Economic Calculation In The Socialist Commonwealth

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Economic Calculation in the Socialist Commonwealth

  • Economic Calculation Socialist Commonwealth

Tags Calculation and KnowledgeOther Schools of Thought

12/30/2014Ludwig von Mises

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 "socialist calculation" debate.

Download the complete audio book (7 MP3 audio files) in a single zip file. Narrated by Gennady Stolyarov II.


Ludwig von Mises

Ludwig von Mises was the acknowledged leader of the Austrian school of economic thought, a prodigious originator in economic theory, and a prolific author. Mises's writings and lectures encompassed economic theory, history, epistemology, government, and political philosophy. His contributions to economic theory include important clarifications on the quantity theory of money, the theory of the trade cycle, the integration of monetary theory with economic theory in general, and a demonstration that socialism must fail because it cannot solve the problem of economic calculation. Mises was the first scholar to recognize that economics is part of a larger science in human action, a science that he called praxeology.

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