Saturday, October 13, 2007

Mises got it right

Ludwig von Mises' Socialism details how socialism cannot work. From his book: "Socialist writers may continue to publish books about the decay of Capitalism and the coming of the socialist millenium: they may paint the evils of Capitalism in lurid colours and contrast with them an enticing picture of the blessings of a socialist society; their writings may continue to impress the thoughtless - but all this cannot alter the fate of the socialist idea. The attempt to reform the world socialistically might destroy civilization. It would never set up a successful socialist community."

From Mises' Human Action, which was published in 1947: "The overwhelmingly rapid triumph of the demonstration that no economic calculation is possible under a socialist system is without precedent indeed in the history of human thought. The socialists cannot help admitting their crushing final defeat."

Economic calculation is impossible in a socialist enterprise because of the absence of market prices. Mises knew this almost 90 years ago. What's taking so long for Americans to figure it out?

No comments:

Post a Comment