11/28-12/2 reading

The economic problem which our society faces is how to best allocate the scarce resources that we have. It's said that this problem could be solved through an economic organization just that this kind of facilitation is not a sure-fire guarantee. The major obstruction is how to decide who would do the planning, who to be the planner. In this sense, it's difficult to construct an efficient economic organization as no one retains tacit knowledge. So, it comes down to whether the planning should be centralized or divided among multiple members. It is more efficient to pick the latter which would then shift the choice from who will the planner be to who will the qualified members be. The more people chosen, the more knowledge is obtained as well as a variety of skills. Through the joint effort of the members of the economic organization, it can be ascertained how to adapt to circumstances dealing with both time and location. Communicating information is the essential key and we have already begun to figure out how to do so through the price system and to an extent the feedback loop. These institutions relay information through prices and create a division of labour which help facilitate efficiency. Through improving on these institutions can we make more efficient our economic system