In the absence of prices, could a central planner
efficiently run an economy? Before you answer, I’ll drop the Hayekian proviso
that the planner be vile. Instead, I’ll only ask you to consider a planner who
is a soccer mom wanting to maximize happiness among all. Would you still answer
in the negative?
I live in a neighborhood that has an adjoining elementary
school. Most mornings, a significant number of mothers (typically) drive their
children to school. As I travel to work in the morning, the last left-hand turn
before leaving the neighborhood leads to a school service road. There are cars
and buses coming off the main road into the neighborhood, wanting to turn right
onto the service road; there are folks leaving the service road, wanting to
turn both right and left; there are folks coming from the neighborhood wanting
to turn left onto the service road; and there are folks like me wanting to get
past the service entrance in order to get to work as quickly as possible.
To no one’s surprise, this situation leads to congestion,
delays, and anger. Now, enter the selfless central planner.....To Read More....
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