4 ms·
> After the revolution, the state planned this trade and set fixed prices for food so industrial workers could afford it. So the problem stemmed from central p
by betwixthewires 5y ago
> After the revolution, the state planned this trade and set fixed prices for food so industrial workers could afford it.
So the problem stemmed from central planning? Sounds like a good example for my point.
> ...some amount of centralisation is useful for optimisation...
See, my point is that this is not the case, and beyond that, that planning cannot accomplish more optimal distribution of resources that markets, and I'm using analogous network topology to demonstrate how this can be proven to be true.
- lucian1900 5y agoNo, the fixed prices solved the problem of people starving due to not being able to afford food when market rates went up. Collectivisation later fixed the problem of sabotage by large landowners. Along with mechanisation, the poor periodic environmental conditions were also compensated for and thus the century-old periodic famines were ended. Central planning could optimise further than the profit of individual landlords, since the USSR clearly prospered.
- nradov 5y agoNo, fixing prices below the market rate inevitably causes shortages. There is no way to prevent this. Central planning has always failed.