The Problem of Knowledge as a Defence of Freedom

Tyler Cowen, in his speech at the London School of Economics, stated that Friedrich Hayek’s essay "The Use of Knowledge in Society" is the most important article ever written in economics, and it is difficult to argue otherwise. Its vast influence—ranging from inspiring the founder of Wikipedia to being recognized as one of the top 20 articles published in the American Economic Review during its first 100 years—has fundamentally shaped how we think about economics. However, in this blog, I argue that the knowledge problem is not only an economic issue but also a foundational argument for the ideal of freedom itself. While Hayek described it as the "economic problem of society", we must recognize the broader implications it holds.

The Wright Brothers and Hayek

In 1903, The New York Times estimated that achieving human-powered flight would require the “combined and continuous efforts of mathematicians and mechanicians from one million to ten million years” (Theory Is All You Need: AI, Human Cognition, and Decision Making, p. 27). Remarkably, this article was published at the very time the Wright brothers were making their first successful attempts at flight. The scientific consensus was overwhelmingly against them; their efforts were deemed unscientific and irrational. Prominent scientists even published articles explaining why human flight was impossible (LeConte, 1888; Newcomb, 1901). Their reasoning was based on flawed inductive logic: small birds, such as pigeons, could fly, while larger birds, like ostriches, could not. From this, they concluded that there was a natural size limit for flying objects, making human flight unattainable.

Yet today, if you live in London, you witness airplanes weighing thousands of pounds soaring through the sky every day. This embodies the essence of freedom: allowing the unexpected to happen and making the impossible possible. As Hayek wrote, "the value of freedom rests on the opportunities it provides for unforeseen and unpredictable actions" (Hayek, Principles or Expediency?).

The Problem of Knowledge as the Foundation of Freedom

I do not defend freedom primarily for its economic benefits—such as higher growth rates or macroeconomic stability—though these are important and often undeniable. Instead, I see these as mere byproducts of freedom. The core justification for freedom is what James Buchanan described: "Man wants liberty to become the man he wants to become." Freedom is rooted in humility—the recognition that we are not omniscient, whether as scientists, politicians, or intellectuals. Precisely because we lack perfect knowledge, we need freedom: the freedom to innovate, to think outside the box, and to challenge prevailing orthodoxies—even when those challenges seem irrational or unscientific.

This is the true essence of liberty: the ability to make the impossible possible.