Question Everything

An Anarchist blog

Sunday, August 01, 2004

The Calculation Arguement, whether applied to central planning or libertarian communism, is circular: how do you know that money & the market measures the most efficient way to produce something? In order to determine that you need a way to measure how efficient production is and see if markets lead to maximum efficiency. A moneyless economy can simply use that measure of efficiency. How are you supposed to tell if a market economy is efficient or not if you can't measure it apart from money? Your measurement assumes your theory is correct. There is no possible way to test the theory. That's not economics, it's theology.

There's no reason to assume that market prices necessarily reflect the most efficient use of rescources & labor. How do you know that markets are more efficient than randomly selecting prices, or using astrology? It could be that capitalism causes companies to do things which aren't the most efficient use of rescources & labor but which generate the most profit for the company. Externalities are a classic example of this. Advertising is another. Of course some things are subjective - is more chairs worth destroying a beautiful forest? This is the case even in a capitalist economy, but decisions are aribtrarily stacked in favor of profit for the rich.

The problems with War Communism had little to do with the absence of money (which was never a real gift economy). See Russia: Revolution, Counter-Revolution

posted by Joe Licentia  # 8:53 PM
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