Peter_de_Blanc comments on Rationality Quotes: October 2009 - Less Wrong
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I lean libertarian, and have long worn the "yay Hayek!" mantle, but, looking back... It seems like he's unfairly using a) poorly-grounded attempts at large-scale social planning, to justify b) a philosophical, universal belief in the superiority of self-organizing systems over designed ones (i.e. even in building a robot).
Eliezer Yudkowsky has previous criticized b) in the context of Rodney Brooks's preferred robotic architecture. In some contexts, a centrally-planned mechanism which is the product of conscious individual reason is a better way to go. The inferiority of planned economies is not due to the very general superiority of self-organization that Hayek is claiming here.
I've run across that argument a couple times, and my reply has been that all economies are planned. Some are planned by a small number of dumb humans with inadequate data, and others are planned by a very large number of dumb humans with more data, and the latter are called market economies.
Also a planned economy can choose to use markets when it predicts they will achieve the desired result cost effectively.