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To pass the watchtowers and barbed-wire fences on the Finnish-Russian border is to be reminded of how fragile, and how recent, are the stability and security we take for granted today.
Our intuition is that a centrally planned allocation of resources will be more efficient than an uncoordinated one. In a market economy, that error constantly leads us to overestimate the economic advantages, and longevity, of large companies.
Rational expectations fail for the same reason communism failed – the arrogance and ignorance of the monopolist.
A small fraction of the ingenuity devoted to the construction of complex financial instruments that no one should want could advantageously be applied to the construction of less complex instruments that meet the needs of the Big Society.