KyleKatarn: Again, it's not a matter of planning or not planning, but who plans for whom. A planned economy is commonly known as an economy where production, distribution, and prices are controlled by a central government, even if the production is not necessarily owned by the state (which would be socialism).
Correction: not only government, any centralised authourity, otherwise, we wouldn't talk about an economic model anymore, but rather a political model.
KyleKatarn: Do I plan for myself or does a central authority make my plans for me?
A forecast that I can choose to either ignore or put into use for my own subjective plans wouldn't be the same thing as being forced to comply with the groupthink of one harmonious plan put forth by the state. I can decide "Well, the forecast says my decision is risky, but if I'm right it will pay off big time." No one has a crystal ball and tea leaves have been known to be highly ineffective. If a bank asks for my plans, those are my plans that I made myself. Not without considering many factors though, which I did not make up in my head.
Have you ever looked around you?
WTF are the big corporation telling their suppliers? And if you don't do as they say, you are gone with the wind.....if you don't abide by THEIR rules, you are gone. They DICTATE the prices, end of story.
KyleKatarn: You might be right, IF and I have to say again, IF those prices WOULD reflect reality. But look into the modern world, do they reflect this? Honestly?
Sometimes a price is not perfect, but much of the time I find that it's just people thinking that a price "should" be this or we "deserve" that. Should and deserve got nothing to do with market prices. It's just a messenger. Price is based on human action rather than human talk, and quite frankly, I'm glad for that because what people say and what they actually do are often completely different.
That's why I felt it was important to type the last paragraph in my post. I have no problem with an entity having comparative or competitive advantage whether because of scarcity or because of excellence in their work, and for them to reject a trade offer if it is below what they think their goods or services are worth. Voluntary trade works both ways. If this means a high price is needed for them to sell, that is the way the market goes sometimes. Likely, other people will see that price signal and try to find ways to offer comparable services though in a competitive market, thus increasing supply.
If, for example, two farmers are trading and one wants to trade a basket of tomatoes for a few dozen chicken eggs, this is a voluntary and mutually beneficial trade. However, if it is found that the one farmer maliciously caused the other farmer's tomato crop to die so he could manufacture an advantage, than this is not a voluntary and mutually beneficial trade. That is why I believe common rules are necessary to ensure trade is voluntary and mutually beneficial. If the crop died naturally or because of the owner's mismanagement, then it's a tough break and do what you can and move one. Some people are clever though with hiding sabotage as an act of God.
As mentioned above, NOT at all, where ever you look. Have a look at the price of gasoline compared to the price of an oil barrel.
You ASSUME a competitive market, which we DO not have, so back to the anti-trust-laws. Like in the moment the price of the barrel went down to a 5 year-low, it might even go further down. Did the price of gasoline go down?
So staying with YOUR example the price would need to drop quite a bit in the moment, according to your example, right?
Now you insert this into your thoughts:
KyleKatarn: Take the broken window fallacy. Theft is a common rule that everyone can understand and knows they should not do. Bastiat posits that if a window maker secretly hired a mischievous boy to throw rocks through shop owners windows so that he could get more business, this would be on the same level of theft. I agree with that assessment and that is why common rules (but not authoritarianism) are still necessary in a free market.
So you are saying, that what is going on in the moment is theft?
KyleKatarn: As for the necessity, I hold to the subjective theory of value and marginal utility. I believe there is no proper price other than what a good trades for in a voluntary market. What if an owner of a stand of timber properly manages his timber so that he is set up to harvest trees for an indefinite amount of time. He thins out weed trees and manages the desirable trees that will grow straight and tall for lumber harvest every few years. Now someone tells him, "But we NEED more wood! You've only harvested 20% of your timber and you must cut more of your trees down and sell them at "x" price!" He knows that he cannot do this because if he does cut trees that are not at an optimal stage to be cut, it will cut his future out. The trees that will grow back in the open space will be short, squatty, undesirable trees and it will be after his lifetime and much TSI work before the timber stand will return to a optimal state for long-term profitability. This is really a case of a "tragedy of the commons".and I obviously support private management of resources.
hmmmm, what do you think big corporations are doing in OTHER countries. exactly this as they CAN NOT do it any longer in the bigger western countries. Again best example Oil industry: Nigeria. Did you have a look for this?
Cutting down of rainforest in South-east asia for big western corporations, just to plant palm trees too get palm oil and hence destroying everything.
KyleKatarn: Horseshit. Maybe it's not the only way to have a planned economy, but is was most definitely a planned economy on a grand scale, one of the biggest examples of a planned economy. The OP brought it up anyway, and I just gave my two cents on it.
OK, your 2 cents, but still wrong as this is seen as an administrative command economy, with which definition I don't agree either, they had stalinism, which is another form of dicatorship.
And by the way, the creator of this threat wanted to talk about the economical model, NOT the political site. So you missed the point, we were discussing ;)
Magnitus: Why not have both? A planned economy in areas where we need one and a market economy in areas where we can afford to make mistakes. This is pretty much what everybody has right now. The main thing that varies from country to country is what is planned and what is free market.
Either way, I don't think centralisation is the answer for most things.
Keep things small and local when you can. Not only will it be more flexible and connected to local needs, but it will also be more corruption-proof.
If you have city offices managing things for their cities, damages when an office becomes corrupted are limited to a single city. If you got a central office for the country and that gets compromised, the scope of the damage becomes much greater. Don't put all your eggs in one basket so to speak.
Sorry have to open the can of worms:
1.) who decides where we need it? ;)
2.) free market implies competition, you just want to deny it. What about if a local producer in a nearby town could produce cheaper?
Your idea sounds nice, it is a little bit, where we are going back to in the moment, but only for the moment and with big problems again. It happens for the food market, but why?
Oh sorry, brandmarked by some guys as SOCIALISTIC ideas......
Why did we went away from this (above) by the way, no not because of capitalism, but rather corporate PLANNED decisions: Oh, it is cheaper to buy/produce in country XYZ, so lets go out of here and produce over there and bankrupt our local supplier. They are producing now with an unfairly competition. How does country a, let's take the US with a min. wage of $8/h IIRC compete with a country, were labout costs only $4 bucks a day and still charge the same as before......not including enviromental damage, health care or the lack thereof.....
In many countries, if you sexually exploit (but not only) kids, you can be tried in your own country and been thrown away for years (rightfully). But the ongoing exploit of other countries kids, sometimes even slave-work is not being held to the same standard?
For me, that is foul-play, but again as I raised before, do we still have democracies or do we already have corporatism?
Magnitus: Atm. for much (and I think it safe to say most) of your economy, corporate offices somewhere far away (often halfway across the world) plans things for you and often not with "you" in mind.
If what you worship is the mom&pop shop around the street and generally little guys controlling their destinies, your country's brand of capitalism is an epic fail.
There is more freedom to be had in many countries that are more "socialist" than your own.
Couldn't agree more and at the same time disagree more......more on this later, have to go in the moment....