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The theories that I (and others) helped develop explained why unfettered markets often not only do not lead to social justice, but do not even produce efficient outcomes. Interestingly, there has been no intellectual challenge to the refutation of Adam Smith’s invisible hand: individuals and firms, in the pursuit of their self-interest, are not necessarily, or in general, led as if by an invisible hand, to economic efficiency. The only question that has been raised concerns the ability of government to remedy the deficiencies of the market. Within academia, a significant fraction of economists are involved with developing and expanding on the ideas of imperfect information (and imperfect markets) that I explored. For instance, Edmund Phelps, this year’s Nobel Prize winner, belongs to this "school" of thought. But in political discourse, simplistic “market fundamentalism” continues to exert enormous influence.
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Interview on Bebbe Grillo's Blog, January 2007

 

Joseph E. Stiglitz

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They [free market policies] were never based on solid empirical and theoretical foundations, and even as many of these policies were being pushed, academic economists were explaining the limitations of markets — for instance, whenever information is imperfect, which is to say always.

 

Joseph E. Stiglitz

 

It's a real shame that only Mr. Chomsky's tedious harangues against America get any attention. His body of work deserves more serious treatment. The interesting yet overlooked aspects of his political philosophy cannot easily fit into the left-right dichotomy. What makes Mr. Chomsky unique is that his criticism of the capitalist economic order takes its point of departure from the classical liberal thinkers of the Enlightenment. His heroes are not Lenin and Marx but Adam Smith and Wilhelm von Humboldt. He argues that the free market envisaged by these thinkers has never materialized in the world and that what we have gotten instead is a collusion of the state with private interests. Moreover he has repeatedly stressed that the attacks on democracy and the market by the big multinationals go hand in hand. The rich, he claims, echoing Adam Smith, are too keen to preach the benefits of market discipline to the poor while they reserve for themselves the right to be bailed out by the state whenever the going gets rough. As he puts it: "The free market is socialism for the rich. Markets for the poor and state protection for the rich." He has spoken positively about the work of Peruvian liberal economist Hernando De Soto who sees the problem of poverty in the Third World as being related to the fact that the poor usually lack clearly defined property rights.

 

Noam Chomsky

 

As against the "invisible hand" of Adam Smith, there has to be a visible hand of politicians whose objective is to have the kind of society that is caring and humane.

 

Pierre Trudeau

 

The political principle that underlies the market mechanism is unanimity. In an ideal free market resting on private property, no individual can coerce any other, all cooperation is voluntary, all parties to such cooperation benefit or they need not participate. There are no values, no "social" responsibilities in any sense other than the shared values and responsibilities of individuals. Society is a collection of individuals and of the various groups they voluntarily form.
The political principle that underlies the political mechanism is conformity. The individual must serve a more general social interest — whether that be determined by a church or a dictator or a majority. The individual may have a vote and say in what is to be done, but if he is overruled, he must conform. It is appropriate for some to require others to contribute to a general social purpose whether they wish to or not.
Unfortunately, unanimity is not always feasible. There are some respects in which conformity appears unavoidable, so I do not see how one can avoid the use of the political mechanism altogether.

 

Milton Friedman

 

"Even discourse which does not acknowledge "musical coherence" as "intellectual communication" does not in fact succeed in treating it as anything else; it is only by locating their concerns in domains where the "musical" aspects of music are peripherally or not at all involved that musical discourses can circumvent the fact that when the "object of thought" consists of the contents of a musical composition just the recognition of the identities of any of these contents (or even of the undivided single identity of them taken all together as a "unit") involves (to varying degrees) the same considerations that are involved in a discourse that explicitly--and hence with a better chance of cognitive particularity--regards such a composition as an instance of communicative thought."

 

Benjamin Boretz