Dancing on the Grave of Keynesianism - Gary North - Mises Daily
What defeated the Soviet Union was socialist economic planning. The
Soviet Union was based on socialism, and socialist economic calculation
is irrational. Ludwig von Mises in 1920 described why in his article, "Economic Calculation in the Socialist Commonwealth."
He showed in theory exactly what is wrong with all socialist planning.
He made it clear why socialism could never compete with the free market.
It has no capital goods markets, and therefore economic planners cannot
allocate capital according to capital's most important and most desired
needs among by the public...
Mises's argument was not taken seriously by the academic community.
Socialism was so popular by 1920 among academics that they did not
respond to Mises...
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