Economic Calculation Problem: Capitalism vs Socialism Debunking Paul Cockshott

For those of you unaware of the argument on the Economic Calculation Problem, you can find my arguments explained in fuller detail in some of my other videos I have playlisted. William Paul Cockshott makes the argument 'Towards a New Socialism,' but this is just dishonesty, it's merely trying to bastardise the meaning of socialism and a core tenant of socialist central planning with that of the market.Show more

Paul Cockshott mentions numerous times in his argument about market demand, but as I've argued, socialism and its central planning has absolutely nothing to do with the market and the demand. When consumers drive production, this is capitalism. Even using his argument, I explain why destroying the information of price signals is destructive. It is very clear from Paul Cockshott's argument that he doesn't understand the role of prices and how important prices are for conveying the information of consumer demand.

I have provided a few Thomas Sowell examples that illustrate the role prices play regarding scarcity that contradicts the narrative of Paul Cockshott, as well as in relation to the economic calculation problem why without prices you're destined for disaster with the illustrative example of the hundreds of petrol stations dotted across the United States and the vast knowledge required for knowing where to allocate the fuel for such a vast ever changing market in demand.

Like every other socialist, they don't understand value is subjective, not objective and that value changes with time, as well as consumer demand. The linear thought process behind socialist thinking is that consumer demand is somehow fixed and knowable, it doesn't take into account who it is valuable to, in relation to what other given products, as well as time preference. Since value rapidly changes with time and demand isn't fixed, but fluctuates, it is why attempting to calculate is impossible.

The example of the petrol stations is a prime example for why Paul Cockshott's argument is irrational as the demand throughout each month persistently changes, and changes dramatically and sporadically in an unpredictable manner. For what one petrol station faces in demand one month, we have no way of knowing what the demand will be like following month and without the information of prices conveying to the market across hundreds, upon hundreds of petrol stations across the length and breadth of the country, it's impossible to determine what petrol station.needs what and at what given time. The only reason a central office in Texas would know such information is price signals.

Socialists like Paul Cockshott may sound intellectual to the economically illiterate, but in the real world of economics, you've never in world history seen socialism avoid the economic calculation problem, nor will you ever. You can tell socialists have no understanding of what the economic calculation problem actually is when they fail to comprehend the role prices play with regards to profits and losses.

The only way information of profits and losses can be determined in a market with vast array of options of produce is through consumer demand driving production indicating to the market what prices are. Price is a reflection of consumer demand, which explains why Paul Cockshott is ignorant of basic economics. If you do not hold the information of profits and losses, there is no "rational" calculation, because you've no information to tell you what consumer demand is.

Consumer demand isn't fixed, nor is it simplistic fixed as if society is a group. Demand is made up of individual consumers and preference, therefore, trying to plan for 65 million people in Britain alone is impossible as demand isn't fixed.

His video is pretty long, so I decided to cover the basis of the argument that refutes most of it. You can check out my other arguments on the economic calculation problem that explains fuller:

• Profits and Losses Explained:
https://www.youtube.com/watch?v=mVbbFVKWdhI

• Variety of Options Explained:
https://www.youtube.com/watch?v=bFoqXD_o6Wc

• Fuller Explanation of the Economic Calculation Problem:
https://www.youtube.com/watch?v=Zjzofn0qzQ4

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