The dispute between planned and market economy.
All we know how it was ended.
But maybe the planned economy has hurried to surrender some decades before her complete morale victory?

I saying about situation with costs of production.

Let's imagine the isolated city where two firms produce some goods (cars for example). These two firms completely cover need of those goods for this city.
Some time later the third firm that produce those goods was open.
The number of those who needs those goods has not grown.
For preservation of profit in the given situation, firms should compete among themselves involving clients by quality of services, assortment of the goods, advertising etc...
All this will demand additional expenses for advertising agents, managers on sales, designers and other parasites.
The assortment of production should be updated every year.
Then the costs of production of those goods in thats city will grow.
There is two ways to compensate those costs:
1.To reduce cost of manufacture.
2.To rise the price.
Both ways are limited.
The first is limited by activity of trade unions and a level of technological progress.
The second by a level of incomes of the city population.
Gross national product of city will grow, but savings of the population will be reduced. As an additional bonus the society of this city will receive consumer idiocy.

In planned economy there is only one firm - the state.
And it aspires to reduce costs of production.
There will be only few types of those goods (models of cars), which will be produced for years, by numbers sufficient for a society.
The costs of production will be minimal and the price of those goods will be low.

Today we observe a situation when the majority of spheres of real production and trade in the USA become unprofitable.
The costs of production is TOO high.
The result - manufacture is translated to the countries with low production costs, and the debts of trading firms growing without stop.

The question is not in what system are better.
Free market are the best for the people.
The question is - may the society provide it to itself?
Whether has the future the free market and if yes, whether that exists border where the free competition should be stopped by force?
Or the phantom of communism does not sneak any more across the Europe and goes on the world to full growth?

sorry for my english.