Professional Documents
Culture Documents
2, 2009
STEPHEN GOUGH
INTRODUCTION
First thoughts about this paper were triggered by two personal experiences,
both of which occurred at philosophy of education conferences. First, at the
annual conference of the Philosophy of Education Society of Great Britain in
2004 a keynote speaker referred frequently to ‘market values’. It should be
said that the keynote paper itself was well received, that the audience appeared
to know exactly what the speaker meant, and that wider discourse would
suffer considerably if the use of shorthand phases such as this were to be
subject to over-close policing. Nevertheless, it also seems important to register
the objection that, in fact, markets do not, and cannot, have values. People
have values. They may attach some of their values to particular markets, or to
the idea of a market in general. More or less certainly, they will express their
values, at particular places and times, through their participation in markets.
But there is no value that is intrinsic to markets, other than perhaps, as
Amartya Sen (1999) points out, a propensity to engage in exchange that is
inherent in any credible account of what it is to live as a human being.
Secondly, at the European Conference on Educational Research in 2006
I decided to attend a session of the Educational Economics Network. The
number of those present was very small compared both to the sessions of
the parallel Philosophy of Education Network, and to the size of the
WHAT IS ECONOMICS?
The above suggests that a philosopher of education might want to engage
with economic ideas as a way of considering the practicalities of a
particular philosophical position, or as a way of assisting economists in
conceptualising their work. A second, more straightforward possibility is
that some work in economics touches directly upon the concerns of
philosophy of education, though, quite clearly, much of it does not.
Among mainstream economists there are many today who would
describe their discipline as ‘the science of choice’. Given that this is so it
is unsurprising if, as already noted, non-economists tend to identify
economics with markets, and markets, in turn, with the underlying
One thing that neoclassical economics explains very well is its own
tendency—noted above by Hodgson—to exclude all other economic
perspectives from the canon of ‘economics’. Controlling entry to a
profession is an ancient and effective way of raising the earnings and
status of those within it or, in economic terminology, of obtaining
economic rent.
In this section we have noted that economics, at least in the definition
here preferred, may properly concern itself with non-market-focused
Real education businesses—the sort I will defend here—do exist ‘to serve
the best interests of schoolchildren’ and their families, as well as their
shareholders. If they are not serving the interests of children then they will
go out of business. The only way they can make profits for their owners is
if they provide high-quality educational services (Tooley, 2000, p. 19).
If social wholes are indeed more than the sum of their individual parts
then it follows logically that none of the constituent elements even when
acting in an organised group via institutions such as the state can ever
comprehend all of the factors that contribute to the advance of the whole
. . . a reliance on spontaneous order is preferable precisely because it
facilitates a higher level of rationality at the macro-social level than
would be possible were the process of societal development to be
controlled by a designing mind or group . . . For Hayek, incremental
change via competitive testing of alternate practices is able to draw on a
A number of important points arise from this analysis. We can see that
Hayek’s overall focus is social progress. To this extent, he shares the
perspectives of not only socialist planners but also of all those who would
seek to use government fiscal and regulatory interventions to ‘correct
market failures’. However, beyond this point Hayek is as much at odds
with mainstream neoclassical economics as he is with socialist central
planning, since these both typically claim to be able to determine ‘right’ or
‘best’ allocative arrangements, and this presupposes: firstly, that someone
has, or can acquire the knowledge to do so, and; secondly, that there exists
some optimum equilibrium position to serve as a target. In fact, Hayek
argues, knowledge is both diffuse and dynamic. Individuals are embedded
in an overall social context that is constantly changing and of which they
can only ever comprehend a small part—whomsoever they may be, and
even if they collaborate with others. There is plenty of scope for learning,
and perhaps very little, beyond the straightforward transmission of
knowledge and skills, for education.
However, an alternative way of thinking about the collective goals of
societies, and the possible place of education in achieving morally
satisfactory, practically operable change within them, is offered by some
‘institutional’ economists (Hodgson, 2002, 2004, 2006). This is a tradition
that is firmly located within pragmatist philosophical thought. It
acknowledges a direct descent from Thorstein Veblen and a debt to John
Dewey. It is consistent, in its explicitly Darwinian stance, with the
philosophy of, for example, Richard Rorty (1999). Pragmatism continues
to be influential in the philosophy of education, for example in the recent
work of Andrew Stables (2005).
Crucial to the institutionalist position is the recognition of emergent
properties at ontologically distinct levels. Hence, it is possible, and indeed
normal, for institutions to be reconstitutive of individuals, since they are
more than the sum of the individuals that comprise them. In this respect,
Hodgson (2004, p. 328) quotes Frank Knight as follows:
Wants are usually treated as the fundamental data, the ultimate driving
force in economic activity, and in the short-run view of problems this is
scientifically legitimate. But in the long run it is just as clear that wants
are dependent variables, that they are largely caused and formed by
economic activity. The case is somewhat like that of a river and its
channel; for the time being the channel locates the river, but in the long
run it is the other way round (Knight, 1924, pp. 262–3).
traditions and habits. At the same time they retain the potential for rational
critique of these traditions and habits. My point is not that all philosophy
of education should concern itself with these possibilities, or with the
apparent Hayekian lack of them, but simply that these are matters to which
any complete philosophy of education might want to attend.
This in turn means that there is a possibility of market failure. For there is
now a group of people who are not participating in the market but who are
affected by the decisions made by those who are participating in it. An
individual’s future self is a person who is directly affected by that
person’s current decisions in the marketplace. A 65-year-old may be poor
because of myopic decisions taken by her 25-year-old self. Hence the 25-
year-old is imposing costs on the 65-year-old through her decisions; but
the 65-year-old has no say in those decisions (Le Grand, 2003, p. 90).
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