Editing Human Action (section)

=== Part Six: The Hampered Market Economy ===
'''Chapter 27''', "The Government and the Market", discusses the idea of a third economic system that is neither pure capitalism nor pure socialism.<ref>{{Cite web |title=The Idea of a Third System |url=https://mises.org/library/human-action-0/html/pp/864 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161147/https://mises.org/library/human-action-0/html/pp/864 |url-status=dead }}</ref> He explains that there are two patterns for the realization of socialism, the [[Vladimir Lenin|Lenin]]/[[Soviet Union|Russian]] pattern where all enterprises are nationalized, and the Hindenburg/German pattern where the appearance of a market is retained but [[Planned economy|all activity is directed by the central authority]].<ref>{{Cite web |title=The Intervention |url=https://mises.org/library/human-action-0/html/pp/865 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161647/https://mises.org/library/human-action-0/html/pp/865 |url-status=dead }}</ref> Mises argues that the purpose of government is to ensure the smooth operation of the market economy by enforcing [[property rights]]<ref>{{Cite web |title=The Delimitation of Governmental Functions |url=https://mises.org/library/human-action-0/html/pp/866 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161227/https://mises.org/library/human-action-0/html/pp/866 |url-status=dead }}</ref> and that direct government interference with consumption choices can be analyzed by economics.<ref>{{Cite web |title=Direct Government Interference with Consumption |url=https://mises.org/library/human-action-0/html/pp/869 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161539/https://mises.org/library/human-action-0/html/pp/869 |url-status=dead }}</ref> He also explains that the concept of "[[laissez-faire]]" does not mean doing nothing in the face of unsatisfactory social conditions, but rather it is about allowing individuals the [[freedom]] to plan their own lives versus granting all power to the government.<ref>{{Cite web |title=The Meaning of Laissez Faire |url=https://mises.org/library/human-action-0/html/pp/868 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161202/https://mises.org/library/human-action-0/html/pp/868 |url-status=dead }}</ref> Finally, Mises suggests that a voluntary system based on ethical or religious ideals could be a possible [[Social system|social arrangement]], but specific guidelines would be needed to ensure its success.<ref>{{Cite web |title=Righteousness as the Ultimate Standard of the Individual's Actions |url=https://mises.org/library/human-action-0/html/pp/867 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161622/https://mises.org/library/human-action-0/html/pp/867 |url-status=dead }}</ref>

'''Chapter 28''', "Interference by [[Tax]]ation", discusses taxation and its [[Causality|effects]] on the market. Mises argues that the goal of [[neutral taxation]], where prices are not disturbed by the system of taxation, is unachievable as every system of taxation will affect market prices to a greater or lesser extent.<ref>{{Cite web |title=The Neutral Tax |url=https://mises.org/library/human-action-0/html/pp/871 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161222/https://mises.org/library/human-action-0/html/pp/871 |url-status=dead }}</ref> The chapter also explores the concept of a total tax, where the government confiscates all income or wealth and redistributes it back to its subjects,<ref>{{Cite web |title=The Total Tax |url=https://mises.org/library/human-action-0/html/pp/872 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161230/https://mises.org/library/human-action-0/html/pp/872 |url-status=dead }}</ref> and the fiscal and nonfiscal objectives of taxation, which can sometimes be in conflict.<ref>{{Cite web |title=Fiscal and Nonfiscal Objectives of Taxation |url=https://mises.org/library/human-action-0/html/pp/873 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161214/https://mises.org/library/human-action-0/html/pp/873 |url-status=dead }}</ref> Finally, the various methods of taxation are classified into three groups, with the third class being a vehicle for the achievement of socialism, and will be discussed in later chapters.<ref>{{Cite web |title=The Three Classes of Tax Interventionism |url=https://mises.org/library/human-action-0/html/pp/874 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161155/https://mises.org/library/human-action-0/html/pp/874 |url-status=dead }}</ref>

'''Chapter 29''', "Restriction of Production", discusses government restrictions on the free market and their impact on production and consumption. Such restrictions inevitably make people poorer and alter the pattern of production.<ref>{{Cite web |title=The Nature of Restriction |url=https://mises.org/library/human-action-0/html/pp/876 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161142/https://mises.org/library/human-action-0/html/pp/876 |url-status=dead }}</ref> While it is possible that some restrictions may be justified if their benefits outweigh their costs, typically government restrictions fail to achieve their stated purpose, and are unjustified.<ref>{{Cite web |title=The Price of Restriction |url=https://mises.org/library/human-action-0/html/pp/877 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161158/https://mises.org/library/human-action-0/html/pp/877 |url-status=dead }}</ref> Despite making the entire nation poorer, each restriction can bestow benefits on a subset of the population, which makes it politically difficult to remove them.<ref name=":86">{{Cite web |title=Restriction as a Privilege |url=https://mises.org/library/human-action-0/html/pp/878 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161239/https://mises.org/library/human-action-0/html/pp/878 |url-status=dead }}</ref> Restrictions can also be used to shield domestic industries from the immediate consequences of regulations.<ref name=":86" /> It is possible that some restrictions may be justified, but they should be classified as quasi-[[Consumption (economics)|consumption]], not production.<ref name=":87">{{Cite web |title=Restriction as an Economic System |url=https://mises.org/library/human-action-0/html/pp/879 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161221/https://mises.org/library/human-action-0/html/pp/879 |url-status=dead }}</ref> Measures like maximum workweeks and other "prolabor" laws are part of a quasi-consumption program and do not raise standards of living.<ref name=":87" />

'''Chapter 30''', "Interference with the Structure of Prices", discusses government interference in the market and its effects. [[Price controls]], such as ceilings or floors, cause shortages or surpluses in the market and interfere with the [[Economic equilibrium|equilibrium between supply and demand]].<ref name=":88">{{Cite web |title=The Market's Reaction to Government Interference |url=https://mises.org/library/human-action-0/html/pp/882 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161148/https://mises.org/library/human-action-0/html/pp/882 |url-status=dead }}</ref> They also alter the structure of production, leading to the opposite effect of what was intended.<ref>{{Cite web |title=The Government and the Autonomy of the Market |url=https://mises.org/library/human-action-0/html/pp/881 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161517/https://mises.org/library/human-action-0/html/pp/881 |url-status=dead }}</ref> [[Minimum wage|Minimum wage rates]] and labor union violence also affect the market, as they raise wages for some workers, but reduce wages in other sectors.<ref name=":89">{{Cite web |title=Minimum Wage Rates |url=https://mises.org/library/human-action-0/html/pp/883 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161204/https://mises.org/library/human-action-0/html/pp/883 |url-status=dead }}</ref> Ultimately, the only way to raise wages is to increase capital per worker, which labor unions have historically opposed.<ref name=":89" /> Finally, the text presents a historical example of how price controls contributed to the [[Fall of the Western Roman Empire|decline of the Roman Empire]].<ref name=":88" />

'''Chapter 31''', "Currency and Credit Manipulation", discusses [[Monetary policy|government intervention in currency]],<ref name=":90">{{Cite web |title=The Government and the Currency |url=https://mises.org/library/human-action-0/html/pp/885 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161209/https://mises.org/library/human-action-0/html/pp/885 |url-status=dead }}</ref> including [[Legal tender|legal tender laws]]<ref name=":91">{{Cite web |title=The Interventionist Aspect of Legal Tender Legislation |url=https://mises.org/library/human-action-0/html/pp/886 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161157/https://mises.org/library/human-action-0/html/pp/886 |url-status=dead }}</ref> and [[Currency intervention|currency manipulation]].<ref name=":92">{{Cite web |title=The Evolution of Modern Methods of Currency Manipulation |url=https://mises.org/library/human-action-0/html/pp/887 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161526/https://mises.org/library/human-action-0/html/pp/887 |url-status=dead }}</ref> Governments historically certified the weight and fineness of coins used as money, but many abused this privilege by [[Methods of coin debasement|debasing the coins]] and forcing people to accept them as legitimate.<ref name=":90" /> The [[international gold standard]] emerged as a result of [[classical liberalism]], but governments sometimes used [[Legal tender|legal-tender laws]] to relieve the plight of debtors, which led to monetary inflation.<ref name=":91" /> This interventionism did not provide long-term relief for debtors and often resulted in higher gross interest rates and breakdowns in the credit system.<ref name=":91" /> Under a metallic currency, governments could not easily manipulate currency because attempts at debasement would lead to the effects described by [[Gresham's law]].<ref name=":92" /> The [[Gold Exchange Standard|gold-exchange standard]] gave governments more flexibility in inflating the money supply by weaning the public from its holding of actual gold in cash balances.<ref name=":92" /> Governments hoped that [[Devaluation|currency devaluation]] would achieve various objectives, such as reducing real wage rates, raising commodity prices, and encouraging exports, but these goals were often unsuccessful.<ref>{{Cite web |title=The Objectives of Currency Devaluation |url=https://mises.org/library/human-action-0/html/pp/888 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161152/https://mises.org/library/human-action-0/html/pp/888 |url-status=dead }}</ref>

Mises discusses credit expansion,<ref name=":93">{{Cite web |title=Credit Expansion |url=https://mises.org/library/human-action-0/html/pp/889 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161216/https://mises.org/library/human-action-0/html/pp/889 |url-status=dead }}</ref> which can occur even on an [[Free market|unhampered market]].<ref name=":93" /> Historically, banks maintained less than 100 percent reserves in the vault because most customers wouldn't show up at the same time wishing to withdraw their funds.<ref name=":93" /> However, in modern times, governments have seized control of the monetary and [[banking system]], and credit expansion is used for various ends, leading to the boom-bust cycle in modern economies.<ref name=":93" /> Socialists and [[Interventionism (politics)|interventionists]] blame recurring depressions on inherent failings of the market economy, but they don't recognize the role played by [[Monetary policy|government credit expansion]] during the boom. The government cannot alter the physical fact of the slump through borrowing money or creating additional quantities of [[Banknote|paper money]].<ref name=":93" />

[[Foreign exchange controls|Foreign exchange control]] and bilateral exchange agreements are also discussed.<ref name=":94">{{Cite web |title=Foreign Exchange Control and Bilateral Exchange Agreements |url=https://mises.org/library/human-action-0/html/pp/890 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161225/https://mises.org/library/human-action-0/html/pp/890 |url-status=dead }}</ref> A government may decree a maximum price for units of a foreign currency, which leads to a shortage of the foreign currency, blamed on speculators and an unfavorable [[Balance of trade|trade balance]]. The government can resort to makeshifts to ease the problem, but it cannot help the trade balance in the long run.<ref name=":94" /> The government can enforce the official, overvalued [[exchange rate]], while still permitting the return of the de facto market exchange rate, by subsidizing exporters and taxing importers, but this brings the economy closer to full-blown socialism.<ref name=":94" /> The government may resort to barter agreements with other nations to conceal the decline in the currency's purchasing power against gold or other currencies. [[Nazism|Nazi]] barter agreements with various foreign countries allowed governments to achieve their own political ends [[Discrimination|at the expense of members of their populations who were out of favor with the government]].<ref name=":94" />

'''Chapter 32''', "Confiscation and [[Redistribution of income and wealth|Redistribution]]", discusses the [[Suffering|negative consequences]] of confiscatory taxation, [[land reform]], and the philosophy of confiscation on economic growth and [[Economic efficiency|efficiency]].<ref name=":95">{{Cite web |title=The Philosophy of Confiscation |url=https://mises.org/library/human-action-0/html/pp/892 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161149/https://mises.org/library/human-action-0/html/pp/892 |url-status=dead }}</ref> Mises argues that [[Production (economics)|production]] and distribution are integrated under capitalism, and confiscation can lead to capital consumption and discourage producers from investing.<ref name=":95" /> It also highlights how interference with market outcomes, such as breaking up larger farms or imposing progressive income taxation, can reduce efficiency, hamper growth, and benefit a few unproductive farmers or the rich.<ref>{{Cite web |title=Land Reform |url=https://mises.org/library/human-action-0/html/pp/893 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161205/https://mises.org/library/human-action-0/html/pp/893 |url-status=dead }}</ref> Finally, it argues against the claim that confiscatory taxation reduces entrepreneurs' appetite for risk-taking, arguing that the harm lies in reducing incentives for capital accumulation and consumption.<ref>{{Cite web |title=Confiscatory Taxation |url=https://mises.org/library/human-action-0/html/pp/894 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161147/https://mises.org/library/human-action-0/html/pp/894 |url-status=dead }}</ref>

'''Chapter 33''', "[[Syndicalism]] and [[Corporatism|Corporativism]]", discusses syndicalism, [[guild socialism]], and corporatism. Syndicalism can refer to [[Revolutionary socialism|revolutionary tactics to achieve socialism]] or a method of economic organization that aims to [[Cooperative|give workers ownership over their plants and equipment]].<ref>{{Cite web |title=The Syndicalist Idea |url=https://mises.org/library/human-action-0/html/pp/897 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161236/https://mises.org/library/human-action-0/html/pp/897 |url-status=dead }}</ref> However, the root of the syndicalist idea is the mistaken belief that entrepreneurs and capitalists are [[Analogy|analogous]] to kings and aristocrats.<ref>{{Cite web |title=The Fallacies of Syndicalism |url=https://mises.org/library/human-action-0/html/pp/898 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161152/https://mises.org/library/human-action-0/html/pp/898 |url-status=dead }}</ref> Syndicalist policies grant [[Privilege (law)|privileges]] to a minority of workers that result in a [[Poverty|lower standard of living]] for the immense majority.<ref>{{Cite web |title=Syndicalist Elements in Popular Policies |url=https://mises.org/library/human-action-0/html/pp/899 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161455/https://mises.org/library/human-action-0/html/pp/899 |url-status=dead }}</ref> [[Guild socialism]] and corporatism aim to form [[Monopoly|monopolistic]] bodies where each branch of business has full autonomy to determine internal affairs.<ref name=":96">{{Cite web |title=Guild Socialism and Corporativism |url=https://mises.org/library/human-action-0/html/pp/900 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224193505/https://mises.org/library/human-action-0/html/pp/900 |url-status=dead }}</ref> However, the essential flaw in this scheme is that entire branches of production cannot be "autonomous" under the division of labor. In [[Real life|practice]], guild socialism will revert to outright socialism.<ref name=":96" />

'''Chapter 34''', "The [[War economy|Economics of War]]", discusses the relationship between war and the market economy. Mises argues that the market economy relies on peaceful cooperation, while war involves total conflict.<ref name=":97">{{Cite web |title=Total War |url=https://mises.org/library/human-action-0/html/pp/904 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161159/https://mises.org/library/human-action-0/html/pp/904 |url-status=dead }}</ref> Before the [[French Revolution]], wars in Europe were generally limited and waged by professional soldiers, but modern states engage in [[total war]] due to [[Interventionism (politics)|interventionism]] and [[Planned economy|central planning]].<ref name=":97" /> Mises contends that only [[Economic liberalism|liberal policies]], not treaties or [[international organization]]s, can ensure [[Perpetual Peace: A Philosophical Sketch|lasting peace]].<ref name=":97" /> During [[war]]time, the government must divert resources from consumer goods to [[military production]], and entrepreneurs are best equipped to handle this switch if they are allowed to earn [[Profit (economics)|profits]].<ref name=":98">{{Cite web |title=War and the Market Economy |url=https://mises.org/library/human-action-0/html/pp/905 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224163227/https://mises.org/library/human-action-0/html/pp/905 |url-status=dead }}</ref> However, the government's attempt to maintain workers' real take-home pay during [[World War II]] led to market intervention, including [[rationing]] schemes and [[price controls]].<ref name=":98" /> Mises argues that [[autarky]] (self-sufficiency) is not a viable solution to war since it produces inferior goods and higher production costs.<ref>{{Cite web |title=War and Autarky |url=https://mises.org/library/human-action-0/html/pp/906 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 3, 2017 |archive-url=https://web.archive.org/web/20170203213817/https://mises.org/library/human-action-0/html/pp/906 |url-status=dead }}</ref> Ultimately, Mises believes that interventionism generates economic nationalism and bellicosity, and only laissez-faire policies can lead to durable peace.<ref>{{Cite web |title=The Futility of War |url=https://mises.org/library/human-action-0/html/pp/907 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161146/https://mises.org/library/human-action-0/html/pp/907 |url-status=dead }}</ref>

'''Chapter 35''', "The Welfare Principle Versus the Market Principle", provides a response to three [[criticism]]s against the [[market economy]]:<ref>{{Cite web |title=The Case Against the Market Economy |url=https://mises.org/library/human-action-0/html/pp/909 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161146/https://mises.org/library/human-action-0/html/pp/909 |url-status=dead }}</ref> poverty,<ref name=":99">{{Cite web |title=Poverty |url=https://mises.org/library/human-action-0/html/pp/910 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161206/https://mises.org/library/human-action-0/html/pp/910 |url-status=dead }}</ref> [[Economic inequality|inequality]],<ref name=":100">{{Cite web |title=Inequality |url=https://mises.org/library/human-action-0/html/pp/911 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161240/https://mises.org/library/human-action-0/html/pp/911 |url-status=dead }}</ref> and [[Economic insecurity|insecurity]].<ref name=":101">{{Cite web |title=Insecurity |url=https://mises.org/library/human-action-0/html/pp/912 |access-date=2023-02-24 |website=Mises Institute |language=en}}</ref> Regarding poverty, Mises argues that capitalism and the rise of industry have allowed for more people to work and support themselves, while interventionism has hindered private charitable efforts.<ref name=":99" /> Inequality in incomes and wealth is an inherent feature of the market economy, and the only path to rising standards of living is through the continual increase in capital per capita.<ref name=":100" /> Finally, capitalism does give rise to [[Economic insecurity|income and wealth insecurity]],<ref name=":101" /> but this is not the fault of capitalists but of [[consumer]]s who each day [[Consumption (economics)|seek the products and services that best satisfy their wants at the lowest prices]].<ref name=":101" /> The modern welfare theorists are superior to older schools of reformers because they acknowledge that the only metric for a social system is their ability to allow men to achieve their ends.<ref>{{Cite web |title=Social Justice |url=https://mises.org/library/human-action-0/html/pp/913 |access-date=2023-02-24 |website=Mises Institute |language=en}}</ref>

'''Chapter 36''', "The Crisis of Interventionism", argues that interventionism has led to negative consequences such as world wars, depressions, famines, and civil wars, but these have been wrongly blamed on capitalism.<ref name=":102">{{Cite web |title=The Harvest of Interventionism |url=https://mises.org/library/human-action-0/html/pp/915 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161146/https://mises.org/library/human-action-0/html/pp/915 |url-status=dead }}</ref> Interventionism has now reached its end as it has exhausted its potentialities.<ref name=":102" /> The reserve fund, which is the wealth of the rich and the incomes of entrepreneurs, has been drained to pay for lavish benefits and spending on the working classes.<ref>{{Cite web |title=The Exhaustion of the Reserve Fund |url=https://mises.org/library/human-action-0/html/pp/916 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161218/https://mises.org/library/human-action-0/html/pp/916 |url-status=dead }}</ref> The three reasons why interventionism must come to an end are that restrictive measures cannot constitute a system of production, intervention in the market fails to achieve its ends and aims at seizing the surplus from one group and giving it to another, and once the surplus is gone, interventionism must end.<ref name=":103">{{Cite web |title=The End of Interventionism |url=https://mises.org/library/human-action-0/html/pp/917 |access-date=2023-02-24 |website=Mises Institute |language=en |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224161212/https://mises.org/library/human-action-0/html/pp/917 |url-status=dead }}</ref> Even though most European countries have adopted socialism, they can still rely on the market prices generated in capitalist countries.<ref name=":103" /> People must choose between socialism and the market economy as there is no stable middle-of-the-road position, and if [[Economic calculation problem|economic calculation becomes impossible due to the adoption of socialism]], the result would be chaos and the disintegration of social cooperation.<ref name=":103" />