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To: DogByte6RER
In his "The Use of Knowledge In Society," Hayek explained that information about supply and demand, scarcity and abundance, wants and needs exists in no single place in any economy. The economy is simply too large and complicated for such information to be gathered together.

And even if you could gather it and decide what to do, it would be impossible to execute in a timely matter.

5 posted on 04/04/2010 7:57:58 PM PDT by RobbyS (Pray with the suffering souls.)
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To: RobbyS
And even if you could gather it and decide what to do, it would be impossible to execute in a timely matter.

I was thinking about that the other day in relation to the fact that jobs in the public sector are much higher paying than those in the private sector. Couple that with the greater difficulty one has in trying to fire someone who holds a public sector job. The ability of the public sector to react quickly to changes in market forces must be incredibly sluggish and costly. The difference must be akin to comparing the maneuverability of a speed boat with a cruise ship.

9 posted on 04/04/2010 8:09:33 PM PDT by stayathomemom (Beware of cat attacks while typing!)
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To: RobbyS
And even if you could gather it and decide what to do, it would be impossible to execute in a timely matter.

If I recall correctly, that was the critique the other great Austrian School economist, von Mises, gave of central planning, based essentially on processing speed.

11 posted on 04/04/2010 8:13:32 PM PDT by The_Reader_David (And when they behead your own people in the wars which are to come, then you will know. . .)
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To: RobbyS

Excellent post—never heard of Hayek till now. I’ve thought the same thing many times, buy Hayek elegantly put it into words.


13 posted on 04/04/2010 8:16:04 PM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: RobbyS

By spreading expertise across the market, capitalism should run at light speed compared to a socialist bureaucracy. Innovation with the desire to seek profit would accelerate productivity and efficiency. Socialism therefore should show itself quickly to be an extremely inefficient and expensive alternative. The privatization of bureaucracy, with competition, would be more efficient and cost-effective to government. It would also shrink government, and improve the information feedback from those privatized bureaucracies.

Our country would also do well to apply the same formula to education.


23 posted on 04/04/2010 9:29:52 PM PDT by Hoosier-Daddy ("It does no good to be a super power if you have to worry what the neighbors think." BuffaloJack)
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