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March 26, 2006

Hayek Again

It would appear that The Observer leader writers have not quite yet absorbed Hayek’s lesson:

Only last week, David Cameron chided Gordon Brown for being 'an analogue politician in a digital age', by which, presumably, he means that a Chancellor who doesn't have an iPod can't run the economy.

No individual runs the economy. No individual can. No bureaucracy, no centralized point can run the economy. The best we can hope for is that a Chancellor doesn’t screw it up.

March 26, 2006 in Economics | Permalink


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This reminds me of an argument I've had with coworkers who argue for my "market controls"; they are not "market controls" they are market distortions. They are tweakings that cause an imbalance that will later be seen to need more tweakings to counteract ad nauseum. In the end there will be no market.

Posted by: B's Freak | Mar 26, 2006 11:11:43 AM

Excuse my infantile grasp of economics and fiscal policy...but I'm not even sure the Government runs the economy, let alone Mr Brown. Isn't it the Bank of England which is now keeping a firm hand on the tiller? Brown is merely a dispenser or largesse, though very good at that. Surely the lesson of the past few years is that this Government (any government) no longer has much control over economic affairs, hence its inability or unwillingness to deal with the erosion of industry. We're all going to end up selling double glazing to each other - imported double glazing at that. Our rulers are interested only in social control and nannying. They think that is the scope, extent and purpose of governing. Mr Cameron, incidentally, will be no different if he ever wins an election. He was merely the Tories' least worst option.

Posted by: the great redacto | Mar 26, 2006 11:59:53 AM

BoE controls monetary policy, while the Treasury controls anything else it can lay its hands on.
Incidentally, did anyone else notice that Brown intends to merge NI and income tax in the next budget? (He announced plans to fund a report to look into it this year)

Posted by: Rub-a-dub | Mar 26, 2006 1:37:36 PM

Tim, your message should be relayed to Imprudence ASAP. For indeed he doth believe that it is he and only he that runs the economy.

Posted by: EU Serf | Mar 27, 2006 7:14:30 AM