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However you might want to define "central planning", there's a massive difference. The business people are using their own money, but central planners use every
by sillygeese 11y ago
However you might want to define "central planning", there's a massive difference. The business people are using their own money, but central planners use everyone else's.
- danieltillett 11y agoActually most large businesses are using someone else's money - the shareholders. The same sort of agency problems that exist in centrally planned economies also exist in large public companies.
- sillygeese 11y agoYou got the point though, so it's kind of pointless to keep arguing, right? Whatever money is lost is someone's own money.
- danieltillett 11y agoI didn’t think we were even arguing, just discussing an interesting idea :) Our current economic system is remarkably similar to the centrally planned economy the socialist dreamed of creating. Most productive enterprises have no controlling owners - the ownership of most public companies is highly dispersed and much of it in the hands of pension funds, etc. About the only difference between a socialist “paradise" and what we have now is that the indirect ownership of the means of production is not evenly distributed within society.