Don Lavoie, the Knowledge Problem, &c.
Referring my reader's to Cory Massimino's insightful article.
Today, I had the pleasure of reading Cory Massimino’s EconLib article, “Don Lavoie on the Continuing Relevance of the Knowledge Problem.” In his piece, Massimino quotes Lavoie’s 1985 book, National Economic Planning: What’s Left?
I recommend my readers to Massimino’s full piece, as it is only seven minutes long (mileage [minuteage?] may vary) and edifying.
Some of my favorite passages therefrom:
Massimino’s definition of the Knowledge Problem (concept ideated by Hayek; phrase coined by Lavoie): “Achieving efficacy in the face of uncertainty, or more accurately, continually telling the efficacious from the inefficacious and trying to adjust accordingly.”
Lavoie on the rent-seeking nature of central planning, despite the reframing of its proponents: "‘Planning in practice was born as a mutual protection society for a corporate elite.’"
Lavoie again, this time echoing J.S. Mill: “‘For the same reason that science requires freedom and intellectual competition to progress, a modern economy requires economic freedom and market competition.’”