MONOPOLY THINKING IN ECONOMICS: THE CALCULATION PROBLEM IS MONOPOLY-THINKING Eve

MONOPOLY THINKING IN ECONOMICS: THE CALCULATION PROBLEM IS MONOPOLY-THINKING

Even if you can solve the calculation problem (decision) you cannot solve the incentive problem, nor the innovation problem, meaning that you can create a tri-part economy with (a) a market for discovery, (b) with some common production of commodities such as energy and rice (c) and a military economy where there is little innovation.

But then, this mirrors what occurs in both market and mixed economies (ask the people who produce paper products). Whether we discuss calculation ( planning production) or incentive (personal choices) the problem is the same. discovery and innovation, voluntary organization (incentives), and commodity production, and virtual slave labor (military), all weigh incentives, calculation, and innovation differently.

We always have mixed economies, the question is how much interference do we put into them? The answer is, that we use voluntary, semi-voluntary, and involuntary organizations of production depending on the production and innovation cycle, and the ability or inability of the market to solve the problems.

Markets are bad at military orders (homogenous interests) and markets are great at consumption orders (heterogeneous interests), And mixed production is superior at those orders that voluntary organization is difficult to produce (some civic commons). We incorrectly place this as “market Failure.

But it’s just using the right organization for the job.