I explain Mises' impossibility thesis of socialism, i.e. the economic calculation problem, and why it makes a "socialist economy" strictly impossible.
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I have been unable to upload the script to my git repo, so the [8] citation is: Hans-Hermann Hoppe, /Against Fiduciary Media/
In this video, I discuss the Economic Calculation Problem (ECP), a problem in economics that shows why socialism is impossible. The ECP was first proposed by Ludwig von Mises, a leading Austrian economist, and it shows that a socialist economy cannot function because it lacks the market prices and information needed for economic calculation and planning. We explore this problem using the example of the Soviet Union, which was a socialist economy that ultimately failed because of its inability to solve the ECP. This video is a must-watch for anyone interested in economics, libertarianism, socialism, and the history of economics.
I explain how the ECP shows that a socialist economy cannot function because it lacks the market prices and information needed for economic calculation and planning. I also discuss the socialist calculation debate, which was a debate among economists about whether a socialist economy could overcome the ECP and achieve economic efficiency.
One of the key arguments made by proponents of the ECP is that a market economy is necessary for economic calculation and planning. In a market economy, prices are determined by the interaction of supply and demand, and this information is used by producers and consumers to make economic decisions. In contrast, a socialist economy lacks market prices, and this makes it impossible to calculate the costs and benefits of different economic choices.
Another key argument made by supporters of the ECP is that a socialist economy is inherently inefficient. In a market economy, competition drives producers to constantly improve the quality and price of their goods and services. In a socialist economy, there is no competition, and this means that there is no incentive for producers to innovate and improve. As a result, a socialist economy is likely to be less efficient than a market economy.
In the Soviet Union, the failure of socialism was particularly evident. The Soviet Union was a socialist economy that was plagued by inefficiency and shortages. Despite the government's efforts to implement economic planning, the Soviet economy was unable to overcome the ECP and achieve economic growth. Ultimately, the Soviet Union collapsed and transitioned to a market economy.
The ECP shows that socialism is impossible because it lacks the market prices and information needed for economic calculation and planning. The socialist calculation debate and the example of the Soviet Union demonstrate the practical implications of this theory, and support the idea that a market economy is necessary for economic efficiency and growth.
In this video, I discuss the Economic Calculation Problem (ECP) and its implications for socialism. The ECP was first proposed by Ludwig von Mises, a leading Austrian economist, and it shows that a socialist economy is impossible because it lacks the market prices and information needed for economic calculation and planning. The socialist calculation debate, which was a debate among economists about the feasibility of socialism, supports the Misesian theory that a market economy is necessary for economic efficiency and growth. The example of the Soviet Union, a socialist economy that ultimately collapsed, illustrates the practical implications of the ECP and the impossibility of socialism. In light of these arguments, it is clear that socialist economic policies are misguided and unworkable.
See also the sister-video by @MentisWave: [ Ссылка ]
Chapters:
00:00 The Impossibility Thesis
04:54 Gross Output Planning
06:56 The Steady-State Economy
07:34 The Peoples Republic of Walmart
08:39 The Ethical Defeat of Socialism
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[LICENSE INFORMATION: I do not consider intellectual property to be a valid form of property, therefore it would be unethical for me to enforce the attribution requirement of the CC license that this video should be licensed under. Furthermore, if I have made a mistake and licensed under the standard YouTube license please let me know and I will amend it]
