Tag Archive: knowledge problem


  • The Cajun Navy at the Prow: How Civil Society Responds to Disaster

    Because the Cajun Navy consists of local volunteers who operate “on the ground” (or above the ground, on the water), they have access to local knowledge that other entities do not. Economist F.A. Hayek’s claim that knowledge is both dispersed and specific to time and place requires that we consider how various institutional structures are able or unable to make use of knowledge.

    Learn More...

  • The Consequences of Ignoring Economics in Public Policy

    Why does economic education matter? Look no further than the ongoing crisis in Venezuela, where the Washington Post is reporting that food shortages are so bad that people are attacking food trucks when they make deliveries. It all started when Hugo Chavez and his successor, Nicolas Maduro, tried to formulate public policy while ignoring economics. […]

    Learn More...


  • On Demand Program of the Week: The Price is Right

    Why does your iPhone cost $200.00? Why is the price of gas so volatile? What gives Uber the right to enact “surge pricing”? It’s easy to think of prices and profit as symbols of greed and corporate power, but prices are really just bits of compressed information that save you time and effort! What do […]

    Learn More...


  • Trivia: Did you know this about Wikipedia founder Jimmy Wales?

    Jimmy Wales, founder of Wikipedia, was influenced Friedrich Hayek’s essay, “The Use of Knowledge in Society” which argues that information is decentralized. You know it’s true, because it says so on Wikipedia, but if you’re looking for other sources, it’s corroborated by this New Yorker article, and Wales even went on EconTalk with Russ Roberts […]

    Learn More...

  • We Should DO Something!

    Shamans of old knew they could bend the credulous to their will (and make a boatload of money) if the shaman could predict something like a storm, or an eclipse. “This very evening, the Night Wolf will devour the Moon Virgin! But if you pay me many coins of silver, I will force Night Wolf […]

    Learn More...

  • Quote of the Day

    For more from Hayek on what he and fellow Austrian economists referred to as the knowledge problem be sure to check out Hayek’s seminal essay, “The Use of Knowledge in Society.”

    Learn More...

  • On Artificial Intelligence, the Knowledge Problem, and Consumerism

    Learn Liberty recently released a video titled “What if There Were No Prices? Railroad Thought Experiment” with Professor Howard Baetjer of Towson University. The video argues that market prices communicate the value of goods and services in the economy so that those goods and services are allocated to their most productive (and value generating!) uses. […]

    Learn More...

  • High Prices Convey Information, not Criminality

    Last month’s record flooding in South Carolina brought renewed crackdowns on price gouging. But higher prices simply convey information – in this case that consumers should conserve and producers should produce. In this way, prices allow the shortages that occur in natural disasters to be alleviated. In the new Learn Liberty video below, Towson University […]

    Learn More...