Abstract:

The Mises and Hayek’s critique of socialism in the economic calculation debate should also be considered as a critique of the mainstream economic model. Walrasian general equilibrium and perfect competition market models were used by socialist economists, Taylor and Lange, to show that socialism would be economically successful. Mises and Hayek’s critique of these two models could not be fully understood by both liberal and socialist economists. Therefore, a misconception prevailed that socialism would be at least as successful as the market economy. The recently developed methodological criticisms of the mainstream economics by the complexity economics have justified the arguments of Mises and particularly of Hayek. Thus, Mises and Hayek’s critiques that economic calculations are impossible in socialism have been put forward once again with complexity economics. As a result, socialist economists need to demonstrate that economic calculation in socialism is possible with new models that are not based on Walrasian general equilibrium and perfect competition market models.

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