Take, for instance, the price system. As economist Alex Tabarrok says in the video below, “If it had been invented, the price system would be one of the most amazing creations of the human mind.” The price system is indeed an amazing creation—but of the divine mind. It’s one of God’s means of coordinating human activity for the purposes of human flourishing.
As with most good gifts given by God to humans, we are able to corrupt it and use it in ways that harm our neighbors. Yet for the most part, the price system is an ingenious method of communication that have been used to improve the human condition.
In this video, Tabbarrok explores the mystery and marvel of prices and discusses how the price system allows for people with dispersed knowledge and information to coordinate global economic activity.