An Economic Evolution (September 12th, 2011)

Rizzo's Coffee illustrates:

The Invisible Hand

• The possibility of people cooperating and working together for the sake of a social outcome.
• Not all of the time but sometimes people get something good out of it.

Tactic Knowledge

• There are little bits of information knowledge that them and only them will understand.
• There is no possibility that they know of this information.

Why don't central economics work?

• Planners would tell people what they need to make and the resources they would use to make them. However what the outcome would come is the shortage.
• The world changes every 5-10 minutes and millions of decisions are made through these changes in the economy.
• Private properties benefit from the incentives.

Price System is a perfect signal of scarcity. Nobody can set prices unless the government steps in.