A good article, Daniil. It’s also the case that without money acting as a signal from consumers to producers, there’s no information in a centrally-planned economy to determine what people actually want. An economy must always be sub-optimal at a local level in order to be optimal at the net level because unless companies are free to fail (trying to sell things few if any want) there can’t be adequate information flows to ensure that desired items end up being produced at prices some meaningful segment can afford to pay.

Mancur Olsen was very good on the problems of centralized planning. It’s a shame so few seem to read him today.

Anyone who enjoys my articles here on Medium may be interested in my books Why Democracy Failed and The Praying Ape, both available from Amazon.