The way economics is taught misleads many people who might otherwise be persuaded. The problem with explaining markets is you have to make an additional step. All prices that are agreed on probably result from a disagreement about value. It's not like alum crystals. Some institution must now intervene in order to reconcile all these plans and purposes.
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."