At 08:26 AM 5/14/97 -0700, William S. Lear's friend wrote:


>> What computers like the RS6000/SP can do best is assist human beings make
>> *intelligent* decisions. The spread of this type of technology in
>> capitalist society has been mostly to keep track of financial transactions.
>> In a socialist society, they could be used to monitor resource allocation
>> worldwide. Banks of RS6000s in a global network could surely be used to
>> calculate the impact of the substitution of railways for automobiles. Or
>> the cost of replacing inorganic fertilizers with natural ones, etc. 
>
>I've often thought this would be a good idea, and would demonstrate how
>effective a planned economy could be.  Besides the obvious problem that
>tying policy decisions to scientific analyses rather than capitalist bribes
>is anathema at present, I'm not sure that the state of computer simulation
>is up to it, because the supercomputer applications that have received
>funding up to now have been primarily useless things like simulation of
>nuclear weapons (the current cash-cow for buying big machines).
>


To my knowledge, the major problem of a planned economy was not information
processing, but information availability.  The known planned economies
suffered form what can be characterised as the GIGO (garbage in, garbage
out) problem.  The CPUs (central planning boards or units, that is) were
recieiving false data from the peripheral devices (managers of the
production units).  The peripherals believed that they could allocate the
resources under their direct control better than the CPU, and thus lied to
the CPU about their resource availability (cf. a floppy disk drive telling
the CPU that it has only 700 kB of disk space, whereas in fact it has 1.4 MB).  

As long as, for whatever reason, "peripheral devices" are allowed to feed
bullshit to the processing units, no processing system, even one with the
zillions-Deep-Blues processing capability, can solve the resource allocation
problem.  That is true of both, central planning and Keynesian capitalism,
as we know them.

cheers,
wojtek sokolowski 
institute for policy studies
johns hopkins university
baltimore, md 21218
[EMAIL PROTECTED]
voice: (410) 516-4056
fax:   (410) 516-8233


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