Unorganized Knowledge

Another holiday party and one conversation turns toward the obtuse nature of local government regarding a local problem. It seems everyone has a tale to tell concerning the stupid intransigence of the local zoning commission, public works department, park departments, police department, etc. I didn’t want to engage in a lot of economics talk (it so depresses people at festive moments), but I wanted to point out that such results were inevitable. This realization can only be appreciated by understanding Hayek’s huge breakthrough of what he called “the Knowledge Problem”. The nature of distributed and unorganized knowledge makes idiotic results an inevitable consequence of attempts to plan centrally with a “one size fits all” approach.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: