The Economy Is Not a Factory—Nor Should We Try to Make It One

Posted on February 10, 2020 11:14 am
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A common issue with economists and political economists from left to right is that they misunderstand the market economy as simply being a set of production processes.

We see this in Lenin’s statement that the Soviet Union should be run like one big factory. We see it in market socialists from Frederic Taylor to Oskar Lange attempting to respond to (and resolve) Mises’s argument that socialist economic calculation is impossible. And we see the same thing in the efficiency (and market failure) nonsense of Chicago school economists. The misconception is the same: that a working (and progressing)