23 Things they don't tell you about Capitalism

According to free-market economists, the fall of communism amply demonstrated the pitfalls of economic planning. Despite Karl Marx’s grand theory of increased efficiency through central planning, the task turned out to be much more complex than he anticipated. Over time, countries such as Russia, China, and Vietnam have moved away from central planning toward a command economy, revealing the futility of economic planning.

However, Chang points out that plenty of economic planning occurs even in capitalist countries. In addition to governmental policies that attempt to guide the private sector toward certain goals, most governments operate a few state-owned enterprises, such as postal services and utilities. In addition, governments commonly fund research and development, driving development in related sectors as a result. Chang points out that virtually all companies also engage in economic planning. Instead of simply allowing the market to run its course, they strategize and plan ahead in detail. Since planning is inevitable and already taking place, Chang suggests, reviewing and improving planning processes is a more sensible approach than simply trying to eliminate them out of misguided prejudice.