Socialism, as argued by von Mises, could never work because "pricing systems in socialist economies were necessarily deficient because if government owned the means of production, then no prices could be obtained for capital goods as they were merely internal transfers of goods in a Socialist system and not "objects of exchange" (unlike final goods) - thus they were unpriced and hence the system would be necessarily inefficient."
There was later a critique of this argument, but von Hayek aptly defended Mises's argument.
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