Socialism (Menger's critique)

Menger's critique of socialism centers on the idea that in a free market, individual ownership and entrepreneurial effort are key to efficient resource allocation. He argued that socialism's emphasis on collective ownership and central planning undermine these incentives, leading to inefficiencies and resource misallocation. Menger believed that voluntary exchange, driven by individual preferences, naturally guides economic activity more effectively than government-controlled systems. Ultimately, he viewed socialism as overlooking the importance of individual initiative and the spontaneous order created by private property rights, which are essential for a well-functioning economy.