"Earlier in this century, the Austrian economists demonstrated that socialist planning would fail. Ludwig von Mises and Friedrich von Hayek showed clearly and irrefutably that when private property was nationalized and market competition eliminated, economic irrationality would result. In a market economy, the way people convey information to each other about the products they wish to demand — and the value they place on the various resources that can be used in alternative ways to make those goods — is through the price system. But with the elimination of private property, people are no longer able legally to buy and sell; and with no free-market buying and selling, there can be no competitively formed market prices. And without market prices, the most well-intentioned planners are clueless about what goods people actually want or what are the least-cost methods of producing what the consuming public actually desires."
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