# Central Planning Numerous people seem to have become enchanted with the idea of central planning. They think that government can do a better job in allocating resources than the market. A centrally planned economy has never worked and, in fact, cannot work. The complexity of markets, even small markets, makes it impossible for one mind, or a group of minds, to know the needs and desires of all consumers. Central planning cannot match the effectiveness and efficiency of voluntary exchanges in a free market. # Central Planning Having workers own the means of production sounds like a wonderful program. But, have you ever experienced large groups making decisions? When groups get together and try to make decisions in unison, they tend to be impractical and ineffective. The larger the group, the worse the results achieved. So, imagine a nationwide economy depending on all the owners of production making decisions in unison. Even ardent socialists agree with this picture. They know that having all the members of society deciding together how resources get distributed simply would not work. Socialism, therefore, requires central planning. When initially presented the idea of “central planning” seems quite reasonable and harmless. Why not let the representatives of the workers decide how does distribute resources and work? Was it Lord Acton who pointed out the problem of corruption that arises from power? Whether the attribution is correct, the observation certainly is. Central planners would discover the benefit of having the power given to them, and they would do their best to increase that power. The end result would be something we’ve seen in most, if not all, socialist countries: absolute tyranny. But couldn’t this be avoided with a democratic form of government and a socialist economy? # References / Links