[lbo-talk] IT innovation and "the Markets"

SA s11131978 at gmail.com
Wed Mar 4 14:05:39 PST 2009


Miles Jackson wrote:


>> While I agree with your list do you imagine central planning would be
>> as effective at filling demand for microwaves, TeeVee, pants, shoes
>> and similar goods?
> Why not? The efficient distribution of media from a lending library
> requires significant planning, tracking, budgeting, staffing, etc.
> Actually, the more I think about it, in practical terms, it's way
> easier to produce and distribute microwave ovens than it is to produce
> any of the public goods on my list.

I don't think we're all talking about the same thing here. You seem to be talking about whether "planning" can work well. On that there was never any disagreement. Planning works well - libraries, subways, Medicare, etc - no argument there. What others are talking about is whether *central* planning works well.

An economy where virtually all production is planned = a centrally planned economy. An economy where libraries and subways are planned = capitalism as we know it. You seem to believe that the former is just an extension of the latter, but that's the whole point - it's not.

Planning under central planning is like decrypting a coded text in which every letter is represented by an unfamiliar symbol. Planning under capitalism as we know it is like decrypting that same text with the aid of a legend that translates half the letters of the alphabet for you. It would take an average person an hour to decode the text with the legend; without the legend most people could never solve it no matter how much time they had.

SA



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