The Economic Philosopher's Outcast: Mises
Mises' most remarkable argument for the free market came in his 1922 piece, "Socialism: an Economic and Sociological Analysis." In a Socialist state, there were no prices, essential to allocating resources. Prices signaled information simultaneously to both entrepreneurs and consumers. The centralized decision making over both production and consumption is impossible because of the complexity of an economy composed of hundreds millions of people and trillions of decisions every second. This insight gave Mises a greater appreciation of the value of a market economy, one that allows for the change of prices based on changes in supply and demand. The anticipation of future consumer demand impacts the output of entrepreneurs intent on meeting that demand in the future and thereby make a profit. This defense of limited government and the rights of all citizens made Professor Mises a threat to the ultimate central planners and explains why the Gestapo had sped to his home to arrest him.
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