INTERMEDIATE

Socialist Calculation Debate

The socialist calculation debate occurred during the 1920s and 1930s between free-market economists Ludwig von Mises and F.A. Hayek and economists Fred M. Taylor, Abba Lerner, and Oskar R. Lange who, among others, promoted market socialism. The market socialists argued that, given appropriate information,  economic planners might successfuly plan an economy. Mises and Hayek argued that prices set outside of the context of the market forces of supply and demand convey no information about the value of goods. Instead officials determine them arbitrarily in a socialist economy. The setting of prices without knowledge and without incentive provided by profits leads to either shortages or gluts of different goods and services.

Ivan Pongracic - Ludwig von Mises and the Socialist Calculation Debate

 

Steve Horwitz - The Socialist Calculation Debate

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Around the world, people are struggling to throw off authoritarianism, with deeply mixed results. From Egypt to Venezuela, determined people build networks to overthrow their regimes, but as yet we have not learned to live without Leviathan. In this issue, Michael Malice and Gary Dudney discuss their glimpses inside totalitarian regimes, while Sarah Skwire and Michael Nolan look at how totalitarian regimes grind down the individual--and how individuals fight back. Plus, Jeffrey Tucker identifies a strain in libertarianism that, left unchecked, could reduce even our vibrant movement to something that is analogous to the grim aesthetic of architectural brutalism. The struggle for our lives and freedom is a struggle for beauty; it begins inside each of us.
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