As both right- and left-leaning forms of socialism gain traction in pockets across America, we risk losing sight of the core principles that made it the most prosperous, innovative, and opportunity-rich nation on earth. Revisiting the insights of great economists is a timely reminder that capitalism remains the only system capable of converting human knowledge, ingenuity, and self-interest into improved living standards for all.
Why Central Planning Cannot Compete with Free Markets
In his famous essay The Use of Knowledge in Society (1945), Friedrich Hayek explained why socialism and central planning inevitably fail. They fail because knowledge in society is dispersed and embedded in the daily decisions, experiences, and preferences of millions of people. No central authority can gather or process this information, let alone act on it quickly and accurately.
Read Full Article »
