Gabriel points out Prices Can Be Generated
Or, at least I believe that is a reasonable interpretation of the papers he references. I will read need to read them in depth. This is an important point on how we go about implementing a new health care system.
Calculemus!
“The only way to rectify our reasonings is to make them as tangible as those of the Mathematicians, so that we can find our error at a glance, and when there are disputes among persons, we can simply say: Let us calculate [calculemus], without further ado, to see who is right.” (Leibniz, The Art of Discovery 1685)
Once in a while someone brings up The Socialist Calculation Debate in connection with some real-world, quasi-socialist country (or even some mixed-economy, “public policy” issue) and I cringe.
Two recent examples are Will Wilkinson’s Me Me Media post and Angus’ There’s no Debatin’ these Socialist Calculations!! entry.
I think we can all agree that a planner could organize the sort of ‘paper pledges’ tatonnement mechanism that Walras talked about (call it a type of auction, if you’d like), in which case it’s Q.E.D. for L&L, especially given how the theory in their case is descriptive, not just hypothetical (where’s the paper pledge clearing house for the decentralized economy? what about trading at out-of-equilibrium prices?).
That being said, there are other problem with planned economies. I think those are worth emphasizing over the “calculation debates”. Also, and I hate to say this, there are other virtues to the decentralized economy beyond the Ist and IInd Welfare Theorems of Walrasian G.E.
