“Under central planning neither planners, managers, nor workers had incentives to promote the social economic interest. Nor did impeding markets for final goods to the planning system enfranchise consumers in meaningful ways. But central planning would have been incompatible with economic democracy even if it had overcome its information and incentive liabilities. And the truth is that it survived as long as it did only because it was propped up by unprecedented totalitarian political power.”

Robin Hahnel, The ABC's of Political Economy, (2002) London: Pluto Press. p. 262.

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Robin Hahnel5

American economist 1946

Sidney G. Winter book An Evolutionary Theory of Economic Change

Richard Nelson and Sidney Winter, An Evolutionary Theory of Economic Change (1982), p. 365

“Aside from Yugoslavia, experiments with decentralization did not extend to planning innovation, the greatest weakness of the socialist economies. Even where markets were allowed to exert more influence over current production, the state was still responsible for planning the future. And state socialism provided only weak incentives for innovation. The Schumpeterian pressure that forced capitalist firms to innovate or die was not present in the planned economy.”

Barry Eichengreen (1952) Economist

Barry Eichengreen, The European economy since 1945 : coordinated capitalism and beyond, Ch. 5 : Eastern Europe and the Planned Economy

“For those of us who grew up believing that capitalism is the foundation of democracy and market freedom, it has been a rude awakening to realize that under capitalism, democracy is for sale to the highest bidder and the market is centrally planned by global megacorporations larger than most states.”

David Korten (1937) writer, sustainability advocate

The Post-Corporate World: Life After Capitalism (2012)

“The centrally planned economics used to consider themselves well insulated against the economic ills of the rest of the world. This is no longer the case.”

Lawrence Klein (1920–2013) American economist

"Some Economic Scenarios for the 1980's," 1980

“The proposition that markets drive economic efficiency is central to much of economics. Adam Smith illustrated that the “invisible hand” of the market drives efficient allocation of resources in a system of division of labor. Friedrich Hayek illustrated the central importance of the price system as an information processing mechanism more powerful than any centrally planned system could ever be. Kenneth Arrow and Gerard Debreu illustrated that complete and perfect markets deliver a Pareto-efficient equilibrium, in which no one person can be made better off without making someone else worse off. And the development of the efficient- market and rational- expectations hypotheses suggested that financial markets are in fact efficient, and that the conditions required for efficiency and for rational and stable equilibria apply even in contracts between the present and the future, which financial markets provide.”

Adair Turner, Baron Turner of Ecchinswell (1955) British businessman

Source: Economics after the crisis : objectives and means (2012), Ch. 2 : Financial Markets: Efficiency, Stability, and Income Distribution

“Socialism, wherever it actually had the means to plan a society, to pursue efficaciously its vision of the abolition of private property, economic inequality, and the allocation of capital and goods by free markets, culminated in the crushing of individual, economic, religious, associational, and political liberty. Its collectivization of agriculture alone led to untold suffering, scarcity, and contempt for property as the fruit of labor.”

Alan Charles Kors (1943) American academic

2000s, Can There Be an "After Socialism"? (2003)

“Whereas many socialists have recently put their faith in market socialism, nineteenth-century socialists were, by contrast, for the most part opposed to market organization of economic life. The mainstream socialist pioneers favored something that they thought would be far superior, to wit, comprehensive central planning, which, it was hoped, could realize the socialist ideal of a truly sharing society. And the pioneers' successors were encouraged by what they interpreted as victories of planning, such as the industrialization of the Soviet Union and the early institution of educational and medical provision in the People's Republic of China. But central planning, at least as practiced in the past, is, we now know, a poor recipe for economic success, at any rate once a society has provided itself with the essentials of a modern productive system.”

Gerald Cohen (1941–2009) Canadian philosopher

IV. Is the Ideal Feasible?
Why Not Socialism? (2009)

“…if peace is to be preserved we must see to it that the causes of war are removed. Freedom and democracy must be based not only on security but also on social justice. Hitlerism flourished on the breakdown of an outworn economic system. The world depression of 1930 was the opportunity of the gangsters. We must have planning for expansion and not restriction. Victory in war could only be achieved by putting the interest of the community before private profit and this was also the key to reconstruction after the war. Socialism had always been something far greater than an economic theory, far greater than the policy of a political party. It was a way of life. They sought to attain an organized society in which every human being would have the opportunity of living the good life—a society in which free men and women would cooperate together for the common good. The workers of the countries which had been under the yoke of tyranny would look to the Labour parties of the British Commonwealth for a lead and would not look in vain.”

Clement Attlee (1883–1967) Former Prime Minister of the United Kingdom

Speech to the conference of representatives of the British and Dominion Labour parties, Westminster, London (12 September 1944), quoted in The Times (13 September 1944), p. 8.
War Cabinet

“Whatever people do in the market economy, is the execution of their own plans. In this sense every human action means planning. What those calling themselves planners advocate is not the substitution of planned action for letting things go. It is the substitution of the planner's own plan for the plans of his fellow-men. The planner is a potential dictator who wants to deprive all other people of the power to plan and act according to their own plans. He aims at one thing only: the exclusive absolute pre-eminence of his own plan.”

Ludwig von Mises book Socialism

Socialism (1922), Epilogue (1947)

“Conservatives believe in free markets. Liberals believe in government controls and central planning.”

Mike Rosen (1944) American political pundit

Rocky Mountain News column, 2000

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