Hayek's reasons for holding that planning cannot work are not limited to the problem that the information required for the task of coordinating the plans of a multitude of individuals is too vast to organize effectively. The knowledge utilized within the market by entrepreneurs does not exist outside that local context and thus cannot even be organized in principle. It is not that planners would face a complex computational task; it is that they face an impossible task, because the knowledge required is not accessible to them no matter what technological developments may come along to ease the computational burden.
Friedrich HayekRelated topics
burden complex context ease face holding impossible information knowledge limited local market matter multitude outside planning principle problem task thus vast work developmentsRelated quotes
Since it cannot be overlooked by the Doctrine of Knowledge that Actual Knowledge does by no means present itself as a Unity, such as is assumed above but as a multiplicity, there is consequently a second task imposed upon it, - that of setting forth the ground of this apparent Multiplicity. It is of course understood that this ground is not to be derived from any outward source, but must be shown to be contained in the essential Nature of Knowledge itself as such; - and that therefore this problem, although apparently two-fold, is yet but one and the same, - namely, to set forth the essential Nature of Knowledge.
Johann Gottlieb Fichte
The second conception of the world via the medium of matter required both a visual and a tactile perception of things. In this case the whole design process tends to emanate from the specific characteristics of the respective medium used. The leader of this movement (Tatlin) assumed.... that the intuitive and artistic mastery of materials would lead to inventions on the basis of which objects could be constructed. He believed he could prove this theory with his design for the 'Monument to the Third International' (1920), [never built]. He accomplished this task without having any special technical knowledge of construction.
El Lissitsky
[S]cientists are not robotic inducing machines that infer structures of explanation only from regularities observed in natural phenomena (assuming, as I doubt, that such a style of reasoning could ever achieve success in principle). Scientists are human beings, immersed in culture, and struggling with all the curious tools of inference that mind permits [...]. Culture can potentiate as well as constrain-as Darwin's translation of Adam Smith's laissez-faire economic models into biology as the theory of natural selection. In any case, objective minds do not exist outside culture, so we must make the best of our ineluctable embedding.
Stephen Jay Gould
Every pitifulest whipster that walks within a skin has had his head filled with the notion that he is, shall be, or by all human and divine laws ought to be, 'happy.' His wishes, the pitifulest whipster's, are to be fulfilled for him; his days, the pitifulest whipster's, are to flow on in an ever-gentle current of enjoyment, impossible even for the gods. The prophets preach to us, Thou shalt be happy; thou shalt love pleasant things, and find them. The people clamor, Why have we not found pleasant things?... God's Laws are become a Greatest Happiness Principle. There is no religion; there is no God; man has lost his soul.
Thomas Carlyle
Outside the firm, price movements direct production, which is co-ordinated through a series of exchange transactions on the market. Within a firm, these market transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the entrepreneur-coordinator, who directs production. It is clear that these are alternative methods of coordinating production. Yet, having regard to the fact that, if production is regulated by price movements, production could be carried on without any organization at all might we ask, why is there any organization?
Ronald Coase
