Allende & Cybernet

Keeping with the Allende theme, Bernhardt Varenius over at Anti-Socialist Tendencies relates the interesting story of Allende's quixotic project to actually realize the "omniscient central planner" in the form of a huge computer system (called 'Cybernet') linked to every industry in Chile, that would constantly simulate the economy while recieving day old (or less) data as a tool for central planners.

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The Rise of the Socialist Machines is Inevitable

And over at Chicago Boyz, Lexington Green points out that this folly was predicted and debunked in advance by Friedrich Hayek, who (correctly) pointed out that even if a central planner had every bit of information available on every economic and production statistic, that planner still could not rationally manage daily life. An economy exists to support individual needs and desires; needs and desires that are only revealed when individuals make choices regarding limited means.

Kind of like the Heisenberg Uncertainty Principle, where "The more precisely
the position is determined, the less precisely the momentum is known", I think something similar applies to economics (a similar limit to knowledge), although I still haven't come up with a pithy way of explaining the similarity.

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