Neoliberals distanced themselves from general equilibrium to counter market socialism

Evidence

Ambiguities of neoclassical economics and general equilibrium models were precisely one of the reasons neoliberal economists expressed reservations about the neoclassical and positivist mainstream in the mid-20th century. Friedman was a neoliberal who rejected Walrasian general equilibrium; Hayek gingerly distanced himself from neoclassical price theory, with the consequence that the very meaning of markets was eventually transformed to wrong-foot the market socialists. — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 12

Categorization

  • QUESTION: Worth chasing: how exactly did redefining ‘the meaning of markets’ serve to wrong-foot the market socialists?
  • XREF: connects to: Neoliberals rejected the deistic self-regulating market as naive optimism. — Jessica Whyte, The Morals of the Market: Human Rights…, 332; Neoliberals rejected ‘economy’ because it implied manageable collective ends. — Jessica Whyte, The Morals of the Market: Human Rights…, 21