Central planning for the market economy leads to poverty, famine, and economic collapse, and that economic calculation is fundamental in understanding all problems in social cooperation.
Central planning for the market economy leads to poverty, famine, and economic collapse.
Mises emphasized the importance of economic calculation in any theory of socialism, stating that a theory of socialism without it is simply absurd.
Mises uses the praxiological method to deduce a system of economic theory grounded in the self-evident truth that every person acts purposefully in using scarce means to achieve their most highly valued ends.
Economic calculation is the fundamental issue in the comprehension of all problems in social cooperation, and it would be impossible in a perfect socialist society.
Interventionism distorts monetary calculation and introduces elements of economic discoordination and chaos from outside the system.
Mises forcefully stated the claim for the predictive power of economic theory with respect to interventionism, emphasizing the ability to answer whether a policy can attain its aims and its real effects if the answer is negative.
The Economist can know in advance what effect an increase in the quantity of money will have upon its purchasing power or what consequences price controls must have.
The crises of interventionism will undermine the plans and morale of the ruling classes while impoverishing and frustrating the productive classes, fostering an “us against them” mentality that can be exploited by libertarian thought leaders.