Tuesday, July 7, 2009

Hayek on China

From Competition as a Discovery Procedure:

"A high growth rate is more a sign of of bad policies in the past than of good policies in the present."


Josh Knox said...

I don't think I understand. Is he just saying the repeal of bad policies is better than the creation of new good ones? Or is he saying that the high growth rate is just a sign of that economy getting to where it would naturally gone without being hamstringed --like a cork rises with the tide, but rises faster after being forced underwater?

Pete Abbate said...

The second one.

Compared with the totality of knowledge which is continually utilized in the evolution of a dynamic civilization, the difference between the knowledge that the wisest and that which the most ignorant individual can deliberately employ is comparatively insignificant. ~Fredrich Hayek in The Constitution of Liberty