Comment by emp17344
2 days ago
Free markets are superior to planned economies because they’re able to instantly respond to consumer preferences, resulting in efficient allocation of resources.
On a side note, I’m not sure why HN is often hostile to economic arguments. Economics is a well-established science.
Horses were superior to steam engines for 100 years. It takes time for technology to improve, and money is a technology.
As technologists, we understand the the need for a new major version here and there. A breaking change where the new thing is not compatible with the old. Economics as we know it smells overdue.
The particular bit that doesn't seem to be fitting the bill anymore is "value". Back when more economic activity was undeniably a good thing... Back when the majority of our resources were spent fending off hunger, or exposure to the elements, or illness, we had enough of a common enemy that we could get by with a single untyped primitive notion of value. However much we disagreed, we still agreed enough for that to work.
But now we're able to handle the basics well enough that we spend the majority of our resources fending off each other. A single fungible notion of value feels awkward. When I accept a dollar from somebody I'm not sure whether I've helped or harmed myself by doing so because its just as likely that they made that dollar by degrading the water I drink or some other activity that's worth way more than a dollar for me to prevent. We lack shared values but still share a notion of value, and it's not working out.
So perhaps instead of "thinking outside the economy" I should've said "Update the economy to account for more". Whatever words you prefer for it, drastic change is on our doorstep.
Just wanted to note that free markets are separate from capitalism. Free market socialism has existed here and there as well.
Economics is not capitalism though. They are not synonyms.