Socialism is a theory
of governance and or social order that revolves around the ideals that all
forms of the economic system, those being production, distribution, and
exchange, should all be owned by the community as a whole instead of in the
hands of private citizens or the government. The problem with this form of
governance that Ludwig von Mises sees is that due to the fact that the
community as a whole owns everything, then it is therefore impossible for a
socialist society to be able to calculate in any way the costs associated with
producing goods and services, and would due to this be completely incapable of
judging whether what they are doing is successful or not, and whether or not
they are wasting time and effort on producing some good one way when it would
in fact be more economic to produce them in another way, or to produce some
other good entirely instead.

            Interventionism is the theory of allowing private
property to exist, but the means of production that are employed by those
private owners are to be regulated and controlled by the government’s authority
and decrees, telling the people what they can and cannot do in order to produce
the goods and services that they provide. The problems that arise from this
form of governance, are that while in a normal functioning economy the costs of
production are covered by the revenues they make from selling their goods, but
if the government decides that the good is too expensive they can set an
arbitrary lower price which would then cause the revenues to no longer cover
the costs of production, leading to the goods being pulled from the market. In
order to rectify this the government would then have to pass another decree
forcing them to sell their goods at that lower price, which would then lead to
the business cutting or stopping the production of said goods, and in order to
fix that issue the government would then have to dip their hands into
everything and decree that the materials and supplies needed to craft the goods
also be sold at a lower price to make it affordable to produce the goods to be
sold to the general population at the lower price. Another issue that could
arise from government interference, as is being seen in some places in America
now, is that if the government, whether federal or state or local, decides to
interfere with the minimum wage rate by raising it above what is sustainable,
then it will force business owners to either shut down production of their
goods, or lay off workers due to not being able to make a profit due to the now
higher minimum wage, which increases the unemployment rate.

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            Capitalism is the economic system in which the majority
if not all of a country’s industry and trade are controlled by private citizens
in order to make a monetary gain, rather than controlled by the government. It
is argued that without capitalism, all of the technological advances that were
brought about due to the capitalist system would become unsustainable and fade
away into nothingness and that without these technologies to help produce goods
the population of the world would also be forced to shrink drastically. Having
the means of production be private property is what allows society to continue
to exist, and since everyone has need of society it is the only way of going
about business.

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