The madness is really that there are still people who believe that scarce 
economic resources should be allocated purely according to their "labour 
content", rather than according to a credit-earning system based on criteria 
of what currently best meets human requirements in society.

Accounting is only a tool, to ensure that resources are economized in an 
effective and efficient manner, not itself a normative principle for 
resource allocation. Accounting becomes ideological, when it no longer 
records the real situation, but the relationship between the real situation 
and a normative principle.

Any system of resource allocation (reciprocation redistribution, 
market-exchanges...) to be efficient assumes that people will co-operate 
with it and work with it. They will cooperate only if they have an interest 
in doing so, or if they are forced to do so. But if they fail to transmit 
the correct information, then however ingeniously the planning technique is 
designed, and whatever the built-in safeguards against bureaucratic abuse, 
the allocation system fails.

The exceptional foolishness of many socialists is to insist that there can 
be only one allocative principle that rules all resource allocation in the 
economy, when this is not even true in capitalist society!

Jurriaan 


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