Re: Planned economies (was: Replies to Ron h and John Clark regarding...)

From: Anders Sandberg (asa@nada.kth.se)
Date: Wed Nov 20 2002 - 02:39:39 MST


On Mon, Nov 18, 2002 at 03:34:39PM +0100, Max M wrote:
>
> Anders, It would probably not be as bad as you describe. I believe that
> a central planning system with massive computer power and good data,
> should do at least as well as the Sovjet Union did. It is probably not
> nessecary to model society at the detailed level you are trying to.

Yes, I think my horribly overengineered supercomputer socialism would
work better than the Soviet Union. But I don't think it would be vastly
better solution. The point in my thought experiment was that even with
perfect planning things won't be good.

> Plus it would probably be possible to develop systems with a less
> chaotic behaviour than you seem to imagine. Like small amounts of
> overproduction in vital areas like food production. Just like the EU has
> been succesfully doing since WWII.

One could likely re-engineer the economy to be more stable, yes. But the
problem is that this kind of re-engineering seeks to create something
that is stable, and most forms of progress are not stable. So I would
say a planned economy might be possible, but it is incompatible with
open-ended progress. This was not much of a problem for
Marxist-Leninists, since they seemed to have a view of the communist
state as an attractor where no change was necessary, but it is
fundamentally incompatible with transhumanism.

> It would be just like developing new technology from market analysis. It
> just won't fly as it just cannot be modelled. A centralised system would
> leave little room for trial and error.

Exactly. It has a hard time learning, since most of the information to
be learned is local. The Hayek-Mieses argument is only part of it; a lot
of the useful and necessary learning processes in an economy are not
measured in prices but in the growth of experience among people and
institutions. In a market there is an incentive to leverage this
experience growth into profit (either directly by making things better,
or by selling it or even using it as an advertisement), in a centralized
system there is no such incentive and in planned systems this useful
information has no way of reaching the planners.

-- 
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Anders Sandberg                                      Towards Ascension!
asa@nada.kth.se                            http://www.nada.kth.se/~asa/
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