Central planning and praxeology are two distinct and often opposed economic theories, and they do not mix well.
Central planning is a system in which a central authority, typically a government, controls and directs economic activity. It involves the state making decisions about the allocation of resources, production levels, and prices. The main idea behind central planning is that the government can effectively allocate resources and ensure economic stability and growth.
Praxeology, on the other hand, is a theoretical framework based on the study of human action, choice, and purposeful behavior. It is a branch of economics that focuses on the logical implications of human action rather than empirical data or statistical models. Praxeology emphasizes the subjective nature of human preferences and the importance of individual decision-making.
Praxeology theorists argue that central planning is ineffective and leads to economic inefficiencies because it fails to take into account individual preferences and incentives. They believe that the market, through the price system and the interactions of individual actors, is the most efficient way to allocate resources and achieve economic growth.
In conclusion, central planning and praxeology are fundamentally opposed economic theories and do not mix well. Central planning relies on the state's ability to control economic activity, while praxeology emphasizes individual decision-making and the importance of the market in allocating resources.