The Socialist Calculation Debate - Austrian Economics with Steve Horwitz

In Ludwig von Mises’s essay “Economic Calculation in the Socialist Commonwealth,” he argued that socialist planned economies could not work because they lacked a way to rationally allocate resources. Market prices allow unplanned capitalist economies to accomplish rational allocation by providing a common denominator to compare the many different inputs and outputs in an economy.

[@domtassone]

Outstanding, thanks for producing this!

[@vari2528]

This 5 minute vid helped more than hours of lectures

[@TrialAuthor]

The message is excellent. I do think it could be delivered in a manner that would be more impactful, and thus get more people to watch and learn.

[@christophergould995]

Its rational in the way slavery was /is trational.If all this is true ,completely so,how is TESCO or Walmart possible.Surely it should collapse ,though thinking about it it might do.Perhaps Marx and to some extent Von Mises and Marx were both right and both wrong.Capitalist economies produce complicated mega corporations that might have the same flaws as the Socialist state economies that are here attacked.The libertarians,by the way a complete misnomer,should recognise that capitalist economies often have features of nationalisation as well as cartelisation because of the way they work.

[@VoxofReason]

"how is TESCO or Walmart possible." - Why shouldn't they be possible? There still are market prices for their means of production. It is not as if they were producing everything by themselves, therefore not being able to calculate.