On Apr 6, 2007, at 10:21 AM, Bill Bartlett wrote:
> What people really mean when they argue that markets are necessary,
> or more efficient, is that such an incentive system is necessary, or
> more efficient, as part of a social economy.
Not exactly. Soviet planners used wage levels as incentives, though I suppose some state cap type would say "I told you so" on that news. A lot of people who argue that markets are necessary do so because planners can't know everything about the present much less the future, so some kinds of decentralized adjustment mechanisms are necessary. I really don't want to set off another market vs. plan debate though.
Doug