Posted tagged ‘Economic planning’

Keynes vs. Hayek Round II, The Fight Of The Century.

November 19, 2012

Mises states, “The issue is always the same: the Government or the market, there is no third solution.” This has been the fight of the century, and will be the fight of the next century. Top down central planning by the state vs, bottom up voluntary cooperation in the market.

Central planning by the State sounds so logical and reasonable if analysed on the surface. Spending creates demand and people will produce to supply this demand. That’s simple and easy to understand on the surface, but a deeper analysis reveals that the structure of production is a very complex process. This complex structure of production was created by the spontaneous ordering processes in the free market not (more…)

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Spontaneous Order More Complex Than Top Down Planning.

October 4, 2012

F. A. Hayek—” The free market pricing mechanism has a double misfortune. It is not the product of human design, and the people guided by it usually do not know why they are made to do what they do.”

This video shows how spontaneous orders create complexity which can’t be duplicated by planning. Far more knowledge is utilized through this process, which is why voluntarily cooperation through free market capitalism has historically produced (more…)