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this post was submitted on 03 Dec 2024
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There's also just a fundamental problem with planned economies from a purely economic standpoint: they are much less efficient at actually providing the minimum set of goods and services required by a population, and they're worse at achieving growth. See the most recent Nobel Prize in economics for a citation. Funnily enough, the same paper's arguments apply equally to oligarchic economies and crony capitalist economies, which are semi-planned economies by a small group of the ultra wealthy.
More specifically to the OP, communist countries have planned economies, which by nature requires a strong authority to tightly control production. Hence why communist states always have very consolidated political power structures. And once the power is consolidated, all it takes is one bad actor to get that power and ruin everything.
Géza Hofi was one of the greatest comedians in Hungarian history. He was active under and very outspoken about the failures of the ruling communist party. One of his most memorable performances was "How many pigs will be born?" (video, unfortunately without subtitles).
Party officials, wearing nice brown trench coats, visit old man Joe's farm.
"Comrade Joseph, how many pigs will be born?"
"I don't know."
"Shut your mouth, peasant, and give me the number."
"What's the plan?"
"14."
"Then it'll be 14. Have you told the swine? Better that you talk to her, since you're both on the same level."
(the story goes on, but I don't want to translate the entire thing)
If you think about it every company is a tiny planned economy with all the power held by a few people, too.
Some of them even make brainwashing propaganda for their employees to think that sacrificing themselves to the company is glorious.
Not every company. There's plenty of free-lancers around. There's oddities like valve.
But yes, the idea is a mix of companies, different shapes and sizes, coordinating through markets.