October 28, 2005
Why Hayek was correct

There are plenty of people (alas, some economists even) who truly believe that centralization is a better way to run a mousetrap. Whether it is nationalized health care, nationalized education, or anything else, it seems that some have an unending faith that a single entity will somehow take care of things. Hayek argued that there was so much pertinent information to internalize, organize, and ultimately act upon that a centralized government/firm/bureaucracy would be unable to provide the same service as the private market.

Now to my point - I blog from Le Chai - galerie du vin, the best little-known wine shop in the Coastal Empire. Located in the Starland District of Savannah, my kid brother pushes the juice to all who value old world wine. Why am I in Savannah? Let's see if I have what it takes to be a novelist:

Thursday, 6:30 pm CDT, the phone rings.

Richard B: Craig, what are you doing?

Craig D: Richard, how's it going? I am making mashed potatoes.

Richard B: Dude, I have an extra ticket to the Georgia-Florida game [in Jacksonville, FL on Saturday afternoon]. Get your a** to Savannah and you can go.

Craig D: I don't know, what's the price of a ticket? [wife gets on the DSL and checks out AA.com]. Oh man, it's $638 and I have to fly back on Monday. Things don't look good at the moment.

Richard B: Expedia has a flight on ATA for $479.

Craig D: [Hem and Haw] How long can you give me before you need to contact someone else?

Richard B: About an hour or so.

Craig D: Let me see what I can do, I will call you back.

I hang up and calmly sit down to eat dinner with the family, after all I had a good pork roast cooked up and wasn't gonna let that go to waste. After dinner, I get on the horn to American Airlines. Over the course of the next forty minutes and about six phone calls between AA, Savannah, and Charlotte, I have flight/game plan finalized.

Go DAWGS!! My first GA-FL game ever, and it wouldn't have happened if life was centralized. Thank goodness for decentralization - my consumer surplus is huge ( $100 plus some frequent flyer miles for the plane ticket and face value of the game ticket). What are the chances that a centralized airline industry would be so accommodating to get me half way across the continent and back in three days in order to see a football game.

Posted by Craig Depken at 04:19 PM in Economics  ·  TrackBack (0)

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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