ABSTRACT
Interest in expanding the role of government planning in the economy is a recurring policy issue. This chapter analyzes the shortcomings of such an expansion of government, drawing heavily on a comparison of business and government planning. The widespread use of planning techniques in private business has led many observers to draw parallels to government planning. Business and government planning are distinguished by the consequences of errors in planning. If a corporate plan proves inaccurate in its assessments of the future, or inappropriate to changing circumstances, the onus fails on the officers, employees, and shareholders of that company. The corporate planning operation produces information useful to management, but this involves an important "opportunity cost". In his analysis of the French planning experience, John Sheahan cites a different type of problem—the possibility of large private corporations coming to dominate the government planning process.
