The particular occasion of this lecture, combined with the chief practical problem which economists have to face today, have made the choice of its topic almost inevitable. On the one hand the still recent establishment of the Nobel Memorial Prize in Economic Science marks a significant step in the process by which, in the opinion of the general public, economics has been conceded some of the dignity and prestige of the physical sciences. On the other hand, the economists are at this moment called upon to say how to extricate the free world from the serious threat of accelerating inflation which, it must be admitted, has been brought about by policies which the majority of economists recommended and even urged governments to pursue. We have indeed at the moment little cause for pride: as a profession we have made a mess of things.
Monday, April 20, 2009
Friedrich Hayek - The Pretense of Knowledge
The following is the first paragraph of the speech Hayek gave when he was awarded the Nobel Prize in Economics in 1974. You can read the entire speech here. It is a great introduction to economics as a science and provides an enlightening description of the limitations of mathematical models used by mainstream economists to attempt to "fix" the economy. I would recommend taking the time to read the entire lecture:
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14 comments:
The alternative "might makes right" really did make history an interesting read, don't you think?
Huh?
That just flew right over my head.
The alternative to doing something is allowing the "market" to rule, i.e. might makes right.
Allowing the market to function is doing something. . .
What does this have to do with Hayek's lecture?
Allowing the market to work 100% = might is right.
And what does this have to do with Hayek's lecture?
It means that whatever he says, the alternative is not better.
Thats awfully ignorant.
Like saying that my arguing against your philosophy means I'm for government?
Aren't you?
There is no such thing as "the government".
but government is an entity that you can you be "for" or "against".
True, you can be for or against a standing government, but that is only because the cause that create a current regime can be changed, hence toppling the government.
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