In Mises’ book Socialism, he says:
The existence of a surrounding system of free pricing supports State and municipal undertakings to carry out technical improvements, because it is possible to observe the effects of similar improvements in similar private undertakings at home and abroad.
Without calculation, economic activity is impossible. Since under Socialism economic calculation is impossible, under Socialism there can be no economic activity in our sense of the word. In the absence of criteria of rationality, production could not be consciously economical. For some time possibly the accumulated tradition of thousands of years would preserve the art of economic administration from complete disintegration, however, changing conditions would make them irrational. They would become uneconomical as the result of changes brought about by the general decline of economic thought. The command of a supreme authority would govern the business of supply. The wheels would go round, but to no effect.
So Mises accepts that in a “mixed” economy, the state can kind of calculate because of the private market underpinnings. Mises’ argument against Socialism outright is very convincing, but given the whole world is in a “mixed economy” to different extents (US on one end, China on the other, and Europe in the middle), I haven’t found his sections on Interventionism as convincing.
Can anyone suggest any resources on this? For example, I’d be interested in a comparison between East Germany and West Germany (e.g. life expectancies, standard of living, etc.).
Thanks!