What is "the market" and where is it to be found. Is it the Mercado Central of most Mexican cities or is it my local Wal-Mart. I would also like to know how "it" thinks, acts, and makes mistakes. Are you all subscribing to some notion of the Smith's "invisible hand" (which we know is not true). Kindly clarify.
From: [email protected] [mailto:[email protected]] On Behalf Of raghu Sent: Wednesday, March 11, 2009 2:13 PM To: Progressive Economics Subject: Re: [Pen-l] Paul Davidson sums up On Tue, Mar 10, 2009 at 5:33 PM, michael perelman <[email protected]> wrote: Of course, we might ask Hayek what happens when the market makes a disastrous mistake??? raghu wrote: The key question is how do you protect society when a central planner makes a disastrous mistake? I believe this was Hayek's big argument against socialism (at least the central planned variety) and I have to say I have never seen a good rebuttal. I suspect Hayekians do not have a good answer to that. ('Liquidate! Liquidate!' is not a good answer.) A more reasonable answer is that it is the government's role to step in when markets make a disastrous mistake. But who can step in if the central planner screws up?? Seems to me there is a fatal flaw here. -raghu. -- Never get into fights with ugly people, they have nothing to lose.
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