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Planning an Economy Is Not Elementary

March 6, 2014
6683Jim Fedako writes in today's Mises Daily:
Without a means to recognize actual prices, the central planner, no matter how much she desires to maximize happiness among all, cannot efficiently rule the intersection. And substituting perceptions for prices is no solution at all. I can assure you that, if the selfless mom knew the anger brewing behind her, she would attempt to adjust her actions accordingly. But, again, without a cost signal, she would only be groping for a better solution. And, one can assume, would finally abdicate her position (à la Mises) due to the inability to allocate efficiently.

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