Socialism: An Economic and Sociological Analysis

“Every scientific theory can be misused for political purpose; the politician does not need to construct a theory to support the aims he happens to pursue.’’Mises repeatedly asserts his conclusions, his explanation is ‘science’. And if science is confirmed by prediction and confirmation from history, events, then Mises’ book is science. In contrast, theory that’s invalidated by events, unable to provide confirmation from results is not science. Mises’ explanations have stood the test of time.Why then not accepted?“The human mind ripens slowly to the recognition of social interdependence. At first, society is so mysterious and incomprehensible a formation to man that, to grasp its origin and nature, he continues to assume a divine will guiding human destinies from outside long after he has renounced this concept in the natural sciences.’’This ‘mystery of society’ dominates modern thought. The ‘goal of human thought is explanation not proof’. Any explanation (no matter how foolish) chosen over continued confusion. Sun moves across sky, not rotating earth.“Kant's Nature, which leads humanity towards a special aim, Hegel's World Spirit, and the Darwinian Natural Selection are the last great expressions of this method.’’Mises correctly connects the philosophical ideas of Kant, Hegel and Darwin. ‘Natural selection’ assumes, as faith, that nature will seek progress, improvement. Why? When it’s just undirected random accidents? Why not (as experience shows) random action causes deterioration?“It remained for the liberal social philosophy to explain society through the actions of mankind without having to draw on metaphysics. It alone succeeds in interpreting the social function of private property. It is not content to accept the Just as a given category which cannot be analyzed, or to account for it by an inexplicable predilection for just conduct. It bases its conclusions on the considerations of the consequences of acts and from a valuation of these consequences.’’What has the evidence demonstrated? Where has society improved? Who has benefited from decisions? What are the consequences of different choices? This entire book presents the evidence, the results, the source of — destruction and construction.For example, inflation. The well known hyper inflation in interwar Germany well known. Hitler’s source of influence. I include here Mises writing in 1922 before that happened. He was proved correct . . .“Inflation is the last word in destructionism. The Bolshevists, with their inimitable gift for rationalizing their resentments and interpreting defeats as victories, have represented their financial policy as an effort to abolish Capitalism by destroying the institution of money. But although inflation does indeed destroy Capitalism, it does not do away with private property.”‘Inflation destroys capitalism’. “It effects great changes of fortune and income, it destroys the whole finely organized mechanism of production based on division of labour, it can cause a relapse into an economy without trade if the use of metal money or at least of barter trade is not maintained. But it cannot create anything, not even a socialist order of society. By destroying the basis of reckoning values — the possibility of calculating with a general denominator of prices which, for short periods at least, does not fluctuate too wildly — inflation shakes the system of calculations in terms of money, the most important aid to economic action which thought has evolved.’’‘Unable to determine cost’. Terrible results.“As long as it is kept within certain limits, inflation is an excellent psychological support of an economic policy which lives on the consumption of capital. In the usual, and indeed the only possible, kind of capitalist book-keeping, inflation creates an illusion of profit where in reality there are only losses. As people start off from the nominal sum of the erstwhile cost price, they allow too little for depreciation on fixed capital, and since they take into account the apparent increases in the value of circulating capital as if these increases were real increases of value, they show profits where accounts in a stable currency would reveal losses.’’So true. Price of real estate increases. Owners ecstatic. Complete lie. Value of old house reduces as repairs necessary. But, inflation hides this fact.“This is certainly not a means of abolishing the effects of an evil etatistic [state] policy, of war and revolution; it merely hides them from the eye of the multitude. People talk of profits, they think they are living in a period of economic progress, and finally they even applaud the wise policy which apparently makes everyone richer. But the moment inflation passes a certain point the picture changes. It begins to promote destructionism not merely indirectly by disguising the effects of destructionist policy; it becomes in itself one of the most important tools of destructionism. It leads everyone to consume his fortune; it discourages saving, and thereby prevents the formation of fresh capital. It encourages the confiscatory policy of taxation.’’Think Argentina, Africa, etc., etc..“The depreciation of money raises the monetary expression of commodity values and this, reacting on the book values of changes in capital — which the tax administration regard as increases in income and capital — becomes a new legal justification for confiscation of part of the owners' fortune. References to the apparently high profits which entrepreneurs can be shown to be making, on a calculation assuming that the value of money remains stable, offers an excellent means of stimulating popular frenzy. In this way, one can easily represent all entrepreneurial activity as profiteering, swindling, and parasitism. And the chaos which follows, the money system collapsing under the avalanche of continuous issues of additional notes, gives a favorable opportunity for completing the work of destruction. The destructionist policy of interventionism and Socialism has plunged the world into great misery. Politicians are helpless in the face of the crisis they have conjured up.’’Well . . . Notice Mises identifies this program as ‘destructionism’. Mises was correct then. Now?I include most of the table of contents. (Table of contents linked on kindle) This best way to show the detailed, comprehensive analysis Mises provides.Remember Mises spent decades debating with devout socialists in Vienna before writing this. Oscar Lange, Hayek, Bukharin, Max Weber, Hitler, Stalin, Karl Polayni, etc., etc., are here and some disputing with him in person!Plus, Mises has overwhelming knowledge, understanding of the entire range of socialist writing. From Plato to Marx, he grasps and explains their opinions clearly and respectfully before presenting his analysis. Increased my grasp of socialism’s strong appeal.In fact, Mises was not just professor after the war, but important government official, involved with important economic, financial decisions. Adds weight to his opinions.And of course, Mises spearheaded the development of the ‘Austrian economic school’. He knew Menger and Prince Rudolf (who killed himself over depression of visible disintegration).Fascinating!1 The success of socialist ideas2 The scientific analysis of Socialism3. Alternative modes of approach to the analysis of SocialismPART I- LIBERALISM AND SOCIALISMCHAPTER I — OWNERSHIP1 The nature of ownership2. Violence and contract4. Collective ownership of the means of production5. Theories of the evolution of propertyCHAPTER II — SOCIALISM1 The state and economic activity2. The ‘fundamental rights’ of socialist theory3. Collectivism and SocialismCHAPTER III — THE SOCIAL ORDER AND THE POLITICAL CONSTITUTION1 The policy of violence and the policy of contract2. The social function of democracy3. The ideal of equalityCHAPTER IV — THE SOCIAL ORDER AND THE FAMILY1 Socialism and the sexual problem2. Man and woman in the age of violence3. Marriage under the influence of the idea of contract4. The problems of married life5. Free love6. ProstitutionPART II - THE ECONOMICS OF A SOCIALIST COMMUNITYCHAPTER I — THE NATURE OF ECONOMIC ACTIVITY1 A contribution to the critique of the concept ‘economic activity’2. Rational action3. Economic calculationCHAPTER II — THE ORGANIZATION OF PRODUCTION UNDER SOCIALISM1 The socialization of the means of production2. Economic calculation in the socialist communityCHAPTER III — THE DISTRIBUTION OF INCOME1 The nature of distribution under Liberalism and SocialismCHAPTER IV — THE SOCIALIST COMMUNITY UNDER STATIONARY CONDITIONSCHAPTER V — THE POSITION OF THE INDIVIDUAL UNDER SOCIALISM1 Selection of personnel and choice of occupation2. Art and literature, science and journalism3. Personal libertyCHAPTER VI — SOCIALISM UNDER DYNAMIC CONDITIONSCHAPTER VII — THE IMPRACTICABILITY OF SOCIALISM1 The fundamental problems of a socialist economy under conditions of change2. Attempted solutions3. Capitalism the only solutionCHAPTER I — PARTICULAR FORMS OF SOCIALISM1 The nature of Socialism2. State Socialism3. Military Socialism4. Christian Socialism5. The planned economy6. Guild SocialismCHAPTER II — PSEUDO-SOCIALIST SYSTEMSPART IIITHE ALLEGED INEVITABILITY OF SOCIALISMCHAPTER I — SOCIALISTIC CHILIASM1 The origin of Chiliasm2. Chiliasm and social theoryCHAPTER II — SOCIETY1 The nature of society2. The division of labour as the principle of social development3. Organism any organization4. The individual and society5. The development of the division of labour6. Changes in the individual in society7. Social regression8. Private property and social evolutionCHAPTER III — CONFLICT AS A FACTOR IN SOCIAL EVOLUTION1 The cause of social evolution2. Darwinism3. Conflict and competition4. National war5. Racial warCHAPTER IV — THE CLASH OF CLASS INTERESTS AND THE CLASS WAR1. The concept of class and of class conflict2. Estates and classes3. Class war4. The forms of class war5. Class war as a factor in social evolution6. The theory of the class war and the interpretation of historyCHAPTER V — THE MATERIALIST CONCEPTION OF HISTORY1 Thought and being2. Science and Socialism3. The psychological presuppositions of Socialism      II. The Concentration of Capital and the Formation of Monopolies as preliminary Steps to SocialismCHAPTER I — THE PROBLEM1 The Marxian theory of concentration2. The theory of anti-monopolistic policyCHAPTER IV — THE CONCENTRATION OF FORTUNES3. The formation of fortunes within the market economy4. The theory of increasing povertyCHAPTER V — MONOPOLY AND ITS EFFECTSPART IV - SOCIALISM AS A MORAL IMPERATIVECHAPTER I — SOCIALISM AND ETHICS1 The socialist attitude to ethicsCHAPTER II — SOCIALISM AS AN EMANATION OF ASCETICISM1 The ascetic point of view2. Asceticism and SocialismCHAPTER III — CHRISTIANITY AND SOCIALISM1 Religion and social ethics2. The Gospels as a source of Christian ethics3. Primitive Christianity and society4. The canon law prohibition of interest5. Christianity and property6. Christian SocialismCHAPTER IV — ETHICAL SOCIALISM, ESPECIALLY THAT OF THE NEW CRITICISM1 The categorical imperative as a foundation for Socialism2. The duty of work as a foundation for Socialism3. The equality of incomes as an ethical postulate4. The ethical-aesthetic condemnation of the profit-motive5. The cultural achievements of CapitalismCHAPTER V — ECONOMIC DEMOCRACY1 The slogan ‘economic democracy’2. The consumer as the deciding factor in production3. Socialism as expression of the will of the majorityCHAPTER VI — CAPITALIST ETHICS1 Capitalist ethics and the impracticability of Socialism2. The alleged defects of capitalist ethicsPART V - DESTRUCTIONISMCHAPTER I — THE MOTIVE POWERS OF DESTRUCTIONISM1 The nature of destructionism2. Demagogy3. The destructionism of the literatiCHAPTER II — THE METHODS OF DESTRUCTIONISM1 The means of destructionism7. Taxation8. Inflation9. Marxism and destructionismCHAPTER III — OVERCOMING DESTRUCTIONISM2. Violence and authority3. The battle of ideasCONCLUSION: The Historical Significance of Modern Socialism1. Socialism in history2. The crisis of civilization EPILOGUE1 THE FAILURE OF INTERVENTIONISM2. THE DICTATORIAL, ANTI-DEMOCRATIC AND SOCIALIST CHARACTER OF INTERVENTIONISM3. SOCIALISM AND COMMUNISM4. RUSSIA'S AGGRESSIVENESS5. TROTSKY'S HERESY6. THE LIBERATION OF THE DEMONS7. FASCISM8. NAZISM9. THE TEACHINGS OF SOVIET EXPERIENCE10 THE ALLEGED INEVITABILITY OF SOCIALISMAnother fascinating highlight is Mises analysis of the religious background of socialism. His understanding of the distinction between biblical Judaism and Christianity and later changes, additions is surprising. For example . . .“Jesus was no social reformer. His teachings had no moral application to life on earth, and his instructions to the disciples only have a meaning in the light of their immediate aim — to await the Lord with girded loins and burning lamps, ‘that when he cometh and knocketh, they may straightaway open unto him’.’’Christians are to persuade each person individually, not change society.“It is just this that has enabled Christianity to make its triumphant progress through the world. Being neutral to any social system, it was able to traverse the centuries without being destroyed by the tremendous social revolutions which took place.’’Christian neutrality vital.“Only for this reason could it become the religion of Roman Emperors and Anglo-Saxon entrepreneurs, of African negroes and European Teutons, medieval feudal lords and modern industrial laborers.’’This basic doctrine, taken directly from the Bible, is not understood by even most devout Christians.Another connection to religion . . .“The first problem that arises is the appointment of the supreme authority. There are two ways to the solution of this problem, the oligarchical-monarchical and the democratic, but there can be only one solution — the charismatic solution. The supreme rulers (or ruler) are chosen in virtue of the grace with which they are endowed by divine dispensation. They have superhuman powers and capacities lifting them above the other mortals. To resist them is not only to resist the powers that be; it is to defy the commandments of the Deity. Such is the basis of theocracies — of clerical aristocracies or realms of ‘the Lord's anointed’.’’Now this is well known. But . . .“ . . . it is equally the basis of the Bolshevist dictatorship in Russia. Summoned by history to the performance of their sublime task, the Bolsheviks pose as the representatives of humanity, as the tools of necessity, as the consummators of the great scheme of things. Resistance to them is the greatest of all crimes. But against their adversaries they may resort to any expedients. It is the old aristocratic-theocratic idea in a new form. Democracy is the other method of solving the problem.’’Now what?“Democracy places everything in the hands of the majority. At its head is a ruler, or rulers, chosen by a majority decision. But the basis of this is as charismatic as any other. Only in this case grace is regarded as being granted in equal proportions to all and sundry. Everyone is endowed with it.’’Why religious?“The voice of the people is the voice of God.’’We see the devotion given to this arrangement. “According to charismatic theory, in appointing officials the supreme authority transmits to them the grace it possesses itself. An official appointment raises ordinary mortals above the level of the masses. They count for more than others. When on duty their status is especially enhanced. No doubt of their capacity, or of their fitness for office, is permissible. Office makes the man.’’Who can doubt it?Another surprising insight . . .“For our civilization the message of salvation of the Jewish prophets came to have a special importance. The Jewish Prophets promise no salvation in a better world beyond, they proclaim a Kingdom of God on Earth. ‘Behold, the days come, saith the Lord, that the plowman shall overtake the reaper, and the treader of grapes him that soweth the seed; and the mountains shall drop sweet wine, and all the hills shall melt.’”Both the Jewish and Christian doctrine contains this promise. Mises understood.“‘The wolf also shall dwell with the lamb, and the leopard shall lie down with the kid; and the calf and the young lion and the fatling together; and a little child shall lead them. And the cow and the bear shall feed, their young ones shall lie down together: and the lion shall eat straw like the ox. And the suckling child shall play on the hole of the asp, and the weaned child shall put his hand on the cockatrice's den. They shall not hurt or destroy in all my holy mountain, for the earth shall be full of the knowledge of the Lord, as the waters cover the sea’.”He explains that socialism just transferred this hope, promise from god to human politics. Of course, this is rejection of God’s Kingdom. Does explain one facet of the amazing influence of socialism.Search shows twenty-one times Mises cites the Kingdom of God. He views this as theme of the Bible. Amazing insight!This is an extensive, detailed, analytical work. I found it easier to listen to the audible version than read the text. However, I did return to the kindle to review some interesting sections.Reader needs serious interest in history, theory, extended reasoning and ability to concentrate. Not simple, nevertheless, not complex, obscure or pedantic. Written for the open minded, curious reader. Some background helps, but, this work introduces many fundamental ideas. Can be reviewed more than once. Closer to an interesting textbook than dull novel.Recommended!Work deserves ten stars!Hundreds and hundreds of references in notes (linked)Tremendous scholarship!Detailed index (linked)Great!No illustrations

This book, originally written in the Thirties, is a very important guide to "market-oriented" philosophy that long precedes Milton Friedman. Excellent for critique of fatal flaws of Marxism, not so great for inability to tolerate ANY social welfare overlays on market economy -- that is, beyond those he tolerates! Von Mises, probably more than any other writer, was the intellectual foundation for Ayn Rand's books, especially her (and Von Mises') insistence that the slightest modification of absolute free market is "socialism" and the road to hell. To the moderately sensitive reader, his doctrinal lack of feeling for those who, because they can't measure up, should "remove themselves," may be disqualifying. But it doesn't pop up that often and one shouldn't let it get in the way., On the whole he was a clear thinker and writer and an indispensable source for the libertarian side of current social debate.

This is a terrific book analyzing the ideas behind Socialism.Considering that - certainly in the United States - preference for Socialism is growing among young people, it should be obligatory that this text by von Mises is studied in an objective and unbiased fashion at any university and even at High Schools.This book is written between WWI and WWII and an appendix is added, which was written in 1947. Some will decide that for this reason alone the book is outdated, but it has never been more relevant than today, where Socialism is declared as desirable by candidates for president in USA, and the leader of the Labour Party in the UK is a declared Socialist who intends to implement socialistic ideas should he ever become Prime Minister.That von Mises analysis of Socialism came to fruition with the fall of Socialism in 1989 Soviet Union proves how cogent, accurate and profound this book is even today.This is a terrific book, which potentially can save the World from repeating mistakes made in the last century.The book is highly recommended.

Ludwig von Mises Socialism is a complete deconstruction from every angle of the whole idea of Socialism. What causes it, what types, and most of all how it is illogical and impracticible. The basic premise as to why socialist economy's break down is the inablity to calculate. Where there is no market there is no price system and no way to calculate future productivity. Mises explains that the only way that prior socialist countrys where able to stay alive was due to looking at the calculation of other markets! As he points out as Marx had said, Capitalism must exist before Socialism can exist.It is amazing when you read individuals like Mises and Hayek that you understand the brillance of there minds through how they write about the subject. The brillance of Mises can not be understated. Mises book "Socialism" is the book that saved Hayek from the noose of Socialism. At a time when Romantic Socialistic idealism was going around europe, there where a few knights still fighting and Mises was one. Hayek said about Mises "He could do a whole weeks work in 3 hours". Truly brillant. I loved how Mises also talkes about the types of socialism especially Christian Socialism! He talks about how the Church has played a great role in shapeing Socialism to the masses and also that the church used scripture to promote the ideal. Do yourself a great favor and get this book and Human Action by Mises. It takes you deep if your are a laymen to the subject but none the less there are 1,000's of gems in here. I challange the Socailist to try and rebutt this master peice. Good Luck.

Ludwig von Mises nailed it. The elements of Socialism are laid out for all to see. This is a “must read” book.

My god but I wish I'd read this as a young man! Not merely a brilliant critique of socialism but a beautifully robust defence of liberalism and civilisation.

Very good read debunks socialism in one easy read

As described. Perfect book quality and content 5*!

Der Autor weist in seinem Buch nach, dass der Sozialismus undurchführbar ist. Dazu werden alle Aspekte des Kapitalismus und Sozialismus untersucht, so auch Familienleben, Ethik / Moral, Recht, Politik und Religion. Da Marx' Theorien besonders auf Wirtschaftswissenschaften und Soziologie beruhen, werden diese entsprechend ausführlich behandelt.Sozialismus bedeutet die Verstaatlichung (Vergesellschaftung) der Produktionsmittel.Wirtschaftswissenschaften: Die Marktwirtschaft zwingt die Unternehmer über Gewinne und Verluste dazu, den Wünschen der Verbraucher zu gehorchen. Dazu sind Preise notwendig. Diese setzen wiederum Privateigentum voraus. Da es im Sozialismus kein Privateigentum an Produktionsmitteln gibt, kann es keine Preise und somit keine "Kalkulation" geben. Deshalb kann der Sozialismus langfristig nicht funktionieren (kurzfristig kann man die Preise der kapitalistischen Länder benutzen). Der Sozialismus ist grundsätzlich undurchführbar. Da alles der staatlichen Bürokratie untergeordnet wird, ist er zudem ineffizient (siehe auch Mises: "Bureaucracy" / "Die Bürokratie").Soziologie: Die Gesellschaft ist die friedliche Zusammenarbeit der Menschen mittels Arbeitsteilung; das ermöglicht auch über Staatsgrenzen hinweg Handelsgewinne. Der Staat muss nur für Recht und Ordnung sorgen. Krieg und Protektionismus schaden der Arbeitsteilung. Der Sozialismus erreicht über die Verstaatlichung der Produktionsmittel das gleiche Ziel. Das bedeutet, dass es eine sozialistische Gesellschaft nicht geben kann. Darüber hinaus erweist sich Marx' Konzept der Klassen als widersprüchlich. Klassen sind jedenfalls irrelevant und Klassenkämpfe gibt es nicht (es sei denn, wie werden von sozialistischen Parteien künstlich erzeugt oder entstehen durch vom Staat privilegierte Interessengruppen). In der Gesellschaft herrscht eine Harmonie der Interessen, welche der (klassische) Liberalismus bewahren möchte.Des Weiteren werden die Formen des Sozialismus (z. B. Gildensozialismus) und des Pseudosozialismus (u. a. Syndikalismus) definiert und bewertet.Der Autor zeigt, dass das Verhältnis der Kirche zu wirtschaftlichen Themen schwankt. Die Kirche konnte immer entsprechende Bibelstellen vorweisen. Nach Ansicht des Autors ist besonders das Neue Testament gegenüber wirtschaftlichen Angelegenheiten indifferent, da wegen des in Kürze beginnenden Himmlischen Königreichs eh alles egal ist (es wird ja demnächst neu und besser geschaffen). Der Marxismus wird mit einer Religion verglichen; schließlich habe der Prophet Marx das ewige Paradies auf Erden versprochen und Gegner würden analog zur Inquisition bekämpft. Statt neuer Forschungen würde nur auf Fundstellen in Marx' Heiliger Schrift verwiesen.Das letzte Kapitel handelt von den destruktiven Methoden der sozialistischen Parteien. Diese sollen den Kapitalismus in Krisen stürzen und damit dem Sozialismus den Weg bereiten. Dazu gehören u. a. Arbeitsrecht, Gewerkschaften, Sozialversicherung und Arbeitslosenversicherung. (Heute würde das auch die Mitbestimmung umfassen, weil diese ähnlich dem Gildensozialismus die Eigentumsrechte der Aktionäre untergräbt.) Diese Politik nützt weder den Arbeitnehmern insgesamt noch der Allgemeinheit. Gewerkschaften können z. B. nur die Löhne bestimmter Gruppen anheben, indem die Löhne anderer Gruppen sinken (oder Arbeitslosigkeit entsteht). Streiks werden folgerichtig als Bruch des Arbeitsvertrages dargestellt und deshalb abgelehnt.Der Epilog bietet eine historische Darstellung der sozialistischen Bewegungen (Bolschewismus, Faschismus, Nationalsozialismus). Dabei stellt sich heraus, dass die Begriffe "links" und "rechts" nur innerhalb des sozialistischen Lagers gültig sind und diese Bewegungen sich hauptsächlich dadurch unterscheiden, welche Klasse gegen welche kämpftMir hat das Buch sehr gut gefallen. Mises geht immer von dem aus, was Marx schreibt und zeigt dann auf, wie die korrekte wirtschaftswissenschaftliche, philosophische oder soziologische Position dazu aussieht. Der Untergang des Sozialismus wegen Ineffizienz und fehlender Kalkulation ist eingetreten und auch beim Sozialstaat langfristig unvermeidlich (dort gibt es eine Tendenz zum umfassenden Sozialismus). Studentenbewegung, Umweltbewegung, Grüne und "Neue Linke" traten erst nach Erscheinen des Buches auf und konnten deshalb nicht berücksichtigt werden (siehe z. B. Rand: "Capitalism the Unknown Ideal" oder Gärtner: "Öko-Nihilismus"). Im Grunde sind deren Aussagen jedoch nicht neu und längst durch Mises widerlegt worden, z. B: die so genannte "Wirtschaftsdemokratie".

One of the most important books in defence of liberty and economy’s freedom.