One of the most challenging and important jobs for an economics
professor is to teach students how little we know and can possibly know. My
longtime friend and colleague Dr. Thomas Sowell says, “It takes considerable
knowledge just to realize the extent of your own ignorance.” Nobel laureate
Friedrich August von Hayek admonished, “The curious task of economics is to
demonstrate to men how little they really know about what they imagine they can
design.” The fact that we have gross ignorance about how the world operates is
ignored by the know-it-all elites who seek to control our lives. Let’s look at
a few examples of the world’s complexity.
According to some estimates,
there are roughly 100 million traffic signals in the U.S. How many of us would
like the U.S. Congress, in the name of public health and safety, to be in
charge of their actual operation? Congress or a committee it authorizes would
determine the length of time traffic lights stay red, yellow and green and what
hours of the day and at what intersections lights flash red or yellow. One can
only imagine the mess Congress would create in the 40,000 cities, towns and
other incorporated places in the U.S. But managing traffic lights — and getting
good results — is a far less complex task than managing the nation’s health
care system and getting good results, which Congress tries to do.
Here’s
another task I’d ask whether you would like Congress to control. The average
well-stocked supermarket carries 60,000 to 65,000 different
items. Walmart carries about 120,000 different items. Let’s suppose Congress
puts you in total control of getting just one item to a supermarket — say
apples. Let’s not make it easy by having the help of apple wholesalers. Thus,
you would have to figure out all of the inputs necessary to get apples to your
local supermarket. Let’s look at just a few. You need crates to ship the
apples. Count all the inputs necessary to produce crates. There’s wood, but you
need saws to cut down trees. The saws are made of steel, so iron ore must be
mined, and mining equipment is needed. The workers must have shoes. The
complete list of inputs to get apples to the market comes to a very large,
possibly an unknowable, number. Forgetting any one of them, such as spark
plugs, would probably mean no apples at your supermarket.
The beauty of market
allocation of goods and services, compared with government fiat, is no one
person needs to know all that’s necessary to get apples to your supermarket.
Free markets, accompanied by free trade, including international free trade,
make us richer by economizing on the amount of knowledge or information needed
to produce things.
Think about this morning’s
breakfast. Let’s suppose you and your spouse each had four slices of bacon and
two eggs. You had coffee, and your spouse had cocoa. The breakfast might have
cost you $22. But what might it have cost you if instead of being dependent
upon others, you were independent and produced your own breakfast? What do you
know about raising pigs and their subsequent slaughter? Do you know how to cure
pork to make bacon? Then there are the eggs, which require knowledge about the
care of chickens. What about getting pig and chicken feed? You’d have a big
problem with the coffee and cocoa. I doubt whether you could simulate the
growing conditions in Brazil and West Africa. One thing that’s guaranteed is
that your breakfast would be far costlier than in the case where you depended
upon the benefits of skills of others that emerge from the division of labor
and trade.
The bottom line is that each
of us is grossly ignorant about the world in which we live. Nothing’s wrong
with that ignorance, but we are stupid if we believe that a politician can
produce a better life than that which is obtained through peaceable, voluntary
exchange with our fellow man anywhere on earth.
Walter E. Williams is
the John M. Olin distinguished professor of economics at George Mason
University, and a nationally syndicated columnist. To find out more about
Walter E. Williams and read features by other Creators Syndicate columnists and
cartoonists, visit the Creators Syndicate web page.
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https://www.lewrockwell.com/2017/11/walter-e-williams/ignorance-versus-stupidity/