Economic Calculation in Light of Advances in Big Data and Artificial Intelligence

Karras J. Lambert and Tate Fegley

Journal of Economic Behavior & Organization, 2023, vol. 206, issue C, 243-250

Abstract: In his 1920 essay “Economic Calculation in the Socialist Commonwealth,” Ludwig von Mises argued that economic calculation is impossible in a socialist system absent private property and exchange in the means of production. Without the social appraisement process by which the actions of consumers and entrepreneurs produce a money price structure, the commensurate cardinal numbers necessary to engage in capital accounting are not available. We argue that any claims regarding how advances in computer technology can solve the problem of economic calculation are based on an insufficient understanding of Mises' original argument. We restate Mises’ argument in consideration of recent developments in big data and artificial intelligence and argue that Mises’ original argument concerning the impossibility of economic calculation absent the institutional prerequisites of private property and monetary exchange in goods of all orders remains unrefuted.

Keywords: artificial intelligence; big data; Cyber-Communism; economic calculation; Ludwig von Mises (search for similar items in EconPapers)
JEL-codes: B25 B53 P10 P22 P51 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:206:y:2023:i:c:p:243-250

DOI: 10.1016/j.jebo.2022.12.009

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