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PDF Download , by F. A. Hayek Ludwig von Mises

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PDF Download , by F. A. Hayek Ludwig von Mises

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, by F. A. Hayek Ludwig von Mises

, by F. A. Hayek Ludwig von Mises


, by F. A. Hayek Ludwig von Mises


PDF Download , by F. A. Hayek Ludwig von Mises

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, by F. A. Hayek Ludwig von Mises

Product details

File Size: 1713 KB

Print Length: 177 pages

Simultaneous Device Usage: Unlimited

Publisher: Ludwig von Mises Institute (July 13, 2011)

Publication Date: July 13, 2011

Language: English

ASIN: B005CRGDJS

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This is one of the key collections on the "socialist calculation debate." For those unfamiliar with arcane topics in the history of economic thought: the socialist calculation debate was a controversy in technical and theoretical Economics that began in the 1920s in Germany and ended in the 1960s in the English speaking world. The controversy concerned "what happens after the revolution?" To put that differently, Marx and the Marxists purported that they had proved that markets were "irrational and wasteful." OK, well, but, by what rules did socialism (ownership and control of the means of production and formulation of a "plan" for their use) result in better outcomes than markets? How did the planners know what should be produced, how it should be produced, and who should get what was produced? In other words, why would anyone expect that the outcomes of socialist ownership, control and planning for the use of the means of production would give better results than decentralized private ownership, control and planning for the use of the means of production?The amusing thing about the outcome of this debate is the changing views of most Economists as to who had won. Due to pursuing different academic degrees at different times I took the GRE (Graduate Record Exam) twice, approximately five years apart. Each time there was a question on the socialist calculation debate. The correct answer the first time was that the advocates of socialist planning had won (apparently by demonstrating that if you had all the information you needed to create a general plan that there were mathematical techniques for processing that information into such a plan). The correct answer the second time was that the advocates of markets had won (apparently by demonstrating that one could never have such information). And so it goes.......If that sounds interesting to you, this is the title you should read first. There are then about a dozen subsequent volumes that you will have to read to get the "whole picture." Although this exercise has long ago become antiquated in itself, it is a good background for reading the subsequent literature in "Property rights (neoinstitutionalist) Economics," Law and Economics, and Public Choice Theory. Enjoy.

I've read a few books from Hayek over the years and it's just something about his writing style that doesn't connect with me. Now, I know that the affect that Mises had on Hayek is tremendous but must he also write like Mises? Lots of fluffery when they should just get to the point. Don't get me wrong these are some of the most brillant economists of our time but these books are about economics, not art. Getting back to the point of this book, Hayek is amazing at stating his case for capitalism against socialism but he could have wrote in much more concise and precise language. It still amazes me how these books escape our elected officials (whether they read them and still think socialism works, who knows?) but the main point of socialism is that it simply doesn't work and there are NO examples of it working long term. Hayek states solid points to the follies of collectivist planning and the sheep's dependence on intellectuals to "know" what's best for us all. In summary, a good book but just not my favorite.

Collectivist Economic Planning is the foundation for rational analysis of economic systems. Chapter three is its centerpiece: Economic Calculation in the Socialist Commonwealth, by Ludwig von Mises. The Mises essay effectively launched the Socialist Calculation Debate. The fundamental point here is simple. Rational planning of production in a modern economy requires market prices for capital goods and labor. By modern economy I mean an exchange economy with extensive division of labor and highly varied final goods. This is not a problem of simple or primitive economies. The details of this argument. Prices serve as a means of communication in coordinating the production of many goods through complex and lengthy stages.Chapters two and four get less attention because the names of the authors are less known. This is unfortunate, especially for chapter two (by N Pierson). Chapters one and five are the editor's introduction and conclusion. These are not simple end-caps to the book. In chapter one the editor (Hayek) sorts out a number of basic issues. In chapter five the editor makes a forceful case against the proposals of HD Dickinson.The essay by Enrico Barone is where it belongs, as an appendice. Barone's essay is a good example of how to avoid the real problems of economics. Barone focuses mainly on static equilibrium conditions. Since the truly insurmountable problems of socialism are dynamic, Barone could not understand them with his method.Collectivist Economic Planning is important for two reasons. It is a book of historic importance. This book was a critical part of the history of twentieth century economic thought. It is important also because it contains a set of timeless theoretical insights into the workings of socialism (along with the 1922 book Socialism, an Economic and Sociological Analysis). While the average reader might find this book uninteresting, those serious about political economy should read it cover to cover.

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