Thread · 3 tweets · 14 Jul 2021

The beauty of the market, as clearly described by Hayek, is how the price mechanism can encode local information that can never be effectively shared to everyone or efficiently processed by some big centralised entity.

The idea of broadcasting local knowledge or handing it all over to a couple of big inefficient engineering bureaucracies is, on paper, a recipe to create inequality, poverty, inefficiency, and a highly distorted market and — lo! — that is what we observe.

Better privacy isn't just ethical and democratic — it's also good sense in Econ 101.