By Steven Pressman (eds.)
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Extra resources for Alternative Theories of the State
The economic instability of the market economy along with its requisite factor mobility and bargaining orientation are severely disruptive of social existence. Family and community life and the political process become hollowed out in their subservience not to the requisites of social life but to the stringent requirements of the market economy. The market economy's institutionalization of socially irresponsible self-seeking is destructive of community because the latter has much to do with reciprocal obligation, responsiveness to each other's needs, and commitment to give-and-take.
R. (2000) Value Theory and Economic Progress: The Institutional Economics ofj. Fagg Foster, Kluwer Academic Publishers. Tugwell, R.  The Economic Basis of the Public Interest, New York: Augustus M. Kelley, 1968. Veblen, T.  "The Case of Japan" in Essays in Our Changing Order, ed. Ardzrooni, Clinton: Augustus M. Kelley, 1964, pp. 248-66. Veblen, T. W. Huebsch. Veblen, T.  Imperial Germany and the Industrial Revolution, New Brunswick: Transactions Press, 1990. Veblen, T. (1965) The Vested Interests and the Common Man, Clinton: Augustus M.
This antipathy between the market economy and community is evident in the externalities that are so prevalent in the market economy. In a community setting, people are aware of their impacts on each other, responsive to each other, and anything but indifferent to each other. The erosion of community life is also evident in the exalted mobility of labor, a factor Schumacher links to footlooseness. The importance of the mobility factor and its inconsistency with community roots was made clear by Frank Knight in his classic description of the market economy (Knight, 1971: 77).