The Role of Markets in Social Processes

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

William Paley's watchmaker analogy, which in 1802 he said was a proof of the existence of God. The people who are most sure that there's no such thing as a watchmaker in nature want one in social processes. We really don't understand very well how it is that markets are able to coordinate all of the different activities and wants and disagreements that people have. But that's the thing that that emergent property gives us.

Why is it that people in large cities like Paris or New York City people sleep peacefully, unworried about whether there will be enough bread or other necessities available for purchase the next morning? No one is in charge--no bread czar. No flour czar. And yet it seems to work remarkably well. Don Boudreaux of George Mason University and Michael Munger of Duke University join EconTalk host Russ Roberts to discuss emergent order and markets. The conversation includes a reading of Roberts's poem, "It's a Wonderful Loaf."