SOCIALISM (Lib Works Ludwig Von Mises CL)

SOCIALISM (Lib Works Ludwig Von Mises CL)

By: LUDWIG VON MISES  

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Average Customer Rating: 5.0 out of 5

Publisher: Liberty Fund Inc.

Customer Review: 5 out of 5
A must read for students of economics AND sociology! - Mises' Socialism is, perhaps, the most sociologically and economically "sound" theoretical attack on socialism to date. Happily, Dr. Mises' general position has been promulgated in economic journals since the post-war generation, and is the topic of the still relevant "calculation debate." It is not so pleasant that the insights of Mises are largely ignored by the sociology profession (probably because most sociologists continue to be prepossessed by Marxian materialism). However, sociologists who are seduced by the Marxian doctrine will be interested in this theoretical work because it asserts that social life can only be completely transformed, for the worst, under a centrally planned socioeconomic system. Further, Mises' erudition is manifest as he demolishes the work of Karl Marx and other utopians.

The central insight in this text for sociology is that "socialism" must manufacture an "artificial market." That is, a non-private property based market economy where managers will be given incentives in order to perform as private private owners who do business in a socioeconomic system analgous to "rational capitalism." This implication of an overhaul of social institutions (e.g., legal and monetary institutions) is a trenchant one. Hence, the idea of socialism is largely a sociopolitical problem, and one must move outside the perimeters of economic theory in order to address them. And Mises does just that!

The economic and sociological acumen in this work makes the price a steal. I must add, however, that more social scientists outside of economics need to read this tome because one cannot truly understand "society" without an understanding of economics.

Customer Review: 5 out of 5
The book that turned F.A. Hayek from socialism - Does anything else need to be said?

Customer Review: 5 out of 5
A Towering Intellectual Achievement - October 25th 1817- The Bolsheviks stage a coupe in Petrograd and overthrow the Kerensky regime. For the first time ever Marxists seize control of a major nation. It will be several years before the Bolsheviks overwhelm their opponents within Russia. However, one question demands an answer. Will it work? Can socialism at least match the results of capitalism? The full answer to this question came in 1922- the year that Mises published Socialism, an Economic and Sociological Analysis. Here Mises proved that socialism must fail.

Why must socialism fail? The simple answer is because it lacks private ownership and a market for the means of production. As Mises put it "where there is no market there is no price system, and where there is no price system there can be no economic calculation". The full answer has several parts. First, economic calculation requires functioning financial markets. Second, economic calculation requires actual rivalry in markets. Third, economic calculation requires entrepreneurial alertness to profit opportunities. With these three elements in place monetary calculation of private profit reflects true economic costs. As Mises put it economic calculation "is essentially a matter for the capitalists- the capitalists who buy and sell stocks and shares, who make loans and recover them, who make deposits in the banks and draw them out of the banks again, who speculate in all kinds of commodities". Perpetually changing economic conditions mean that- "it is above all necessary that capital should be withdrawn from particular lines of production, from particular undertakings and concerns and should be applied in other lines of production, in other undertakings and concerns". Speculation in financial markets directs resources to the most urgent consumer demands because the most profitable ventures satisfy consumer demand at the least economic cost. Socialism fails because it lacks speculation that takes place only with entrepreneurial rivalry and exchange in financial markets.

The issue of economic calculation is economic, but Mises also inquired into the political and psychological reasons behind the socialist movement. He also discusses historical and cultural issues. Socialism is a full-scale treatise, comparable to Smith's Wealth of Nations. Some might think that a book from 1922 might have lost its relevance, but this is untrue. Mises explained principles that are as valid today as they were originally. In fact, Socialism is more relevant today than many recent books on economics. This is because Mises dealt with the real life problems of a dynamic economy, while much of modern economics focuses on static models that apply only to imaginary economic conditions.

Socialism is not only Mises' best book; it is one of the greatest works ever written on social theory. Mises addressed vital issues with penetrating analysis and delivered profound results. All those who are serious about political economy should read this book, but only after having read Menger's Principles of Economics, and before reading Hayek's Road to Serfdom. Those who are less ambitious should read a shorter book by Mises- Liberalism in the Classical Tradition. In any case, Socialism is a towering intellectual achievement. Were its arguments more widely understood many of the tragedies of 20th century state socialism might have been avoided. This book remains important today because it explains why we live in an age of unprecedented prosperity, and how we can achieve further progress. To put it simply Socialism is as indispensable to intellectual development as property rights are to economic development.

Customer Review: 5 out of 5
Truly a Masterpiece - This is THE definitive work on the impracticality, impossibility and immorality of socialism. Von Mises, who observed socialism first hand before having to flee his home in Europe, and who lived through the age of great collectivist experiments, has written a simply devastating critique. The (supposed) reader below who wrote the review entitled "Propogating Utopian Fallacies", obviously either has not read the book, or completely misunderstood the entire thing. A more ignorant review of this book can hardly be imagined. He makes several dubious assumptions in his review and attributes them to Von Mises. He makes statements like, "Mises doesn't understand," or "Mises believes" and then proceeds to use these statements to try to refute the idea of free markets. He also fails to apply his own logical excercises to himself. For example he states that if Mises were consistent, he would have rejected all government and not just some collectivist programs. Yet the reviewer seems to be a believer in a half-way system where markets are mixed with socialism, "democracy", and government intervention. I guess he must have a monopoly on believing that governments should do some things and leave others to the anarchy of the market. Anyone familair with the rest of Mises's works and with free market and libertarian theory in general can't help but laugh at the claims he makes. This reviewer clearly does not understand property rights based, modern anarchist theory (as opposed to the Rage Against the Machine variety which he makes reference to), nor does he understand this book. The claims he makes in the last paragraph of his reveiw are so outlandish and naive that they do not even warrant a response. An important lesson can be gained here though. Without some prior (correct) understanding of concepts like markets, anarchy, liberty, the true nature of government, and without some understanding of logical processes, it is easy to fall prey to such overly-simplified arguments. I would recommend along with this book, also reading other books by authors such as Mises, Murray Rothbard, Henry Hazlitt, and F.A. Hayek.

Customer Review: 5 out of 5
A Tour de Force Defense of Capitalism - It is truly unfortunate that Von Mises is perhaps the most overlooked 20th Century champion of free market capitalism. His brilliant observations have heavily influenced the momentous (and much more revered) works of Friedrich Hayek, as well as subsequent scholars such as Murray Rothbard, Milton Friedman, Thomas Sowell, and others. Von Mises is the one who towers over almost every other laissez-faire economist (except Adam Smith and few others). His insightful formulations devastated the incessant obfuscations of the socialists and demonstrated, once and for all, the comparative benefits of a free market system.

At the heart of SOCIALISM is the argument that economic calculation is impossible without a free market. Von Mises effectively drove home the need for a market price in order to regulate the supply and demand of human society. Recent proposals for socialized medicine completely deny this importance of the price system: if the price of medicine (for consumers) is zero, the demand will be astronomical, and the doctors and other medical personnel will not be capable of effectively meeting such demand. Few proponents of "universal health care" ever address this concern, which colorfully evidences their lack of interest in -- or understanding of -- Von Mises' penetrating contentions.

"The market is a democracy in which every penny gives a right to vote. . . . Every individual is free to disagree with an election campaign or of the market process. But in a democracy he has no other means to alter things than persuasion. If a man were to say: 'I do not like the mayor elected by majority vote; therefore I ask government to replace him by the man I prefer,' one would hardly call him a democrat. But if the same claims are raised with regard to the market, most people are too dull to discover the dictatorial apirations involved." (p. 490) Von Mises had the presence of mind to fully discern the tyrannical motivations behind most calls for a collectivist arrangement. He knew that the grotesque desires of the elite would inevitably eclipse the true inclinations of man. More than an economic dissertation, SOCIALISM was an expression of human justice, as illuminated by the deference the author paid to the individual autonomy of the common man. Respect for the personal choices of others is, after all, the defining characteristic of freedom.

Regardless of the self-serving configurations of the statists and their innumerable followers, the free market works, as evidenced by the fact that even the poor feely partake in such a system and usually enjoy a much higher standard of living than even the average citizen in socialist nations. As the American federal government continues to expand at an alarming rate, we would do well as a society to better familiarize ourselves with the philosophies of Von Mises and his progeny. Reading SOCIALISM would be a start in the right direction. Those of us who have already surveyed the book should recommend it to as many thoughtful (and open-minded) people as we know. Day by day, one person at a time, we can begin to recover and restore our devotion to liberty as a society. As the author of this tremendous book well knew, the voluntary exchange of a free market will almost always be more efficient and preferable than the coercive force of government. The hollow promises of a big, active, all-intrusive state will always lure a great percentage of our soicety -- most of them well-meaning, but averse to logic and evidence -- yet such dreams always provide the essential fuel for despotism. A return to our federalist roots (in which the states are sovereign entities rather than ineffectual subsidiaries of the federal government) and to the free market principles of Smith and Von Mises would serve us well in our on-going struggle against state-sponsored tyranny.

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