Скачать или смотреть 🤔Why does socialism fail?

🤔Why does socialism fail?

Because knowledge is dispersed in the minds of millions of people across an economy.

No one person, or Government, could possibly obtain enough information to centrally plan an economy.

This principle, as argued by F.A Hayek in ‘the Use of Knowledge in Society’, explains exactly why central planning misuses information:

“We cannot expect that this problem will be solved by first communicating all this knowledge to a central board which, after integrating all knowledge, issues its orders. We must solve it by some form of decentralization. But this answers only part of our problem. We need decentralization because only thus can we insure that the knowledge of the particular circumstances of time and place will be promptly used. But the “man on the spot” cannot decide solely on the basis of his limited but intimate knowledge of the facts of his immediate surroundings. There still remains the problem of communicating to him such further information as he needs to fit his decisions into the whole pattern of changes of the larger economic system.”

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