The idea that political freedom can be preserved in the absence of economic freedom, and vice versa, is an illusion. Political freedom is the corollary of economic freedom.
Ludwig Von MisesRead
Without calculation, economic activity is impossible. Since under Socialism economic calculation is impossible, under Socialism there can be no economic activity in our sense of the word All economic change, therefore, would involve operations the value of which could neither be predicted beforehand nor ascertained after they had taken place. Everything would be a leap in the dark. Socialism is the renunciation of rational economy.
Interpretation
What this quote means
The quote argues that without the ability to calculate economic values, socialism cannot function as a rational economic system.
Ludwig Von Mises highlights the crucial role that economic calculation plays in any productive activity. He asserts that under socialism, where such calculations are rendered impossible, economic interactions lose their rational basis, leading to unpredictable and irrational outcomes that resemble a 'leap in the dark'. This critique suggests that socialism undermines the foundation of economic planning and efficiency.
Themes
SocialismEconomic CalculationRational EconomyEconomic ActivityLudwig Von Mises
In practice
Example use cases
Citing Mises in a lecture about the importance of economic freedom in successful market systems.
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