Hayek’s Son says:
October 2 2017 at 6:22 pm
It’s also your choice to not actually answer the question I asked, which can be distilled to; how can a planned economy (state owned monopolies) ever collect enough data to correctly match demand with supply?
Compared with, say, a market?
Hayek said it can’t, but I’m interested to hear why you know better,
Richard Murphy says:
October 2 2017 at 7:18 pm
We always, invariably, have incomplete data
But let’s be clear, the microeconomic view from the market is always more incomplete than the macro view from government because the latter takes externalities into account and the former does not, meaning the government view is invariably going to give better results than a pure market can.
Both will be suboptimal
But one is vastly better than the other, and it’s pure markets that come out badly
I am not saying there is no role for markets, by a long way. But that can only be within the constraints of a robust regulatory environment