From Investor Diary (Argentina)-
In the new policy of “price control,” it demonstrates its utter uselessness both in the fight against inflation and improving customer service.
For decades, the world believed that socialism could work. With central planning of the economy, many were convinced that such a system would overcome capitalism; wealth that would reach its population, resulting in social equity.
Long before the thunderous fall of the Berlin Wall, they were Ludwig von Mises and Friedrich von Hayek who explained that although this type of government has the good intentions, the centrally planned system would end in failure. The latter philosopher, awarded the Nobel Prize in Economics, argued that the main problem facing the desire to plan everything was the inability of a central bureaucratic body to concentrate and process the huge and varied amount of information needed to meet the needs of the citizenship.
A good example is that the government cannot know exactly what quantity, quality, size, color and variety of shoes would meet the needs of 40 million Argentines. Moreover, even if there was an accurate way to know this information, this information could change in a day, so its efficacy would alter.
However, with the advancement of information technology, the socialist myth rose from the ashes. Without going any further, it was former Economy Minister Axel Kicillof who said that, because of the existence of Excel, Soviet socialism would not have collapsed. Unfortunately for Kicillof, another academic fellow disproved his thesis. In his work Socialism, Economic Calculation and Business Function, Professor Jesús Huerta de Soto explains why the advancement of computers makes it even more impossible to create the utopia of central planners:
“The huge new quantity and quality of information generated entrepreneurially with the help of new software tools will progressively increasing depth and more detail, reaching even be inconceivable from the point of view of our knowledge today. And logically, it will remain impossible for the governing body to acquire this dispersed information, even if it has at its disposal the most modern, capable, and revolutionary computers every moment”