Re[2]: Lyle's Laws

Guru George (
Mon, 6 Jan 1997 20:01:31 GMT

Peter McCluskey wrote:-

> Capitalism has checks and balances which work almost perfectly in
>the presence of perfect information, fail almost completely under
>conditions of total ignorance. We operate under conditions which
>are far from those extremes.

I think you've got it completely the wrong way round. The checks and
balances operate to cope with conditions of ignorance.

This general Austrian economic point:- we are all relatively ignorant of
the factors that will influence a given outcome, all economic activity
is to that extent entrepreneurial. Hayek's addendum:- there is
knowledge around that does include all the factors, but it is dispersed
among all the relevant economic actors, each of whom has a piece of the
puzzle, sometimes not even consciously (it may be a knack, or know-how,

There *are* no "conditions of perfect information."

Guru George