Financing utopia

Computational complexity of economic mechanisms


Socialist calculation debate. Computational complexity and command-and-control-economics?

Classic: Cosma Shalizi: In Soviet Union, Optimization Problem Solves You.

Levine (2016-08-24T19:05:38.297Z, 2016-08-24T19:05:38.297Z, 2016-08-24T19:05:38.297Z) has a coda:

But as a wild extrapolation of the far future of financial capitalism, I submit to you that it is less silly than the "Silent Road to Serfdom" thesis. That thesis is that, in the long run, financial markets will tend toward mindlessness, a sort of central planning — by an index fund — that is worse than 1950s communism because it’s not even trying to make the right decisions.

The alternative view is that, in the long run, financial markets will tend toward perfect knowledge, a sort of central planning — by the Best Capital Allocating Robot — that is better than Marxism because it is perfectly informed and ideally rational.

Also interesting linkage to other thinkpieces on various capitalism ↔︎ communism convergence.

References

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Gao, Yuan, and Christian Kroer. 2020. “First-Order Methods for Large-Scale Market Equilibrium Computation.” June 11, 2020. http://arxiv.org/abs/2006.06747.
Hayek, Friedrich A. 1945. “The Use of Knowledge in Society.” The American Economic Review 35 (4): 519–30. https://doi.org/10.1142/9789812701275_0025.
Levine, Matt. 2016-08-24T19:05:38.297Z, 2016-08-24T19:05:38.297Z, 2016-08-24T19:05:38.297Z. “Are Index Funds Communist?” Bloomberg.com, 2016-08-24T19:05:38.297Z, 2016-08-24T19:05:38.297Z, 2016-08-24T19:05:38.297Z. https://www.bloomberg.com/opinion/articles/2016-08-24/are-index-funds-communist.
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