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Showing posts with the label calculation in kind

Calculation

Supporters of capitalism, especially the Von Mises school, may not be able to conceive of production without money and prices, but we socialists can. The definitive answer to the "economic calculation problem" is a (largely) self-regulating system of stock control in which calculations are made in kind rather than in terms of a common unit like money.

 A self-regulating system of stock control will permit producers in a socialist society (workplace councils, industry councils etc) to ascertain more or less immediately the availability of stocks of any particular item throughout the system; the communications technology to enable this to happen is already in place.

 Given this, their assertions that the "only practicable way to tell how 'abundant' B is, by comparison with A, is to look at the relative prices" is absurd.

 'Abundance' is a relationship between supply and demand, where the former exceeds the latter. In socialism a buffer o…