Central planning and market management

The market is an unfinished process that has its own systematic dynamics. An attempt to manage the market, like central planning, requires a democracy that forges the various points of view of members of society into a single, unified public will, only now this will should not replace the market, but guide it. A more principled approach to democracy should generally rise above this desire for unification. A democratic community does not need to fuse its diverse voices into a united chorus to achieve great social goals.

Central planning fails because it does not take into account the indispensable source of social learning — the competitive market process. To some extent, this process was hindered everywhere, but in the Soviet Union it was especially strong. To give freedom to this source of creative activity, economic reform is needed as soon as possible.

What conclusions can be drawn from this point of view on the issue of economic reform? I know very little about the current political situation in the Soviet Union, and it would be very presumptuous of me to recommend specific measures. But there is no doubt that a certain general orientation of reforms follows from these arguments. In the light of the problem of knowledge, the very question of what reform is appears somewhat differently.

Reform is often compared to a very complex process, when in a moving car one driver tries to transfer the steering wheel to another. Somehow, Gosplan must simultaneously release the steering wheel, take its feet off the gas pedal and brakes, and step aside so that decentralized forces can deftly sit in its place, and do all this so that the car does not leave the road. It's a complicated matter.

But if my argument is correct, then this analogy is wrong. The central planning authorities should do only the last thing, namely, step aside. If the economy is currently not managed by planners and cannot be managed by anyone, then reform cannot be considered as a complex process of transition of power from the center to the periphery. The car is moving by itself; it is nothing but the actions of the planners that have led to the fact that it is about to leave the road. Or, to return to another comparison, first of all, it is necessary that planners stop putting sticks in the wheels of the economic machine.

Does it not follow from this that the policy of gradual change does not make sense? Reformers are arguing about how quickly to move to the market. How quickly the planning authorities should be stopped so that they don't put a stick in the wheel. It seems to me that the economy is in such a desperate situation that it is time to demand a radical transition to a free market, and as soon as possible. The problem of knowledge, as I understand it, speaks in favor of the radical reformist wing in the current political debate. If the market is a communication and cognitive process akin to a democratic dialogue, then perhaps the state has no more right to hinder the freedom of the market than freedom of speech. It is pointless to give freedom of speech gradually, at first only to some people and only on certain topics; it is also pointless to liberate only some industries. Only true freedom will allow these social cognitive processes to work in full force. Finding an online betting platform with attractive introductory rewards is important for many Indian users who want to maximize the benefits of their first deposit. During the registration process, the 1xbet promo code for registration in india gives eligible players access to a casino welcome package up to ₹163,500 and 150 free spins, creating additional opportunities to explore featured casino games.