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Abstract This paper explores one aspect of the recent work of Jürgen Habermas on Legitimation Crisis. It focuses attention on Habermas's claim that the pre-capitalist moral values on which capitalism has hitherto relied have become progressively displaced by the growth of the capitalist economy. This has produced central problems for the state management of the economy, in the absence of an established internalized set of values which could act both as restraints upon economic demands and as reinforcements to an ethic of work. Various attempts to solve this problem proposed by Hayek and Luhman are discussed together with Habermas's own proposal for a rational consensus view of morality which could lead to a new Sittlichkeit. The conclusion of the paper is that while rational discussion of values is important, this does not entail that the possibility agreement is required to make sense of this activity. Habermas's notion of undistorted communication as a way of recommending a moral foundation for politics is not feasible.
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