Central Planning

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Central planning is responsible for the largest fortune in the world: Walmart. It is behind the most economical medical care in the first world: everywhere but the US. Economics and history show that where the market fails badly, central planning is often a much better solution.


A Nobel for Planning? [More...]
Alvin Roth and Lloyd Shapley's 2012 Nobel Prize in economics was for non-market interactions, where the matches are actually formed by centralized exchanges. "In these situations, decentralized and uncoordinated matching can produce unstable and inefficient matches, and gains are possible from centralization of some sort."
Hayek, the Mind, and Spontaneous Order: A Critique [More...]
Richard Posner finds Hayek's refutation of universal central planning to be useless in real-world mixed economies. He points out Ronald Coase has shown that central planning works better than markets for some problems, hence firms (including governments.)
It is not just government: How insane hedge fund Objectivist libertarianism is destroying Sears [More...]
"Just look at what has happened to Sears after it hired insane free market hedge fund libertarian Eddie Lampert to run their company [...] We're dealing with a full-fledged cult that is just as willing to destroy business as it is to destroy government."
Mr. Anonymous and the Not-So-Spontaneous Birth of the Libertarian Movement [More...]
William Volker, alias "Mr. Anonymous", was one of the first major plutocratic funders of what has developed into libertarianism. Tens of billions of dollars have been spent on this centrally planned propaganda blitz over 60+ years.
Thank you, Singapore [More...]
Singapore's "managed capitalism" centralized planning has resulted in a system with roughly 1/4 the cost of the US "free market" health care system and much better health outcomes.
The American corporation and the centrally planned economies of the soviet empire [More...]
"My own prejudice is that today's corporations struggle mightily with the same challenges that brought down the planned economies of the Soviet era, and that they succeed more from their impressive ability to hold critical resources and to eliminate weaker competition, than through a unique gift for channeling and distributing resources."


[...] the counter-mercantilist pattern imposed by Marshall's unusual Pax Americana favored transferring low level, labor intensive industries (e.g. textiles) en masse to poor regions around the globe in a cascade sequence that uplifted, successively, Germany and Japan, then Korea and Taiwan, then Malaysia and Singapore and so on, until right now this program of "foreign aid via WalMart" is raising up more than a billion people in China and India at the same time.
David Brin, "American Exceptionalism... versus what has made America exceptional"
Thus despite, for example, the dogmatic insistence on “spontaneous order” as the exclusive result of market-based transactions -- transactions that in core neoliberal dogma are said to be the only permissible form of social planning -- the social policies pursued by the MPS [Mont Pelerin Society] and its outer shells [libertarianism, classical liberalism, etc.] are often exquisitely planned, anything but spontaneous, and have nothing to do with any market.
David Golumbia, "Cyberlibertarianism: The Extremist Foundations of ‘Digital Freedom’"
[Hayek] is not evaluating a mixed system, in which there is a degree of personal freedom but also a degree of imposed order. A mixed system is what we and our peer nations have, and I have not been able to figure out what help Hayek offers for evaluating such a system.
Richard Posner, "Hayek, the Mind, and Spontaneous Order: A Critique"
The majority of economic activity takes place without any direct connection to markets, undertaken in the household or government sector, or within large corporations that trade in the market sector, but use central planning to organize their own activities.
John Quiggin, "I Pencil: A product of the mixed economy"
Tens, perhaps hundreds of billions of dollars, hundreds of millions of books, hundreds of journals, dozens of universities, tens of thousands of people and thousands of professorships, and so on in a network touching virtually everyone in the "Western Democracies" -- all of it centrally planned, all of it subsidized, none of it capable of existing by itself in the commercial marketplace or in the "marketplace of ideas" and all of it failing dozens of times until hooked into the river of cash produced by the simple subsidies of the rich designed to derail the "free" evolution of ideas as they were actually proceeding... is there any such example in all of human history of a "movement" so far at odds with its own self-proclaimed "principles"?
Anaxarchos (pseudonym), "Mr. Anonymous and the Not-So-Spontaneous Birth of the Libertarian Movement"
We are going to need a bigger and better government. The private unregulated market does not do well at health-care finance, at pensions, or at education finance. The private unregulated market does not do well at research and early-stage development. The private unregulated market does not do well with commodities that are non-rival, or non-excludible, or produced under conditions of greatly-increasing returns to scale. We are, in all likelihood, moving into a twenty-first century in which these sectors will all be larger slices of what we do. Thus in the twenty-first century a well-functioning economy will need a larger government share in the economy than was needed in the twentieth century.
Brad DeLong, "My Take on the Seven Things We Need to Focus on for Equitable Growth in America: Thursday Focus"
Without question, Pax Americana was the best and least hated of all grand paxes. [...] the U.S. defense umbrella has, since 1945, allowed most nations to spend far, far lower fractions of national income on warriors than at any time in history, allowing them to divert more to education and development. Look up the stats and be amazed! And Steven Pinker's proof that violence has plummeted under the era of Pax Americana.
David Brin, "Pondering Pax Americana and the government shut-down"