Javier A. Tabush

 

Abstract: Socialims, is strictly impossible. Its impracticability is not, as Bryan Caplan has suggested, a "quantitative" matter, nor does he show that real-world socialism's incentive problems outweighed its informational ones. Caplan criticism'of Ludwig Von Mises's critique of the possiblity of socialism fails to appreciate what he meant by socialism and misunderstands Mises's argument about economic calculation. History, too, suggests that socialism's informational deficiency was the most significant problem facing those who tried to implement socialism

 

So, Why is Socialism impossible? 

 

- Socialims refers to particular ends and means. One of these ends was to advance in material production. 

- Mises's argument proved that it was impossible for socialist means to achieve the socialist end.

- Without a mechanism to allocate the means of production economically, it would be impossible for socialism to generate advanced material produciton. 

 

 

Socialism and Incentives

 

- Mises assumes away the incentive motivation problems of socialisms for rhetorical purposes, not becuase he thinks the calculation problem would be more severe.

 

 

Historical Evidence

 

- When we talk about real world socialism, we are dealing with a degree of collectivization.

- It is almost impossible to isolate the extenet to which the various problems that plagued real- world socialism. 

- Calculational and incentive problems are closely related. 

- It is almost impossible to isolate the extent to which the various problems that plagued real- world socialism can be held accountable for the overall perfoamance of real world socialist economies.