Statism—encompassing both socialism and fascism—can’t work because it fundamentally lacks the ability to calculate. Socialism, defined as the government owning … Read the rest
Category: Economic Calculation
From Production to Consumption
The Truth about Money
Money is necessary to determine the difference between inputs and outputs. Paper money makes that more and more difficult to … Read the rest
Barter with a Medium
Modern day exchange is barter done with a medium. This is called a money. When you buy something, you are … Read the rest
The New Idol Directing Production
The means of production are owned by “society.” Society owning property is impossible. The new idol has to direct production. … Read the rest
The Fundamental Reason Why Socialism is Impossible
It’s impossible for socialism to work because it can’t calculate. Socialism is the government owning all property. There aren’t various … Read the rest
Calculation in Statism
We calculate to arrange action. No man can determine what is to be produced or how much without calculation. It … Read the rest
Capital Consumption
The market can’t operate without calculation. It will be difficult to view capital consumption when the market is distorted. … Read the rest
Monetary Calculation
Monetary calculation is the guide of economics. The economy is chaos without it. Calculation makes it possible to determine if … Read the rest
Mises on the Knowledge Problem
The discussion over calculation is very confused. It goes that Mises used property and Hayek used knowledge. While correct, its … Read the rest