Water Resources In Tampa

In this essay F. A Hayek, indicates that the main problem involved is the Rational Economic Organization; highlights the dispersion of knowledge and proposes that non individual can collect and systematize all knowledge produced in a social order so that you can deduce its consequences; also demonstrates the limitations of human knowledge, of different types of knowledge that individuals consider when choosing a direction for their actions in this regard particularly oriented to resource allocation.

The dispersion of knowledge to which Hayek refers is the existence of an additional knowledge to scientific and technical, systematically organized modern society, refers to a type of very important knowledge though unorganized, which he calls "the knowledge of the particular circumstances of time and place ", that each individual produces and owns, from their individual experience, making it intrasmisible to other individuals at least in the same way that scientific knowledge is transmitted. This individual knowledge is translated into a set of rules and skills that when combined with the needs, desires, principles, etc. of individuals, define their practices, their actions and how these individuals allocate their resources.

Declares the benefits of economic liberalism or free market, explaining the case of shortage of raw material without any order or the cause of it is known should occur, makes millions of people whose identity could not be determined not even with months in investigation, were able to reduce the use of raw materials or products, which means that is moving in the right direction, and seeks to answer how the combination of existent fragments of knowledge in different minds produce results which, if they had to be deliberately produced by a principal planner mind that no machine or organism may possess, centralize and systematize this individual and changing knowledge of each one of the individuals acting in a specific social order.

Thus, explains the role of the price system as a social development that have resulted from evolution and not deliberate or planned design of a signalling system that transmits information to the various economic agents, so that each one of them, even ignoring the reasons why prices change, have more information than they actually possess, in addition, to make the best decisions relevant to the circumstances of time and place. Thus making the price system a mechanism to detect and telecommunications transmitting economic information which is scattered and fragmented among thousands and thousands of individuals. It can be deduced that the theory of Hayek sees market a method of transmission and utilization of knowledge justifying naturally inclination by an (unplanned) autonomous economy, that regulates society through offer and demand and has also made possible not only the division of labour but also the coordinated allocation of resources.

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