[[Friedrich Hayek]] and [[Ludwig von Mises]] were important critics of socialism, particularly regarding what is known as the Socialist Calculation Debate. Hayek and Mises argued that a socialist economy would face information constraints that would prevent even well intentioned planners from efficiently allocating resources. That is, the planners would not know how much a battleship or a hospital cost, and could not efficiently allocate resources among different choices. This criticism should be considered as compatible with, but independent of, criticisms based on [[Public choice theory]] that bring into consideration the incentives of political actors. | [[Friedrich Hayek]] and [[Ludwig von Mises]] were important critics of socialism, particularly regarding what is known as the Socialist Calculation Debate. Hayek and Mises argued that a socialist economy would face information constraints that would prevent even well intentioned planners from efficiently allocating resources. That is, the planners would not know how much a battleship or a hospital cost, and could not efficiently allocate resources among different choices. This criticism should be considered as compatible with, but independent of, criticisms based on [[Public choice theory]] that bring into consideration the incentives of political actors. |