Mises on Economic Calculation   Leave a comment

I’m concluding my series on Ludwig von Mises’ 1920 essay “Economic Calculation in the Socialist Commonwealth”, appropriately enough, with his conclusion of the essay. I highly recommend you read it for yourself to get a fuller understanding of why socialism was a bad idea in 1920 and a bad idea nearly a century later.. Lela

 

He called for socialists to consider their position on a rational basis and realize that socialism does not  match reality. Their system has no way of determining the natural value of anything. Prices must be arbitrarily derived by bureaucrats in a socialist system, while in a capitalist system, supply and demand operate automatically to provide a “market value” price derived through exchange relations. The purchasers of a product determine the price depending on their personal choices.

Ninety-seven years after Mises wrote this essay, he’s still right and the Soviet Union and China have both proven his critiques. The Soviet Union is no more and Russia and the former Soviet bloc countries are largely market-based economies. Many of them are much more capitalistic than the United Kingdom or the United States. Meanwhile, China has taken a halfway position in state capitalism. Lenin thought of state capitalism as an intermediary step toward the paradise of socialism, but having tried social for several decades, China decided to introduce some capitalism.

Image result for image of american socialismName a socialist society that is doing well. There are a few capitalist societies that have a great admix of socialism — the United States, for example. Alaska too. The United States has suffered under a slowing economy for more than a decade now and is currently $21 trillion in debt. Alaska almost didn’t pass a budget this year. Socialism sounds good from the perspective where it hasn’t been tried yet, but inevitably it can’t operate without some market-economy features and so …. The United States has spent many decades slowly becoming more socialistic and our economy is teetering on the brink of collapse. Some observe that we appear to have been coasting on the dynamism of our past capitalism and that is now running out. Just look at the pace of inventions in the US between the end of the Civil War and now. You can see that we had a huge burst of activity and then we slowly fell away in an inverse ratio to the amount of government interference in the economy. So, what does that mean for us now? Is the solution perhaps reintroducing capitalism to the system?

Advertisements

What's Your Opinion?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Creative Ideas for Starving Artists

Brain juice that revives and refreshes

Real Science

"Science is the belief in the ignorance of the experts" - Richard Feynman

Marsha Ingrao

Traveling & Blogging Near and Far

Victoria (V.E.) Schwab

"You can't get a cup of tea big enough or a book long enough to suit me." ~C.S. Lewis

Darlene Foster's Blog

dreamer of dreams, teller of tales

All About Writing and more

Advice, challenges, poetry and prose

Tapestry ~ Treasures

My life is but a weaving between the Lord and me!

Sue Vincent's Daily Echo

Echoes of Life, Love and Laughter

S.R. Mallery's AND HISTORY FOR ALL

Everything Historical And Much More...

Smorgasbord - Variety is the spice of life

Blog with a view - on books, music, humour and health

The Lil' Mermaid

Dream. Believe. Achieve

susanne matthews

Living the Dream

MomzillaNC

A blog about issues, life in general, and being a mom, and sharing my poetry.

Felix Alexander Writer

Storyteller Philosopher Poet

YOURS IN STORYTELLING...

Steve Vernon - Nova Scotia writer, storyteller and master of the booga-booga

Dreaming In Blushh

You Are In A Beauty Contest Every Day Of Your Life💕 Beautiful.Colorful.You

Breaking the rules

with a smile

Aurora

Where the world begins

Twisted Thoughts

Pardon my Random Thoughts

%d bloggers like this: