Central planning, however efficient it may seem to outsiders, always results in a tremendous misallocation of labor, capital, and resources. As a result, it invariably leads to economic stagnation and collapse.
Take China’s misadventures in steel, for example. The Chinese Communist Party has twice sought to dramatically increase steel production: first, during the Great Leap Forward, and second, under Jiang Zemin. The failure of the first is a matter of historical record. The failure of the second is unfolding in real time as you read this.
