Central administrative command planning and the market system are incompatible due to (1) the ex ante versus ex post method of pricing in the two systems; (2) the antithetical relation of mandatory instructions and economic freedom; and (3) the inability of state capital to compete successfully with private capital. No in-between construct of a socialist market system is viable. It has to be either plan or market.
Get full access to this article
View all access options for this article.
References
1.
1. Socially necessary [ed.].
2.
2. Norms, targets [ed.].
3.
3. V. V. Novozhilov, Problems of Development of Socialist Economy (Moscow: Nauka, 1972), p. 292.
4.
4. B. D. Brutskus, “Problems of National Economy under Socialism,”Economist, 1922, nos. 1-3.
5.
5. Inputs [ed.].
6.
6. Planner-determined prices [ed.].
7.
7. Economic self-accounting [ed.].
8.
8. A. Menger, The Right to the Entire Produce of Labor (n.p., 1886), pp. 72, 73.