Cooperation vs Coercion

Arthur: What is this punishment for? Answer me!

Ganis: He defied our master, Marius. Most of the food we grow is sent out by sea to be sold. He asked that we keep a little more for ourselves, that's all. My ass has been snappin' at the grass I'm so hungry!

--King Arthur

The two general choices for organizing economically are capitalism and socialism. In capitalism, property is privately held. Producers decide what to produce based on customer preferences. Society alleviates scarcity thru voluntary cooperation and exchange.

In socialism, property is held in state hands. Central planners decide what gets produced and who gets it. Society attempts to alleviate scarcity thru edict and violent coercion.

However, Mises long ago argued that, in reality, society does not choose between two economic systems for the long haul. This is because attempts to alleviate scarcity thru socialism inevitably fail. When peaceful exchange is crowded out in favor of forceful command, society inevitably disintegrates into chaos.