The possibility of a centralized planned world in the 21st century. This is an Essay about Hayek. This essay is an assignment for the course Principles of Economics and Business 1.
The possibility of a centralized planned world in the 21st century
In the last twenty years, the world made huge steps as it comes to technology. With the rise of
the internet, data is available for almost everyone. Gathering information has never been
easier than it is now, and that can be useful for planning nowadays. with today's
communication systems it is easy to get the right information to the right person. Friedrich
Hayek, an Austrian economist, and philosopher wrote a book called “The Use of Knowledge
in Society.” In this book, he explains, among other things, the price mechanism, and how
door-central or decentralized planning can be thought ahead. He thinks differently about
current developments and therefore the question: Hayek's ideas are still relevant to today's
technical developments and therefore the question: And is centralized planning possible with
today’s technology?
As described earlier, there is a lot of data available nowadays. When somebody surfs
the net, the data is thrown at the person. Due to all this data available for almost everyone it
seems easy to share and exchange the information and therefore collect the information all
that is needed for a good plan, planned by one person. As mentioned, it seems. Because the
data available online is not accessible for everyone, but almost everyone. In this society
where the world made its technological growth in the last twenty years, little information can
be found about older people in society. Due to this, it isn’t easy to make a good plan if there
is not too little information about a large part of society. Due to the large amount of
information available online, it can also become incomprehensible for one person to make
good plans for many people. Due to this comprehensibility centralized planning does not
seems that easy.
However, as mentioned before it is easier nowadays to exchange information between
each other and get it to a centralized point that can make decisions. This is because of the
good communication systems developed in the last few years. Almost everybody has a phone
in their pocket or at least has a computer at home. But there is a downside. The
communication systems nowadays are smart, but also vulnerable. Due to this vulnerability,
hackers and thieves are not far away. Personal information can be exposed when this data is
stolen by hackers. The systems can also cause problems, such as malfunctions. This can make
it difficult for a central planner to gather and exchange information with others.
It is easy for a central planner to own personal information so that decisions are in
everyone's favor. Due to today’s privacy systems, it is more difficult than ever to own the
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller sam1705. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.88. You're not tied to anything after your purchase.
