Abstract

In “Popper, Weber, and Hayek: The Epistemology and Politics of Ignorance,” Jeffrey Friedman argues that markets are superior to democratic institutions because the price system doesn't require people to make the kind of difficult counterfactual judgments that are necessary in order to evaluate public‐policy alternatives. I contend that real‐world markets require us to make all kinds of difficult counterfactual judgments, that the nature of these judgments limits the effectiveness of the price system in coordinating our activities, and that the market participant who is capable of making reasonably good economic judgments can also become the kind of well‐informed citizen who is essential to democratic self‐government.