Freedom, Society, and State - Ludwig von Mises Institute

may c h 00 s e; the fa c t r ema ins t hat the mo resa tis fa c tori
ly .one produces what the others desire, the more money
he will earn and hence the better able he will be to
pursue his own goals, whatever they may be. But, in
the absence of the price system the coordination of
individual actions cannot be spontaneously generated.
Rather, it requires conscious coordination and control.
T his, howe v e r, c rea t esad i I amma for collec t i vis t
a n arc his m • Sin ceo u t put s are rna t e ria I Iyin t e r depen ­
den t, not on I y mus t product ion quotas be set for each
i n d u s try insuc h a wa y as to coo r dinate the 0 u t put s 0 f
all industr ies wi th one another, but all resources,
including labor, must be allocated so as to enable each
industry to attain its particular production quota. If
i tis dec ide d by the C en t ralP1ann i n g Boa r d t hat the
expansion of production in branch A would be desirable,
res 0 u r c e s mu s t bet ran s fer red to i t from some 0 the r
branch or branches. On the market this would be done
by means of the pr ice system. If there is a need for
expansion in one area, prices for the respective factor
s, inc Iud i n g 1abor, wo u 1d r i s e in 0 r de r t a a t t r act
them into that area. But in the absence of the price
system the transfer requires conscious direction. Ind
i v i d u a Ism u s t betran s fer red from bra n c h B, wh i chi s
considered economically less desirable to the more
economically desirable branch A. A crucial problem
a r i s e s i f we ask what wi I I bet h e pol icy 0 f the n c omm un
i tyn if the individuals who must be transferred balk?
There are only two alternatives: [1] coerce them, or
[2] allow them to go their own way. If the former is
adopted, then clearly the state has not been abolished,
for coercion is being initiated against individuals who
themselves have not coerced anyone. But if the second
alternative is adopted, the production quota of branch
A wi II not be met. This, in turn, means that the industries
dependent upon the output of A will, likewise,
be una b let 0 me e t the i r pro d u c t ion quo t as, etc., in
ever widening circles.
Since plan attainment requires that resources be
.allocated in the correct proportions, any spontaneous
act ion wi II prevent the anticipated outputs from being
attained. Plan fulfillment is therefore contingent
u p 0 n e i the r [1] eve r yon e vol u n tar i 1 Y f 0 I 1ow i n g the
directives of the planning authority, or [2] investing
the CPB with an apparatus of compulsion and coercion.
Kropotkin envisions the anarchist commune as consisting
of several million people. But in such a society voluntary
acquiesence is highly improbable. As Hayek
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