Knightian Uncertainty in Capitalism and Socialism
By Juan Ramón Rallo, Philipp Bagus, Miguel Ángel Alonso Neira
This article appeared in the Winter 2022/23 issue of The Independent Review.
Drawing on the ideas of economist Frank Knight, this essay shows that within the institutional framework of socialism, economic agents must face an amount of unmitigated pure uncertainty that under capitalism is either completely absent or significantly reduced by profit-seeking entrepreneurs.
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|Other Independent Review articles by Juan Ramón Rallo|
|Winter 2019/20||Hayek Did Not Embrace a Universal Basic Income|
|Spring 2018||Some Fundamental Problems with Thomas Pikettys Capital in the Twenty-First Century|
|Other Independent Review articles by Philipp Bagus|
|Spring 2017||Between Debt and the Devil: Money, Credit, and Fixing Global Finance|
|Spring 2011||The Tragedy of the Euro|