Gifts and Central Authority

An appropriate article given the gift-giving seasons.

The problem of buying good presents for other people, even people you supposedly know well, illustrates that old familiar Hayekian concept, the knowledge problem. If you can't even give your loved ones the right presents, how likely is it that a central authority could make the right decisions for everyone?

This is similar to my surprise party theory and why it explains Lee Harvey Oswald acted alone. Try planning a surprise party. Tough. Very tough. Now imagine trying to pull off a conspiracy to kill the President of the United States and then fooling the entire Warren Commission and all of history. Good luck.