Uploaded February 2026 | Updated September 2026, 1 week ago
Can Artificial Intelligence solve the fatal flaws of central planning?
From Project Cybersyn in 1970s Chile to modern AI algorithms, the dream of a “perfectly planned” economy is back, but does the math actually hold up?
In this video, we dive into the “Socialist Calculation Problem” and why tech giants like Jack Ma and economists like Daron Acemoglu are debating the future of AI-driven economies. We revisit the high-stakes history of Salvador Allende’s Chile, where a secret computer system attempted to run an entire nation, only to end in shortages and collapse.
Chapters:
0:00 The Secret Room in 1971 Chile
0:28 What was Project Cybersyn?
1:19 The Modern Revival: AI & Jacobin Magazine
2:14 Does AI Finally Make Central Planning Possible?
2:28 Ludwig von Mises and the Calculation Problem
3:30 Why Prices are Essential Signals
4:08 Hayek: Knowledge is Dispersed, Not Centralized
5:34 Oskar Lange: Planners Can Simulate Markets
6:11 Can Algorithms Discover the Future?
6:59 The Verdict: Why the Dream Refuses to Die
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Credits:
Written by Sergio Martínez
Produced by Daphne Posadas
Edited by Luis Fernando López
Project Management by Abby Richardson
Thumbnail Design by Yorel Ktech
Articles & Sources:
fee.org/articles/8-the-economy-needs-more-planningcentral-planning-that-is/?utm_source=Youtube&utm_medium=social&utm_campaign=fee-online
fee.org/articles/artificial-intelligence-in-the-united-states/?utm_source=youtube&utm_medium=social&utm_campaign=fee-online
fee.org/articles/ais-global-realignment/?utm_source=youtube&utm_medium=social&utm_campaign=fee-online
fee.org/articles/politicians-shouldnt-fear-ai/?utm_source=youtube&utm_medium=social&utm_campaign=fee-online
fee.org/articles/central-planning-the-true-economic-chaos/?utm_source=youtube&utm_medium=social&utm_campaign=fee-online
Can Artificial Intelligence solve the fatal flaws of central planning?
From Project Cybersyn in 1970s Chile to modern AI algorithms, the dream of a “perfectly planned” economy is back, but does the math actually hold up?
In this video, we dive into the “Socialist Calculation Problem” and why tech giants like Jack Ma and economists like Daron Acemoglu are debating the future of AI-driven economies. We revisit the high-stakes history of Salvador Allende’s Chile, where a secret computer system attempted to run an entire nation, only to end in shortages and collapse.
Chapters:
0:00 The Secret Room in 1971 Chile
0:28 What was Project Cybersyn?
1:19 The Modern Revival: AI & Jacobin Magazine
2:14 Does AI Finally Make Central Planning Possible?
2:28 Ludwig von Mises and the Calculation Problem
3:30 Why Prices are Essential Signals
4:08 Hayek: Knowledge is Dispersed, Not Centralized
5:34 Oskar Lange: Planners Can Simulate Markets
6:11 Can Algorithms Discover the Future?
6:59 The Verdict: Why the Dream Refuses to Die
Please Subscribe: youtube.com/@FEEonline
Follow us everywhere:
FEE on Instagram: instagram.com/feeonline
FEE on Facebook: facebook.com/feeonline
FEE on X: https://x.com/feeonline
FEE on TikTok: tiktok.com/@feeonline
Credits:
Written by Sergio Martínez
Produced by Daphne Posadas
Edited by Luis Fernando López
Project Management by Abby Richardson
Thumbnail Design by Yorel Ktech
Articles & Sources:
fee.org/articles/8-the-economy-needs-more-planningcentral-planning-that-is/?utm_source=Youtube&utm_medium=social&utm_campaign=fee-online
fee.org/articles/artificial-intelligence-in-the-united-states/?utm_source=youtube&utm_medium=social&utm_campaign=fee-online
fee.org/articles/ais-global-realignment/?utm_source=youtube&utm_medium=social&utm_campaign=fee-online
fee.org/articles/politicians-shouldnt-fear-ai/?utm_source=youtube&utm_medium=social&utm_campaign=fee-online
fee.org/articles/central-planning-the-true-economic-chaos/?utm_source=youtube&utm_medium=social&utm_campaign=fee-online
