SPONTANEOUS ORDER DEMONSTRATED BY TRAFFIC WITH NO SIGNALS
This video is an interesting example of spontaneous order created by voluntary cooperation of individuals. I mentioned spontaneous order in the previous post, and this video demonstrates how people don’t need top down planning to create a complex order.
This is how the free market works. Individuals voluntarily producing, exchanging, and consuming, create this complex societal order in which we live. After over two hundred years of individuals freely cooperating during Colonial times our Government was established by the Constitution. The Constitutions purpose was to protect these freedoms, which had spontaneously evolved during the previous two century’s, from thieves, foreign powers, but mainly from our own Government. Many of us believe that Government politicians and bureaucrats can solve any perceived problem that they or we don’t particularly like. The problem with this thinking is that the amount of knowledge used in the market process is unquantifiable and unfathomable as it encompasses everybody. The czar or the commission put in charge of making economic decisions, doesn’t have five percent of the knowledge compared to the people participating in the market. These “planners” are making decisions from a position of ignorance. Their intervention is doomed from the start.
Obtaining a better understanding of spontaneous order will help us get a better handle on how economic principles work, allowing us not to be fooled by the verbal sleight of hand of politicians.
Explore posts in the same categories: Econ. 101, Econ. 201Tags: Central Planning, Spontaneous Order
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