Apr 23, 2020

Friedrich Hayek on how trade requires diversity

Exchange is productive; it does increase the satisfaction of human needs from available resources.  Civilisation is so complex - and trade so productive - because the subjective worlds of the individuals living in the civilised world differ so much.  Apparently paradoxically, diversity of individual purposes leads to a greater power to satisfy needs generally than does homogeneity, unanimity and control - and, also paradoxically, this is so because diversity enables men to master and dispose of more information.  Only a clear analysis of the market process can resolve these apparent paradoxes.

~ Friedrich Hayek, The Fatal Conceit, Chapter 6: "The Mysterious World of Trade and Money"

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