I heard a hypotheses that one reason planned economies failed was available computing power and communication speed at the time. To manually calculate how many screws each little shop will need takes an ever growing army of bureaucrats, is prone to mistakes and lags a lot.
So lots of uneven distributions (anybody growing up in USSR will know what I mean), and lots of overhead.
A modern networked infrastructure could mitigate that. A general AI could solve it (but that has its own drawbacks, great if you like your paper clips though).
Markets in a sense create that distribution system organically, but they pay efficiency costs (comparing to a strictly optimal solution). One of those operational costs is advertising.
Market has its own deficiency/glut profile too -- instead of whole city lacking butter and drowning in socks, we have individual people lacking everything evenly and others having abundance.
Good comment. I agree but I feel even an AI can't deal with it. The system is chaotic so it's like predicting the weather. If we can solve the problem of predicting the weather to 99% accuracy with AI then we can do the same with the economy, if we can't then we can never manage the economy with AI.
So lots of uneven distributions (anybody growing up in USSR will know what I mean), and lots of overhead.
A modern networked infrastructure could mitigate that. A general AI could solve it (but that has its own drawbacks, great if you like your paper clips though).
Markets in a sense create that distribution system organically, but they pay efficiency costs (comparing to a strictly optimal solution). One of those operational costs is advertising.
Market has its own deficiency/glut profile too -- instead of whole city lacking butter and drowning in socks, we have individual people lacking everything evenly and others having abundance.