ABSTRACT
The most profitable outputs will turn out to be exactly those that are most valuable for the consumers. In order to work, the model requires an environment of certainty, availability of full information to the actors, instantaneous adjustments, and divisibility of all commodities. Social planning not only improves macroeconomic efficiency but also adds a new quality to the economic process. The liberal capitalist economy, based on an uncontrolled market, is a competitive economy. An economy is a large system involving a multitude of feedbacks that have delayed effects and are subject to oscillations. The stabilization of this system and the attainment of optimal performance require that automatic stabilizers be constructed and certain regulative techniques applied. Liberal capitalism is based on the free market, which means that laissez-faire is the dominant principle of macroeconomic organization. Administrative planning is the basis for etatism, in which state bureaucrats replace individual entrepreneurs as organizers of production.
