That is a big leap from slide 2 to slide 3. As Broton33 says, one central authority will never have perfect information across the entire market and thus will not “maximally optimize each supply/demand connection”.
Centralized planning has been tried many, many times in the past 100+ years and it has failed miserably every time. Computers and the Internet won’t make it work any better, if tried again in the 21st century, either.
Computers and the Internet won’t make it work any better, if tried again in the 21st century, either.
Why not? The internet seems like the ideal technology for more efficient production and distribution. It doesn’t even seem like a difficult problem absent the obstructions of capitalism. Not to mention the current system is literally destroying the planet…
Venezuela has access to the internet for their 21st century experiment with socialism and it hasn’t turned out very well.
Emails and Web Browsing work almost instantly around the world, but solid economic data that a central planning agency needs to use to make decisions takes time to gather. This it the core of what Broton33 talks about when he mentions the “lack of perfect information”. As an example, US businesses make extensive use of the internet, yet despite this, the US Government routinely has to revise the economic data it gathers, months and sometime years after the original surveys. Gathering accurate and timely data is hard. Gathering all the information you need is impossible. If you want to learn more, then do a Google search using the terms “Economics Perfect Information”.
As to destroying the planet, yes things are getting warmer, but the free market and the profit motive is also producing technologies that will help cool the planet.
That is a big leap from slide 2 to slide 3. As Broton33 says, one central authority will never have perfect information across the entire market and thus will not “maximally optimize each supply/demand connection”.
Centralized planning has been tried many, many times in the past 100+ years and it has failed miserably every time. Computers and the Internet won’t make it work any better, if tried again in the 21st century, either.
Why not? The internet seems like the ideal technology for more efficient production and distribution. It doesn’t even seem like a difficult problem absent the obstructions of capitalism. Not to mention the current system is literally destroying the planet…
Venezuela has access to the internet for their 21st century experiment with socialism and it hasn’t turned out very well.
Emails and Web Browsing work almost instantly around the world, but solid economic data that a central planning agency needs to use to make decisions takes time to gather. This it the core of what Broton33 talks about when he mentions the “lack of perfect information”. As an example, US businesses make extensive use of the internet, yet despite this, the US Government routinely has to revise the economic data it gathers, months and sometime years after the original surveys. Gathering accurate and timely data is hard. Gathering all the information you need is impossible. If you want to learn more, then do a Google search using the terms “Economics Perfect Information”.
As to destroying the planet, yes things are getting warmer, but the free market and the profit motive is also producing technologies that will help cool the planet.