Art of the Possible Essays - praxeology
Essay on Politics as the Art of Government
The distinction between correct and deviant constitutions is combinedwith the observation that the government may consist of one person, afew, or a multitude. Hence, there are six possible constitutionalforms (Politics III.7):
for politics is the art and science of government.
[I]f there were no market for a product, and all of its exchanges were internal, there would be no way for a firm or for anyone else to determine a price for the good. A firm can estimate an implicit price when an external market exists; but when a market is absent, the good can have no price, whether implicit or explicit. Any figure could be only an arbitrary symbol. Not being able to calculate a price, the firm could not rationally allocate factors and resources from one stage to another. ... It is obvious that this economic law . Because of this law, firms cannot merge or cartelize for complete vertical integration of stages or products. Because of this law, there can never be One Big Cartel over the whole economy or mergers until One Big Firm owns all the productive assets in the economy. The force of this law multiplies as the area of the economy increases and as islands of noncalculable chaos swell to the proportions of masses and continents. As the area of incalculability increases, the degrees of irrationality, misallocation, loss, impoverishment, etc., become greater. Under owner or cartel for the whole productive system, there would be no possible areas of calculation at all, and therefore complete economic chaos would prevail.