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Another famous argument by Mises is that it is hard to figure out what is a socially profitable investment in absence of market prices. You pretty much just hav
by jacoblyles 18y ago
Another famous argument by Mises is that it is hard to figure out what is a socially profitable investment in absence of market prices. You pretty much just have to close your eyes and guess. The government currently doesn't justify each of the thousands of projects it has in such a manner.
I'm assuming we want the benefit of each project to be greater than the cost. The bigger the program, the more unlikely that is to be the case.
The critiques of the planned economy are applicable here.
- pj 18y agoThe critiques of the planned economy, I'll have to look that up. Sounds interesting. I see your point. I suggest we reduce risk by investing in many small projects run by small numbers of individuals, but very focused. To the first paragraph, I have this sense, no numbers really, but a sense that collaboration is becoming more required over time. Look at nobel prize winners and how often prizes are shared over time. I don't know what that function is over the long term, but we appear to be in an upward trend over recent history. Collaboration at this level is difficult on a global scale and across national and linguistic barriers. Which ideas are worth rescuing from the global valley of death? Big ideas that will or will not affect billions of people for decades to come. Some who haven't even been born yet.