Hayek's Theorem

Hayek's Theorem suggests that economic order and efficiency emerge naturally from individuals pursuing their own interests within a free market, rather than from central planning. It emphasizes that localized knowledge and spontaneous interactions among many people enable markets to allocate resources effectively. Instead of a central authority perfectly controlling the economy, it’s the decentralized process—where individuals respond to prices and information—that leads to optimal outcomes. In essence, Hayek's Theorem highlights the power of individual choice and market dynamics in creating an organized, functioning economy.