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No centrally planned economy can survive in the long term. Resource allocation is so skewed that it kills such systems. No free market pricing means that econom
by freefaler 2y ago
No centrally planned economy can survive in the long term. Resource allocation is so skewed that it kills such systems. No free market pricing means that economic decisions aren't taking into account the costs. Even in USSR with the vast mineral wealth this couldn't save them.
Milton Friedman has a good summary on why this happened:
https://www.npr.org/2006/11/16/6498016/friedman-on-free-markets-communisms-collapse https://www.npr.org/2006/11/16/6498016/friedman-on-free-mark...
- NoGravitas 2y agoAmazing to have predicted the failure of Wal-Mart in this way.
- freefaler 2y agoWal-Mart is a big org in a relatively free competitive market . This is the big difference between countries and big organizations. USSR didn't compete with other countries outside of the oil and some other resource markets. They imported food (wheat) and now are one of the largest exporters (or they were before the full-scale war).