Identifying points of disagreement

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

JKSCHW@xxxxxxx wrote:

> you bring up the capital goods problem for markets, which is not to the point under the Schweickart model where new investment is planned.

In terms of Hayek, investment is the key entrepreneurial activity.

> If there is theology here, it is in the otricj attitudes of pro-planning types--I except Jim again--who do not see that H has located a big problem, and who forget who, at this stage of history, has the burden of proof.

Justin, we are not in court.  I don't see why one side of the other has the burden of proof.  Nor do I think that proof are possible.

> Do markets work in practice? Ask the Old Man: "The bourgeoisie, in scarce one hundred years. . . . "

Yes, but Marx located the key raw material as slave-grown cotton.  How much the bourgeoisie achieved by market forces and how much by pure force is a matter of debate.  Marx also thought that the bourgeoisie would not be able to accomplish much more -- which was the point of the work you are citing.

> That is a straw man reply. The Hayek problem holds for a  central planning board or collection of such boards. And the problem does not apply only to a single central planner, which is an argumentative convenience, but to a system of noinmarket authoritativea llocation that proceeds by way of targets. It asks: what are the incentives in the system to produce the useful knowledge that entrepreneurs gather in a market system? Only Jim has started to try to answer this question in a serious way. I set aside Charles' answer that under socialism we will be totally different in motivation.

If a planner were intentionally stupid and just listed targets without taking feedback, you would be correct.

> OK, I'm just an idiot engaged in unproductive discussion.

I disagree with the first part of the statement and agree with the second.
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx