Thursday, August 20, 2009

Any Government Control Over the Economy is Doomed to Fail

"The economic results of central direction must, by reason of the central direction alone, be unfavorable, because the system is formally irrational. It substitutes preferences of central planners for the estimations based on a price system that reflects both supply and demand. The system based on a price system that reflects both supply and demand. The system ignores the information contained in billions of decisions throughout the economy--information that finally is made available to everyone in the form of price--because the planner's will replaces the action of the market, eradicating from the economy the rational use of supply and demand information provided by price fluctuations. Idols For Destruction pages 227-228

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