Planning vs. markets

Posted: 30 August 2012 in Uncategorized
Tags: , , , ,

They just don’t get it.

Daron Acemoglu and James Robinson continue to insist that:

1. The Mycenaean palaces of the Aegean Late Bronze Age were based on central planning, notwithstanding new information stemming from the study of ancient economies that reveal “characteristics of decentralized economies and even vibrant markets.”

2. Central planning “involves the suppression of markets and price systems for the governing institutions and elites to better extract resources and politically and economically control society.”

3. Markets do not involve “the recruitment of goods and services for the benefit of a group not coterminous with the contributing members.ā€

After all this time, the simple planning-market dichotomy continues to structure neoclassical theories of historical and comparative development.

  1. […] even Daron Acemoglu and James Robinson (whose work I have criticized repeatedly, such as here and here, in the past) find it necessary to contest the middle-class modernization […]

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