ECON 463 Chapter Notes - Chapter 1-2: Spontaneous Order
Mattheus, I understand your point.
However, my point is the community establishes cultural constraints on
Spontaneous Order much more powerful than normal government actions.
Here is my example. Spontaneous Order allows us to walk down a busy street
without bumping into each other. But it only works because there are cultural
constraints that the community accepts. In Japan the social space between people
walking down the street is different than the social space in rural Georgia.
Spontaneous Order in business works the same way. We get order because all
parties to the interaction share common cultural constraints.
I agree the "State" should not pick winners and losers. However, that is where
"Rent Seeking" comes in and not a part the Spontaneous Order Discussion.
My point is that, whether you are aware of it or not, reasonable common sense
community involvement is necessary for spontaneous order to yield optimum
results.
Let me use one more example. If a traffic light is out, spontaneous order shows
that people can come to a functional solution. But, that solution is based on
the reasonable and common sense agreement that we yield to the car on your
right.
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