Source: Ludwig von Mises Institute
by Eduard Braun & Florian Follert
“While most mainstream economists focus on the analysis of equilibria, Austrian economists examine the phenomena that are crucial in real-world markets operating in disequilibrium. Two of the most central aspects are economic calculation and entrepreneurship. In this regard, the Austrian school of economics offers profound insights into both the dynamics and the stability of capitalist societies. One of Ludwig von Mises’s most significant contributions was his demonstration of the impossibility of socialism. He famously argued that without private ownership of the means of production, markets for these goods cannot exist, and thus, no prices can be established. As a result, a socialist central planning authority lacks the ability to gauge the relative scarcity of resources and allocate them efficiently across different societal needs.” (10/07/24)