The Microeconomic Efficiency Argument for Socialism Revisited

Abstract

Contemporary writers of comparative economic systems textbooks are under an almost ritualistic obligation to describe and analyze the market socialist model of Oskar Lange. It is an obligation, however, which is usually performed in a perfunctory, unenthusiastic, almost condescending manner.' One problem may be that the Langian scheme is only a theoretical blueprint as yet unrealized anywhere in the real world, while comparative systems as a field remains largely oriented to descriptive analysis of existing economic institutions. Furthermore, to some extent the negative verdict on the Langian market socialist model in particular merely reflects the negative verdict on the socialist idea in general, which is perhaps to be expected in textbooks intended for a mass market of U.S. undergraduates. Also, to some extent, the textbook judgment of Langian socialism parallels the overall professional judgment, namely, the plan is at best a mildly interesting theoretical construct, but one hardly meriting serious practical consideration. With respect to the details of the peculiarly Langian version of market socialism, I would tend to concur with this judgment. What is unfortunate, however, is that the majority of economists view Langian socialism as representing the sum total of the market socialist concept. In reality, Lan-