Capitalism or Barbarism: The Austrian Critique of Socialism

Abstract

In recent years there has been renewed interest in the debate about the feasibility of socialism. This has been prompted by reflection on the experience of the economies of 'actually existing' socialist societies, but also by the challenge to social democratic policies and institutions in advanced capitalist economies which has come from the New Right. As evidence has accumulated about the inefficiencies and internal problems of the planned economies the idea of central planning has become discredited among socialists. Many socialists now advocate the use of markets and rejection of the 'utopian' elements in Marxism, especially the notion that a socialist economy can do without markets, without money, and without a specialised division of labour. Other socialists have questioned the importance of public ownership as a key objective, arguing that control over enterprises can be achieved in a variety of ways. Other socialists have pointed to the limited appeal of socialism to many workers and have questioned whether the working class has ever had an interest in replacing capitalism by socialism.