Fredrich Hayek (2)

Continuing my thoughts about Friedrich Hayek directly from my previous post here.

Five years ago, I made a more extensive comment at "Who’s Afraid of Friedrich Hayek?".

Yesterday, I asserted that governments serves the interests of the ruling class.

Hayek seemed to be saying that governments are a foreign element in the market economy. He says that it is the intervention of governments that inhibit the efficient working of markets. The origin of this inefficiency is the inability for anyone to completely understands how markets work.

Under Capitalism, the mythology is that the government sits in a Bonapartist position of mediating between competing interests. These interests are assumed to be between business, unions, and the public. In fact, the government mediates between factions of the Capitalist class. The relative strength of these factions determines the direction of government policy.

Any policies that seem to benefit persons outside of the Capitalist class are bribes to keep the non-Capitalists quiet.