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The Abolition Of The Market Competition and Risk

the only conceivable energy meter economic choices. In the absence of a free market, prices should be established with authority bureaucrats of the ministries, but no planner has ever been able to identify effective policies to link prices with the actual production costs and consumer demand, in which so it becomes impossible to properly assess the usefulness of resources available.  Attempts to bureaucratic planning of production and mathematical costs and benefits in the absence of the market, are all completely failed, wasteful and inefficiency. Moreover, the increasing number and extreme variety of new products makes it even more obvious the impossibility of central planning: it can not, under one roof, streamlining investment and encourage the incorporation in the productive processes of all new technologies. Finally, the lack of profit prevents a valid opinion on the ability of managers, not are encouraged to express and seek only to defend their roles safely.

In the absence of competition, outdated factories that produced cars remained in business for ever, like any other business obsolete, preserving its share capital and employees. The end result is been the ruin of the largest deposits of natural resources, colossal waste of funds, leaving the population in poverty, the squandering of enormous skill and talent of workforce There is another reason that explains the failure of planning. The relentless rise the complexity of production processes requires to collect and review a growing body of data and information, that at some point exceeds the processing capacity of any body central planning.

To have everything under control an authoritarian ruler must have the information and knowledge needs to make decisions. In the agricultural society, where the landowner ruled over the peasants, the knowing how to ride, fence and have the rudiments of policy, in addition to the blessing of the local bishop, were probably sufficient quality to ensure the monopoly of power. However, when economies have developed into more complex information needs to dominate have increased exponentially.

The way of modern government require skilled such that no ruler can think to master alone; must therefore rely on technical experts for everything from designing weapons to fiscal management. Moreover, the vast majority of information produced in an economy is by nature locale.Ma the delegate down the authorities, technical experts or those who produce and use the information to local, erodes the power of the dictator

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