The Size of the Social Unit Statism II

Wealth can only be brought into existence by an individual perceiving something as scarce that may satisfy unknown demands. The creation of wealth requires the individual. Statism must lead to impoverishment. There is no way around that. To improve your status under capitalism, you just satisfy the demands of your fellow man. To improve your status under statism, you must use political talents, such as demagoguery.

The means of production is highly, or totally, controlled by the state. This will make calculation more and more difficult, even impossible. There are no prices, or prices have been distorted to bid away resources. So, even if a clever individual knows how to build everything, that clever individual will be unable to determine what resources go where. No innovation happens since private property doesn’t exist or has a hampered existence.

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