Archive for November 24, 2011

The Ubiquity of Central Planning in Capitalism

November 24, 2011 5 comments

Many people, especially CONservatives, believe that a lack of central planning is one of the major advantages of capitalism over communism. This feature supposedly allows capitalism to be significantly more flexible, innovative and market oriented than communism.

But is that really true, especially today?

Contrary to what many of you believe, central planning is not unique to communism, socialism or any other -ism. It occurs in a variety of hierarchical systems where there are few or no consequences for screwups by megalomaniacs.

Central planning is, therefore, the ultimate result of a set of beliefs-

1. A few people at the top “know what is right for everyone”.

2. These ‘elites’ have no little to no accountability.

3. They do not suffer adverse consequences subsequent to their failures.

4. The ability to kiss ass and defraud others is your biggest asset.

5. Professional competence is your biggest liability.

6. Organisations are run without any consideration to their official purpose.

Now look around you. Did you notice that the defining features of central planning are remarkably similar to what we see in corporate america today?

The corporate leaders and ‘job creators’ who run large corporations are as arrogant, corrupt, vain and stupid as those in equivalent positions in the erstwhile USSR. Moreover like their soviet counterparts, they too rarely suffer adverse consequences for failures and fuckups. Their underlings are chosen and promoted based on the ability to kiss the right asses and fuck over those who work under them. Knowledge about the products and services offered by a corporation is the biggest impediment to a persons rise up the corporate ladder. Major and minor decisions in corporations are now almost exclusively based on their potential to deliver short-term benefits for senior management and their friends, to the detriment of long-term investors, workers and even their customers. All of the above is them justified as result of complex ‘studies’ and deliberations by objective ‘experts’- when in reality they are utterly dishonest shills.

To put it another way, so called “professional management” in capitalism is functionally indistinguishable from the much maligned central planning seen in communist countries. We just happened to start from a higher point and have not yet reached the level of dysfunction and loss of public trust seen in 1980-era USSR, though we are certain to enter that zone within the next three years.