Economic Calculation in the Socialist Commonwealth

Economic Calculation in the Socialist Commonwealth

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This is the essay that overthrew the socialist paradigm in economics, and provided the foundation for modern Austrian price theory. When it first appeared in 1920, Mises was alone in challenging the socialists to explain how their pricing system would actually work in practice. Mises proved that socialism could not work because it could not distinguish more or less valuable uses of social resources, and predicted the system would end in chaos. The result of his proof was the two-decade-long qsocialist calculationq debate. This new edition contains an afterword by Joseph Salerno, who applies the calculation argument to contemporary problems like environmentalism and business regulation. qThe significance of Misess 1920 article extends far beyond its devastating demonstration of the impossibility of socialist economy and society. It provides the rationale for the price system, purely free markets, the security of private property against all encroachments, and sound money. Its thesis will continue to be relevant as long as economists and policy-makers want to understand why even minor government economic interventions consistently fail to achieve socially beneficial results. qEconomic Calculation in the Socialist Commonwealthq surely ranks among the most important economic articles written this century.q -Joseph T. Salerno, from the afterword19) calls the aquot;intellectual division of laboraquot; which emerges when private property owners are at liberty to exchange goods and services ... entrepreneurs seeking to maximize monetary profit bid against one another to acquire the services of the productive factors currently ... yet must forever transcend the contribution 54 a€c The Ludwig von Mises Institute Economic Calculation in the Socialist Commonwealth.

Title:Economic Calculation in the Socialist Commonwealth
Publisher:Ludwig Von Mises Inst - 1990


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