> One of the core principles of the free market is that central planning committees can never be as efficient or as effective as the people doing the work. By definition a free market economy lacks a decision-making hierarchy; the ‘free’ means every agent (individual or corporation) can decide for themselves, without needing permission from a manager above.
> ...
> It should be immediately obvious why this fails miserably: The distance between the central planning committee and the farmer is so great that good decisions are nearly impossible. It’s nearly impossible for critical feedback to make it from the edge, where the farmers are working, to the central planning committee in time to affect decisions, and then for those decisions to make it back to the edge in time to be useful.
One of the core arguments for using a centralized control plane (versus a distributed one) is the ability to perform a single global optimization, which can yield better results compared to local optimizations. I find it interesting that the free market principles dictate the opposing conclusion that this global optimization is infeasible, although it may come down to my next point:
If you're not careful, and your centralized system injects dozens of minutes of delay due to the additional complexity of performing the global optimization, you end up with the globally optimal decision from 20 minutes ago, which in the context of, say, load balancing is an eternity. Or in the bureaucracy of government (or hardware planning cycles, etc), you may see months to years of lag between the inputs your model accepts, and the outputs your model produces. And all the while, you have a full pipeline of decisions coming down the line, based on stale data.
(There are other reasons for centralized control, such as orchestration of distributed computation being difficult to do correctly, and it being easier to reason about a single node rather than the complex system-wide interactions.)