Conjuncted: Austrian Economics. Some Ruminations. Part 1.

Ludwig von Mises’ argument concerning the impossibility of economic calculation under socialism provides a hint as to what a historical specific theory of capital could look like. He argues that financial accounting based on business capital is an indispensable tool when it comes to the allocation and distribution of resources in the economy. Socialism, which has to do without private ownership of means of production and, therefore, also must sacrifice the concepts of (business) capital and financial accounting, cannot rationally appraise the value of the production factors. Without such an appraisal, production must necessarily result in chaos. 

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