[davidw]

> I agree with some forethought these events could be planned for

Really? One of the things that Hayek is well known for, the 'socialist calculation problem', states that too much central control is bad because it's simply impossible to 'calculate' an economy - it's best left as a dynamic system with millions of independent actors. However, doesn't that also apply to individuals? You can do your best to make plans, only to run into things beyond your knowledge or control.

[davo11]

I agree that it's not possible to calculate an economy. I was talking on a personal level, a rational person in a situation where at any time they may lose their job and be thrown on the streets will save and put aside enough money to survive for a reasonable amount of time. However if you're already living hand to mouth, you lose your job, the bank forecloses on your house and you're out on the street, well it seems in the US it's tent city here I come. Many of the people are victims of an economic event out of everyones control. A social security safety net would prevent tent cities from happening. Which is the greatest cost to a society - having citizens living in tents without any sanitation or health care, which will increase crime and health care needs - or provide all citizens with a safety net of a subsistence wage?

[davidw]

I agree - which is my point, that it's more or less correct to point out that a government, with everything available to it, is unable to 'calculate' an economy, but by the same token, individuals can try their best and miss the mark too. There ought to be something there for them to help pull them up and get them going again.