[Liberals in Your Pocket] Ludwig v. Mises

“Socialism Is Impossible”

Ludwig von Mises (1881–1973)

- Born in Lemberg, Austria

- Doctor of Law, University of Vienna, 1906

- Adviser to the Austrian Chamber of Commerce, 1909

- Professor at the Graduate Institute of International Studies in Geneva, 1934

- Professor at New York University, 1945–1969

- Major works: *Socialism* (1922), *Liberalism* (1927), *The Anti-Capitalistic Mentality* (1956), among others

“In a socialist system, the supply and demand for the means of production are monopolized by state agencies, so money prices cannot be established objectively; and without money prices reflecting the relative scarcity of the means of production, rational economic calculation is impossible.”

— from *Socialism* —

Unlike capitalism, which guarantees broad participation by countless economic actors in the decision-making process, socialism posits a single indivisible will directing all production activities, thereby granting exclusive and monopolistic power to only one actor. According to Mises, the anti-capitalist mentality that leads people to resent capitalism stems from resentment and envy, as well as from a kind of mental illness he called the Fourier complex—an inability to accept life as it really is and a tendency to seek refuge in fantasy. People imagine that their unhappiness is caused not by their own mistakes or shortcomings but by capitalism, private property, competition, and the like, and they indulge in the delusion that if these were overturned and socialism established, their dreams would be fulfilled in a kingdom of perfect happiness.

Mises says that if humanity is to escape tragedies such as war and famine and find hope, liberalism is the only alternative, and because liberalism has never yet been fully realized, there remains much room to expand the principles of freedom further. And it is precisely in doing so, he argues, that true progress is achieved.

Mises also says that the penetration of socialism is still ongoing today, and because everyone’s interests depend on the outcome of this struggle, no one can flee from it by claiming indifference. To prevent the collapse of our society, he urges everyone to take an active part in this intellectual struggle against socialism in order to defend their own interests.

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Original title: [주머니 속의 자유주의자 ] 미제스(Ludwig v.Mises)

Author: Center for Free Enterprise (CFE)

Date: 2005-12-20

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=22&idx=10660