4 ms·
Has Alan Kirman ever read Hayek? Here's a quote from the Road to Serfdom: "The state should confine itself to establishing rules applying to general types of
by Artistry121 11y ago
Has Alan Kirman ever read Hayek?
Here's a quote from the Road to Serfdom:
"The state should confine itself to establishing rules applying to general types of situations and should allow the individuals freedom in everything which depends on the circumstances of time and place, because only the individuals concerned in each instance can fully know these circumstances and adapt their actions to them. If the individuals are able to use their knowledge effectively in making plans, they must be able to predict actions of the state which may affect these plans. But if the actions of the state are to be predictable, they must be determined by rules fixed independently of the concrete circumstances which can be neither foreseen nor taken into account beforehand; and the particular effects of such actions will be unpredictable. If, on the other hand, the state were to direct the individual’s actions so as the achieve particular ends, its actions would have to be decided on the basis of the full circumstances of the moment and would therefore be unpredictable. Hence the familiar fact that the more the state “plans”, the more difficult planning becomes for the individual.”
Hayek's entire argument in that book is that central planning allows for strong favoritism towards those in power and with access to those in power. He specifically mentions that some industries need heavy regulation and moderation - but under set rules with choice being supreme as much as possible.
Kirman focusing on the fact Hayek is "horrid" is telling at a time when half of Europe was engaged in genocide and mass colonialism.
That said - Kirman benefits from saying these things in his career and so he will say them. It fits with behavioral economics models.