π Economic Calculation Problem
Without market prices, central planners cannot calculate whether resources are being used efficiently. This is the fundamental problem that makes rational socialist planning impossible.
Proof: To allocate resources rationally, one must know the relative values of different uses.
Prices emerge only from voluntary exchange.
Socialism abolishes private ownership of means of production.
Without private ownership, there is no exchange of capital goods.
Without exchange, there are no...
From: Human Action
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Ludwig von Mises

Magic Internet Math
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