Jordan Peterson explains Hayek’s “knowledge problem” argument “The proposition that central planning will work is the proposition that you can substitute one expert mind for a million distributed expert minds.” “That’s obviously not the case, because each person is going to have knowledge that pertains to their locality that... isn’t accessible to everyone. So it’s much better to let everyone make the decisions and sum them.”show more

That’s such a weak angle. The problem is cost accounting (economic calculation), not disperse knowledge which is disperse in any system. The crux of the matter is property which enables prices. Then prices enable economic calculation and rational allocation of scarce resources. Socialism is a property problem, not a knowledge problem (framing it that way will lead to a thousand attempts using computers and AI, just because it distracts from the actual issue: property->prices->cost accounting.

Best explained by Star Wars: Hayek’s “knowledge problem” is basically why the Empire keeps building Death Stars and still loses. One central mind can’t possibly see what thousands of small, hungry Rebel cells discover on the ground, in real time. The more you try to rule a complex galaxy from the center, the more fragile your order becomes. #StarWars

Misses the main point that our needs are not predictable. It’s not that they are difficult to predict, it’s that they cannot be predicted beyond a short window of time. This is a rule of complex interdependent systems, much like gravity is a rule of physics.

Expertise is a very scarce commodity. It the New York Mets moved to Dallas. Mayor Mandami could create another team, but he could not staff it by sending bureaucrats out to the mound and the plate. The Marxist notion that all labor is equivalent is demonstrably false. 🤔🤔🤔🤔

Central planning ignores the fact that when new startups occur, nobody gets it right the first time. Proficiency happens as result of competition and elimination and eclectic improvement. Central planning can not do this alone. This is "the myth of the omniscient bureaucrat". 🤔🤔🤔

The China model only works because it’s subsidized.

"Economic transactions are purchases and sales of knowledge." -Thomas Sowell

Close. It’s not so much that knowledge is distributed, but rather that it doesn’t even exist before humans act in the context of property rights. Putting a gazillon sensors in a communist society and aggregating all available data in real time in an infinitely powerfull computer would still produce economic chaos.

It’s more often multiply than sum. Even more important.

Whilst I agree, stupid people need to be factored into this equation; not excluding stupid ideologically possessed 'experts'.

@lexhoogduin The problem with a swarm is that you react relatively slowly and reactively, which, in competition with a Xi (assuming he doesn't make too many mistakes), puts Europe at a disadvantage…

There were certain things that are central WISE government control and funding of works better than private. Electricity delivery, water delivery, garbage collection medical services. However, like everything unless there’s incentives for people who run these public services, they just generally wind down into a poor debt ridden poor provider. It’s a fine balance between public and a private.

Escuela de Salamanca

Peaceful society that allows property owners to exploit others.

@bramk No amount of individual freedom philosophy can prevent central planning. We must build better tools to prevent it.

In my opinion, Dr. Peterson is one of the very few geniuses we have today.🙏

👌

JBP, when he was sharp, was really quite sharp.

JP isn't against central planning. He's against strong leadership and an individual with principles achieving political authority in America. The reason for that is that a strong leader with principles would eject his (patrons) from the state.

Yup. Pretty much.

💯 For the same reason, 100 "decentralized" studies (and a subsequent meta-analysis) are better than 1 large study (with the same N).

Did Hayek anywhere explore the limit of the argument? what if al individuals are idiots? if all local knowledge is self-defeating? would centralized power be better then? Can we speak of a mean? Not too much nor too little centralization of knowledge?

その部分知を統合するものが価格（決済）のはずだが、吉村は「踏み倒したら儲かってもうか」とタコ踊り(´;ω;｀)

It's weird how salient that was. I'm used to Peterson sounding like a total sophist. Maybe Austrian is just my native sophistry. 😜

And that is called 'Democracy'. the rule/decision of the majority.

@tpv_tragula Leftists don't understand this; at least they pretend not to.

Interesting indeed - -also - a little bit - obvious, right?

It's like trading you brain in for the best brain cells.

The mechanism for exploiting others is the large, centralized power structure most folks are in love with. Government.

Lysenkoism killed millions in the USSR.

Sometimes he does say really smart things that make a lot of sense!

So why did Hayek propose Globalist control of the economy?

Depends on the subject matter. I would not advise to roll out Advanced Mamufacturing with local specialists on each manufacturing site of a big company. Knowledge intensive, capex, and high risk types should be centralized.

Each point is a ship upon the sea, we don't need some jackass from ottawa telling us how to steer it. If they have something new and brilliant, we'll listen but its all about power not efficiency.