The failure of Socialism

Tyler Cowan posted commentary on his blog with link to a Book Review he had written. This Author finds both Book and Review to be more confusion than edification, not being intrinsically knowledgeable about the 'socialism calculation debate'. The real relevance found was in the questions posed by Cowan:

1) Under what conditions do free markets fail in calculating?
2) Under what conditions(if any) can planners succeed in calculating?

Free markets will always fail when the element of Risk is removed. Corporate leadership, even within the Cowan-cited GM, have had substantial losses--in both Sales and Profits. This has occurred because Corporate management is inadequately threatened by Stockholders(not fired) when sustained losses happen, and Corporate management reliance on Production and Price schedules independent of the Market, relying on Advetising to generate Sales. It is at exactly this point where Corporate management most closely resembles central planners--thinking they dictate Consumer Demand.

Central planners can never succeed in calculating, but not for the rationale stated (?) in the socialism calculation debate. Central planning fails not because of a lack of Market signals, but because of failure to develop Consumer Demand: remember Consumer Demand consists not only of desire for Product, but the ability to pay. Central planners lack perception that Consumers must develop an individual resource base for continued Consumer Demand. Cowan remarks about the lack of incentives in central planning, but implies this applies only to the production managers. It holds true for Consumers above all else. lgl