CHAPTER 7. Socialism, economic calculation and entrepreneurship by Jesús Huerta de Soto. FINAL CONSIDERATIONS
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CHAPTER 7. Socialism, economic calculation and entrepreneurship by Jesús Huerta de Soto. FINAL CONSIDERATIONS
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The chapter seventh of the book “Socialism, Economic Calculation, and Entrepreneurship” by Jesús Huerta de Soto explores the historical debate on the possibility of rational economic calculation in a socialist system. It examines the work of several authors, including Oskar Lange, Evan Frank Mottram Durbin, Henry Douglas Dickinson, and Abba Ptachya Lerner, who proposed models of "market socialism." The text argues that these proposals, although initially appearing promising, are based on the assumption of information availability that is impossible in a socialist context. It emphasizes the importance of the role of the entrepreneur and free competition in generating dispersed and subjective information, which is crucial for rational economic calculation. The text concludes that "market socialism" is a contradiction in terms, as it attempts to combine market freedom with the suppression of private property, resulting in an inability to perform the necessary economic calculation.
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