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[2377] Technology, central planning and the fate of organic organization of society

There are several reasons why organic decision-making is better than central planning. The complexity of the world is one. By complexity, it means nobody has the ability to absorb all relevant information in a timely manner to react effectively. In some ways, this is the economic calculation problem. It is an argument against the communist economic system in favor of the free market, the free price system specifically.

While this particular reasoning has stood well against the test of time to defend the libertarian case, I do not think it will stand forever. It has stood well against the case for central planning because there is a limit to calculation processing.

An individual can solve his or her own problems but a central planner must solve all problems that exist in the world. The central planner has no capacity to solve for the general equilibrium. There are billions, trillions or even more variables and data points to consider. The problem of central planning has always been an optimization problem however complex it is. How many can we calculate? How fast can we calculate? Can we calculate it at all?

None in the past and at the present time has done that in a grand scale or for a long time successfully.

The date when technology overcomes the restriction will arrive. When that happens, the libertarian case may approach an expiry date.

The seeds are already here. Thomas Friedman writes in The World is Flat of a global supply chain. Detailed record of inventory is kept. The workflow is traceable. Orders, stock and production all around the world of a particular company can be tweaked easily. All relevant information crucial to production is available on the spot all the time.

It is not hard to imagine how that capability can be expanded beyond the boundary of a firm. As technology progresses to make that possible, the prospect of effective central planning is enhanced.

With technological progress, eventually, whatever superiority the organic method has can be replicated by a central planner. Perhaps, the central planner can produce superior outcome in some cases where asymmetric information is present. After all, with the relevant sufficiently advanced technology, there can be no asymmetric information problem.

This is a scary notion for libertarians. It should be a scary notion for all who believes in individual liberty. It will give birth a full and perfect information aggregator that is an omniscience state or anything that may function as a state. It will create a god none can disobey. Everything the god says is for the best. This will be the real god.

My question is, when the time comes, will the case for organic organization of society be obsolete?

After considering that, I think any case in support of libertarianism cannot be dependent on technology. Else, it puts an expiry date on the philosophy.

Whenever the expiry will be, I am inclined to believe that it is will be far off into the future, possibly making the technology-dependent argument useful still.

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