Social Evolution

Arnold Kling has produced a great post on market economics. In fact, it’s so good that I’ve added it to my Great Post Notebook, a rare event.

Markets work by trial and error, resulting in social evolution. The process is very similar to biological evolution. It’s very frustrating watching all the false starts and backward steps, which tempts many to think they could design something better. But the problem of meeting economic needs is one of awesome complexity, far more complex than any conscious human agency can fathom. But human hubris is a strong force, and we end up with monstrosities like “stimulus plans” which will almost certainly prove a setback from the goal of meeting economic need. My best hope is that we will learn from this mistake and ultimately move social evolution forward… but I’m not betting on it.

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