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This edition contains an afterword by Joseph Salerno, who applies the calculation argument to contemporary problems like environmentalism and business regulation: The significance of Mises's article extends far beyond its devastating demonstration of the impossibility of socialist economy and society. Browse Books. Browse Library. Browse Mises Weekends. Browse Mises Academy. Get A Copy. Paperback , 74 pages. More Details Original Title. Other Editions Friend Reviews.
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Be the first to ask a question about Economic Calculation in the Socialist Commonwealth. Lists with This Book. Community Reviews. Showing Average rating 4. Rating details. More filters. Sort order. Jan 10, Brandon Henke rated it really liked it Shelves: economics. Mises' article "Die Wirtschaftsrechnung im sozialistischen Gemeinwesen" dismantled the economic tenets of socialism so efficiently that even Oskar Lange was compelled to suggest: " This is the natural and only result possible when forcefully substituting the "egalitarian" principle of socialized modes of production for privatized modes of production based in voluntary exchange and self-interest.
Last but not least, my favorite quote from the book: "They have criticized freely enough the economic structure of 'free' society, but have consistently neglected to apply to the economics of the disputed socialist state the same caustic acumen, which they have revealed elsewhere, not always with success. Economics, as such, figures all too sparsely in the glamorous pictures painted by the Utopians. They invariably explain how, in the cloud-cuckoo lands of their fancy, roast pigeons will in some way fly into the mouths of the comrades, but they omit to show how this miracle is to take place.
View 2 comments. Sep 30, Jason rated it it was amazing. A small, efficient tome readily accessible to anyone with a little bit of patience - enough to put the book down and think every once in a while - as to why socialist economics is, ultimately, oxymoronic. Shelves: economics. Very dry and technical, but that was to be expected due to the subject matter and the fact that the intended audience were professional economists.
This is some extremely dense stuff, but if you want to understand Mises' calculation-argument - truly understand it - then reading this is how you go about it. It's not Hayeks knowledge-argument in a different form, the two aren't even as closely related as you would think. Mises argues that even if a central planner did have perfect knowledge of the Very dry and technical, but that was to be expected due to the subject matter and the fact that the intended audience were professional economists.
Marxism Unmasked (LvMI)
Mises argues that even if a central planner did have perfect knowledge of the individual valuations of consumer goods by everyone in the world, he would have no basis for economic calculation. Production goods of a higher order those that are farther removed from the final consumption good could then not be allocated rationally. A socialist economy can only work when it still has prices to operate with, either from its own past which naturally stands in the way of any progress at all or by capitalist neighbors as in the case of the USSR and similar countries, or when it fully succumbs to primitivism and stops using production goods of a higher order.
This is very interesting information to keep in mind when reading A Socialist Empire: The Incas of Peru , a book for which Mises even wrote the foreword.
The Intermediate Stuff
The editors notes in this edition are excellent, by the way. They really help with the understanding, and include some additional information on how Hayeks and Mises' theories relate to each other and how the latters argument has been misunderstood by economists of all schools, from socialists to fellow Austrians.
View 1 comment. Shelves: ase. Great essay presenting arguments for the fact that in a planned economy there is no rational economic calculation. Any form of socialist planning is doomed to fail, because it is impossible to rationally plan production how, what, when, where without calculation based on the market price system and profits.
Through this socialism will always be much less effective than free-market economy. I would recommend this essay to anyone. It is also worth to reach for Human Action written by Ludwig von Great essay presenting arguments for the fact that in a planned economy there is no rational economic calculation. It is also worth to reach for Human Action written by Ludwig von Mises. In that book Mises ebunks attacks of socialists and provides new arguments for his statement. Jun 11, Dan Walker rated it it was amazing Shelves: economics.
Brandon's review is a great explanation of what this essay is about, namely that Socialism fails because it is impossible for central planners to make rational decisions about the economy. I find it stunning that the key failure of Socialism was so clearly identified a century ago, really before it even got started in practice. Mises must have been a truly brilliant thinker to be able to see through the hype and succinctly summarize the critical issue. If people would have listened to him, a lot Brandon's review is a great explanation of what this essay is about, namely that Socialism fails because it is impossible for central planners to make rational decisions about the economy.
If people would have listened to him, a lot of pain and suffering would have been avoided. The most crude explanation I've heard of why the Soviet Union collapsed from within is that the economy finally failed to produce enough toilet paper for everyone. I can certainly understand why that pushed things over the edge! Jan 17, Aelena rated it it was amazing. A short but indispensable essay on the absolute failure of the State when it comes and tries to intervene, "fix" or organize.
The Eastern Bloc failed long time ago and collapsed for everyone to see, yet there remain many people wishing for Socialist implementations of all sorts the ecologists perhabps the more active nowadays, but by no means the only ones. These people should read this and try to understand, neither of which they will do, since Socialism much resembles a religion as Freud pr A short but indispensable essay on the absolute failure of the State when it comes and tries to intervene, "fix" or organize.
These people should read this and try to understand, neither of which they will do, since Socialism much resembles a religion as Freud presciently said long ago. This booklet shows how and why Socialism failed and will always do. Jan 16, Jeff M rated it really liked it. Not a book for beginners. I give it 4 stars instead of 5 because Solerno is able to present all the information in this book in a manner that is less headache inducing. The argument is well presented and the logic is rock solid, it did however take me reading this twice to grasp the entire argument.
A good book for those who already have a basic concept of economics and economic thought. Jul 23, Jairo Fraga rated it liked it. Short and basic arguments against socialism from the point of view of economic rationality, good criticism of planned economy. Later market socialists, like Lange made comments about this book.