Despite popular belief among the socialists, economists do not belong in a capitalists world only but also in a socialists society. This perception stems from the understanding that economic problems that affect the society as a whole have the same solution as those faced by a household. Economics as a discipline is misunderstood because the modern day world’s preoccupations with the problem of engineering character while it ignores the character of the economic program.
The main economic problem in both socialists and capitalist worlds is the distribution of scarce resources. Modern day professionals are under the illusion that if one determines the best method of production at the least cost, then they are solving the problem economically. In the real sense, a problem is solved economically if the solution is determined at market prices. Economic problems arise when two or more purposes compete for the accessible resources. The way out of this problem is not in any way conceived by a person consciously, thus, making it seem like they do not exist. The solution occurs in two parts: the first is the action of an individual which will influence the price but make an exceptionally small change, if any, on his choice; the other part is solved by the market mechanism.
The failure of the classical economists led to the downfall of economic science. Furthermore, it was undermined by the advent of the historical school of economics which postulated that laws of economics could only be applied as a natural science. Karl Marx concurred with this school of thought, and although he adopted some tools of the classical school of thought, he did not adopt the schools greatest highlight, which was competition.
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Socialism will come to an end when there is equal distribution of property among the haves and the have-nots; this implies collective control of these resources which is subject to abuse by the government. Marxism is the most widely accepted school of socialism, which provides for not only equity and collective control but also freedom of choice in consumption. Without centralized control of resources, planning would be made impossible. An efficient legal system is also essential if any system is going to be successful.
The world in which we live is in chaos, as we impose restrictions and adopt partial restrictions. This means that this world is neither a centralized society nor capitalistic.