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Excellent theoretical analysis. Unfortunately wrong. It assumes that central planning works with perfect information. This would be true if everybody’s primary
by jl2718 8y ago
Excellent theoretical analysis. Unfortunately wrong. It assumes that central planning works with perfect information. This would be true if everybody’s primary motivation was for the common good. Maybe true for most people. Not for those who seek power.
- nostrademons 8y agoThat's what I mean by "acts perfectly rationally", which is another idealized abstraction that could be defined as "maximizes the unweighted sum of the utility functions given to it". In other words, if we replaced the central planning board with a computer and gave it full information of the utility functions of all citizens and the cost of production for each of these goods and services, it could in theory come up with an ideal solution. Coming up with full information on utility and cost functions across all possible things that could be produced is left as an exercise to the reader.