Joseph Ball
has an interesting article on planned economy here clogic.eserver.org/2010/Ball.pdf
I was generally sympathetic to his aims in writing it: to
defend socialist planning. I
think that it makes a very interesting point in focussing attention on innovation
and the comparative role of subsidies versus temporary prices. I had not heard
this argument before.
I am not sure that I find it entirely convincing as a long term explanation of
the slowdown in the diffusion of technology. If there was gaming over the
temporary prices, would there not have been similar gaming over subsidies
in the long run with enterprises applying for subsidies for products that
they claimed were new, but which were actually just slight mods of old ones.
Similarly if the planners forgot to downgrade the temporary prices in the 60s
might they not have forgotten to remove subsidies in the 60s had these been
retained.
My own feeling is that whilst the difference between subsidies and temporary
prices may have had some effect the existence of either of these mechanisms
depended on two key features of the soviet economy from the 30s on:
1. The continued existence of money rather than labour accounts
2. Associated with this, the existence of enterprise as accounting centres which
were proto capitals.
These factors were both there under the soviet economic system of the stalin,
kruschev and breznev eras.
On top of that you had the continued existence of the wage form which meant
that only part of the labour time that went into making something appeared as
the cost = the part that went to replace the consumer goods bought on the
market. This means that the cutof point in investment decsions replacing
living with dead labour was skewed towards the living labour end, hampering
the use of labour saving machinery.
I think he overplays the difference between Stalin and his successors.
The real break did not come in 1953 but with Gorbachov.
Both Krushchev and Chou en Lia for their different reasons wanted to
make a big thing of Krushchev being a big break with the past, but I
think looking back from more than half century later it is hard
to give as much significance to it as they did.
Stalin opposed the extension of market relations, but he gave no evidence of
a deep understanding of the labour theory of value or how Marx envisaged using
it in a socialist economy, thus his Economic Problems, whilst defensive against
proposed changes towards the market economy, did not offer a way forward.
It was better than the position put forward by Trotsky in his Soviet Economy in Danger which prefigured the Dengist or Gorbachovite policies of China in the 80s or the USSR in the late 80s.
(( Trotsky Soviet Economy in Danger ))
My feeling is that although Stalin's position was preferable to that of Grobachov, Tito, Trotsky and the other market socialists, it still
did not get to the heard of the matter because of his failure to differentiate
between a system of money and a system of labour tokens as advocated
by Marx. The only people writing in the 30s who came close to understanding this were the Dutch left Communists who published this http://reality.gn.apc.org/econ/gik1.htm