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Nov. 6, 2009
Rabbi Berel Wein: Choosing to hear
JWisdom.com Zero to 1/60th: How to Empower An Hour with Gavriel Aryeh Sande (7 minutes)
Caroline B. Glick The mullahs' big week
Suzanne Fields A Fallen Wall for Fallen Man
Nov. 5, 2009
The Kosher Gourmet: Three scrumptious -- but simple -- butternut squash dishes
JWisdom.com Hidden Hints: Unlocking Faith & Prayer with Rabbi Jay Yaacov Schwartz (10 minutes)
Nov. 4, 2009
Tom Hamburger and Kim Geiger: Should prayers be covered?
JWisdom.com When God played peacemaker With Rabbi Sroy Levitansky (5 minutes)
Nov. 3, 2009
Martin Peretz: Beware, Barack. Beware, Rahm. Beware, Axelrod
JWisdom.com Are you are closet idolater? With Sara Yoheved Rigler (10 minutes)
Nov. 2, 2009
Paul Greenberg: The Holocaust is now on Facebook
JWisdom.com Abraham's Strange Change With Rabbi Yitzchok Fingerer (5 minutes)
Oct. 30, 2009
Rabbi David Aaron: Secret to Immortality
Caroline B. Glick Silencing dissent in America
Oct. 29, 2009
Lini S. Kadaba: Do tactics avert flu or reduce humanity?
JWisdom.com We Must Revamp our Religious Vocabulary With Gavriel Aryeh Sanders ( 10 minutes)
Oct. 28, 2009
Rabbi Yonason Goldson: Atheists in Bubbleland
JWisdom.com Why what we wear impacts who we are With Rabbis Mordechai Becher, Menachem Golberger and Aliza Bulow ( 10 minutes)
Oct. 27, 2009
Paul Greenberg: The United Nations Is Outraged Again, Or: Department of Mideast Static
JWisdom.com The Science of Love With Rabbi Jonathan Rietti ( 7 minutes)
Oct. 26, 2009
The Jewish Ethicist by Rabbi Dr. Asher Meir: Damaging disclosures with a twist
JWisdom.com Wisdom and Wonks With Rabbi Eytan Feiner ( 7 minutes)
Oct. 23, 2009
Rabbi David Aaron: Are you ready for the ultimate pleasure?
JWisdom.com Watermark and oneness with Rabbi Sroy Levitansky ( 4 minutes)
Caroline B. Glick Stop using limited powers in a way that expands our enemies' advantages over us
Oct. 22, 2009
Steven Emerson: Terror Cases Share Desire to Kill Americans
JWisdom.com No More More Family Fights --- Really? By Sarah Chana Radcliffe ( 5 minutes)
Oct. 21, 2009
Tonya Alanez: Holocaust denier sues survivor, calling Auschwitz memoir 'vicious lies'
JWisdom.com Meditating Jewishly: A Panacea for Success by Sarah Yoheved Rigler ( 7 minutes)
Oct. 20, 2009
Dennis Prager: Obama and Dalai Lama: Why Israel Worries about U.S. President
JWisdom.com Abraham was not religious By Rabbi Yitzchok Fingerer ( 6 minutes)
Oct. 19, 2009
JWisdom.comWhy Good People Do Bad Things By Rabbi Eytan Feiner ( 7 minutes)
Oct. 16, 2009
Rabbi Yonason Goldson: The Perfect Number
JWisdom.com Hearing Voices By Rabbi Sroy Levitansky ( 5 minutes)
Caroline B. Glick How Turkey was lost
Oct. 15, 2009
Jeff Jacoby: Peace vs. the 'peace process'
JWisdom.com: Former MTV producer and stand-up comedian Rabbi Lawrence Hajioff: Taming a Control Freak (A VERY fast 15 minutes)
Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review June 25, 2008 / 22 Sivan 5768

Problem of ignorance

By Walter Williams


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http://www.JewishWorldReview.com | I have no idea of the number of traffic signals in our country, but whatever the number, how many of my fellow Americans would like the U.S. Congress to be in charge of their operation? Congress, or a committee they authorize, would determine the length of time red stays red and green stays green and what hours of the day they can be flashing red. Or, how many Americans would like Congress to be in charge deciding what items, in what quantities, your local supermarket has on its shelves? Right now the average well-stocked supermarket carries somewhere between 50,000 and 60,000 different items. Do we really need such a choice in light of the fact that several decades ago Americans made do with just 10,000 different items? Would you also want the government agency that delivers our mail to also manage delivery of items to supermarkets?


You say, "Williams, where are you headed with this?" Nobel Laureate Friedrich Hayek, one of the greatest economists of the 20th century, called it a fatal conceit for anyone to think that a single mind or a single committee can somehow do things better than the spontaneous, unstructured, complex and creative forces of the market. The big problem in any system, whether it's an economic, biological or ecological system, is information, communication and control. For congressmen, or a committee they select, to take over control of the nation's traffic signals requires a massive amount of information that they cannot possibly possess such as traffic flows at intersections, accident experiences and changes in peak and low peak traffic patterns.


The same information problem exists at the supermarket. Consider the challenge we give supermarket managers. We don't tell them in advance when we're going to shop, what we're going to buy and how much, but if they don't live up to this challenge, we're going to fire them by taking our business elsewhere. The supermarket manager does a fairly good job doing what's necessary to meet that challenge. You can bet the rent money that Congress couldn't begin to produce such a satisfactory outcome.


You say, "C'mon, Williams, nobody's proposing that Congress take over the nation's traffic signals and supermarkets!" You're right, at least for now, but the information problem exists in all areas of our lives. Right now Congress tells each American how much should be set aside out of his weekly paycheck for retirement. How can they have the information to know what's the best use for the $70, or so, taken from you and put into Social Security? Might you benefit more by saving that money to start a business, purchase tutoring lessons for your children, or putting it in a private retirement plan? Unlike congressional control of traffic signals and supermarkets, the effects of Social Security aren't apparent because we don't have the information about what people would have been able to accomplish if they were able to keep more of their earnings.


You might argue that saving for retirement is important, but so is saving for a home or your children's education. Would you want Congress to force us to put money aside for a home or our children's education? Oblivious to the huge information problem in the allocation of resources, the people in Washington have confidence that they can run our lives better than we can. Charles Darwin wisely noted over a century and a half ago that "ignorance more frequently begets confidence than does knowledge." Suggesting that Congress is ignorant of the fact that knowledge is highly dispersed, and decisions made locally produce the best outcomes, might be overly generous. They might know that and just don't give a hoot because it's in their political interest to centralize decision-making.


Thomas Jefferson might have had the information problem in mind when he said, "Were we directed from Washington when to sow, and when to reap, we should soon want bread."

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