In his latest blog post, “The Myth of Complete Knowledge,” Dr. Craig Wright picks apart a few assumptions made in economics—in particular, that every participant in the economy is acting rationally. The general tone of the article indicates that individuals are not acting rationally, and therefore, it is not possible to make economic decisions under the assumption that we are acting with complete information.
“[I]f we cannot expect to act with complete rationality, then we cannot assume to be able to centrally plan economies,” writes Dr. Wright before going on to say that, “The world is a messy place, and with any theory, it is essential to ensure that it solves real policy problems.”
How do we plan in an irrational world?
Given that market participants are not acting rationally, it’s not possible to make plans that are contingent on rationality. However, Dr. Wright goes on to explain that regardless of the irrationality of market participants, there are general guidelines that can be followed that are likely to lead to advantageous outcomes for all.
“In a convoluted world that complexity theory, beyond simple calculation, demonstrates to exist, and which is subject to the constraints of complexity, we can still form some basic tenets on how to live and interact in society and how to be stewarded towards a future that we would all accept. Even where every action comes with unintended consequences, we can establish a few guiding principles that ensure we do not merely give up and act as if we were living in a nihilistic existence. The secret would seem to be to create balance through stewardship, rather than a governing body that shall rule.”
Although we cannot make fool-proof, 100% predictable plans in the irrational world that we live in, there are a few principles that we can live by that would ultimately usher the world into a better state.
Head over to CraigWright.net and read Dr. Wright’s latest blog post “The Myth of Complete Knowledge,” to find out what Dr. Wright says those guiding principles are.
See also: Dr. Craig Wright’s keynote presentation at CoinGeek Live, How One World Blockchain Powers a New Future for Computing & Cloud System
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