5min chapter

The "What is Money?" Show cover image

The Psychology of Property | The Stephan Kinsella Series | Episode 4 (WiM235)

The "What is Money?" Show

CHAPTER

The Threefold Economic Consequences of Socialization

Hoppy: Socialized economy implies lowered investment, misallocation and overutilization. Owners of labor factors can no longer sell their labor services to the highest bidder,. separate bidders having independent control over specific complementary factors of production are no longer allowed to exist. The monetary cost of using a given labor factor cannot be established so all sorts of misallocations of labor will ensue. Caretakers have an increased incentive for supplementing their private income at the expense of losses in the capital value embodied in the labor or laborers.

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