That’s a nice driving tour of the effects of the economic calculation problem.

For those unfamiliar (not Mike based on his observations about Star Trek’s economy), absent a working price system, no rational method for economizing, i.e., choosing between alternatives, exists. When building a railroad, do you go around the mountain or tunnel through it? Who knows? Take away the profit-loss test, and the loudest, most aggressive thug in the room wins out, which Mike noted the history of communist countries as confirming.

Understanding the economic calculation problem reveals why communists had to copy or steal not just the technology but even its prices. Granting the extreme of an entire country full of perfectly obedient “new Soviet men” — which emphatically did not exist, as shown by the common saying “We pretend to work, and they pretend to pay us” — Maximum Leader is in the dark without prices; he doesn’t know what to command them to build! So he does the next best thing: crib off someone else’s paper.