Re: [OPE] A Challenge to Marxian economics

From: Alejandro Agafonow (
Date: Thu May 29 2008 - 10:42:52 EDT

Kyn or, properly, Mises’ challenge was met far time ago by Market Socialism, just as Kyn suggests in the following quotation:
«Today [1968], therefore we can say that von Mises was wrong when he argued generally against socialism. His criticism was in fact just a criticism of one of several ways a socialist economy can be organized, namely of the centralistic model as we call it today.» (Kyn, 1968)
But not Langian Market Socialism. What most socialists overcome is that Lange’s model had the same handicaps of Communist central planning, since we didn’t have the appropriate technology until 1990’s. The model able to calculate was the Dickinson’s Market Socialism, since it allowed a market for factors of productions based on an appropriate management of the break of property and control in the principal-agent relationship. 
But what Kyn doesn’t seem to understand, is that Marxists Socialism doesn’t try to use modern technology to evade the scarcity of resources:
«But can the technological progress invalidate the arguments of Mises? […] If the factors of production are limited and the structure of the production process is too complex then it is impossible to find an optimal use of resources, that is the use that would respect consumers' preferences and maximize their well-being, without market mechanism. If this conclusion is right--and it seems that it is--then the technological progress could lead to the removal of market mechanism only if the resources would not be limited any more, or if it would not be necessary to respect the consumers' preferences.» (Kyn, 1968)
Modern technology is used to overcome the “triple objection Brutzkus-Halm-Pareto” that consists of:
1) Offer a feasible formula to correct central plan of production from real consumers’ preferences.
2) Offer another feasible formula to avoid that, goods priced only with their labour costs keep idle when the marginal sacrifice of labour tokens exceeds marginal utility gained by consumers or that, lines or waiting lists be formed to acquire scarce goods when marginal utility gained by consumers exceed marginal sacrifice of labour tokens.
3) To reach enough capacity of algebraic analysis to resolve the system of equation in the gigantic spreadsheet of the socialist economy, the input-output table.
A. Agafonow

----- Mensaje original ----
De: Gerald Levy <>
Para: Outline on Political Economy mailing list <>
Enviado: jueves, 29 de mayo, 2008 14:55:37
Asunto: [OPE] A Challenge to Marxian economics

Can we agree that Kyn's challenge has been met and answered?
In  solidarity, Jerry

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