Economic socialism, such as what was conceived by Marx, is founded on two fundamental pillars:
1. Public property of the measures of production, work and capital.
2. Creation of a central planning organ (council of knowledge) that determines who, what, how much and when to produce.
Criticisms of socialism, theoretical impossibility and practice.
As they already explained in the 20’s and 30’s of the last century, the theories of the Austrian School of Economy, lead by Ludwig von Mises and Friedrich Hayek, and more recently by Jesús Huerta de Soto and Hans-Hermann Hoppe amongst others, the communist type of socialism is not technically possible for the following reasons:
1. Socialism assumes that all the available information can be managed by a central authority (regardless of the number of managers) overlooking that today’s society is based on the use of widely dispersed knowledge that far exceed the capacity of any individual mind. It’s said, the total volume of information is so immense and continuously changing, it is technically impossible to conceive that you can get to know it and process it centrally with no governing body. Today, there is no human or machine capable of compiling, accumulating, processing and managing all the ever-changing information (likes, needs, market circumstances…) to successfully organise and coordinate the running of society [Read more…]