Thursday, February 18, 2010

. . . distributed intelligence

Steve Horowitz channels Hayek and Sowell in his posting over on the NPR blog. The ASET book club is reading Knowledge and Decisions and I see echoes of Sowell's thesis throughout Horowitz.


Sowell compares and contrasts informal decision making processes (marriage) with formal decision making process (the draft). His point, I believe is not to judge the desired ends or even the process, but to evaluate the process in terms of costs and benefits. And, he takes the Hayekian stance that individual agents, voluntarily and independently acting will typically select the process that aligns both with value in society and with wealth creation, while a centralized, hierarchial, tops down selection will typically result in decisions with perverse and unintended consequences that are the predictable result of a lack of information and knowledge by the man or woman at the top making the decision.

Sowell also distinguishes between a different types of knowledge - a distinction that I see in Horowitz's observation about government action and, in the words and deeds of many individuals I come in contact with. Sowell describes knowledge as theory, vision, illusion, myth, fact or falsehood and his analysis of the underlying dynamics of how society views/uses these different knowledge types is informative. To the extent that elites in or out of the government are self conscious and rational it seems clear that illusion, myth or falsehood are routinely a part of the discourse and rhetoric urging tops down calls for action - in the social interest.

An excellent example of this is from an aspiring elite, progressive, a reporter for the college newspaper at my institution. She writes glowingly about the benefits of buying local.


I am excited to be reading Sowell's book and looking forward to our discussion. While I had looked forward to a book club discussion of Intellectuals and Society I anticipate a fruitful discussion of this classic.

Greg

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