#167- Asimov's Foundation Part 2
Online Great Books Podcast
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The Prices Don't Tell You Everything
Economists are trying to say that if we know enough about economics, we'll be able to get rid of the business cycle. But underlying that is the assumption that consumers are rational and that prices are efficient. Prices are not efficient. They're the best we can do, but they're not as efficient as they think. A corn farmer that has 200,000 bushels of corn has almost no use for that corn. So what happens when there's a religious revival and people decide that eating corn is verbotan? Things like that happen. The prices don't tell you everything.
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