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> Corporations are central planning. Just on a smaller scale. No, they're not. Corporations plan their production and allocate their resources based on market
by xraystyle 11y ago
> Corporations are central planning. Just on a smaller scale.
No, they're not. Corporations plan their production and allocate their resources based on market information within their industry in an attempt to capitalize on the market signals they observe.
Central planning is a process by which a central government attempts to control and direct the output of a nation's economy by deciding what to produce and when, ignoring market signals.
These are vastly different concepts.
- eru 11y agoNot so different, see eg http://www.economist.com/node/17730360 http://www.economist.com/node/17730360 and https://en.wikipedia.org/wiki/The_Nature_of_the_Firm https://en.wikipedia.org/wiki/The_Nature_of_the_Firm in general. eli_gottlieb sibling-comment is spot on.