Hayek is one of the most recognisable names on liberal economy theories. Countless articles and YouTube videos are made on the century battle of Keynes versus Hayek. The battle itself is played on paper, but the influence of this Economic split is ever influential. Amid the lacklustre global economic activities following a 50-year victory of Keynes government intervention theory, it is always good to read some alternatives. The Use of Knowledge in Society concentrated on the big philosophical ideas of Hayek’s liberal thinking.
Is data the same available to everyone?
Hayek starts the first paragraph by saying no. Data is not fairly given nor generically accessible to everyone. The sum and essence of the data are distributed differently to different people. The totality of the data is too big for any single mind to comprehend. Henceforth, economic theory should be designed to secure the best resources for some members.
If human do not make changes ourselves, will economics keep developing the way it is? No. Social economic dynamics vary all the time. People are only concerned on the issues that are related to them. If there is a fairly designed price system, people will react to the right direction. The utilisation of resources is beyond the span of any single mind anyways.
What should economists / policy makers / elites do?
Induce. By setting up the direction, the force of people will figure itself out. What elites need to do is to do adjustment every single day.
While I was doing research, this article gave me another perspectives. Why Keynes is more popular nowadays than Hayek? The article concludes that Keynes gives people a rosy promise of future by printing endless money. Hayek is the pessimistic pragmatist. He says bubbles will bust inevitably. Humans always opt for rosy ones than facing the realities (of tail risk). Interested people may check out this wonderful article.