Wikipedia: Economic Calculation Problem

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The economic calculation problem is a criticism of socialist economics. It was first proposed by [Ludwig von Mises]? in 1920. Those who agree with this criticism claim it is a refutation of socialism, and that it shows why a socialist command economy could never work. They also believe that all attempts to refute this criticism have failed.

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1. Without private property in the means of production, there will be no market for the means of production;

2. Without a market for a means of production, there will be no monetary prices established for the means of production;

3. Without monetary prices, reflecting the relative scarcity of capital goods, economic decision makers will be unable to rationally calculate the alternative use of capital goods.

This argument served as a starting point for [F.A. Hayek's]? work on the use of knowledge in society.

#Without private property in the means of production, there will be no market for the means of production;
#Without a market for a means of production, there will be no monetary prices established for the means of production;
#Without monetary prices reflecting the relative scarcity of capital goods, economic decision makers will be unable to rationally calculate the alternative use of capital goods.

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This argument served as a starting point for F. A. Hayek's work on the use of knowledge in society.

The Argument goes as follows:

Without private property in the means of production, there will be no market for the means of production;
Without a market for a means of production, there will be no monetary prices established for the means of production;
Without monetary prices reflecting the relative scarcity of capital goods, economic decision makers will be unable to rationally calculate the alternative use of capital goods.

This argument served as a starting point for F. A. Hayek's work on the use of knowledge in society.