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The Market as PrisonAuthor(s): Charles E. LindblomSource: The Journal of Politics, Vol. 44, No. 2 (May, 1982), pp. 324-336Published by: on behalf of theThe University of Chicago Press Southern Political ScienceAssociationStable URL: http://www.jstor.org/stable/2130588Accessed: 22-03-2016 19:33 UTC
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The M rk e t AP r on
CHARLESE LNDBLOM
SU PPOSE u t t o mb eru p ou rmn d t h t w e f c e d t he f n c f u
t k o f de g n n g p o t c y t em o r p o t c / ec on om c y t em
th t w ou db e h gh yre t n t t o c h n ge H ow t od o t ? On e w y
t h t c n b e m g n e d b u t o n y m g n ed t o de g n n t t ut o n
of u c h e x ce e n c e w ou d t f yu w t h ou t f urt he rme n dme nt
n d wo u d do o u nd er p o b e c r cu m t n ce n r p d y c h n g
n g wo r d To d e nt fy u c h p o b t y t o d c r d t h op e e y
v on ryAn oth e rpo b t ymgh t b e omeh ow top c e p owe r
n t h e h n d of d e p o t oro g rc h w h ow ou d t he re f te rd e ny
c t ze n n y c p c t y f orc h n gn g t he y t e mB u t d on g ow ou d
of c ou re e n b e t h e e t e t o c h n ge t h e y t e m n dw e k now t h t
ome e t e re more e g e rf orc h n ge t h n ome m e
A no th er p o b t y m p e n d f e nd h y c e v e r t t o de g n
n t t u t on o t h t n y t t e mp t t o t ert h e mu t omt c y t rgg er
pun h me nt B y u t omt c me n t h t t h e p un h me n t foow
fromthevery ctntendedtochngethey temPun hmentdoe
n o t w t f or n y on e d e b e rt on on w he t he rt he c h n g e c c ep
t b e orn o t S u c h c h n ge re p re n gy t e mwoudb e t h e
moreeffectve fthepunhment weretrong ftheytooktheform
o f ov er r e p on e k e th e t nt ru m o f p o e d ch d r g n g t e v en
md t te mpt t p re n t c ont ro
H ow f n cf u t h t po b t y? t n ot t c e r h ow u c h
mpe c onc ep t c ou db e md e e ff e ct v e n c t u p r c t c e C on
de rome of ou rn t t u t on Th ere e e mt ob e n ow y t omk e
u ch m ec h n m w o rk n t h e c e o f c ho o W e r e n d ee d
omet me pun h ed n ou rt t e mp t t o mprov e th em n t h t t h e t
t em pt o me t me f n d m k e th e t u t on w or e B u t t h t n ot
*An n f orm t k re con t ruc te d byLn db omf romh ou t n e n dn o t e g v e n t
e c h of f ou r r eg o n p o t c c e nc e o c t o n n n u m ee t ng
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THEMARKETASPRSON325
a bu t-n feature of the schoo system or of our attempts to mprove
t There may be no way even f we sought one to bud n an
automatc punshng reco The same seems to be true for abor
unons Unons possess a capacty for reta atory punshment
through strkes but t s a weapon they must use sparng y And t s
a weaponrareyusedtopunshattemptsofsocetyto changethe n-
sttut ona roe of unons but s nstead argey an adunct to bargan-
ng over terms of empoyment for members There appears to be no
easy perceved possb ty for automatca y punshng ourseves
e v e ry t me w e t ry t o e g t e on un on
fweg o d ownthe neo f s oc a ns t tut o ns thep os s b t e s fo r
repressng change through an automatc pun shng reco appear to
be ether nonexstent or mpossbe to magne For the church the
famy orthevarousnsttutonsof governmentfor exampe un-
punshedchangecontnues nfactfromyeartoyeareven f agan
we may sometmes construe a fa ure n reform as a punshment No
methodforguaranteengautomatc punshment s nevdence
Whenwecomehowevertothatc usterof nsttutonscaed
busness bus ness enterprse or the market ust such a mechansm
s n fact aready operat ng Many knds of market reform
automatca y trgger punshments n the form of unempoyment or
a sugg sh economy Do we want busnesses to carry a arger share
of the naton s tax burden? We must fear that such a reform w
d scourage busness nvestment and curta empoyment Do we
want busness enterprses to reduce ndustra po uton of ar and
water? Agan we must bear the consequences of the costs to them of
ther do ng so and the resutant decnes n nvestment and empoy-
ment Woud we ke to consder even more fundamenta changes
n busness and market - worker partc paton n management for
exampe or pubc scrutny of corporate decsons? We can hardy
mag ne puttng such proposas as those on the eg sat ve agenda so
d t urbn gw oud t h eyb e t ob un e more n dn c e nt v e
n the t ownn whch v e a chemca p a ntd s charge s s ome -
thng nto the atmosphere that carres both a bad odor and rr tants
to the eyes Town and state governments are both reuctant to put
a nend to thep r ob emfo rfea r that thep a ntw fnd t a dv an-
tageous to move to a new ocaton n another state Natona y we
have recenty seen that a re- nvgorated Federa Trade Commsson
has been crpped by new restrctve egs aton and presdenta n-
structons for fear that effectve regu aton of monopo y by the Com-
mssonw undercutbusnessncentvesto nvestandprovdeobs
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326 THE JOURNAL OF POLITICS, VOL. 44, 1982
All this is familiar. One line of reform after another is blocked by
prospective punishment. An enormous variety of reforms do in fact
undercut business expectations of profitability and do therefore
reduce employment. Higher business taxes reduce profitability.
Bearing the costs of pollution control reduces profitability. Build-
ing safer automobilites reduces profitability. Countless reforms
therefore are followed immediately - swiftly - by the punishment of
unempoyment
Change is repressed, not wholly stopped. Businessmen some-
times learn to live with reforms. Sometimes also we escape the
punishment because we attach to the reforms new offsetting benefits
to business to keep up their incentives to provide jobs. To a growing
number of environmental controls over business we attach new tax
benefits or, as in the case of Chrysler, new loan guarantees. But the
conflict between reform and its adverse effects on business that
punish us through unemployment is a long standing and real repres-
sant of change. As for the ubiquity of punishment, its swiftness and
severity, there is nothing like it elsewhere in the social system. No-
where else is there so effective a set of automatic punishments
estabshedasa barrertosoca change
Business people often exaggerate the conflict. Chrysler, for ex-
ample, argued that its financial difficulties, for which it sought
relief from government, were largely caused by environmental regu-
lations, which is almost certainly not the case. And business people
often predict dire consequences from regulations that they know
they can accept if they must. Nevertheless, change in business and
market institutions is drastically repressed by the frequency with
which change will in actual fact produce unemployment. This is a
familiar phenomenon as old as markets themselves
Punishment is not dependent on conspiracy or intention to
punish. If, anticipating new regulations, a businessman decides not
to go through with a planned output expansion, he has in effect
punished us without the intention of doing so. Simply minding
ones own business is the formula for an extraordina ry system for
e p re n g c h n ge
The mechanism that accounts for this extraordinary state of af-
fairs is the same one that I referred to in Politics and Markets to ex-
plain the related phenomenon of the privileged position of business
in the political system of all market oriented societies. In all market
New Y ork B c B ook 1977
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THE MARKET AS PRISON 327
oriented societies, the great organizing and coordinating tasks are
placed in the hands of two groups of responsible persons, func-
tionaries, or leaders One group consists of government officials at
sufficiently high levels The other group consists of business people
The tasks assigned to business people are of no l ess importance than
those assigned to government officials To business people is
assigned the organizing of the nations work force, and that task in
itself is perhaps the largest and most basic specific problem in social
organization faced by any society Businessmen direct capital ac-
cumulation, income distribution, and resource conservation, as well
as discharge more particular tasks such as organizing the production
of steel, bicycles, armaments, pots and pans, and housing Busi-
nessmen also undertake specific coordinating tasks as, for example,
thebrngngoffarmproductstourbanconsumers
The defining difference between a government official and a
business entrepreneur is not that one discharges important functions
and the other only secondary functions, for both perform maor and
essential services for society The difference is that one is directed
and controlled through a system of commands while the other is
directed and controlled by a system of inducements Why societies
use both systems of direction and control is a l ong story that we shall
not undertake But a market society is one that makes heavy use of
an i nducements system for directing and controlling many of its ma-
or leaders Market systems are inducement systems Put out of
your minds the question of whether or not societies ought to use in-
ducement systems for controlling and directing top leadership The
fact s that some do and that s what market systems are
Playing their roles in a command system, government officials can
be commanded to perform their functions Playing their roles in an
inducement system, business people cannot be commanded but must
be induced Thus inducement becomes the nub of the automatic
punishment system Any change in their position that they do not
like is a disincentive, an anti-inducement, leading them not to per-
form their function or to perform it with less vigor Any change or
reform they do not like brings to all of us the punishment of
unempoymentor uggh economy
Again, the system works that way not because business people
conspire or plan to punish us, but simply because many kinds of in-
stitutional changes are of a character they do not like and conse-
quently reduce the inducements we count on to motivate them to
provde ob ndperformtherotherfuncton
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328THEJOURNALOFPOLTCS VOL44 1982
T he r e u t t h t c r o t he e nt r e r r y o f n t t u t on c h ng e
t h t b u n e m e n th em e v e d o n ot k e n u t o m t c pu n h n g
re co w ork t ore pre c h n ge n t h t b rod c t e g ory c h n g e
ndofteneventheuggeton ofchnge dverey ffect perfor
mn c e h e nc e d v e re y f fe c t e mpoyme nt An t c p t on of
chnge reenoughtotrggerunempoyment
C h dre n myu k w h en t h eyd on o t k e t h e w y t h e y re b e n g
t re t ed P rof e or mygrumbe Work e rmy ow t he rw ork
B ut t h e rre p on e d f f e rf romt he re p on e of d t f e d
b u n e m e n n c r t c w y T h e d t f c t on o f th e e o th er
g rou pd on o t re u t n d n c en t v e n d re du c ed p e rformn ce t h t
mpoe b rod e v ere n d obv ou p e n t y t hrough ou t t he o c e ty
w h c h w h t un empoyme nt d o e Ag e ne r ze d g rdu
ow dow n of worke r f t w ere t o o c cu rw ou d ordn r yb e
n e t he rme u rb e n orob e rvb e An yg en e r bun e ow dow n
m e u r b e n d hu rt fu n o b o t n d m o t e ve ry on e w r e
o f t A p ec f c o c z ed w or k o wd ow n or t op p g e y d ec
o n of t r n m en t o wo rk b y th e ru e b o ok o d uo u y t o
p r y ze r t r f f c c n be f e t n u ry t o m o n o f p eo p e B ut
t t c t c th t c n o n y n ow n d t h en b e mo b z e d n t e d t h e
p en t y o f u ne mp o ym en t v t ed o n u b y b u n e d n ce nt v e n
n y t u t on n w h c h bu n e p eo p e e e t he m e v e d v er e y f
f ec t ed b e c u e b un e p e op e re m ororgn ze r n d c oor
dn t or
B un e p e op e d on o t h v e t od eb t e w h et h erorn o t t ompoe
t he p e n t yTh e yn ee d d on omore db e fore t h n t e nd t o
t h e rown bun e e w h c h me n t h t w t h ou t th ough t of ef f ec
t n g pun h men t on u t he y re t rc t n v e t me nt n d ob mpyn
thecoureofbengprudentmnger oftherenterpr e
D o n e ed t op on t out h ow brodybu n e d n c en t v e n u re
p opu t on ? The un empoye du f f er t h t obv ou S o od o
youngpropectveentrnt ntothe borforcewhofndth tthey
c n no t ob t n o b w he nb u n e c k So o d o bu n e m e n
t he m e ve r ge n d m p ro du ct on r ed uc ed S o o d o
t oc kh o de r w ho e e r n n g d e c n e S o o d o f r me r b u
n e me n t h eme v e w hof n dmrk e t f ort h e rout p ut d e pre e d
Wh t b out g ov ern me nt of f c ? t c rt c t o t he e f f c c y of
u tomt c pun h me nt t h t t b e v t ed on t h emF or t t he yw ho
mme d t e y orp roxmt e yd ec d e t op er t n p o c y c h n g e ort o
w th d rw f romu c h n t t v e Th e pe n t yv t ed on t h emby
b u n e d n ce nt v e c u e d b y p ro po e d p o c e t h t de c n n g
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THEMARKETASPRSON329
b u n e c t v ty t hr e t t o th e p r ty n d th e of f c n p ow er
Wh en d e c n e n p rop e rt yn d e mpoyme nt b rou ght b out by
d e c on of c orp ort e n d o th e rb un e e x ec u t ve t n o t th ey
butgovernmentoffc whoconequenty reretredfromtherof
fce
Th t re u t t he n w hy t h e mrk et mgh t b e c h rc t erze d
p r o n F or b ro d c t e go ry o f po t c / ec on om c f f r t m
p ron p o c ymk n g n dmpron ou rt t emp t t omprove ou r
n t t ut on t g re t y c rpp e ou rt t emp t t omprove t h e o c
w ordb ec u e t f f c t u w t h uggh e c onomc p e rf ormn c e n d
unempoyment mpybecu ewebegnto debteorundertke
reform
n h G re t T r n f o rm t o n K r P o n y m k e t he p o nt t h t
e ry En gh e x pe re nc e w t h p o c yd e gn e d t o of te n t he h r h ne
ofthemrket ytem n18thcenturyEngnddemontrtedhow
e y re gu t on of t h e mrke t c ou dd e rn g e t he e c on omyB u t h e
d d n ot g o o f r t o r g ue t h t m r ke t y t e m m p r o n o r c r pp e
t h e po c ym k n gproc e n dn d e ed t h ou ght t h t more n t e g e n t
p o c ymk n g c ou d u c ce e dwh ere e r e rt t e mp t f e d m
rgung t h t t h e c rppn g of p o c ymk n g n mrk e t o c e t ymy
bemoreer ou thnhethought
Y oumyb e t e mpt ed t ob e e v e t h t t h e re ob t c e t o o c
ch ng e we oft en c re e y er t k nd of o c ner t o r
t en de nc y of o c e t e t o r em n t he y r e B u t t n ot t c e r
t h t n e rt o f th t k n d e x t n t he o c w or d M n y p e op e c on
t nt y t ry t o c h n ge t h e o c w ordAn e x pn t on of t h e r
f u re m or e p u b e t h n t h t of n e rt t o be f ou nd n t h e g re t
numberofotherpeopewhore vgorouy tryngtofrutrte oc
c h ng e My n y p o nt t o o c m ec h n m th t f ru t r te t
t h g h y e e ct v e me ch n m y o u h o u d no te t h t p e rm t
ch n g e of ome k n d n dmpoe p owe rfu ob t c e t o o t he rk n d
C e r y f w e o ok t d f fe re nt r e o f o c f e e e o f ch n ge
v r e g re t y f r om r e t o r e n r ec en t ye r w e h ve e e n r ge
c h ng e n e xu m or e f o r ex m p e w e o f co ur e m u tp e
c h n g e p re e d on u by t ec h noog c d e ve opme n t n
po t c / e con omc f e o c e ty ov ert h e w ordh g one t h rou gh
or n ow gon g t h rou gh on e of t he w ord gre t e t o c re vou
t on t h e orgn zt on of mot e v ery f ormof o c c o op e rt on
t hrough f orm orgn zt on e p e c ybu re u crt c orgn zt on
Th e bure u c rt c re vou t on e nou gh t o t e t f y t o t he c p c t y of
o c e ty f or p o t c n d ec on om c c h n ge t t he m or e m
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330THEJOURNALOFPOLTCS VOL44 1982
p re v e t h t t he re ex t me ch n mof u t omt c pun h n gre co
t h t u cc e f u y re t rd orre p re e c h n ge n o t he r p e ct of
p o t c n d ec on om c f e
n u t w h t p ec t o f p o t c / e co no m c f e th t m ec h n m
op e rt e h v e n o t y et d e x c e pt t on o te t h t t h e n c u d ed p e ct
r e t ho e n w h ch b u n e m e n o r n y r ge o r c r t c n u mb er
of th em e e c h n ge h u rt fu t o t he row n prop ec t Y ou c n f
n w h t th o e p ec t r e T he y n c ud e n t t u t on n d po c e
t h t p ro te c t th e d ec on mk n g u t hort y of bun e me n n t h e r
ow n bu n e e n d t he c u t omryprerog t v e of mn g e me nt n
c u dn grgh t t o e f re c ru t men t n t o c orp ort e e t e Th ey n
c u d e p o c e t h t m n t n t h e e x t n gd t rbut on of n c ome n d
w e t h o ng w t h n t t u t on n d po c e t h t ho d t he b or
movementncheckTheeffccyof thereco mechnm
e vd en c ed by t h e con t nun gh t orc f u re of eq u t r n p r
t o n t o c h e ve g n f c nt c h n ge n t h e d t r b ut o n of w e t h
n dn c ome mong oc t rt n dby t he c ont n un gu t onomyof
c orport e mn g e me nt n w ordn w h c h n c re n gn umber of
thoughtfu peopere rgungon envronment ndother
g roun d t h t n og rou p of e d e r c n b e ow ed t o e x erc e o
u t on omou c ont roov erou r v e An e w t u dy of corport e
powerbyHermn openoureye totheextentn whchbu ne
u t on omyh b e en u t n edd e p t e d e c d e of pp re nt g rowt h n
t h e regu t on of t 2
t o th ec e t h t n o f r po c y h uc ce f u y pu hed
n to r e o f wh c h bu n e p eo p e d p pr ov e t h o ft en h d t o b e
of f e t byn e w b en e f t or u pport t ob un e Wh en t h t h pp e n
p o c y mpron edn o t n t h e e n e t h t t c n n o t bre k ou t of t
c onf n e me nt bu t n t h e e n e t h t t ore e e t w e mu t py r n om
W he re t he re r e p r o n h ow ev er t h er e r e o b re k A g n
t h ere fore d on ot rgue t h t t h e mrk et e c p e p roof
Th e mpron n gof n t t u t on n dp o c ymk n g n mrk e t
o r en te d o c e ty t h nk o r d n r y b r u h ed d e n e mb r
r n gf e t ure of o t e n byd e mocrt c y t e m We re n o t c om
f ort b e n c kn ow edgn g t h t p opu r c ont ro c rpp e dn t h e e
y t em b y n u to m t c p un h n g r e co n t he U S t o d y
h ow ev e rn t h e Re gn dmn t rt on w e n ow h e rre mrk by
c n dd c k now e dg e me nt t h t w e mu t e rn t ob e h ppyn ou r
2Edwrd S HermnCorporteContro CorportePowerNewYorkC m
brdg e Un v e rt yP re 1981
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THEMARKETASPRSON331
pr o n T he n ew d m n t r t o n te u b o d y n d b d y t h t w e
c n no t h v e g row th c n no t h v e p rc e t b t y n d c n n ot h v e
f u e mpoymen t un e w e t op un de rmn n gbu n e n c en t v e
Hence theyhvetodu thtwec nnothve neffectveFeder
Trd e C omm on t re ce n t en ergyh vn gh rme dbu n e Nor
c n w e p e r t n re ce nt p rogrm of u t omob e f e ty w h c h mu t
n ow be re x e dNorc n w e p rot ec t t he n d c p e g n t t rp
mn e On e f t er n o th erof ou rre ce nt re form re b e n g c urt e d
of r t h e dmn t rt on c n c h e ve t h e re u t on t h e g roun d
t h t ou re con omc y t e m t he mrk e t y t em doe n o t ow u c h
re form f w e re t o e n oyp rop e rtyWe c n not e ve n h od t o
p o c y o f hu m n r g ht b ro d A D v d R o ck ef e e r e r y n
n oun ce dn dme mbe rof t h e Re gn dmn t rt on h v e re pe t e d
n c e ou rp o c y of p rot ec t n gh umn rgh t b rodh t ob e u b or
dn t e d t o ou rn e ed f orfore gn mrke t w t h w h ch t h b ee n n
nterference
Th e Re gn dmn t rt on t ryng t omk e t h e u t omt c re co
me ch n me v en more ob t ru ct v e t o o c c h n ge t h n t n e ed b e
B u t c red t t h e dmn t rt on w t h un de rt n dn g t h t u c h
m ec h n m e x t n n y m r k et y t em T h ey r e r g ht n p
p re c t n g t h t p o c ymk n g mpron ed e v en w t h out t h e re f
f or t t o b u d t he w h g he r
F n y t k e no te t h t m y r g um en t t h t po c y m pr o n ed n
m r k et o r en te d y t e m w h ch b ro d e r ge ne r z t o n t h n f
h d d t h t t m pr o n e d n p r v t e en te rp r e y t em T he
f e t ure of mrk et y t e mt h t t t h e c ore of t he re c ome c h n m
thenducementy temthtweu etomotv teonegretc tegory
of orgn zer n d c oordn t ort od o t h e rw ork f w e w ere t o
operte mrket ytemcompoedexcu veyofgovernmentowned
n d ope rt e dmrk et e n te rpr e t he re c ome c h n m w oud t
operte Thenducementnece rytogettherequredperfor
m n ce ou t of pub c mn g e r mgh t b e f ew eror e h en c e th e
p rob e mof u t omt c pun h n gre c om ght b e re du c edB u t t
w ou dn ot b e e mn t e d un e w e b n d on ed t h e n duc e me n t
y t e mn f v orof c ommn d y t e mt h u re movng t h e o c ze d
enterpr efrom mrket ytemof nducement
On e of t he c u e b e e v e of S ov e t bn d onme nt of t h e rt
tempt nthe1960 to ntroducemorem rketeement ntothe
S ov et e c on omy t h t t h e re r e t mov e w e re b ru pt yp e rce v e d
r eq u r ng t op p o t c e d er h p t o t o n t h n d t h t n ot t o
n te rf er e w th m r k et t m u t ed m n g e r d ec o n A t e t
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332THEJOURNALOFPOLT CS VOL44 1982
dmy theypercevedthatthegrowthofthe market mped con-
strctons on ther own ab ty to make po cy They top Sovet
authort es woudbe mprsonedbyther commtmenttothe
mrket
Someofyouw hearmyremarkstodayasconsttutngan argu-
ment for gettng r d of the market system so that po cy can escape
fr om ts p r s on But thatwo ud b ep ut tngwo rd s n my mouth
do bee ve that the fact that the market system mpr sons po cy
through an automatc punshng reco s a serous d sadvantage of
market systems woud not want to deprecate m nm ze or
obscure that nference We pay a b g prce for the use of a market
system But whether the market ought to be manta ned or aban-
doned cas for a wegh ng of ts advantages and dsadvantages And
t h t t k mn ot und e rt k n g t ody
nanycase thereatonbetweendemocracyandmarkets more
compex than we hear t to be from cassca beras ke Hayek and
Fredman No democrat c naton state has ever arsen anywhere n
the word except n conunct on wth a market system -surey a
hstorca factofenormousmportanceBut accordngto myargu-
ment today no market socety can acheve a fuy deveoped
democracybecausethemarketmprsonsthepo cy-makngprocess
We may be caught n a v se For mn ma democracy we requre a
market system For fu er democracy we requre ts e mnaton
But ts e mnaton m ght pose more obstaces to a fu er democracy
than does ts contnung mpr sonng of pocy makng t may
therefore be that a fu er democracy s never to be ours Or f t can
b e a chev ed t w comeo ny whenwed s cov erhowto p ro v d e
wthout a market system those mn ma supports for democracy
whch so far n hstory on y market systems have provded Our
d emma or dffcut es are extraordnary -and are not carfed for
usbythecurrentstatee therofmarkettheoryordemocratctheory
ForAmercansandmanyWesternEuropeansthemarket sa
p r s on na nother s ens e a s we Bo tha s a n ns t tut o na nd as a nn-
te ectua concept t seems to have mprsoned our thnkng about
p o t c n d e con omc
Forme anearyandmemorabedemonstratonof mprsoned
thought was many of the revews of Unons and Captasm a book
based on my doctora dssertat on and pub shed n 1949 n t had
arguedthatcertan ncompatb tesbetweentwomaor nsttutons
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8/17/2019 Lindblom - The Market as Prison
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THEMARKETASPRSON333
of ou ro c e t y c o e c t v e b rg n n gon on e h n d n d t he mrk e t
ytem ontheother woud nthefutureproduce erou probem
n c u dng mu t n e ou une mpoymen t n d n f t on Not kn ow ng
w h t t od ob ou t t he p rob em mpyof fe red d gno w t h ou t
re me d p re c r p t on n v e y u m ng t h t t he d g n o m p e d
t h t omet h n gh d t ogv e e t h eron t h e d e of c o e c t ve b rg n n g
oron t h e d e of t he mrk e t y t emA mot re v ew er h owe v er
mpy t ook t f org rn te d t h t mypurp o e w t omk e c e
g n t c o e ct v e b r g n n g o r c e f or t r e tr c t on A t e t
conventon cdemcrevewer eemedunb etocontemptethe
p o b t y t h t c onf c t b e t we e n tw on t t u t on r e d q ue t on
b out b o th of t h em n d pror n omore b out t h e one t h n t h e
other
H vn gb e e n e n t ze d by t h t e r y e x pe re nc e h v e n o te d e ve r
ncethtthe tndrd formu tonofoneof oureconomcprobem
t h t un on p re u re on w g e c u e n f t on orre t rc t on of ob
op p ort un t e n t h e mmed t e y f f e ct e dn du t r f rmG v en
mrk e t y t e mt h t p robby t rue B u t e t me u gge t t h e o t he r
p o b e f ormu t on gv e n t h e n e v t b e n dund e rt n db e d e re
of w ork er t on c re e t h e r h re of n t on n c ome mrk e t
ytemw producenf tonorunempoyment Theecondprop
o t o n n o e t ru e th n t h e f r t T he m t ed c p c t y o f ou r
th n k n g re ve e dn ou rc ommtme nt n h b t of m n d t o t he f rt
propoton tothenegectoftheecondWeh vecometothnknot
of h umn n e e dn d p rt on bu t of t h e mrke t y t em t he f x e d
e e me nt n t h e gh t of w h c h we t h n k b ou t p o c yWe f n d t d f
f c u t t o t h n k of th e mrk et t h e v r b e
M u ch o f o ur t h nk n g n o th er p o c y r e m r y m p r o n ed
forexmpe ourthnkngonenvronment protectonTh t
p o c y m d e n C on gr e n d n t he W h te H ou e c r f ce e n
vronment protectontotheneedofm rketenterpre one
t hn g Th t t ho e c d em c n d ot he r c ho r n y t n d
crtc whore tryngtothnkcontructvey bouttheopton open
t o u o f te n th em e v e c n n ot e e th e m r ke t v r b e b ut t re t t
t he f x e d e e men t roundw h c h p o c ymu t b e f h on ed
n o t he rt h n gTh e t t e r w h t me n bympr on ed t h ou ght
Amore t rk n g e xmpe t h e t t e of t h n k n gb ou t te e v on
On e of t h e g re t h p e rof c on te mporry c u t ure n dp o t c
co mm er c b ro d c t n g e p ec y t e ev o n Y ou h v e h e r d
w h t on ce w ou dh v e b e en t h ou ght of t on h n gf gu re on t h e
n umbe rof h ou r du t n d c h d ren p e ndw t c h n gn dh e rn g
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8/17/2019 Lindblom - The Market as Prison
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334THEJOURNALOFPOLTCS VOL44 1982
w h t c omme rc dv ert ze r n d t he rc e n t d e c d e we w e e n d
h e rTh t n t h e Un t e d S t t e w e h v e p e rmt t ed orc h o e n
b rod c t n g y t e mt h t c onf e r u c h u t hort y on p eop e w h oe
mot ve re t o e omet h n g t ou t h t w e c c e p t fre qu e nt u rg en t
n t errup t on n mot p rog rm ot h t w e c n b e e xh ort ed t o
b uy t h t w e m u t o h e r t e dy d e t o f pr e f or t he c or po r t e
n t t u t on t h t e xh ort u t ob uy t h t w e grn t w t hou t ch rg e
brodc tngr ghtto thoefortunteenoughtog ntheenor
m ou y p ro f t b e b ro d c t c en e n d th t w e d o no t ev en k n
e xc h n ge f or gn f c n t u e of b rod c t t me f ore du c t on pu r
p o e t he e f e tu re o f A me r c n br o dc t n g r e p u b e
e v de nc e o f n n t y t he y r e o f n te g en ce n p u b c p o c y
F orw e t h y oc e t y th t c n f fordn y of v re t y of u p e ror
y t em n d fo r o ce ty t h t n n y c e p y t he c o t o f th e
p re e nt y t e mon e mgh t t h nk t h t p o t c c e n t t n d o th er
n y t w ou d t t e nd t o t h e mert n dd eme rt of c omme rc
br o d c t n g t h t o c r t c h p er o f p o t c n d cu t ur e wo u d
b e on t he g e nd f orp rt e d d e b t e t n o t Ou rth ough t
mproned Wecnnotventurente ectu y fewexcepton
d e be yo nd w h t e e m n o rm n d n t ur W e un cr t c y
c ce p t wh t t h e mrk et p rovde F orAme rc n o c c e n ce t
c n d t h t t re m n e nt o n o g re t n u e An d t o m ke
t he p o nt p re c e y t n ot t h t c om me rc t e ev o n u n cc ep
t b e T h t n ot t he p o nt T h e po n t t h t wh et he r t o r no t
g re t u e on w h ch w e re n c pb e of t h ough t ompr on ed
reourmnd
Y ou w n ot e th t m y n g n d he re m k e t ex p c t t h t
t h e pr on t ron g e nou gh t on c rc e rt e n ot on yp opu rt h ough t
b ut p rofe on t h n k ng n t h e o c c e n ce F u rt h ere v d e nc e
e n t h e c on t rov ery ov e rp u r m n t h e t f f t ee n oro y e r
D omn n t pu r t t h ou ght n Amerc n p o t c c e n ce d e c rb e
p o c ymk n g re u t of v e c to r e c h v e ct oroft e n con
t n g of t he n f u e n ce of ome groupA grou pw h ow h t ob e
dmt te d re c c ordn g t op u r t t h ou ght dmt te d t o t he p ro c
e Th e t t c k on pu r t t h ou ght t h t e v e nt u y e merg ed
r gu ed u cc e f u y t h nk t h t n o me p o c y r e o r fo r c er
t n k n d o f p o c y u e t h e p ur t c om pe t t on o f gr ou p d d n o t
w or k n d th t c n fu en ce t r d to n b e n th e po t c
c u tu re o r p r oc e e c e d m o b z t o n o f b m d e c er t n
p o c y po t o n d o m n nt n d o t he r m po b e t o d v n ce B u t on
t h e wh oe t h e e c rt c m e d t he ph en ome non mde c rbn g t he
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THEMARKETASPRSON335
e x te n t tow h c h p o c ymk n gh t ob e n d c on tr n edby t h e
p ec u r c h r c te r t c o f n n du ce me nt y t em n m r k et y t em
P u r m t m o t o pe r t e o n y n n u n mp r o n ed z o ne o f po c y
mk n gH e n ce t h e c on t n ungd e b t e on pu r m t h ou gh t h
g r e t y m p ro ve d ou r u nd er t n d n g of p o t c t g n f c nt y
c on t r n ed or mpron ed
Eventodynteretgrouptheoryforthemotp rttret bune
n te re t y mm et r c w t h b o r n d o t he r n te re t b e r n g on
p o c y m k n g t h n ot y et g en er y r ec og n ze d th t b u n e n
t er e t o c cu py p ec p c e n m p r o n ed p o c y m k n g
M ore n d re ct y t h e mrk et h t k e n h od of ourt h n k n gn oc
c e n ce n w y t h t c rpp e u t hou gh more c omp e t e c c oun t of
w h t h h pp en e d tou w ou dh v e t o c k n ow e dge t h e n f u en c e
o f p ro fe o n e co no m c t e f m o r n f ue nc e F or e x m p e
n r eg r d n g th e m r ke t y t e m p e ce o f o c m c h ne ry f or
o rg n z n g t he n t o n r e o ur ce n r e p on e t o n d v d u w n t e x
p re e d t hrough purc h e e con om t h v e d rf t ed n to n e t h c of
p re fe re nc e n o f r p o b e e th c u e r e e tt ed b y
re fe ren ce t on dvdu p ref e re nc e t k e n gv e n xg ood or x
bd ? A d e pe n d on t h e p t te rn of n dvdu p ref e re nc e
mpre e d b o th by t h e mrk et n n t t u t on n dby t he t dyn e
o f ec on om t n te rp re t t o n of t m n y p o t c c e nt t h v e
d op te d t he e t h c of p re f ere nc e t k e n gv e n t h p o c y
g ood one ? t d e p en d on t h e p t t ern of n dvdu p o t c
preference whteverthey re democrcy goodthng?Ye
b e c u e t y t e mf or e tt n gn dvdu p ref ere nc e w h t ev e r
t he y r e g o ve rn p o c y m k n g D em oc r cy p o t c m r k et
Or S c humpe te rw h o m orou rc e of th c u rre nt of t h ou ght
p u t t d e mocrc y c omp e t t ve p o t c
W h t w ro ng n t h v er o n of d em oc r cy m r k et k e pr oc
e n w hc h nd v du p re fe re nc e d e y p re v n n d e
m r k et t h t t he p ow er fu n d p er v v e ef fe ct o f p o t c o n
t he f ormt on of p re fe ren ce gn ore d F rom t e t M on t o
u t b e f ore S ch umpe te r om v e n dp e r t en t p roc e of
p ref ere nc e f ormt on c on t t ut ed by t h e p o t c y t e mt e f
w n ev e rgn ore dn ow n g t he mrk e t t od omn t e ou r
p o t c t hou gh t n c e th en w e h v e mpf e d ou rp o t c
t h eore w t h ome g n n c rt yB u t w e h v e mpove rh e d ou r
t h ou ght bympr on n g t n n un t f c t orymode of p ref ere nc e
t k en g v en
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336THEJOURNALOFPOLTCS VOL44 1982
Mym n pon t h ow ev e rh b ee n t h t mrk e t y t e m mpron
p o c yTh o e of u w h ov e n t h o e mrk e t ore n te dy t e mt h t
r e c e d b e r d em oc r t c e xe rc e g n f c nt y e c on tr o o v er
p o c y t h n w e h v e t h ought An dw e re o e f ree t h n w e my
h v e t h ou ght S u c h re t h e n e v t b e c on e q ue nc e of mpron
m en t T h t o ur t h nk n g t e f m p r o n ed e p r t e
phenomenonof mportnceGven howeverthecompextyof
h umn t h ough t n d t h e mpo b t y of d e n t n gn g t ou rc e
t h e con dphe nomen on c n no t b e o c on f d en t y rgu e d t he f r t
A g n w ou d k e to e v e c u t o n b ou t n fe re nc e W h t
h v e d e cr b ed c on t t ut e e r ou d d v nt g e n m k n g u e o f
m r k et y t em B u t th e c e f o r n d g n t m r k et e xt r o r
d n r y c om p ex n d my n y o ng w y f ro m c e e th er
fo r or g n t t o o ng w y f ro m n n w e r to n y q ue t o n
b o ut w h t t o be d on e f t he p ro b em p o ed b y m y n y r e c
c ep t ed gn f c n t on e