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Central planning is great when you have one clearly defined goal that takes precedence over any other, namely winning a war. It's trash for anything else.
by mcpackieh 3y ago
Central planning is great when you have one clearly defined goal that takes precedence over any other, namely winning a war. It's trash for anything else.
- raphaelj 3y agoIt can still work somewhat great for parts of the economy. E.g. healthcare, education, utility...
- jayd16 3y agoI feel like it works out about the same for those. The difference is market forces work much worse in those cases.
- deleted 3y ago[deleted]
- huijzer 3y agoAfter reading many business books: central planning works great as long as the benefits of centralisation outweigh the drawbacks of centralisation. After reading Outsiders by Thorndike, I’m convinced that the drawbacks outweigh the benefits surprisingly rapidly because distributed companies are shown to run much better. Historically, it has been the same with countries/states, according to Taleb. Although large countries had benefits and could stay alive for long times, small city states (e.g., Florence centuries ago or Switzerland today) and decentralized nations (e.g., Habsburg or the EU), run much more better.