ABSTRACT
In Part II, it was argued that however much democratic versions of central planning might improve upon the authoritarian versions. Mathematical programming theory and modern computer capabilities have now invalidated the claim that it is technologically impossible to calculate an efficient comprehensive plan for a modern economy even in theory. It was pointed out that all the iterative procedures to solve the tacit knowledge problem assume truthful reporting and explained the reason for a perverse incentive for production units to attempt to deceive central planners into thinking they are capable of less than they truly are. Even if the central planning was given every benefit of the doubt by assuming that the social welfare objective function was decided democratically, planners get all the information they need about the true productive capabilities of production units, and planners have sufficient computational capacities to calculate an efficient, detailed, comprehensive economic plan, this would still fail to provide workers with meaningful self-management.
