Socialism against markets? A critique of two recent proposals

Abstract

The debate over the feasibility of socialism has lasted for much of the twentieth century. This essay evaluates two important recent proposals for systems of socialist planning in which markets are given merely a marginal role. Beforehand, some of the key theoretical issues are placed in the context of the ‘socialist calculation debate’ that lasted from the 1920s to the 1940s. It is argued that the Austrian critics of centralist socialism rightly focused on questions of information and knowledge, and similar considerations also undermine the two recent proposals under review. However, a full appreciation of the role of learning in a knowledge-intensive economy also challenges some of the presuppositions of market individualism.