Hayek was debunked even by Capitalists, that’s why the Austrian school is largely abandoned even among liberals. His ECP has several issues, of which I’ll elaborate on a few.
Hayek assumes a lack of incentives within Socialism/Communism. Even learning the basics of Socialism and Communism can debunk this, but Hayek makes it core to his arguments.
Hayek ties all sources of “rational economic decision making” to price signals, ie profit vs loss. This is similarly incorrect, you can have a demanded service without profit. Some examples include single payer Healthcare, high speed rail, and other free at point of service programs.
Hayek pretends command economies are functionally entirely different from market economies, which is also false. Amazon is entirely internally planned, and often relies on computer automation for planning. A Socialist system would have worker ownership of a larger Amazon.
Largely, you run into issues with corruption when people aren’t accountable. The issue is, in Capitalism, Capitalists are far less accountable than people in a Socialist system might be, as there’s a level of democratic control inherently within Socialism that is lacking in Capitalism.
Hayek was debunked even by Capitalists, that’s why the Austrian school is largely abandoned even among liberals. His ECP has several issues, of which I’ll elaborate on a few.
Hayek assumes a lack of incentives within Socialism/Communism. Even learning the basics of Socialism and Communism can debunk this, but Hayek makes it core to his arguments.
Hayek ties all sources of “rational economic decision making” to price signals, ie profit vs loss. This is similarly incorrect, you can have a demanded service without profit. Some examples include single payer Healthcare, high speed rail, and other free at point of service programs.
Hayek pretends command economies are functionally entirely different from market economies, which is also false. Amazon is entirely internally planned, and often relies on computer automation for planning. A Socialist system would have worker ownership of a larger Amazon.
Largely, you run into issues with corruption when people aren’t accountable. The issue is, in Capitalism, Capitalists are far less accountable than people in a Socialist system might be, as there’s a level of democratic control inherently within Socialism that is lacking in Capitalism.