5. A Copernican Shift

Mises’ socialist calculation argument reshaped the debate about socialism. It was not true that socialism could work and could use the same techniques as capitalism. The book Socialism had a decisive impact on Hayek and other rising economists.

Mises made four main claims in his book Socialism. They were: 1) the promises of socialism are empty because they are impossible, 2) there was no process of social evolution that led to socialism, 3) none of the ethical justifications stood up to rational scrutiny, and 4) socialism in general destroys capital, destroying civilization.

Mises also subtly created ten original contributions. Among them is attacking socialist common property, without using the phrase moral hazard.

Lecture 5 of 10 from The Life, Times, and Work of Ludwig von Mises, a George and Joele Eddy Seminar.