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133 of 148 people found the following review helpful:
5.0 out of 5 stars
Epochal Work, May 2, 2000
This work is an absolute masterpiece. Originally published in 1922, this work features von Mises at his best. He completely demolishes socialism from almost every angle concievable. He demonstrates that socialism cannot function rationally, period. The primary contribution that this work is cited for, is of course the proof of the theory that economic calculation is impossible under socialism. Building on this fact, as well as many other important insights, socialism is shown to be little more than a chimera with virtually no scientific backing whatsoever. Quite nearly every major form or variant of socialism is critiqued, from marxism to Christian socialism, and even syndicalism. In each case, the conclusion is the same, i.e. socialism destroys society and civilization and replaces it with slavery, chaos, and poverty. Indeed, Mises correctly identifies socialism as a fundamentally destructive, purely anti-social force. In sharp contrast to this is the capitalist form of society based upon the principles of (classical) liberalism. Throughout the work, Mises refutes widespread misconceptions, myths and anti-capitalist dogmas associated with the market economy. At all times it is made clear that it is only capitalism that can sustain and advance the needs of individuals and their civilization. The importance of this work is difficult to overestimate. It is without a doubt, one of the greatest works of the last century, if not of all time. Even now, after almost eight decades in print, his principles stand unrefuted, even as we continue to slip down the slope toward complete state slavery. The fact that the message of his work has not eliminated the evils that he exposed takes nothing away from his achievement. As long as there are a few individuals remaining in whom the spirit of liberty remains strong, this work will continue to shine as a profound monument to the intellectual potential of man, and the superiority of capitalism.
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50 of 53 people found the following review helpful:
5.0 out of 5 stars
A Towering Intellectual Achievement, April 26, 2006
October 25th 1917- The Bolsheviks stage a coupe in Petrograd and overthrow the Kerensky regime. For the first time ever Marxists seize control of a major nation. It will be several years before the Bolsheviks overwhelm their opponents within Russia. However, one question demands an answer. Will it work? Can socialism at least match the results of capitalism? The full answer to this question came in 1922- the year that Mises published Socialism, an Economic and Sociological Analysis. Here Mises proved that socialism must fail.
Why must socialism fail? The simple answer is because it lacks private ownership and a market for the means of production. As Mises put it "where there is no market there is no price system, and where there is no price system there can be no economic calculation". The full answer has several parts. First, economic calculation requires functioning financial markets. Second, economic calculation requires actual rivalry in markets. Third, economic calculation requires entrepreneurial alertness to profit opportunities. With these three elements in place monetary calculation of private profit reflects true economic costs. As Mises put it economic calculation "is essentially a matter for the capitalists- the capitalists who buy and sell stocks and shares, who make loans and recover them, who make deposits in the banks and draw them out of the banks again, who speculate in all kinds of commodities". Perpetually changing economic conditions mean that- "it is above all necessary that capital should be withdrawn from particular lines of production, from particular undertakings and concerns and should be applied in other lines of production, in other undertakings and concerns". Speculation in financial markets directs resources to the most urgent consumer demands because the most profitable ventures satisfy consumer demand at the least economic cost. Socialism fails because it lacks speculation that takes place only with entrepreneurial rivalry and exchange in financial markets.
The issue of economic calculation is economic, but Mises also inquired into the political and psychological reasons behind the socialist movement. He also discusses historical and cultural issues. Socialism is a full-scale treatise, comparable to Smith's Wealth of Nations. Some might think that a book from 1922 might have lost its relevance, but this is untrue. Mises explained principles that are as valid today as they were originally. In fact, Socialism is more relevant today than many recent books on economics. This is because Mises dealt with the real life problems of a dynamic economy, while much of modern economics focuses on static models that apply only to imaginary economic conditions.
Socialism is not only Mises' best book; it is one of the greatest works ever written on social theory. Mises addressed vital issues with penetrating analysis and delivered profound results. All those who are serious about political economy should read this book, but only after having read Menger's Principles of Economics, and before reading Hayek's Road to Serfdom. Those who are less ambitious should read a shorter book by Mises- Liberalism in the Classical Tradition. In any case, Socialism is a towering intellectual achievement. Were its arguments more widely understood many of the tragedies of 20th century state socialism might have been avoided. This book remains important today because it explains why we live in an age of unprecedented prosperity, and how we can achieve further progress. To put it simply Socialism is as indispensable to intellectual development as property rights are to economic development.
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45 of 51 people found the following review helpful:
5.0 out of 5 stars
A classic tour-de-force by an economics genius..., September 22, 2000
A thorough analysis and brilliant refutation of socialism and the politics of redistribution. This book confront the many myths surrounding socialism that are stilled echoed today. It is so concise, straight-forward and covers all the bases in a simple, yet powerful text. Also, this book confronts all the so called "Third Way" positionists advocating social justice, a mixed economy, a corporatist state, fascism, syndicalism and other dubiously named contrivances that are essentially socialist forms of economic organization. Mises makes it clear that socialism, the so called economic system of the future, is anti-social and incompatible with human nature. As Mises declares, "Men must choose between capitalism and socialism," which is simply because, "If the the market is not allowed to steer the whole economic apparatus, the government must do it." There is no Third Way, how true! The debate lies between free-markets and socialism -and this book makes it clear socialism is illogical. This book might be helpful at deprogramming a quasi-socialist by exposing and refuting all the major myths. If you're getting a start on studying classical economics than get this book. The Law by Frederic Bastiat and Economics in One Lesson by Henry Hazlitt is also recommended.
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