PreviewThe people shape their own destiny
-- either as free people or as slaves.

If they remain self-reliant, they stay free.
Ever expanding state power destroys lives.

Government panacea is a defective idea.
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Sunday, July 12, 2009

Central Planning Doesn't Work

Lets deal with big government economics on a purely intellectual level. Currently the stuff of big government is carbon taxes, stimuli packages, and centralized medical care.

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Why can't an economy be planned by well-meaning federal power? Wouldn't it be possible to assemble the best and brightest minds? Get them who really understand an economy to make things go. Then we can really stimulate the economy from a central plan. Why doesn't that work?

Getting good information is a problem.

Central planning requires excellent theory and excellent information to be successful. Therein lies the rub. The guys doing the planning don't have good information, so the answers they get are always wrong. Policy fails.

So gather better information! Lets get rid of privacy! Still not good enough. By the time the information is gathered, collated and made into a sensible picture, the picture has changed. The target moved.

Central planning will always suffer from poor information. A brilliant theory with garbage information gives garbage answers.

What is frustrating to central-planning bugs is poor theory, even bad theory, if applied at the lowest local level, has superior, up-to-date information and will give superior results. Nothing is more local than the individual. The atomistic practice of free enterprise results in better economic justice for the people.

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Mr Obama and the Democreeps seem too stuck up to get out of the way. We are in for a long period of malaise. Big government itself is the problem. As long as this government continues to try to centralize economic power in Washington DC, this economy will wobble on.

2 comments:

Anonymous said...

B-b-but...

Central planning worked so well in the peoples' paradise of the Soviet Union! Surely it can work here in Obamica!

- Merkin Swiver

Clipper said...

A relative of mine was a Central Economic Planner in the Communist Government of what is now the Czech Republic. On a recent visit to Prague, he described to me the utter futility of his study of western free-markets and being unable to convince others to implement beneficial aspects. He cited, for example, being unable to institute manufacturing quotas based on realistic expectations of efficiency. He was forbidden to publish any suggestion other than to plan all output to come from 100% efficient operations .... because to think that anything other than perfection was OK was unacceptable. To have done so was not only career threatening but possibly life threatening.