As Barack Obama is putting together his team that will help "fix the economy", we need to keep in mind that in a world with nearly 7 billion people all acting in their own self-interest, no one person or one group of people can ever have the knowledge to successfully tinker with the economic system.
Case in point: Less than three months ago, Hurricane Ike hike the Gulf Coast and already sky-high gas prices shot even higher. After more than than seven years of increasing gas prices because of terrorism and two Middle Eastern wars, everyone just knew that the old ways of American life were over. From business to politics to media to the arts, everyone in the American elite called for a "rationalization" of American energy policy.
I commented:
I think the Kennedy administration proved that the technical class isn't all knowing.Also moving from theory to real world. I don't think terrorism, and two middle eastern wars, were the only contributors to our transportation crisis. Bad Transportation policy and bad governance doesn't help... as Doug noted:
Well, in reality... look at any elite group since the beginning of time. There will always be those who promise salvation or claim some group will bring it to us.
That's not how salvation works, and that's not how human knowledge works. Another failure of enlightenment thinking really...
there is no way any group of people - no matter how smart - can have enough knowledge to successfully plan the economy. The world is just too complicated, and the only way to efficiently allocate resources is through the market economy.Throwing up our hands and saying here is the only solution, be it certain market approaches or the hands off "the private sector is the best way to address these issues"--the way people too often do. Has reaped the mess we are in (mind you bad transportation policies are supported by Dem's too!). This situation and many we fcae right now are of the "hands off" descent. This fact would fall within the logic of the post as well.
Thinking we can determine the most successful plan without using our best understanding of markets and the tried and true test-- what happens and is happening in the real world when we implement it--would be a stunning failure of human thinking.
Not that such is anything outside of the norm (myself included).
Policy is not pretty, representative government and the compromises and deal making it entails is most definitely not pretty. Life isn't fair... we just roll up our sleeves and try to find policies that work.
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