You've just described the difference between central planning and markets. The biggest reason markets work is that they aggregate knowledge and propagate it thr

You've just described the difference between central planning and markets. The biggest reason markets work is that they aggregate knowledge and propagate it throughout a society. (Granted, there's plenty to criticize about the implementation of real markets. But if one wants to design a system for intelligently aggregating individual knowledge into globally beneficial outcomes, markets are the place to start.)