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The state operates economy. In Hong Kong, for example, the British authorities
Very little interfere in economic affairs of the population, and this small
Island, without having natural resources, in a status to support millions inhabitants.
The history results to us "laboratory" experiment with East and Western
Germany. After the Second World War termination Germany it was necessary
To build up anew. East Germany was in the power of communistic
Boards whereas Western coped those who followed councils
Economists-market experts, also have established rather free economic
System. The West German productivity after the Second World War
Have named "economic miracle". In east Germany there was no personal liberty, and
- it the centralised planned economy, though and subsidised with Soviet Union,
Eventually has come to crash in 1989 together with many other things
Socialist economic systems.
Centralised planning inevitably fails
From the end of XIX century until recently the majority of intellectuals and set
Others the socialism or communism as considered "a future wave". One of
Giants of the theory of market economy, Ludwig the background of Mizes, in 1922 has published
The book, entitled "Socialism" in which it has shown, why
The centralised planned economy cannot succeed. Without presence
Planning there is nothing to be guided. They cannot know for certain, where
To develop manufacture and how to distribute resources, and also to understand, are good or
Their decisions were bad. There is no also the competitive discipline inducing
Heads of the enterprises to manufacture of what wanted by consumers. Is not present and
Personal interest of workers which receive the same payment, as though
They worked. It and to other critics of a socialism in 1922 and in the subsequent
Years not enough attention, while, at last, wreck socialist was given
Economy of the former Soviet block has not proved their case.
Today doctrines about socialist economy do not enjoy confidence. All,
Except representatives of several versions of the left ideology, recognise
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