3 ms·
The issue with central planning has never been scaling. Back in the mid-20th century, the Soviet Union often managed to excel in scaling particular metrics that
by scarmig 6y ago
The issue with central planning has never been scaling. Back in the mid-20th century, the Soviet Union often managed to excel in scaling particular metrics that were prioritized by leadership. The issue is price discovery and resource allocation, and the ability of politics to interfere with or undermine the price discovery mechanism.
The internet has helped with market-based price discovery by acting as a source of legibility and homogenization, which allows for the mega corporations to extract a lot of the value provided by acting as monopoly providers of the platforms for price discovery. But if you look at their internal corporate economies, all of them have issues with substantial waste, resource misallocation, and politics.