Posted tagged ‘Complexity’

Spontaneous Order Utilizes More Knowledge Than Central Planning Could Ever Hope To Utilize.

December 10, 2012

This video from talks about spontaneous ordering processes.

This quote by Thomas Sowell, “The abstract existence of knowledge means nothing unless it is applied at the point of decision or action“, explains why the spontaneous order of the market, efficiently produces more output than central planners can produce in a statist economy. The market economy brings abstract knowledge and decision makers together more effectively than central planning could ever hope to do.

Abstract knowledge can’t be known by one individual or board of individuals, this fact alone dooms central planning to failure. Even if planners knew all of the abstract knowledge of every individual , they wouldn’t know the exact time or place to apply this knowledge in the decision-making process. Voluntary cooperation through the free market process is (more…)