Tuesday, April 29, 2008

In his "The Use of Knowledge in Society" article, Hayek asserts that "economic problems arise always and only in consequence of change. So long as things continue as before, or at least as they were expected to, there arise no new problems requiring a decision" (H12). In order to address the inevitable changes Hayek argues in favor of his decentralized price system. It does not address the fact that our system is not reducing inequality as it is supposed to and that it might need to be changed. I wonder if a decentralized system impedes the evolution of our overarching economic system into a more equitable one by dividing up too much power between people who are self-interested (within capitalist society). 

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