Concentration of Resources in Capitalism

Monday, May 17, 2010

A common argument against Capitalism is that industry and wealthy individuals will inevitably concentrate. This was a primary argument of the inevitability of Socialism in the writings of Marx and Engels. In Chapters 22 through 26 of Ludwig von Mises' [Socialism](http://files.libertyfund.org/files/1060/Mises_0069_EBk_v5.pdf), written in 1922, as part of the broader Part III on "The Alleged Inevitability of Socialism," Mises argues that these theories-- the inevitable concentration of establishments, enterprises, and fortunes-- are expounded originally by Marx in Das Kapital, and Engels, later reinterpreted by Kautsky, and unsurprisingly Mises disagrees with them in these three component parts of concentration of establishments, enterprises and fortunes (this part of the book follows Part II which is what the book is most well known for in describing "the economic calculation problem" -- Mises is credited for being the first to describe why, in theory, purer forms of Socialism such as Bolshevist Russia would ultimately collapse economically).

A potential summary of the quotes: