Concerning Discordance of Teleological Mechanisms of the Market and State

Abstract

The problem of overcoming a mismatch and discordance of the teleological mechanisms of the market and state has become pressing since the empirical “discovery” of a Pareto optimal correlation of these mechanisms. The complexity of the settlement of the constantly changing hypothesis of a theorem having only one proof for a given place and time further increases the problem. This article focuses on identification of the underlying causes of mismatch and discordance of teleological mechanisms of the market and state, and on identification of different factors (e.g., ideological, psychological, economical), as well as of required and sufficient resources to harmonize the specified mechanisms.

Keywords:

• state
• market
• dynamic harmony
• neoliberalism
• internationalism

Notes

1. “The modern world rushes along toward the blind wall because of the ‘genetic egoism’ of some individuals and groups of people unable to secure the survival of the planet” (Christian De Duve, Nobel Prize winner in physiology and medicine, in V.Yu. Shoyher, The Anthology of Wisdom, Moscow, Veche Publ., 2007).

2. “Lunacharsky was wide-eyed for about two weeks: ‘Just fancy we only wanted to hold a demonstration and suddenly such an undreamed-of success.’ The Bolsheviks were astonished that they managed to take the power” [2].

3. The transition to the market in Russia was designed by the international institutes that did not provide it (the transition) with the relevant institutional infrastructure (which was not their objective actually), but generated the oligarchic capitalism [23].

4. “Under the hardships of the present one should find solace in the thought that there were harder times and they passed” (N. Karamzin, The Anthology …, p. 105).

5. In 2009 during a meeting on innovations (being a President) Medvedev “knapped,” “I say not retorts but a sentence … [Everything] I say is cast in granite.”

6. “The great names of history are those whose personal private goals imply something substantive, being the will of the universal spirit” (Gegel, The Anthology …, p. 488)

7. “There is no such benefit that would not be associated with the damage for others” (Michel de Montaigne, The Anthology …, p. 416).

8. As the say in the Old Slavonic language, “There is no prophet in his own country” (V.I. Dal).

9. “A nose can certainly be affixed,” the doctor convinced mayor Kovalev, “but I assure you it will be worse for you.” [4].

10. A hundred of years ago the Russian-Soviet “humanity gleefully parted with its past,” and after a quarter of a century only the self-proclaimed elite parted gleefully with its past (of far from elite origin—heads of laboratories, black marketeers, etc., who managed to appear in the right place in the right time).

11. The legal officers use the case of “extremus necessitatis,” i.e., in case of necessity or extreme danger one can evade all agreed obligations, violating the laws where the “situation” requires.

12. “One thing is to talk, another thing is to talk business” (Sophocles, The Anthology …, p. 722).

13. “Rich speeches are often the result of poor thoughts” (Antoine de Saint Exupery, The Anthology …, p. 667).

14. It seems that Smith knew the theory of Diophantine equations without solutions. But Smith realized that only the state can provide freedom from need for the entire nation, and secure an adequate standard of living (unlike the “invisible arm of the market,” which Smith did not consider as decisive in social development). This differentiates Smith from the spiritual parents of liberalism (J. Locke, Ch. Montesquieu, Voltaire), as well as physiocrats whose formula “laissez faire,” “laissez passer”—“let them do”—has become one of the most popular slogans of liberalism, stating that social harmony and human progress can only be achieved on the basis of private property by means of ensuring sufficient freedom of the individual in the economy and all other spheres of human activity.

15. According to Aristotle’s classification, the oligarchy is an unsuccessful variant of reign of a few, in contrast to the successful variant “aristocracy.” If power is allowed to be governed by major proprietors, these proprietors become oligarchs (from Greek oligarhia, rule of a few), and the power and capital get focused in their hands (The Anthology …, p. 387).

16. Any state policy is a complex phenomenon consisting of the activities of the many elected, appointed, or employed officers. Is it actually fair to lay the elaboration of social policy (and its tools) and its implementation (by means of the economic management mechanism) on the mostly low-skilled and corrupted bureaucracy? See F. Hayek (The Anthology …, p. 391).

17. And what to be done in reality, “To obediently fade away to the darkness of the night” or “rise against darkness that absorbed the light?” (Dylan Thomas, The Anthology …, p. 605).