Economic Calculation Problem Explained—Why Socialism Doesn't Work

The Economic Calculation Problem explained in this video will help you understand the reason why socialism doesn't work, why socialism fails. The problem socialists have a hard time understanding is because of their misunderstanding of the role of prices, again, this is something I touch upon in this video. The argument on the Economic Calculation Problem was made by Ludwig Von Mises in 1920 that dealt a heavy blow to socialism.

Note that this doesn't just apply to the problem of central planning, even although that is a big part of what defines socialism, it applies to socialists who theoretically believe in a moneyless based economy. Prices are, without doubt, the most important information required to operate an economy efficiently, without prices it leads to mayhem.

Once you understand prices, you will comprehend why socialism doesn't work. It's also worth noting that not only are socialist economies faced with this problem, but also mixed economies as it bears presence with socialism in the economy, such as; the British NHS or state-run education, etc.

I have also provided a clip from Kevin D. Williamson's book 'The Politically Incorrect Guide to Socialism: Part 3' which you can check out here: https://www.youtube.com/watch?v=eiET8qSkG4g&t=5s