Friedrich Hayek wrote an entire book about the “fatal conceit,” the notion among big-government collectivists that they can plan their way to a better world.
A brief Bloomberg Businessweek article offers an excellent example:
The White House has to balance the executives’ insights with reams of government statistics, a process that is “both a science and an art,” says Jarrett. “The science comes from the data” prepared by the government. The art lies in judging “the psychology and the confidence” of the CEOs and what their demeanor says about the economic outlook.
The aides also try to focus their consultations on CEOs whose businesses touch on the part of the economy the White House is trying to understand. Jim Owens, the former CEO of Caterpillar, is a trusted source on industrial equipment sales. Wal-Mart’s Duke speaks to consumer spending. For a bird’s-eye view of the real-time economy, White House officials consult Fredrick Smith of FedEx and D. Scott Davis of United Parcel Service, as shipping orders can serve as a broad economic barometer. To gauge how full airplanes are, they talk to United Continental Holdings Chairman Glenn Tilton.
Let unstated — but implied — is the notion that conversations among White House officials and top business executives can replace the billions of decisions made between producers and consumers in setting the right course for the economy.
