In my Micro class I had to answer this question
Do you agree with Robert Moses’ ideas of wiping out cities that are an "impediment to new growth"? (see Scarcity and Eminent Domain) Why or why not?
I wrote:
"No, I do not agree with Robert Moses' idea of "wiping out cities that are 'an impediment to growth." Even if cities were an impediment to growth, there is no way Moses, as an economic planner, could facilitate growth in an efficient manner. Growth should be facilitated through spontaneous order which, as Freidrich Hayek says, provides 'a more efficient allocation of societal resources than any design could achieve."'
In response my teacher wrote:
Even though I do understand your position, spontaneous is not always better. It can, and sometimes lead to chaos. Because of scarcity, choices must be made. Regulation helps avoid this problem. Planning can facilitate economic growth becuase it purposedly creates an economic basis. Look at planned cities as an example. Sometime, it is economically advantageous to rebuild or restructure an area. As mane say, it is the cost of development.
(English is probably not her first language)
Now she wants me to revise my answer (Why do I have to revise an answer to an opinion question?) and of course I'm not going to give her the answer that she is looking for. How should I "revise" my answer?
Josh : In response my teacher wrote: Even though I do understand your position, spontaneous is not always better. It can, and sometimes lead to chaos. Because of scarcity, choices must be made. Regulation helps avoid this problem. Planning can facilitate economic growth becuase it purposedly creates an economic basis. Look at planned cities as an example. Sometime, it is economically advantageous to rebuild or restructure an area. As mane say, it is the cost of development.
I've said it before and I'll say it again. What a waste of precious time and money to go these classes. She doesn't understand your position at all.
Josh :Now she wants me to revise my answer
You must first reiterate your position on spontaneous order and explain to her that absent of planning refers strictly to central planning. There is still planning on an individual basis. The many different actors are coordinated by the price system. The result is order, not chaos.
Any course of action that the planners will take suffers from a fundamental problem. The value of their action against its costs cannot be ascertained. In fact, the mere problem your teacher raises is nonsensical in the absent of such a method.
How does she know that the city is impeding growth? What method of valuation is she using? I suspect your teacher may be unfamiliar with the subjective value theory, which is another way of saying that her knowledge in economics amounts to diddly-squat.
Couldn't you write something like?
"According to Moses, property should be taken away from the owner and put to another use when the value of that alternative use is greater to society as a whole than the value to the owner in the property's current use. **insert text on cost-benefit analysis, opportunity cost, and something on transaction costs would fit if you've covered that--IOW: those things that are consistent with the Moses position**.
However, there are several points, which I believe Moses argument does not take into account. **knowledge limitations of central planners**"?
I think she wants you to elaborate more on the stuff that was discussed in class.
Of course, in the question, it sounds like she is basically asking you for your opinion. So i don't see how she can be too upset with any answer so long as you demonstrate a knowledge of the material.
Ambition is a dream with a V8 engine - Elvis Presley
Josh : She doesn't think that a free market has a mechanism to deal with scarcity. I don't think she'll understand the subjective theory of value, the economic calculation problem, or the broken window fallacy, if she can't understand how supply and demand operate.
She doesn't think that a free market has a mechanism to deal with scarcity. I don't think she'll understand the subjective theory of value, the economic calculation problem, or the broken window fallacy, if she can't understand how supply and demand operate.
provide sources to back up what you're saying. teachers need not know everything, but any competent teacher is able to at least understand sourcing of material so she has guidance to check its validity, so, she'll be able to figure out that you're not making this up, ironically, out of thin air