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Originally Posted by The One and Only...
I don't even think you know what the efficient allocation of resources means.
People want bread, so you make the bread. Okay. But you make the bread through capital goods, which were not efficiently used. Hence, you do not optimize your production of all goods: perhaps bread was overproduced, and shoes underproduced.
A price system prevents such results.
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No it doesn't. You might have the best price in the world for the shittiest product, which you produced efficiently, and what are you left with? A warehouse full of it.
How has a price system prevented that overproduction?