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"Economic Calculation in the Socialist Commonwealth" is a seminal work by Ludwig von Mises, first published in 1920. In this book, Mises argues that the absence of private ownership of the means of production in a socialist economy inevitably leads to a lack of rational economic calculation, which in turn results in inefficiency, waste, and ultimately the breakdown of the economic system. Mises contends that without private property and market prices determined by supply and demand, socialist planners lack the necessary information to allocate resources efficiently. This inability to accurately assess costs and benefits leads to misallocation and a decline in overall prosperity.
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