Acemoglu suggested technology makes Hayek's knowledge problem outdated. Forget supercomputers and AI. Markets use little information for any computational abilities.
Your iPhone example undermines your story because, as Mariana Mazzucato has clearly demonstrated, is using technology developed by a form of central planning - the moon mission primarily.
Interesting read! I do think that we already underestimate how much central planning actually occurs on a smaller scale. For example, grocery stores are extremely AI central planned - to which store and when goods are delivered. Famously in the UK, Saintsbury's software failed to deliver bread many times to stores, resulting in losing customers. Moreover, we have a ton of Just-in-time systems which are also centrally planned (and failed during the pandemic). And even shipping companies are fully central planned to the extent that they minimize the number of left turns. Not meant as a defense of central planning, but I think we underestimate how much it already is with us.
Regarding desires - I think that's the issue. But how do supermarkets deal with it ( that have their central planning computer systems)? I assume they trial run certain products at supermarkets and see what happens. The toughest problem to allocate would be services - like movies or other entertainment.
Your iPhone example undermines your story because, as Mariana Mazzucato has clearly demonstrated, is using technology developed by a form of central planning - the moon mission primarily.
Interesting read! I do think that we already underestimate how much central planning actually occurs on a smaller scale. For example, grocery stores are extremely AI central planned - to which store and when goods are delivered. Famously in the UK, Saintsbury's software failed to deliver bread many times to stores, resulting in losing customers. Moreover, we have a ton of Just-in-time systems which are also centrally planned (and failed during the pandemic). And even shipping companies are fully central planned to the extent that they minimize the number of left turns. Not meant as a defense of central planning, but I think we underestimate how much it already is with us.
Regarding desires - I think that's the issue. But how do supermarkets deal with it ( that have their central planning computer systems)? I assume they trial run certain products at supermarkets and see what happens. The toughest problem to allocate would be services - like movies or other entertainment.