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	Economic calculation problem - Wikipedia, the free encyclopedia
		The economic calculation problem is a criticism of socialist economics.
		The assertion of Mises is that the calculation problem is inherently unsolvable.
		The problem is not one of having a unit of measure, though that is sometimes incorrectly identified as the economic calculation problem.
	en.wikipedia.org /wiki/Economic_calculation_problem (2096 words)

	Mises, Economic Calculation (Site not responding. Last check: 2007-10-12)
		There are many socialists who have never come to grips in any way with the problems of economics, and who have made no attempt at all to form for themselves any clear conception of the conditions which determine the character of human society.
		The problem of responsibility and initiative in socialist enterprises is closely connected with that of economic calculation.
		They do not realize that the bases of economic calculation are removed by the exclusion of exchange and the pricing mechanism, and that something must be substituted in its place, if all economy is not to be abolished and a hopeless chaos is not to result.
	www.libertystory.net /LSDOCMISESCALCULATION.htm (10057 words)

	Friedrich Hayek - Wikipedia, the free encyclopedia
		He shared the 1974 Nobel Memorial Prize in Economics with ideological rival Gunnar Myrdal and in 1991 he received the Presidential Medal of Freedom, one of the two highest civilian awards in the United States, “for a lifetime of looking beyond the horizon”.
		In 1950 Hayek left the London School of Economics for the University of Chicago, becoming a professor in the Committee on Social Thought (he was not a member of the Economics department).
		In his philosophy of science, Hayek was highly critical of what he termed scientism—abuses of the methods of science in the attempt to justify inherently unknowable propositions, particularly in the fields of economics and economic history (see The Counter-Revolution of Science: Studies in the Abuse of Reason, 1952).
	en.wikipedia.org /wiki/Friedrich_Hayek (2363 words)

	XI. VALUATION WITHOUT CALCULATION: The Problem of Economic Calculation
		One calculates with a reasonable degree of precision the outcome of planned actions, and one calculates in order to arrange an action in such a way that a definite result emerges.
		It judges all problems from the disinterested point of view of a neutral observer of physical, chemical, and biological events.
		It ignores the economic problem: to employ the available means in such a way that no want more urgently felt should remain unsatisfied because the means suitable for its attainment were employed--wasted--for the attainment of a want less urgently felt.
	www.mises.org /humanaction/chap11sec3.asp (1176 words)

	[No title]
		Economic Calculation, Quantitative Laws, and the "Impossibility" of Socialism Abstract: The calculation literature primarily focuses on whether economic calculation is impossible under socialism.
		Economic Calculation and the "Impossibility" of Socialism In Socialism (1981), Mises carefully and sympathetically surveys earlier economists’ objections to socialism.
		Thus, economic history as well as pure economic theory fails to establish that the economic calculation problem was a severe challenge for socialism.
	www.gmu.edu /departments/economics/bcaplan/econcalc1.doc (5468 words)

	Economic Calculation and Forms of Property (Site not responding. Last check: 2007-10-12)
		problems posed, but, as we have seen, it also results from the state of the problematic and the character of the objects we are concerned with: namely, transitional social formations; even more, it is the result of the practices that have developed in these social formations, and of the ideological commentaries that duplicate these practices.
		Calculation in money refers to a unit of accounting, that is, in fact, to a unit that effectively intervenes in exchanges, thereby testifying to the existence of commodity categories and the value-form.
		In actual economic practice, it seems that it is usually the opposite that occurs, monetary calculation playing a dominant role, and SEC only playing a subordinate or auxiliary role under the form of corrections to the conclusions drawn from the former.
	ptb.sunhost.be /marx2mao/Other/ECFP70.html (16528 words)

	Serious Economic Problem
		Everything we know about economics indicates that the sort of economic growth expected for next year, 3.8 to 4 percent, will translate into 2 million new jobs from the third quarter of this year to the third quarter of next year.
		I was pleased to be at Davos, Switzerland, at the economic conference.
		That is, yes, comparative advantage in economic terms has a lot to be said for it, but adding to that differential public policies, not only is it in itself bad but it becomes the premise then to come back home and try and dismantle it.
	masonc.home.netcom.com /barneyfrank.html (7148 words)

	Posing the Problem: The Impossibility of Economic Calculation under Socialism - David Ramsay Steele
		For industry to be operated effectively, it is necessary that those in charge be able to perform “economic calculation.” It does not matter at all, for the purposes of this argument, whether “those in charge” are professional managers, acquisitive capitalists, workers’ councils or other democratically elected assemblies, or holy men appointed by the gods.
		The decisive demonstration of the impossibility of rational economic calculation under socialism was supplied by Ludwig von Mises in the spring of 1920, but Mises had his precursors.
		The use of objective exchange-values for economic calculation “entails a threefold advantage.” Calculation can be based upon the valuations of all participants in trade; there is in monetary profitability an immediate and sure indication of economical production; and values can be referred to a common unit.
	www.la-articles.org.uk /ec.htm (6693 words)

	Socialism: Inability of Economic Calculation (4 of 4) by Ludwig Von Mises -- Capitalism Magazine
		The whole market system is bound up with the fact that there is a mentally calculated division of labor between the various businessmen who vie with each other in bidding for the factors of production--the raw materials, the machines, the instruments--and for the human factor of production, the wages paid to labor.
		The problem with which I am dealing here is the fundamental issue of capitalistic economic calculation as opposed to socialism.
		The fact is that economic calculation, and therefore all technological planning, is possible only if there are money prices, not only for consumer goods but also for the factors of production.
	www.capmag.com /article.asp?ID=2758 (1444 words)

	The Impossibility of Socialist Economic Calculation: A Problem for Grunts by Casey Khan
		The grunt’s economic situation is reduced by the friction of barter trade and extreme shortage.
		The problem he faces with looking in other units is the time it may take going up and down chains of command finding a match.
		Maybe the calculation problem for collectivist entities is one of the major reasons why unleashing the dogs of war should only be used as a last resort, if at all.
	www.lewrockwell.com /orig3/khan5.html (1789 words)

	Math Without Numbers (The Economic Problem of Socialism) [Free Republic]
		Economics is the study of how humans act upon resources to produce goods and services which are wanted and/or needed.
		Hence in the a socialist state whrein the pursuit of economic calculation is impossible, there can be — in our sense of the term — no economy whatsoever.
		Mises, Ludwig, Economic Calculation in the Socialist Commonwealth, (Auburn, Alabam, Ludwig von Mises Institute, Auburn University, 1990).
	www.freerepublic.com /forum/a3a6c88033a47.htm (5304 words)

	A concrete example of the calculation problem ... - Austrian Economics Forum
		With no prices, there is no way for a central planner to calculate where to apply and how much to apply of scarce resources to all the variety of production that is possible.
		The socialist calculation problem applies in any situation where individual value preferences are unknown because no market for the good in question exists.
		I don't think this is the "calculation problem" we are talking about, but i should probably say it's not the one i'm talking about.
	austrianforum.com /index.php?showtopic=45 (830 words)

	Economic Calculation Problem
		Without the information the pricing mechanism provides, participants in the economy will be unable to calculate efficient use of capital to produce the goods and services proportionally with demand, or to efficiently choose among goods.
		One response to this criticism is that fundamentally the calculation problem doesn't in fact rest on an assumption of centralization of decision making.
		Since this would entail measuring costs directly and not in terms of money, if follows that the economic calculation argument is logically inapplicable.
	www.fastload.org /ec/Economic_Calculation_Problem.html (695 words)

	ipedia.com: Friedrich Hayek Article (Site not responding. Last check: 2007-10-12)
		Though an academic outcast for much of his career, Hayek's work gained new attention in the 1980s and 1990s with the triumph of economically liberal right-leaning governments in the United States and the United Kingdom (Margaret Thatcher, British prime minister from 1979 to 1990, was an outspoken devotee of Hayek's writings).
		This is a belief deliberately maintained by the other side because if they admitted that the issue is a scientific question, they would have to admit that their science is antiquated and that, in academic circles, it occupies the position of astrology and not one that has any justification for serious consideration in scientific discussion.
		It seem to me that socialists today can preserve their position in academic economics merely by the pretense that the differences are entirely moral questions about which science cannot decide.
	www.ipedia.com /friedrich_hayek.html (740 words)

	Friedrich Hayek - QuickSeek Encyclopedia (Site not responding. Last check: 2007-10-12)
		In his popular book, The Road to Serfdom (1944) and in subsequent works, Hayek claimed that socialism required central economic planning and that such planning in turn had a strong probability of leading towards totalitarianism, because the central authority would have to be endowed with powers that would impact social life as well.
		In his philosophy of science, Hayek was highly critical of what he termed scientism—abuses of the methods of science in the attempt to justify inherently unknowable propositions, particularly in the fields of social science, economics and economic history (see The Counter-Revolution of Science: Studies in the Abuse of Reason, 1952).
		I have arrived at the conviction that the neglect by economists to discuss seriously what is really the crucial problem of our time is due to a certain timidity about soiling their hands by going from purely scientific questions into value questions.
	friedrichhayek.quickseek.com (2209 words)

	Catallarchy » The Ubiquitous Quiz
		The distinction is that Hayek moved from economics (in his earlier years) and dedicated the latter part of his career to psychology and similar pursuits.
		Mises’ argument stays close to economics in particular, by starting from the socialists’; premise of the abolition of private property and control of the economy by planning.
		I think it has extended use by pointing out the importance of recognizing information structure in general, and is a useful criticism of government intervention in the economy in general (since his formulation works regardless of the legal state of private property).
	catallarchy.net /blog/archives/2003/11/12/the-ubiquitous-quiz (2610 words)

	Amazon.com: Economic Calculation in the Socialist Commonwealth: Books: Ludwig Von Mises (Site not responding. Last check: 2007-10-12)
		Ludwig von Mises's seminal refutation of socialist economics, republished here, was written seventy years ago, but it is a description of the "real socialism" of today-or rather yesterday.
		In "Economic Calculation in the Socialist Commonwealth", the late Ludwig Von Mises, one of the leading economists of the Austrian School, takes aim at the foundations of Socialism.
		The author identifies a critical problem in socialist economics- the lack of a means for allocating capital goods.
	www.amazon.com /exec/obidos/tg/detail/-/0945466072?v=glance (1578 words)

	HES: Re: QUERY--Production theory? (Site not responding. Last check: 2007-10-12)
		I might add also (4) the fledgling field of economic sociology where the idea that social networks constitute also a sort of social capital that aid production is being developed with ferocious speed by graduate students who understand the basic neoclassical framework.
		I think that there is now a general consensus that engineers cannot really solve many "economic" problems because economic problems are about choosing and ranking priorities.
		Engineering provides only one part and perhaps a tiny part of what we understand to be the economic calculation problem in economics.
	www.eh.net /pipermail/hes/2005-November/003421.html (159 words)

	Amazon.com: From Marx to Mises: Post-Capitalist Society and the Challenge of Economic Calculation: Books: David Ramsay ... (Site not responding. Last check: 2007-10-12)
		economic calculation problem, economic calculation argument, single great plan, economic calculation debate, centralization theory, conscious social control, conventional firms, external consumers, free financial markets, positive time preference, communist administration, accounting prices, own personal consumption, simulated market, socialist administration, consumer goods prices, market socialism, incentives argument, social taxes, central planning board, spontaneous order
		Essentially, the book argues that it is undersirable to plan economic organization because planning is inherently inefficient compared to the operation of "free markets".
		This is an acute lack because the calculation debate is essentially a debate about the theoretical and practical feasibility of classes of algorithms for allocating resources.
	www.amazon.com /exec/obidos/tg/detail/-/0812690168?v=glance (1609 words)

	Economical Fashion Models (Site not responding. Last check: 2007-10-12)
		From current thought it appears that Schumpeter's ideas on business cycles and economic development could not be captured in the mathematics of his day - they need the language of non-linear dynamical systems to be partially formalized.
		Economic calculation problem - Home Encylopedia Directory eShowcase Sitemap Privacy Contact Us Enyclopedia Home
		See live article Economic calculation problem The economic calculation problem is a criticism of socialist economics.
	www.quipuha.com /23/31.html (1011 words)

	Critical Review
		His Schumpeterian theory of democracy, too, is problematic because it does not sufficiently consider the shortcomings exposed in recent scholarship in political science and economics.
		They claimed that this "economic calculation problem" showed that socialism is "impossible." Although many believe that the Austrian position was later vindicated by the collapse of the Soviet bloc, the Austrian school's own methodology disallows such a conclusion.
		This point was accepted by prewar theorists of the economic firm, such as Frank Knight and Ronald Coase, and the attempt to moderate, or compensate for, the constriction of economic liberty was a central struggle of the Progressive Era.
	www.criticalreview.com /2004/current_issue16_1.html (843 words)

	Mises Economics Blog: Mises at the AEA Meeting?
		The thoughts of Ludwig von Mises will not be completely absent from the American Economic Association's annual meeting this year.
		Besides a session on "Buchanan and Hayek on the Constitutional Order" where he may make an appearance, Edmund Phelps of Columbia University has a paper where he begins by discussing Mises's insight on the economic calculation problem.
		This statement is made even after discussing the dynamic nature of the market, the fundamental role of the entrepreneur, and the inevitability of uncertainty.
	blog.mises.org /archives/004529.asp (369 words)

	DLNET Learning Object (Site not responding. Last check: 2007-10-12)
		The main objective of this module is to describe the calculation procedures used in allocating demand among available units at minimum cost to the generation firm.
		To achieve this objective, first, the operational and functional structure in which the calculation is done is presented.
		The analytical and graphical solution procedures used to solve the economic dispatch problem are introduced finally.
	www.dlnet.vt.edu /ViewMetadata.jsp?DLOID=DLNET-11-17-2002-0135 (183 words)

	Work - Friedrich Hayek
		In The Road to Serfdom (1944) and subsequent works, Hayek claimed that socialism had a strong probability of leading towards totalitarianism, because, in his view, central planning could not be restricted to the economic sector and would eventually affect social life as well.
		Hayek also contended that in centrally-planned economies an individual or a group of individuals must determine the allocation of resources, but that planners will never have enough information to carry out this allocation reliably (see economic calculation problem).
		In The Use of Knowledge in Society (1945), Hayek claimed that the price mechanism serves to share and synchronize local and personal knowledge, allowing societys members to achieve diverse, complicated ends through a principle of spontaneous self-organization.
	mywebpage.netscape.com /Acacia1327/friedrich-hayek-work.html (229 words)

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