Why don't Socialists create their own businesses to be run democratically?

how is information communicated without a price mechanism?

Humans have been communicating for a good 200,000 years and producing what we need to survive. That won't suddenly change without capitalism.

Overall though there is a very high level of allocative efficiency.

The way the market famously self-corrected and increased efficiency in Ireland in 1848, when Ireland continued to export potatoes and food crops to England? Or more like the multiple Indian famines of the late 1900s? Perhaps you mean the ongoing famines in South Sudan and Yemen?

what happens when too much/not enough is produced, resulting in either wasted resources or shortages?

What happens when too much is purchased, like how 40% of the food purchased in the US ends up in landfills?

Obviously there are cases when irrational behavior becomes widespread a crises result

You're sorely mistaken if you think irrationality is the issue behind economic crises and deviation from neoliberal models. Human rationality, as defined by economists, is being an insatiable, self-interested, utility-maximizing beast. If these are humans, exploitation should be the rule rather than the exception- and indeed it is. Virtually every gain made by the working-class in the past century has been brought about by unions (which economists view as illegitimate as they manipulate or "monopolize" the market price within labour markets) and by states (which economists write off as inefficient self-interested actors).

The way I see it, the beauty of capitalism is that it is generally self-correcting because there are so many players in competition

The only thing allowing price mechanisms to exist under capitalism are the central banks which closely monitor, alter, and occasionally "quantitatively ease" the money supply within any given country. There is nothing automatic about price-adjustment. Personally, I think the funniest thing about the classical supply in demand models were their inability to explain how supply and demand graphs could get from point A. to point B. Neoliberal graphs have no mechanism to account for time- so (and I shit you not), between any two supply and demand graphs there is an invisible auctioneer that is constantly checking market prices through trial and error.

we formulate regulations to try to prevent that from happening as much as possible

As a phd student in a neoliberal economics program: trust me, that's not the case.

/r/Socialism_101 Thread Parent