Hayek, the Knowledge Problem and why socialism can't work.

Here is Friedrich Hayek in a 3.5 minute interview talking about the impossibility of socialism.  My favorite line: "Profit is the signal which tells us what we must do in order to serve people whom we do not know."

Comments

[maggy]

by socialism do you mean communism ?
in Europe, Socialiste party exists and have nothing to do with communist.

[Ben]

No, he means socialism, not communism. I believe Hayek saw no practical difference between the two - but perhaps others who are Hayek experts could offer their points of view / insight.