It comes from markets, not bureaucrats:
There is a lesson here for public policy generally, including health care. No centralized government expert predicted the vast expansion in energy supply from hydraulic fracking. It was produced by decentralized specialists in firms subject to market competition.
Just as Friedrich Hayek taught, no central planner can know or foresee enough to produce the beneficial results regularly produced by competition in free markets regulated in accordance with the rule of law. And no central planner can accurately predict the course of innovation that can be achieved in decentralized markets. That’s something you might want to keep in mind when someone tells you that Medicare costs can be controlled by 15 members of an unelected board created by Obamacare. Better results and lower costs can be expected with the kind of market competition set up by the 2003 Medicare prescription drug law.
We can’t get rid of these unjustifiably arrogant ignorami soon enough. But it’s less than a year and a half to judgment day.
We can’t get of these unjustifiably arrogant ignorami …
There should be a “rid” in there, no?
No, he got rid of it.
Yes, and now there is. Thanks.
Sort-of on the same topic, is this an eco-nut fantasy, or is it a path to independence? http://www.ted.com/talks/marcin_jakubowski.html
Central planner types live under the delusion that with enough data and enough control, they can create an efficient and smoothly running economy. All of their college professors told them this was so, but then they never had much interaction with the real world.
The real world is messy with all sorts of interdependencies that defy comprehension much less control. Last year, there were major production disruptions caused by a volcano in Iceland. This year, there have been significant disruptions caused by Japan’s terrible earthquake and tsunami. What central planner can predict (much less control) such things? None of them. Nor can they accept the idea that other people may know more than them. Why have all this messy competition with wasteful duplication – why so many types of breakfast ceral? Why not have everyone eat the same thing? Wouldn’t that be more efficient?
Central planners must use their own, imperfect judgement, just as businesses do. But central planning works by committee, so judgement is reduced to what a majority can agree on. Then that ‘judgement’ gits imposed on EVERYONE.
So, the judgement that an increase in home ownership was worth the increased risk of loans to people with little or no financial assets, because real property was historically the safest investment, becomes universal policy through Community Redevelopment targets and Federaly regulated loan financing. And when the ‘Black Swan’ appears and the risk is nolonger sustainable the whole financial industry melts down, instead of a fue banks that made bad bets.