Trot On, Hayek!
Another little detour, away from both the recent starwarsing (which will be continued) and from the main line of all this Austriana. Once again, this is a long version of a section of the essay ‘No Law for the Lions and Many Laws for the Oxen is Liberty’, co-written by myself and Phil for his new book Neoreaction a Basilisk, which you – yes you! – can purchase for non-gold backed fiat currency. Buy a copy today – it’s the only rational calculation!
Ludwig von Mises – founder of the shittest cult of personality since selfhood itself was invented – famously declared, in an article published in 1920 which was subsequently developed into a book-style object, that socialism – by which he meant any society in which the means of production were commonly owned – was impossible, unworkable. The timing of publication was undoubtedly tied to the fact that, in 1920, it looked to most observers as if the infant Soviet Union was about to expire a mere three years or so after its birth. Mises was positioning himself, with gleeful anticipation, to be able to dance on the grave of the world’s first workers’ state, shouting “told you so!” Unfortunately for Mises, and for a lot of fascists, Trotsky existed.
Mises asserts that public ownership, because it abolishes the capital goods market, means that there can be no determination of prices for capital goods, and therefore no way to determine the relative values of primary resources, and therefore no way to allocate them efficiently and rationally. This claim is patently outrageous coming from people who are putting it forth as a way of championing capitalism, a system that has brought us to the point where the richest eight men on the planet own as much as the poorest 50% of the entire human race, and which is literally pushing the planet to the point where it will very soon be unable to support human life. But you always have to remember that, for people like this, the world of reckless short-termism and obscene inequality we live in is rational. Indeed, the entire Austrian project is devoted to the cause of proving that it is as close to a rational ordering of society as we can ever manage… which is why they had to devise an entire school of thought founded on the insolent rejection of evidence.
But let’s take it seriously for a moment. In simple terms, the argument – which, as will be clear, is derived directly from Austrian first principles – runs thus: to achieve a decent and sustainable standard of living, a society must be able to allocate its resources efficiently by making economic calculations. To do this you have to know what the ‘primary factors’ – the big, important resources that form the basis of all production, such as land, steel, and capital itself – are worth, and thus the best use to make of them. You derive this knowledge from prices assigned by the market.…