Thursday, December 31

Bryan Caplan quotes from a Bill Easterly interview on the limits of state planning vs. business hierarchy:

But what was missing - what Lenin did not get, and what all the subsequent planners who have been inspired by what appears to be corporate planning did not get - was that what corporations are really doing is searching for something that works. And when they find something that works, they try to reproduce it on a very large scale.

…what the planning mentality, as a whole, always misses is that you can't use planning to find what works. So if you build a whole system like foreign aid around planning, you're never going to find things that work. Because the planning is only a method for scaling up something that you have already found to work.