During the Cold War, a heated debate arose over the role of economic planning. Did the “planned” economy of the USSR or the “free market” economy of the U.S. allocate resources more productively?
Arguments against planned economies centered on the limits of information processing, the feasibility of production forecasts and the inflexibility of centralized plans.
The Soviet Union’s collapse seemed to relegate the economic planning concept to the dustbin of history. But issues raised in those debates are still relevant today.
