Subject: Re: Alec Nove, computers and socialism Date: Thu, 01 Dec 94 09:25:32 +0000 From: wpc-AT-cs.strath.ac.uk I am in full agreement with Louis on the importance of computers to socialism. This may be influenced by the fact that despite being originally trained as an economist I have for the last 20 years worked in computing, particularly on database systems. When Noves book originally came out I was convinced that his ignorance of computing made his arguments quite outdated and along with Allin Cottrell we decided to write a book that was a direct counter to his. We wanted to show in detail how computer systems would allow the calculations that he held to be impossibly complex and which he thought required the market to be handled simply and rapidly. Our reply to Nove was eventually published by Spokesman as Towards a New Socialism, it is also available on the world wide web in ftp://reports-ftp.cs.strath.ac.uk/papers. One of the things that is very striking about Nove and the other advocates of market socialism is their inability to put precise figures on just how complex a particular computational problem is. Algorithmic complexity analysis has long been a standard tool of computer science and when applied to economic problems it can give one a complexity measure for how hard a problem is to solve. When one applies it to the data that Nove himself gives for the complexity of the Soviet economy one finds that his estimates for the time to compute a balanced plan are wildly out. He claims that it would take millions of years to solve the equations to fully balance the plan for an economy of 10 million products - his estimate for the Soviet economy. Complexity analysis indicates that a compute time of few minutes would be closer to the mark. My impression is that most economists are stuck in a 1930s time warp where economic calculations are done by clerks with pens and India ink. ------------------
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