Mikko Saarinen

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Hayek realized that fluctuating prices for such things as aluminum and wheat are signals about scarcity and abundance. These signals cause people who buy and sell to take action (to slim, swap, optimize, evaporate, and so on). So free-floating prices in capitalist economies do an important double duty: they provide both information and incentives. Prices fixed by a socialist government do neither of those things.
More from Less: The Surprising Story of How We Learned to Prosper Using Fewer Resources—and What Happens Next
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