What do competitive markets have to do with truth? Ask a philosopher and you might get one answer. Ask an economist and you will get another. Ask an economist with a philosophical grounding, and you get Art Carden’s fantastic piece, The Misuse of Knowledge in Society: Intervention Means Prices are Lying.
Carden is a senior fellow with [the American Institute for Economic Research. He joined the show to discuss the article that caught my eye on AIER.org, which is one of the best explanations I’ve ever read of the price mechanism of free markets.
What happens when we stop the price system of competitive markets from working? In a word, untruth. It’s why price-gouging laws always fail, and increase human misery. A price control, Carden says, is a kind of institutionalized lie. Just because the government says it’s so, doesn’t mean that the underlying scarcity of the good has been altered.
You don’t have to be either a philosopher or an economist to understand the importance of having reliable information when making decisions. Hear Carden’s accessible explanation of the complex topic of price theory only on the Show of Ideas, not attitude.
Art Carden on Price Theory & Its Discontents
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Art Carden on Price Theory & Its Discontents
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Bob talks about the issues that affect our lives on a daily basis from a purely libertarian standpoint. He believes in small government, fewer taxes, and greater personal freedom.<br /><br />America has lost its way, but it cannot and does not need to be reinvented. Our founders were correct about their approach to government, as were John Locke, Adam Smith and the other great political philosophers who influenced them. The country’s first principles are economic and social freedom, republicanism, the rule of law, and liberty. Bob believes we must take the best of our founding principles and work from them because a country without principles is just a landmass.
Bob talks about the issues that affect our lives on a daily basis from a purely libertarian standpoint. He believes in small government, fewer taxes, and greater personal freedom.<br /><br />America has lost its way, but it cannot and does not need to be reinvented. Our founders were correct about their approach to government, as were John Locke, Adam Smith and the other great political philosophers who influenced them. The country’s first principles are economic and social freedom, republicanism, the rule of law, and liberty. Bob believes we must take the best of our founding principles and work from them because a country without principles is just a landmass.Listen on
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Art Carden on Price Theory & Its Discontents