Oct 16 2009

The Joy of Central Planning

Category: socialismharmonicminer @ 8:00 am

China to redress production overcapacity in six sectors

The National Development and Reform Commission (NDRC) will mainly redress production overcapacity in six sectors, said Chen Bin, director of the Department of Industry of the NDRC, Thursday.

The six sectors include steel, cement, plate glass, coal-chemical industry, polycrystalline silicon and windpower equipment.

The NDRC also warns of obvious production overcapacity in sectors like electrolytic aluminum, ship manufacturing and soybean oil extraction, said Chen during an on-line interview on www.gov.cn., the website of China’s central government.

He said China would fight serious overcapacity in sectors like steel industry and offer guidance for new-born industries like windpower equipment to avoid low level repetitive construction.

China has achieved preliminary progresses in fighting the global economic downturn, but the foundation for economic recovery is not stable yet and overcapacity might lead to bankruptcy, unemployment and bad bank loans if it was not checked in time, he said.

Ah, the joys of central planning.   And it seems to be coming to the USA next, despite the proof by Hayek and others that it is impossible to do correctly, for the very good reason that no one can ever have all the information they need to make such decisions.

Soon you can look forward to reading in the New York Times that government has determined that we have an oversupply of MRI machines, cardiologists, emergency rooms, and surgeons.  As you wait for your appointment with someone who will decide if you get to schedule an appointment with someone who will decide if you get to see a medical specialist, you can comfort yourself with the knowledge that someone way up high in the government has determined that this is the very best way to do things.