Property in Science and the Market

Abstract

A central theme in recent liberal arguments for free-market has been an epistemological one. It is claimed that free market is a solution to problems of ignorance, and that there are necessary limitations to that any particular individual or subset of individuals in society can possess. Hence, there are limitations to at disposal of any central planning board in a planned economy. The economic liberal argues that in contrast to these limitations of centralized planned economies, market overcomes problems of human ignorance. There are two sources of these limitations to human that are particularly prominent in work of economic liberals. The first is what Hayek calls the division of knowledge in society?that is, dispersal of and skills throughout different individuals in society.1 Much of such takes form of practical knowledge?knowledge how rather than that?which cannot be articulated in propositional form. Hence, such cannot in principle be passed on to a cen tralized planning agency. There will be dispersed throughout society of which any particular individual or subset of individuals will be ig norant. A second source of ignorance is unpredictability of human needs and wants. This is in part a consequence of fact that an individual's needs and wants often cannot be articulated. However, it also has another basis. Needs and wants change with invention and produc tion of new objects for consumption. To quote a version of this point from a writer who is not an economic liberal: