Planned economies are not inherently unable to direct said effect. They just have a harder time reallocating resources from failing enterprises because of the p

Planned economies are not inherently unable to direct said effect. They just have a harder time reallocating resources from failing enterprises because of the political nature of resource allocation. Look at a large corporation like IBM some floundering business units persist for decades because of the internal political cost of ending them when economically it is the prudent thing to do.