14 β The Elephant, Blind Men, and the Rhinoceros (11 Feb 09)
...conceptual cage? What is happening at the moment to the organization of that part of our material world linked to money is so dramatic that a way must be found out of that intellectual dead end through conceptual jumps. A few economists appear capable of accomplishing this. Fortunately. James Galbraith just showed us how make several such jumps. Supported by tight analyses in his The Predator State, he argues convincingly that American conservative business elites and linked interest groups do not want to do away with the state, as is commonly assumed to be their wish, but that the most powerful among them have managed to capture the state for their own purposes of long-term enrichment and greater power. After going through Galbraith’s intellectual tour-de-force, with its priceless passages on what, in practice, that sacred entity known as the market comes down to, it is unlikely that you will conceive of state and market in the way you have until now. A comparison of the predator state with the dirigiste economic system of Japan could offer a wealth of insights on incentive structures, and, who knows, perhaps how to bend these for finding a way out of our current dilemmas....