> And these companies, they use the same kind of central planning that we so despise in communist systems. I know. I’ve done it.
The work of János Kornai made us realize that it is impossible to find an exact solution for economic planning, so a completely centrally planned economy is destined to have major inefficiencies (he was also a notable inspiration for the Chinese reformers). It also seems like some kind of planning is inevitable in market economies to achieve long term goals as market prioritizes short term gains.
The work of János Kornai made us realize that it is impossible to find an exact solution for economic planning, so a completely centrally planned economy is destined to have major inefficiencies (he was also a notable inspiration for the Chinese reformers). It also seems like some kind of planning is inevitable in market economies to achieve long term goals as market prioritizes short term gains.