John Kuti
John Kuti
Aug 9, 2017 · 1 min read

Three different objectives:

a- win a war

b- get maximum utility in the algebraic economic sense per dollar spent

c- live a “good life” in the philosophical sense

I think it’s worth noting that Hayek’s work is only discussing point b. I’m not an expert on his thought, but I imagine he would have agreed that central planning was needed to win WWII, and probably didn’t hurt in other wars either. His point would be that if you want to maximise utility per money unit, then a price system is going to be superior, if you start with an equitable distribution of money (which is a really big “IF”, but not beyond the realms of possibility).

We saw the results of strategic decision-making lower down the chain of command in ch. 23 (day 209) when Benigsen moves troops who are supposed to be hidden onto the top of a hill.

John Kuti

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John Kuti

English teacher in Saint Petersburg, Russia