2nd. ed. (New York: Longman, 1995), pp. 86 and 223; Hayek, “The Theory of Complex Phenomena.”

29. DiZerega, “Elites and Democratic Theory.”

30. Hayek, , Political Order of a Free People, pp. 7576.

31. Ibid., p. 68. See also Polanyi, Michael, “The Republic of Science: Its Political and Economic Theory,” in Knowing and Being: Essays by Michael Polanyi, ed. Grene, Marjorie (Chicago: University of Chicago Press, 1969), pp. 4972; The Logic of Liberty (Chicago: University of Chicago Press, 1951), pp. 49–9.

32. Hayek, , Political Order of a Free People, pp. 75–66.

33. Ziman, John, Reliable Knowledge: An Exploration of the Grounds for Belief in Science (Cambridge: Cambridge University Press, 1978).

34. diZerega, Gus, “Market Non-neutrality: Systemic Bias in Spontaneous Orders,” Critical Review 11:1 (1997).

35. Of course, organizations can also take on an additional relative independence from their members, but that is another matter. Wilson, James Q., Bureaucracy: What Government Agencies Do and Why They Do It (New York: Basic Books,1989), pp. 90110.

36. Walzer, Michael, Spheres of Justice (New York: Basic Books, 1983), p. 298.

37. For examples in field biology, see Chase, Alston, Playing God in Yellowstone: The Destruction of America's First National Park (New York: Harcourt Brace Jovanovich 1987), pp.170–94;Hess, Karl Jr., Rocky Times in Rocky Mountain National Park (Niwot, CO: University Press of Colorado. 1993), pp. 8693.

38. Ferguson, Adam, An Essay on the History of Civil Society (New Brunswick, NJ: Transaction, 1980) [1767], p. 122.

39. See Cowan, Tyler, Creative Destruction (Princeton: Princeton University Press, 2002).

40. When this process happens in the lifeworld (briefly, world of cultural meaning) rather than between impersonal systems, we have what Jürgen Habermas calls the “colonization of the lifeworld.” To explore this important insight further here takes us beyond the limits of this paper. See Habermas, Jürgen, The Theory of Communicative Action, vol. 2: Lifeworld and System: A Critique of Functionalist Reason (Boston: Beacon Press, 1987), pp. 153–97, 332–73.

41. Buchanan, James and Vanberg, Viktor. “The Market as a Creative Process,” Economics and Philosophy 7:2 (1992): 181; and Kirzner, Israel, “Self-Interest and the New Bashing of Economics: A Fresh Opportunity in the Perennial Debate?” Critical Review 4:1–2 (1990): 34.

42. Hence the criticism of elevating consumer choice to the standard of freedom. Just because we can choose between dozens of varieties of toothpaste does not mean we are free in the traditional sense of being autonomous.

43. Kingdon, Agendas, Alternatives, and Public Policies: and diZerega, “Elites and Democratic Theory."

44. In purely market terms this is an advantage. In a public corporation the takeover threat keeps companies acting more efficiently in market terms. See Manne, Henry, “Mergers and the Market for Corporate Control,” Journal of Political Economy 73 (1965).

45. Wilson, James Q., American Government, 5th ed. (Boston: Houghton-Mifflin, 2000), pp. 7980.

46. This account is drawn from Bell, Brenda, “Bainbridge Recalls Editor's Courage During Wartime,” The Seattle Times, 25 03 2001: and Davila, Florangela, “Bainbridge Editor Who Decried Japanese Internment Dies at 91,” The Seattle Times, 14 03 2001.

47. This account is drawn from Golis, Pete, “Without Credibility We've Got Nothing,” Santa Rosa Press Democrat 10 11 1999; and Efron, Eric, “No More Virgins,” Brill's Content February, 2000, pp. 4546.

48. Hubler, Shawn, “Ex-Publisher Becomes Hero for Quitting Over Profit Goal,” The Seattle Times, 22 04 2001.

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The Review of Politics
  • ISSN: 0034-6705
  • EISSN: 1748-6858
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