By X. Lu, G. Enderle

Xiaohe Lu is Professor on the Institute of Philosophy and government Director of the Centre for company Ethics, Shanghai Academy of Social Sciences. Georges Enderle is Arthur and Mary O’Neil Professor of overseas enterprise Ethics on the Mendoza collage of industrial, Univer­sity of Notre Dame.

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Hayek, Law, 1:8–34. Buchanan sees things quite differently: “History need not be a random walk in sociopolitical space, and I have no faith in the efficacy of social evolutionary process. The institutions that survive and prosper need not be those that maximize man’s potential. ” Buchanan, Limits of Liberty, 167. For Buchanan’s reaction to Hayek, see Limits of Liberty, 194, footnote 1. Hayek, Law, 1:51. 64 Both Hayek’s aversion to social justice and his belief that spontaneous orders such as the market are endangered by efforts to make them more just play important roles in his amoral defense of capitalism.

Hayek shares with Buchanan and Friedman the conviction that modern democratic governments tax and spend excessively because of the predictable incentives of politicians trying to be reelected. His solution is a bicameral legislature in which the difference between the houses of the legislative branch is not in the form of representation but in the powers granted to each. The upper house would make all 61 62 63 64 Viktor Vanberg, Rules and Choice in Economics (London: Routledge, 1994), chaps. 5–7 & 12.

P1: JZZ 0521860822c02 CUNY322B/Finn 22 0 521 86082 2 December 6, 2005 14:58 Self-Interest, Morality, and Economic Life which society should move, Buchanan prefers to begin with the current situation in society and asks what societal improvements can be made through the voluntary agreement of citizens. Buchanan’s commitment to a libertarian perspective finds economic expression in his requirement that any such changes respect the criterion of Pareto efficiency. Expressed politically, this requires that there be unanimous consent for any change.

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