Hayek’s marvel

Posted by Marc Hodak on May 16, 2007 under Patterns without intention | Comments are off for this article

Don Boudreaux writes a magnificent update on how markets under property rights solve what Hayek called the knowledge problem of economics.

There are precious few people who any longer believe that central planning can satisfy even the most basic needs of any society. Unfortunately, most of them are running for President.

But seriously, it has been 60+ years since Hayek published his theory about why central planning was bound to fail. In that time, dozens of live experiments in central planning have been tried, some resulting in the privation and famine deaths of millions of souls. Still, very few people are taught economics, or its knowledge problem, or its solution. So, while the big experiments in central planning are hopefully over for good, we no doubt have many little, live experiments ahead.