How is one to set about the task of comparing capitalism and socialism in a systematic fashion? The contest between capitalism and socialism has many facets. It is both an intellectual debate about the relative merits of models of hypothetical social systems and a real and substantive historical struggle between two groups of states seen as representing capitalism and socialism. Perhaps the intellectual challenge to capitalism thrown down by Marxist thinkers and the “cold war” contest between the U.S.A. and U.S.S.R. (...) are such diverse phenomena that it is pointless and even misleading to try to treat them as part of a single problem. However, I believe that the dieoretical and historical aspects of the capitalism/socialism issue are directly related. I would argue that a full understanding of, say, the cold war is not possible without understanding the socialist critique of capitalism – and that a purely abstract comparison of capitalist and socialist models would fail to do justice to the historical and empirical essence of these two grand conceptual schemas. In Section I, I expand upon these arguments, seeking to convince Utopian socialists that they should not continue to rely upon invocations of a hypothetical future, but must come up with some empirical examples of what socialism is and how it works. After all, it is more than a hundred years since Marx and Engels railed against Utopian socialists in favor of socialist arguments based on empirical reality. This is not to say that Marx and Engels were crude empiricists, accepting “facts” at face value. (shrink)

PRIVATE ENTERPRISE IN EASTERN EUROPE: THE NON?AGRICULTURAL PRIVATE SECTOR IN POLAND AND THE GDR, 1945?83 by Anders Aslund. New York: St. Martin's Press, 1984. 320 pp., $29.95. COLLECTIVE FARMS WHICH WORK? by Nigel Swain. New York: Cambridge University Press, 1985. 320 pp., $39.50. LABOUR AND LEISURE IN THE SOVIET UNION: THE CONFLICT BETWEEN PUBLIC AND PRIVATE DECISION?MAKING IN A PLANNED ECONOMY by William Moskoff. New York: St. Martin's Press, 1984. 225 pp., $27.50. COERCION AND CONTROL IN COMMUNIST SOCIETY: THE VISIBLE (...) HAND OF BUREAUCRACY by M. Hirszowicz. New York: St. Martin's Press, 1985. 256 pp., $27.50. (shrink)

Peter Boettke's Why Perestroika Failed offers an overly mechanistic explanation for the collapse of the Soviet economy, derived from Mises's theory of the economic impossibility of socialism. Arguing that the economic system was doomed to fail does not explain why it fell precisely when it did. Thus, Boettke underestimates the extent to which elements of the Communist nomenklatura themselves came to realize that their interests could be served by ditching the command economy. Such an emphasis on the role of human (...) agents is surely compatible with a Hayekian approach. (shrink)