Economics, knowledge and inappropriate methods of analysis.

In an earlier post I argued that the most important book of the twentith century was “The Road to Serfdom” by Friedrich August von Hayek.

The basic assumption of the book is the inability of social engineers to predict and control outcomes in complex economies. This failure of social planners, leads to the increasing use of authoritarian methods in an attempt to ‘match’ plans to actual outcomes.

The heart of his analysis relies on the understanding that social scientists have appropriated the methods of the natural sciences, and misapplied them.

Hayek’s first public delving into understanding this problem, was outlined in his Presidential address entitled “Economics and Knowledge”, delivered before the London Economic Club on 10 November 1936.

The full text is available Here ….

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