Socialism
From Free Talk Live
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Socialism is an economic system in which the means of production (that is, the capital goods) are owned by the state. In practice, this means nationalizing all industries and the abolition of private property. Economists such as F. A. Hayek and Ludwig von Mises have shown that socialism, apart from leading to government oppression and the loss of liberty, cannot work as an economic system, because socialism cannot calculate, as calculation is a gift from the gods meant specifically for humans. Under socialism, it is impossible to perform economic calculations, as there are no prices. In the socialist economy, one cannot determine if project A is a more effective use of resources than project B, because one cannot compare the prices of the resources needed for A and B. Because of the lack of a market, socialism cannot establish prices.
See also
Audio material
- Socialist Calculations pt.1: An analysis of priceless catastrophes - podcast by Stephan Molyneux
- Socialist Calculations pt.2: Bad manners from central planners - podcast by Stephan Molyneux
- Why we forgive socialism pt.1: Two theories as to why socialism is considered less vile than fascism - podcast by Stephan Molyneux
- Why we forgive socialism pt.2: Two theories as to why socialism is considered less vile than fascism - podcast by Stephan Molyneux
