We can see how the concept of the plan can be used to create a theory of institutions that takes into account the complexities of the social world. These institutions help to generate coordination in society and reduce the uncertainty caused by the subjective character of human expectations. That is, they allow us to use common knowledge to coordinate our forward-looking plans. In this way, they prevent the kaleidic society of Shackle and permit the economy to act as Mises predicted, organizing the actions of individuals into a harmonious spontaneous order.
This marks the end of my blog of “The Legacy of Max Weber.” If anyone has any questions about the book or feels I left out something, please let me know in the comments. I highly recommend checking this book out. It combines economics, sociology, and philosophy, with a bit of historical analysis thrown in for good measure.
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