I explain Mises' impossibility thesis of socialism, i.e. the economic calculation problem, and why it makes a "socialist economy" strictly impossible.Join th...
I think one of the main flaws of socialism and planned economies in general is not accounting for supply and demand. In a capitalist society, if you don’t want something, you don’t buy it, whereas under a planned economy you’re stuck with it because that’s what the state decided to make. Case in point the coffee shortages in east Germany when it was controlled by the soviets. The people were extremely unhappy to the point of rioting.
the coffee
As opposed to our famously robust capitalist economy which never has shortages and efficiently allocates resources to the most critical needs, of course.
Living in a country where when there's a global coffee shortage due to a poor harvest, the government blends in ersatz coffee to prevent price overruns and fill supply gaps, working to mitigate the issue over several years.
Living in a country where when there's the same global shortage the government lets coffee skyrocket to $20 per pound, accounting for inflation and then lets companies just keep that new pricing forever with inflation being the only thing that makes coffee appear to have gotten cheaper by the 1990s
The 1970s coffee shortage affected every country and the west just let coffee prices soar up to about $3.10 per pound in 1976 dollars, which then was passed on to consumers closer to $4/lb.
Yea capitalists meanwhile are great at predicting demand.
Like where does he think capitalists get the demand for a commodity from?
In a capitalist society, if you don’t want something, you don’t buy it, whereas under a planned economy you’re stuck with it because that’s what the state decided to make.
No one under socialism is required to buy anything either. What is their point?
well without homeless camps, how would I feel better about my own grim situation for the next decade before they automate my slightly more complicated job away too?
In a capitalist society, if you don’t want something, you don’t buy it, whereas under a planned economy you’re stuck with it because that’s what the state decided to make. Case in point the coffee
me in my night cap: This must be a mistake. This was supposed to be my sleepy time.
guy with an AK47: DRINK THE FUCKING ESPRESSO
As opposed to our famously robust capitalist economy which never has shortages and efficiently allocates resources to the most critical needs, of course.
The 1970s coffee shortage affected every country and the west just let coffee prices soar up to about $3.10 per pound in 1976 dollars, which then was passed on to consumers closer to $4/lb.
yeah, remember the socialists having that massive shortage in baby formula a few years ago? those idiots
Yea capitalists meanwhile are great at predicting demand.
Like where does he think capitalists get the demand for a commodity from?
No one under socialism is required to buy anything either. What is their point?
Microecon nerds live in a different universe.
Does he think that capitalist East Germany could have grown coffee? Is he just ignoring reality completely?
ah yeah, you can famously just not buy a car in the US if you dont want to, since it's a capitalist country.
the state would never build only car infrastructure, and so the people wouldnt be stuck with it.
but hey, at least you get homeless camps as far as the eye can see, so it's worth it.
well without homeless camps, how would I feel better about my own grim situation for the next decade before they automate my slightly more complicated job away too?
me in my night cap: This must be a mistake. This was supposed to be my sleepy time.
guy with an AK47: DRINK THE FUCKING ESPRESSO