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On Wed, 1 Mar 2000, Duncan K. Foley wrote:
> Why shouldn't a socialist economy establish by democratic
> political processes a social welfare function expressing its
> social priorities, and find and use the shadow prices that
> arise from maximizing this welfare function subject to
> resource availability constraints to allocate resources?
We have on occasion, on this list, batted back and forth the
Austrian critique of socialist economic ideas. This is one
point where I believe that von Mises had it right: one can't
draw up an a priori evaluation of all economic possibilities,
which is what I understand by a "social welfare function".
Duncan, if you have something different in mind, please tell.
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