Is the idea of a central decision maker for the economy just a problem of gathering all the right information and having the most intelligent in control? Or is there a far more fundamental problem with the entire notion?

Continuing our Bitcoin economics week, today we dive into a piece on a concept we haven’t yet covered. What is the true nature of the knowledge involved in economic activity, and how do we utilize that knowledge to solve the problem of economic organization?  A brilliant work by F.A. Hayek made available by the amazing team over at FEE.org, we read and expand on Hayek’s “Use of Knowledge in Society.”

Visit the full piece, and the collection of other great work, economic analysis, news, & more over at fee.org.
https://fee.org/articles/the-use-of-knowledge-in-society/#0

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The brilliance of the price system is in coordinating the values, deeply limited knowledge and scarce resources precisely to their highest value need without having to understand or be aware of every single change in supply, alternatives, and uses of those resources among the economic participants.  It is specifically because we only receive the most important piece of information, its new value in relation to other things (the price), that we can so quickly align ourselves with the new state of the world.  

Don’t miss the conclusion of Hayek‘s work, The Use of Knowledge in Society.

Visit the full piece, and the collection of other great work, economic analysis, news, & more over at fee.org.
https://fee.org/articles/the-use-of-knowledge-in-society/#0

Become a Supporter of the show!

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