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RE: The Economic Calculation Problem and Libertarian Socialism

in #politics7 years ago

Do you see anything scientific about either the economic calculation problem or the socialist refutations of it that you've stated? Or the whole of economics for that matter (whether right, left or middle)?

It seems to me, there is little or no attempt to determine relevant variables, measure them, almost no use of physical referents, little attempt to make quantified predictions... Lots of sitting down and trying to use reason and logic to figure out a problem, little collection of data (or when there is some data - drawing extremely unwarranted conclusions from it). Lots of philosophy, pretty much no employment of the scientific method.

And these people are trying to create theories about how manage the resources. On what basis? What do they know of creating products that don't break down and can self-repair, making them fully recyclable, making them non-hazardous to the people and the environment, developing automated production plants, creating an electronic system that follows the movement and use of each material resource, and so on, and so on.

The level of thinking economists seem to be on (like thinking about what distribution of resources may be "logical" or "rational" - completely pointless abstractions) seems quite troubling to me. So the theories produced by the field, from my point of view, are likely causing enormous damage to people and environment, but of course there's not really much data to use to substantiate my point of view or anyone else's (which doesn't seem to stop economists from saying how an entire country's economy ought to be run).

I feel frustrated. I'm wanting a shared understanding of how to determine what approach to managing our planet's resources would lead to more needs being met.

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Also no, i don't see anything scientific about it. Science is just one aspect of philosophy while this is another

The best way would simply be consensus democracy. If everyone is convinced of the logic then its probably the right thing to do

Well, I'm not convinced of that. :) Everyone once thought all kinds of things, until we found data to show us otherwise.

Anyways, I hope my comment had some influence in pushing people away from any of the economic camps, and towards using the scientific method and doing problem solving through engineering.

"Everyone once thought all kinds of things, until we found data to show us otherwise."

It seems to me, there is little or no attempt to determine relevant variables, measure them, almost no use of physical referents, little attempt to make quantified predictions... Lots of sitting down and trying to use reason and logic to figure out a problem, little collection of data

If you want a scientific study of data analysis and prediction, you have to look at the former "communist" states.

For example the GDR (where I was born) had an incredible sophisticated planning system. They were really good and based their plans on a vast amount of data. And since they could always see how planning and reality resulted, they had it a lot easier then "capitalistic" researchers. They had a "look what happened, why it happened, and adjust plans" cycle going.

(There is still the problem that it is nearly impossible to predict, especially at very small points, what will happen in 10 years when you start making the next 5 year plan).

I am only a little bit familiar with some efforts in the Soviet Union to feed data into computers and crunch out predictions. But nothing successful that I know of. Do you have any materials that describe a successful solving of a problem in GDR using the approach you mentioned?

In general I am extremely skeptical about efforts to predict what will happen with the economy as a whole. Instead, a much more viable approach seems to be to identify a concrete problem and work on it. Like Uber predicting at what times and in which places in a city there will be demand, and positioning their drivers in those places in advance. I consider that a real solution to a real problem. Comparing it with the philosophizing of economists... it's like night and day.

Thats what they did. 134 persons eat 5478kg potatoes a year, so we need X land and 4 machines which need 34,73 screws per year... and so on.

If you want to build a car you need to have the ship to bring in the ore, so to speak.

Sorry, no english source at hand. I have mostly seen a 2-hour docu about it a few years ago.

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