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scotty79 4 hours ago

Every corporation is a (not so) little pocket of centrally planned economy.

The only saving grace is that it can die and others will scoop up released resources.

When country level planned economy dies, people die and resources get destroyed.

xpe an hour ago | parent [-]

> Every corporation is a (not so) little pocket of centrally planned economy.

This is confused. Here is how classical economists would frame it: a firm chooses how much to produce based on its cost structure and market prices, expanding production until marginal cost equals marginal revenue. This is price guided production optimization, not central planning.

The dominant criticism of central planning is trying to set production quantities without prices. Firms (generally) don’t do this.