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>computing has made it possible to scale companies to planetary scale without organizational collapse I wonder. Say we had various factories for producing good
by DiscourseFan 2y ago
>computing has made it possible to scale companies to planetary scale without organizational collapse
I wonder. Say we had various factories for producing goods around the world, and different factories requested the same inputs in different amounts. An algorithm could probably calculate how much of each input it should distribute to those factories. However, the structure of this economy still relies on the commodity form, since those inputs would almost certainly be worked in a certain, standardized way to be properly organized by the algorithm properly. Therefore, the computerization of the economy only leads to an image of the kind of unrestrained productivity you might imagine technology would bring, but lacks the kind of creativity necessary for it.
This is all to say that if not the market, then whatever else could've managed an incomprehensibly complex economy certainly existed before contemporary computers (and certainly, the structure of the economy in even the 19th century in early high capitalism itself was the "computer," the quantitative management of social forces). Its not as if our era, today, is particularly unique, or that Hayek was right then or wrong now, but rather that he was fundamentally wrong to believe that the market itself was the path to freedom, even then.
- Animats 2y ago> Say we had various factories for producing goods around the world, and different factories requested the same inputs in different amounts. An algorithm could probably calculate how much of each input it should distribute to those factories. That's a manufacturing planning system. Each product has a bill of materials, and all those parts have to be present before the product is assembled. Factories which make many similar products either have to have very good systems to get all the parts in the right place at the right time, or carry excessive inventories. It's not a market-based system. The main goal is minimizing stalls, where production stops due to lack of a part. The cost of stalls usually dominates the cost of the parts, because revenue is zero until the product is complete.
- DiscourseFan 2y agoYes but the standardization of inputs and the optimization of revenue present us with a market rather than a more free form of creative development. The kind of production that such standardization allows is extremely limited formally.