The fall 2023 issue of The Independent Review: A Journal of Political Economy (vol. 28, no. 2), focuses attention on âUnderappreciated Economistsâ. One essay that resonated with me is written by my friend and colleague, Peter Boettke: âDon Lavoie: The Failures of Socialist Central Planning.â Boettke is in a unique position to have authored this essay. He, along with the late Steve Horwitz, Dave Prychitko, Emily Chamlee-Wright, and Virgil Storr, were among Donâs foremost students. And in their own works, one can see how each has carried forth elements of Donâs legacy. Boettkeâs essay is, in many respects, a celebration of Lavoieâs inspiring gifts as a teacher and mentor.
The essay reviews Lavoieâs two most cited works, Rivalry and Central Planning: The Socialist Calculation Debate Reconsidered and National Economic Planning: What is Left? âboth of which shed much light on the crucially important âknowledge problemâ and the necessity of understanding economic and social processes dynamically, across time. But Boettke rightfully laments the fact that Don Lavoieâs untimely death at the age of 50, from pancreatic cancer, left many works unfinished. Still, this appreciation of Lavoieâs contributions to comparative economic systems, philosophy of science, and computer science, including key principles applicable to emergent AI, is a worthy read.
In contrast to prominent models of politico-economic âmilitarizationâ, Lavoie provided us with an âinterpretive turn,â which integrated economic insights from Austrian theory, epistemic insights from the works of Michael Polanyi on tacit knowledge, and hermeneutical methodological precepts. Boettke argues that Lavoie viewed the ideology of power and privilege as the greatest threats to free civilization, while offering a vision for a âgentle and humaneâ society âgrounded in our mutual respect and desire to learn from one another.â
Though much of Lavoieâs work is not readily available and only a few representative presentations exist on YouTube, including three lectures that I posted back in February 2023, Boettke touches upon Lavoieâs planned projects, including those on methodology and a book entitled âUnderstanding Political Economyâ. Lavoie hoped to realize the key aims of critical theory through an Austrian-inspired approach. In this, as in many other areas of study, Lavoie was a theorist ahead of his time.
Don was one of my dearest friends and this is a wonderful article in tribute to the projectsâand promiseâof his work.