I, Pencil

As I have mentioned earlier (can't find the link) I am not fond of I, Pencil *. Reading the essay is basically like reading the worst parts of IndiaUncut, . Thinking it over there problem with the essay may go beyond over tedious rhetoric. Now whether I am right needs verification by someone who knows his economics**, but isn't the main point of contention between free market economics and socialism/Keynesian economics about efficiency of the system. So even if, as the essay goes, pencil is being manufactured, the efficiency is a question.

Now I like to think that free markets are more efficient, with two caveats, one my belief is less due to do study than due to the fact that I have lived in India before and after 1991. Second I am not clear to what degree efficiency is similar to social utility. If by efficiency, we are concerned only with material goods, therefore maximizing efficiency would dictate eliminating any causes for inefficiency. This is problematic as social utility is not limited to material goods, including creation and upkeep of social institutions, maintaining a civic identity, and fostering intellectualism. Much of these aims are intangibles and their assessment in objective economical terms is not possible. Ultimately utility function are context determined, driven by history.

The best that suggests to me at the moment economic efficiency must be fine-tuned with the social goals, which will mean that economic efficiency may not be maximized. Also the balance should be determined by individuals and social institutions, role of state in form of massive bureaucracy should be discouraged.

* Considering the essay is so acclaimed, I must be an idiot.

**As opposed to people who accuse this blog of being peach/pink. Let me make it clear, this blog is not pink . It is horrible and in its horrendousity (is this even a word ?) reflects my inner goober.