Politics and Markets What are they good for?

Abstract

Neoclassical economic ideology's strength today lies partly in the epistemological claim that markets can process information about people's needs more effectively than can political institutions. Market forces provide a feedback mechanism for market actors that is usually absent for political institutions. On the other hand, political institu­tions can process important information about people's needs that markets clearly cannot. To do so successfully, political institutions require their own set of feedback mechanisms. Administrative law, with its emphasis on people's participation in government and accountability of government, is an important part of this government learning framework.