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If capital requirements are reasonable, the market will figure it out. However, that’s far less true for capital-intensive problems; there’s few enough actors f
by danielheath 6y ago
If capital requirements are reasonable, the market will figure it out. However, that’s far less true for capital-intensive problems; there’s few enough actors for them to collude.
For that reason, central planning works out passably for predictable problems with high capital requirements like sewerage, roads and electrical grids.
- pdonis 6y ago> there’s few enough actors for them to collude And those who collude become the central planners. So central planning doesn't fix this problem: it worsens it, because now the colluders have government power on their side.
- afarrell 6y agoRegulation makes the central planning explicit so that an anticorruption layer can (hopefully) be designed.
- chordalkeyboard 6y agoThen the anticorruption layer is vulnerable to corruption.