Why socialism can NEVER work?

In a socialist economy, the means of production are owned and controlled by the state or by the workers themselves. This means that there is no private ownership of resources or the means of production, and the market mechanism for determining prices is absent.

Without market prices, there is no way to allocate resources efficiently, since there is no means of comparing the value of different goods and services. This results in inefficient allocation of resources and an inability to calculate costs and benefits. In addition, there is no way to calculate the value of labor, making it difficult to determine fair wages for workers.

This all leads to shortages of some goods and excesses of others, inefficiencies, and a lack of innovation, as there is no incentive to improve efficiency or to develop new products.

There is no surprise that socialism ended up with 100+ million casualties.

Reply to this note

Please Login to reply.

Discussion

No replies yet.