Misunderstanding the Relationship of Spontaneous Order and Planned Order
In the comments section of this post , Bob Murphy writes, "There is clearly a meaning to the phrase 'spontaneous order.' I'm not saying you have to be an anarchist if you like the idea--Hayek himself wasn't an anarchist. But it is an abuse of language to say the state is an example of spontaneous order." Yes, indeed, to claim the state is a spontaneous order would be stupid. Which is why I never said that, nor anything even very close to that. But Bob's confusion is understandable, given all the ideological baggage that has been heaped upon these concepts, and others may partake of it, so let me explain this at the top level, rather than in the comments. Set aside for a moment the matter of the state, and let us turn to the firm. The firm is (largely) a planned order. But, 1500 years ago, no one said to himself, "You know, let me invent an economy full of firms!" No the firm is a (largely) planned order that arose spontaneously. As must...