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Trade, Power, and Political Economy: Reason vs. Ideology in Edward Stringham’s Private Governance

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  • Richard Wagner

    (George Mason University)

Abstract

In Private Governance: Creating Order in Economic and Social Life, Edward Stringham explains that private ordering is sufficient to secure full exploitation of gains from trade within a society. After describing the logic of Stringham’s claim on behalf of private ordering, the remainder of this essay examines an enigma that Stringham’s argument entails: private ordering is sufficient for social coordination and yet public ordering is ubiquitous. The exploitation of gains from trade might offer a useful ideology, but this provides but an incomplete basis for a theory of society. In this respect, societies are rife with antagonism and envy, though these often manifest themselves ideologically as claims about justice and fairness. Politics goes where the money is; private ordering reveals targets that public ordering subsequently exploits. The challenge for political economy is to integrate the autonomy of economizing action with the autonomy of political action, for these dual autonomies provide the crucible out of which emerges the material of political economy. Stringham has deepened our appreciation of what private governance can accomplish, but much unfinished analytical work confronts theorists of political economy.

Suggested Citation

  • Richard Wagner, 2018. "Trade, Power, and Political Economy: Reason vs. Ideology in Edward Stringham’s Private Governance," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 31(2), pages 245-255, June.
  • Handle: RePEc:kap:revaec:v:31:y:2018:i:2:d:10.1007_s11138-017-0385-0
    DOI: 10.1007/s11138-017-0385-0
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    References listed on IDEAS

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    1. Meg Patrick & Richard Wagner, 2015. "From mixed economy to entangled political economy: a Paretian social-theoretic orientation," Public Choice, Springer, vol. 164(1), pages 103-116, July.
    2. Richard E. Wagner, 2016. "Politics as a Peculiar Business," Books, Edward Elgar Publishing, number 16989.
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    5. Richard E. Wagner, 2015. "Welfare Economics and Second-Best Theory: Filling Imaginary Economic Boxes," Cato Journal, Cato Journal, Cato Institute, vol. 35(1), pages 133-146, Winter.
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