Quotulatiousness

August 27, 2017

QotD: Communism wouldn’t have worked any better with modern computers

Filed under: Economics, History, Quotations — Tags: , , , , , — Nicholas @ 01:00

At the New Republic, Malcolm Harris asks an interesting question: Was the Soviet Union’s problem that Communism can never work? Or did the Soviets just need a lot more MacBook Airs?

Actually, Harris is channeling Paul Mason, the author of the book he is reviewing, and unfortunately, he doesn’t really try to answer the question. Instead he makes the stridently timid argument that this won’t happen because the capitalists won’t let it, at least without a healthy dose of revolutionary action.

I’ll swing for the fences and argue that no, even with better computers, Communism isn’t going to work. Nor some gauzy vision of post-capitalism that looks like Communism, but with YouTube videos.

In retrospect, Communism seems wildly stupid, or at least, incredibly naive. Did the people who dreamed up this system not understand the enormous incentive problems they were creating? As Ayn Rand dramatized the problem in Atlas Shrugged: “It’s miseries, not work, that had become the coin of the realm — so it turned into a contest among six thousand panhandlers, each claiming that his need was worse than his brother’s. How else could it be done?” The incentives of “from each according to his ability, to each according to his need” drive toward falling production, which means there won’t be enough to cover the needs.

Or as a former colleague who fled Communist Poland once told me, “They pretended to pay us, and we pretended to work.” There is a reason that basically all the Communist and Socialist regimes ended in some degree of authoritarianism.

How could anyone who had, y’know, met some people in their visit to our planet, not see that this was coming? Large swathes of Communist and Socialist writing was naive and impractical. But the idealists weren’t entirely unaware that when monetary incentives disappeared, they would need to find other ways to get people to do things.

Megan McArdle, “Yes, Computers Have Improved. No, Communism Hasn’t”, Bloomberg View, 2015-09-02.

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