Man, this 'documentary' is crap!
It's amazing how many people gave high marks to this "documentary". The author obviously knows very little about the subjects he's addressing:
1. He totally misses the point of the Prisoner's Dilemma game: the Nash equilibrium appears in a iterated game and this happens because in the iterated game the players tend to cooperate. This is exactly the opposite of what the film is saying. See for instance http://en.wikipedia.org/wiki/Prisoner's_dilemma.
2. Presents Hayek as a sort of Cold War guy believing in the fight against the Soviet Union: in reality Hayek didn't believe in the Cold War as he was convinced that socialism was bound to failure on its own. In fact this was one of his major contributions to economics. See http://en.wikipedia.org/wiki/Socialist_Calculation_Debate. He wasn't concerned with the threat of the Soviet Union, but with the tendency of the capitalist states to abandon capitalism.
3. Presents Hayek as having a connection to game theory and to mathematics. In fact Hayek, as a member of the Austrian School of economics, was pretty much against the use of mathematics in economics at all! Moreover, the film links Hayek to the robotic, behavioristic vision of the economic man as merly reacting to incentives, when in fact the Austrian school of economics describes economic agents as entrepreneurial.
Hayek: I believe that economics and the sciences of complex phenomena in general, which include biology, psychology, and so on, cannot be modeled after the sciences that deal with essentially simple phenomena like physics. [...]
You can't explain anything of social life with a theory which refers to only two or three variables. The result is that we can never achieve theories which we can use for effective prediction of particular phenomena, because you would have to insert into the blanks of the formula so many particular data that you never know them all. In that sense, our possibility both of explaining and predicting social phenomena is very much more limited than it is in physics.
Now, this dissatisfies the more-ambitious young men. They want to achieve a science which both gives the same exactness of prediction and the same power of control as you achieve in the physical sciences. Even if they know they won't do it, they say, "We must try. We ultimately will discover it." When we embark on this process, we want to achieve a command of social events which is analogous to our command of physical affairs. If they really created a society which was guided by the collective will of the group, that would just stop the process of intellectual progress. Because it would stop this utilization of widely dispersed opinion upon which our society rests and which can only exist in this very complex process which you cannot intellectually master. http://www.reason.com/news/show/33304.html
4. The film states that Clinton or Blair adopted "market" reforms. However it is clear even from the film that what they did was to organize the state bureaucracy using some ad hoc targets. A strategy which obviously back-fired. It is worth noting that the exact same strategy used to be the norm in the ex-communist countries, where each line of production had to meet some ad hoc targets of production. A market reform means only one thing: privatize. They certainly didn't do that! The film even makes the outrageous claim that the market reforms of Clinton and Blair created more laissez-fair than there was in the 19th century!
5. The film-makers obviously know nothing about modern biology: the film states that the selfish gene perspective assumes that all the animal (humans included) behavior is determined by the genes. This is utter non-sense, and no biologist ever said such an idiocy. It was always perfectly understood that the phenotype is the result of the interaction between genes and environment. The selfish gene theory is not a theory about what determines what. Its point is that the genes, rather than the individual or the group, are the object upon which natural selection acts - an idea that is considered valid to this day. (By the way, this idea is vital for explaining animal altruism.)
The film has countless of other similar misinterpretations or misrepresentations of the scientific theories. The whole "documentary" seems to be rooted in wishful thinking - the author desperately wants to justify the welfare state in a impressive, propagandistic manner. There are better ways of arguing in favor of social democracy without engaging in such ludicrous falsehoods. share