Hayek's work is all about formulating an effective economic system, which at first seems a far cry from the communication theory we've been reading. Benjamin and Baudrillard were concerned with mass manipulation, indoctrination, and subtle subjection through broadcast media. Hayek is concerned with “allocation of available resources” and who in society is suited for economic “'planning'” (Use of Knowledge 2). How is this related? In fact, he directly mentions the importance of communication, and the effects (and effectiveness) of mass communication, in his discussion of types of knowledge and the problems with centralized economic planning authority. Furthermore, his concern with society's producers and their role in mass communication puts Hayek in the category of communication theory and the discussion of mass media's influence on society.
Hayek writes that there are two kinds of economic knowledge. Centralized, generalized knowledge belonging to economists and 'experts,' and the “important but unorganized knowledge” belonging to individuals involved in the 'here and now' economy: the actual process of production (Use 2-3). While generalized knowledge allows for a “unified plan” for the economy, it does not permit change, last-minute problems, or circumstantial variations of time and place (Use 2). This immediate economic planning is “left to the 'man on the spot'” (Use 4). The problem with this fact comes when people discount the kind of knowledge possessed by the common man, and rely solely on the general rules and statistics of a “planner”. Hayek shows the practical problems of exclusive central planning in The Road to Serfdom. He writes, “when the government has to decide how many pigs are to be raised or how many busses are to be run...these decisions cannot be deduced from formal principles or settled for long periods in advance. They depend inevitably on the circumstances of the moment” (Road 74). In other words, they require decentralized planning characteristic of the free market. Business is a “constant struggle” requiring perpetual adaptation and quick reactions to change : “constant deliberate adjustments” (Use 4). Factories cannot be run by generalities and statistical rules, but Hayek argues that a planner with “limited but intimate knowledge of the facts of his immediate surroundings” is not fully equipped to plan an economy either. As such, planners need to receive some kind of general knowledge to integrate their decisions into a larger economic plan.
Essentially, Hayek is arguing for individualism in economic planning. How do you think he would mesh with our communication theorists? He believes that centralized knowledge cannot solve the daily problems in reality. Generalized formulas cannot adapt themselves to specific situations. Furthermore, individuals require extensive communication to integrate their decisions into a unified plan. I think of Baudrillard in this respect. Mass media is too general to ever accomplish more than a weak replica of communication, as it does not correspond to the 'here and now'. Giving the producers a voice is not a perfect solution, because their knowledge must be integrated for a truly unified 'conversation' (in this case, unified economic plan) to take place. Feel free to shoot that down. It's quite the stretch. What theoretical comparisons do you see in Hayek?
I think one of Hayek's more interesting points is describing money as a medium of communication. I think that's the connection you made with Baudrillard, which I hadn't thought of while reading. This makes alot of sense in a certain way, as economists will often refer to 'market signals' which direct how firms allocate resources, and prices are part of conveying those signals. What I wonder is if under Hayek's interpretation, government interference with individual money exchanges would qualify as a violation of free speech. It reminds me of the right of contract debates in the late 1800s and early 1900s, where some workers complained that a minimum wage takes away their ability to be competitive by undercutting other sources of labor.
ReplyDelete