Economic Calculation Problem: Variety in the Market—Debunking Kommari Kettu Part 2

As I explained about the economic calculation problem on price signals and the importance of the information of profits and losses and what it means to the operation of an economy for resource allocation, in this video I touch upon variety in the market which I paint the clear picture of all the different options central planners would be faced with.

The purpose of this video is to help paint the clearer picture debunking Kommari Kettu showing; the different fabric of clothing; the variety of colours; the vast array of designs; the options of designers, etc. Kommari Kettu shows in his example that he isn't thinking about the bigger picture, like the idea of simply producing 1 car for every individual, he doesn't stop to question: what type of car, what colour, what make? Is it a diesel engine or an electric car? On top of those options, Kommari Kettu doesn't understand that the central planner would have to work out production for EACH and EVERY possible option available out of ALL of those options because not every individual's needs and wants are the same for a vast population of 70 million people.

It is for this reason that through central planning it leads to economic disaster, not just a catastrophe for the waste of scarce natural resources, but also, since the central planner has no way of knowing production, it takes the self-serving attitude of thinking it knows best for the people, to quote a 'Democratic Socialist' Labour Party politician, Douglas Jay:

"The gentlemen in Whitehall really does know better what is good for the people than the people know themselves."

As I have clearly proven in the video from the likes of the Soviet Union, nothing could be farther from the truth.