Coordination

While socialists complain about AI, at least some believe that it can engage in economic planning, thus bypassing the Hayekian knowledge problem.

As governments grow in size and power, some come to believe that this growth can go on indefinitely. But state power, too, has its limitations.

We are told ad nauseum that the capitalist system runs on greed. In reality, a successful economy depends mostly upon trust.

Lolcows, part of the world of internet personalities, would seem well beyond the world of economic analysis. Yet, much of what happens can be explained by the paradigm of Austrian economics.

Lolcows, part of the world of internet personalities, would seem well beyond the world of economic analysis. Yet, much of what happens can be explained by the paradigm of Austrian economics.

Bastiat emphasized that much of what goes on in the economy involves things we don’t see directly. Intermediaries often fall into Bastiat’s category of things “not seen.”

When politicians intervene in the economy, they often do it in the name of mitigating “greed” or “profiteering.” While they can pass laws regulating prices and the like, they cannot repeal economic laws. Instead, they can only make things worse.

When politicians intervene in the economy, they often do it in the name of mitigating “greed” or “profiteering.” While they can pass laws regulating prices and the like, they cannot repeal economic laws. Instead, they can only make things worse.

Frederic Bastiat understood better than most how free markets and market prices actually promote social harmony. And unlike most, he understood why Paris, which had little agricultural land, had plenty of food for its inhabitants.

The Perfect Market Hypothesis claims that all movements in the market can be considered as random, as market players and prices adjust immediately to new information. However, market players do seek new information and seek to use it.