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Five: Planning and Democracy

Planning and democracy can often clash, especially when collectivist systems try to guide society’s resources toward a single goal. Critics of liberal ideas argue that our current society acts randomly, driven by individual choices instead of a common purpose. Collectivism, which includes ideologies like communism and fascism, aims to organize society for one main objective but ignores the importance of personal freedom. This approach differs greatly from individualism, which values the freedom of individuals to make their own choices.

The term "common good" is frequently used to describe the supposed goal of these planning efforts, but this term is vague and hard to define. Individual needs are so diverse that it is impossible to summarize them with a single objective. Attempting to create a complete moral code to provide guidance for a unified plan is challenging, as people in a free society usually do not have agreed-upon values or rules. Because morals vary widely, creating a standard way to guide economic actions would require an ethical framework that does not currently exist.

The individualist perspective sees the reality that no person can fully understand all the different needs of society because everyone has a limited view of what is important. Individualism does not claim that people are selfish; it simply recognizes that everyone has different values and that these values should guide personal actions without interference from others. People can work together when they share common goals, but these goals might differ in importance for each person.

Organizations like the state often form when individuals work together, but each organization has its own objectives. These organizations remain just one part of a larger system. As the scope of possible actions expands, it becomes more challenging to achieve agreement. People can support state actions easily when there is agreement on important functions, but increasing disagreement can arise as the state tries to make broader decisions. As states control more resources, they can limit individual freedom, as many personal goals end up depending on state actions.

Problems often arise in democracy when people agree on the need for a planned economy but lack consensus on specific goals. Although support for central planning might exist at first, real agreement on what to do usually is not there. This leads to frustration with democratic institutions, as they cannot effectively create plans without established agreement on objectives. Discontent over this situation drives calls for expert control over planning, sidelining traditional democratic processes.

Many influential thinkers have noted that parliaments struggle with passing detailed economic laws, often relying on a system of delegated legislation instead. This can diminish the legitimacy of democratic bodies if they fail to produce workable plans. The underlying issue is that they are expected to agree on everything, which is practically impossible. The push for a strong leader or dictatorship reflects a belief that democracy, unprepared for complex issues, must give up its power for more decisive governance.

Historical examples, like pre-Nazi Germany, show how democracies can fail under pressure and lead to authoritarian regimes when they cannot adapt to crises. Some argue that a democratic government can still control economic matters if it is allowed to delegate responsibilities. However, this view fails to recognize that delegation often arises from disagreements on goals, which could lead to arbitrary power. As planning efforts expand, the need for a strong, central authority can grow, resulting in calls for an authoritarian leader.

This demand for expert or dictatorial control often comes from frustration over the inefficiencies in democratic governance. Many people think a strong leader is necessary to fix what they see as chaos in economic planning. This shift toward seeking a dictatorship represents the belief that democracy is ineffective during tough times.

Though some people may think that delegating powers do not affect democracy as long as elected officials have control, this belief overlooks critical issues. Specifically, when democratic bodies do not have a common agreement on goals, they can create an arbitrary situation where a select few hold too much power. As central planning becomes more integrated into society, this could restrict individual freedoms, meaning people might not have as much control over their lives.

It is important to remember that democracy is not just about majority rule but also about protecting freedoms and principles of justice. When planning systems do not support these values, they can weaken personal freedom, overshadowing potential benefits. Recognizing the limits of democracy in managing complex economic systems is essential. If central planning fails, it often leads to using force to maintain order, which can harm personal liberties.

Focusing too much on defending democracy can distract from more significant concerns about power and authority. The idea that authority cannot be misused just because it comes from democratic processes is misleading. True limits on power come from ensuring that individual freedoms are respected. If these freedoms are not preserved, any system—democratic or not—can degrade into an authoritarian regime.