Central planning is inefficient and ineffective from "summary" of Free to Choose by Milton Friedman
Central planning involves a small group of people making decisions for the entire society. This group believes they have the knowledge and wisdom to determine what is best for everyone. However, this assumption is flawed. No small group, no matter how intelligent or well-intentioned, can possibly possess all the knowledge needed to make decisions for an entire society. The information required to make these decisions is dispersed among millions of individuals in the society. Each individual has their own unique knowledge, preferences, and circumstances that must be taken into account. Central planners simply cannot gather, process, and effectively utilize all this information in a timely and efficient manner. Furthermore, central planning leads to a lack of incentives for individuals to work hard, be innovative, or take risks. When the rewards for effort and success are not tied to individu...
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