Capitalism versus Socialism: The Confusion of Knight, the Clarity of Mises

19 Pages Posted: 7 May 2024

See all articles by Peter J. Boettke

Peter J. Boettke

George Mason University - Department of Economics; Mercatus Center at George Mason University

Date Written: May 7, 2024

Abstract

Ludwig von Mises and Frank Knight were the two towering intellectual leaders in the mid 20th century of economic liberalism. As teachers and scholars they shaped the discourse on economic liberalism for the remainder of the 20th century and to this day continue to do so. They both made major contributions to methodology and economic theory. Despite their close affinity on several issues, they had fundamental disagreements. To highlight those I focus on their respective positions on the economic analysis of socialism. I argue that Mises’s analysis clarified the fundamental challenge that socialist economic theory would have to address, while Knight’s led to confusion of the fundamental challenges that a socialist economic system would face.

JEL Classification: B00; B25; P10; P20

Suggested Citation

Boettke, Peter J. and Boettke, Peter J., Capitalism versus Socialism: The Confusion of Knight, the Clarity of Mises (May 7, 2024). GMU Working Paper in Economics No. 24-19, Available at SSRN: https://ssrn.com/abstract=4819959 or http://dx.doi.org/10.2139/ssrn.4819959

Peter J. Boettke (Contact Author)

Mercatus Center at George Mason University ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States
703-993-1149 (Phone)
703-993-1133 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
259
Abstract Views
746
Rank
243,528
PlumX Metrics