… is it. Retribution that happened nine years ago; Specifically, it is taken from page 81 of the late Nobel laureate in economics. Douglas North1990 Vol Institutions, institutional change and economic performance (links added)
We have to read it again. Armen Alchian (1950) To understand this. In an uncertain world, no one knows the right answers to the problems we face, so no one can maximize profits. A society that allows the highest generation of tests is more likely to solve problems over time (a familiar argument Hayek, 1960). Adaptive efficiency, therefore, provides incentives to encourage decentralized decision-making processes that allow communities to maximize efforts to explore alternative ways of solving problems.
DBXProponents of industrial policy ignore this fact. Every proponent of industrial policy arrogantly assumes that their own vision of what the economy should look like today and in the future is ‘correct’. Every proponent of industrial policy is surprisingly naïve about the nature of economic processes and the complexities of modern economies.
Pictured above is Doug North accepting his Nobel Prize in 1993.
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