The Undying Wisdom of Central Planners

Remember the rhetoric spewed by those advocating for the Affordable Care Act (ACA) before the bill was passed into law? According to them the bill was going to reduce the cost of healthcare for Americans and ensure those who currently lack coverage would have coverage. It was all going to be so easy, so tidy, so perfect. The problem with central planners is that the vastly oversimplify things. In their minds the leaders of this country have perfect knowledge and that allows them to do everything right. Once the desires of central planners are realized reality crashes their oversimplified beliefs and they are forced to admit that they didn’t think their cunning plan all the way through:

President Obama said Tuesday that his healthcare law is bound to hit some snags as it comes fully into effect over the next six months.

“Even if we do everything perfectly, there will still be glitches and bumps, “Obama said at a news conference.” That’s pretty much true of every government program that’s ever been set up.”

I think we’re going to find out that “glitches and bumpbs” is a massive understatement as the medical industry in this country, which is already in a woeful state, finally collapses entirely. As Friedrich Hayek explained central planning is impossible because it requires perfect knowledge of current events and the ability to perfectly predict the future. Since the wants and needs of individuals changes continuously and if affected by their previous decisions it’s impossible to actually have perfect knowledge and it is therefore impossible to plan economic matters. History has proven Hayek right and has also shown that the more centrally planned an economic matter is the more out of control it spins.