What Cannot Be Known Cannot Be Planned

The idea of central economic planning is that a committee of very wise men will arrange to supply us with all our needs - in exchange for taxes. And these wise men will plan for the future - 5 years ahead.


Let us now look at how a market works.


In a market, there are a large number of sellers of various kinds of goods and services - and they have invested their own Capital. They are all hoping that at least some of the people passing by out there will be interested in their wares. All transactions are voluntary. No force is used. And the end result is that not only whatever you might suddenly need - like an umbrella in the rain - but also what you never ever dreamed of - like a video call on Skype - are available because of this market. No taxes at all. You just pay for what you consume.


What about the future?


Well, the planner claims to plan 5 years into the future - but we know this never ever worked. Electricity, water, roads - all these are in shortage only because they are State monopolies under the control of these central planners.


Now, the future is uncertain for everyone - including the entrepreneurs in the market, who are investing their capital in order to supply the needs of consumers IN THE FUTURE. You get an umbrella in the rain from a shop because, from factory owner to shop owner, these entrepreneurs have tried to guess what you might need in the uncertain future - and to supply it. 


"The social function of the entrepreneur is to make provision for the uncertain future," wrote Mises.

This works wonderfully - only because millions of entrepreneurs are trying to outguess each other in supplying you with your needs.


There is no committee of wise men controlling anything.


Instead, there is actually competition! Entrepreneurs are trying to outdo each other for your benefit.


And you, the consumer, are The King.


And all the shop shelves are full of goodies from all over the planet - tempting you.


Not just small shops, but even SUPERMARKETS.


What can a government committee ever do for you in comparison?


This central economic planning is nothing but NONSENSE-ON-STILTS. You cannot centralise the knowledge that the market relies on - which is dispersed and fragmented.


"What cannot be known cannot be planned," wrote Hayek.


So, choose between these two - and decide which you prefer for the satisfaction of all your needs.


The Market - which means competition between entrepreneurs.


Or Central Planning - which means ugly State monopolies. Like the DDA, the Jal Board, the NHAI, et. al.


Yes, it MUST be The Market.