Sorry about the title; advertisements for The Cher Show are all over New York these days, so the song is in my head. Anyway…

In the Boston Review, the left economists Suresh Naidu, Dani Rodrick, and Gabriel Zucman offer an excellent manifesto of sorts for a new progressive economic agenda. I was asked to respond, and in a move that surprised me, I wound up returning to Hayek to see what we on the left might learn from him and his achievement. Here’s a snippet:

Far from resting neoliberalism on the authority of the natural sciences or mathematics (forms of inquiry Hayek and Mises sought to distance their work from) or on the technical knowledge of economists (as Naidu and his co-authors claim), Hayek recognized that the argument for capitalism had to be won on moral and political grounds through the political arts of persuasion.

Here’s where things get interesting. Though Hayek famously abandoned formal economics for social theory after the 1930s, his social theory remained dedicated to elaborating what he saw as the essential problem of economics: how to allocate finite resources between different purposes when society cannot agree on its most basic ends. With its emphasis on the irreconcilability of our moral ends—the fact that members of a modern society do not and cannot agree on a scale of values— Hayek’s point was fundamentally political, the sort of insight that has agitated everyone from Thomas Hobbes to John Rawls and Jürgen Habermas. Hayek was unique, however, in arguing that the political point was best addressed, indeed could only be addressed, in the realm of the economic. No other discourse—not moral philosophy, political theory, psychology, or theology—understood so well that our ultimate moral values and political purposes get expressed to others and revealed to ourselves only under conditions of radical economic constraint—when one is forced to assign a limited set of resources to different ends, ends that favor different sectors of society.

Morals are not really morals if they are not material, Hayek believed. Outside the constraining circumstance of the economy, our moral claims are so much wind. Inside the economy, they assume force and depth, achieving a revelatory clarity and profundity….

The intrinsic links between moral and economic life as well as the intractability of moral conflict, the incommensurability of our moral views, were the kernels of insight that animated Hayek’s most far-reaching writing against socialism. The socialist presumes an agreement on ultimate ends: the putatively shared understanding of principles such as justice or equality is supposed to make it possible for state planners to conceive of their task as technical, as the neutral application of an agreed upon rule. But no such agreement exists, Hayek insisted, and if it is presumed to exist, nothing will reveal its non-existence more quickly than the attempt to implement it in practice, in the distribution of finite resources toward whatever end has been agreed upon.

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Hayek translated moral and political problems into an economic idiom. What we need now, I would argue, is a way to uninstall or reverse that translation.

In the rest of the piece, I briefly (very briefly) sketch out, with the help of Polanyi, what that might mean. This is something I hope to be developing further in an article I’m writing with Alex Gourevitch on socialist freedom. But in the meantime, here’s the Boston Review piece in full.

Marshall Steinbaum and Alice Evans also have excellent responses.