Order Without Organizations with Aneesh Karve (WiM141)
The "What is Money?" Show
00:00
The Invisible Hand
The free market is a distributed computing system where each agent has the most salient knowledge about their local environment, you know, to their space and time. Hayek makes an argument that socialist or centralized command economies cannot perform a catalog of prices because there's no way to turn subjective preferences into objective numbers. The idea is that a distributed process takes into account more information than any centralized process possibly could. And so the big distinction here I think is between the organic and the mechanical, and the free market process has this organic nature to it.
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