Symmetry wrote:BigBallinStalin wrote:Symmetry, your Sam Vines' boots theory does a provide a good point, but the question remains:
Since information is not perfect, (and that it's a process of discovery), then should the central planners make the decisions or should individuals acting with the markets make the decisions on which good is better?
If the central planners had perfect information and were aware of all knowledge, then they could best decide for everyone else. Since they don't, I doubt their capabilities to decide what is best for others--especially since there is the conflict of interests and political incentives at play.
In order to tap into the aggregate knowledge of society, the markets and its individuals should engage in this process of discovery.
Whether the debate is about light bulbs, illicit drugs, prostitution, etc., the crux of the issue is free market principles (a.k.a. spontaneous order) versus central planning. I prefer free market principles, so of course, I'll take the time to debate about light bulbs, because I stick to my principles, and I'm adamantly against state intervention.
Given what I've posted, Symmetry, do you find yourself to be on the side of central planning or on the side of free market principles/spontaneous order, or shall you remain "agnostic"?
Interesting question, and I hope you'll appreciate that this wasn't exactly how I saw the argument heading, so I'll try to give the best response I can, but yeah- I will try to think more on the wider issues.
I genuinely believe that central planning is better than individual choice in many cases. Quite simply, I don't have the knowledge or ability to judge how effective a given drug is at treating a medical condition, for example. I rely on a certain amount of central planning to regulate that and make certain decisions for me. I'd love to be in a position where I could test every possible permutation and work out what is effective, but life is too short.
I appreciate that you lean more towards the free market side, and I think that's a reasonable standpoint. I just don't agree with the idea that it should all be free market. At some point the government simply has a wider view of the economy, of the impact of a product, and of its effectiveness. An individual will just know if it works or not, and sometimes not even that, after they've tried it.
I don't want to come across as advocating a centrally planned economy, but central planning has its place, and I will call bull when the process that's taken place everywhere, across all time, in every society, of governments deciding what can and can't be sold legally is criticised as a type of tyranny.
I'm fine with the government saying which items are more beneficial or have bad side-effects. But what I'm not fine with is the government saying which things you can or cannot buy. The government needs to allow both to be on the market and put out the facts about each: incandescents are cheaper, CFLs do contain mercury but use less energy. And then they need to let the consumers decide which one they want to buy. They don't need to put arbitrary limits on what someone can buy.


