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  • I am personally weary of centralized planning, I think small scale cooperatives are the way to go instead of big corporations. With more centralized authority for things that require it, like law enforcement.

    • If we are to take Marx's word for it, the advancement of industry necessitates its increasing scale, which necessitates increasing complexity and planning. Markets in every economy gradually centralize themselves over time, and since we cannot "freeze" an economy in time, we can't expect the cooperatives to remain small forever.

      Rather than fight centralization, we should study how it works and how we can best make it work in the favor of all.

      • Also, enormous monopolistic companies are centrally planned themselves. Companies like Walmart and Amazon have internal economies the size of some national economies, and their employees, teams, and departments aren't buying and selling resources amongst themselves -- the allocation of these resources is planned.

        Attempting to run the internal operations of a large company like the free market was actually what killed Sears:

        Lampert intended to use Sears as a grand free market experiment to show that the invisible hand would outperform the central planning typical of any firm.

        He radically restructured operations, splitting the company into thirty, and later forty, different units that were to compete against each other. Instead of cooperating, as in a normal firm, divisions such as apparel, tools, appliances, human resources, IT and branding were now in essence to operate as autonomous businesses, each with their own president, board of directors, chief marketing officer and statement of profit or loss. An eye-popping 2013 series of interviews by Bloomberg Businessweek investigative journalist Mina Kimes with some forty former executives described Lampert’s Randian calculus: “If the company’s leaders were told to act selfishly, he argued, they would run their divisions in a rational manner, boosting overall performance.”

        Anyone who's worked at a large company could tell you that the plans they make aren't flawless, but central planning at scale is not some scary untested idea, or a disproven relic of the past. It's happening right now in large swaths of major industries.

      • The “small scale” part of my comment is a bit of an overstatement. Perhaps I should have said “smallest practical scale”.

        I believe mostly in letting people make choices for themselves, which I think is best served by having organisations at a size where an individual voice has the opportunity to make a difference.

        This can be achieved in many different ways, including having partially independent subdivisions within large scale organizations.

        One of the (many) failings of the USSR was, at least for a long time at the start, insufficient flexibility and reactivity to local issues. But thinking about it, maybe this isn’t a good reason to think ill of centralized planning. The USSR had incompetent centralized planning (especially in the agricultural sector in the earlier days), the failures and famines could be argued to me more due to the incompetence than to core attributes of centralized planning.

      • Marx never had a computer.

        His world view was based on the world he saw, a world that has vanished.

30 comments