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Re: [Pen-l] Paul Davidson sums up



On Tue, Mar 10, 2009 at 5:33 PM, michael perelman <michael@xxxxxxxxxxxxxxxxx> wrote:
Of course, we might ask Hayek what happens when the market makes a disastrous mistake???

raghu wrote:
The key question is how do you protect society when a central planner
makes a disastrous mistake? I believe this was Hayek's big argument
against socialism (at least the central planned variety) and I have to
say I have never seen a good rebuttal.


I suspect Hayekians do not have a good answer to that. ('Liquidate! Liquidate!' is not a good answer.) 

A more reasonable answer is that it is the government's role to step in when markets make a disastrous mistake.

But who can step in if the central planner screws up?? Seems to me there is a fatal flaw here.
-raghu.


--
Never get into fights with ugly people, they have nothing to lose.




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