The Three Alternatives to Emergent Order

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Just allowing markets gives you a differentiated order that you might not expect. In the early 19th century, the German political economist von Künen talked about the way that cities are self-organized. He said your cities are going to be surrounded by a ring of cattle farms farthest out because they need a lot of land. The incentives of profit and loss and prices hold the bread market together.

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."