This is the Cato Daily Podcast for Friday, November 13th, 2015. I'm Caleb Brown.

Today we're giving you a taste of something different, a podcast from our friends at libertarianism.

org.

This is a sample from excursions pulled from the columns of George H. Smith.

In this episode, Smith discusses the marginal utility revolution in economic thought.

Ludwig von Meezes and economic calculation under socialism part one.

Ludwig von Meez socialism, part one. Ludwig Von Mises, 1881 to 1973, was a brilliant economist, a leading proponent of the Austrian

school of economics, but he was more.

He was an interdisciplinary thinker of remarkable breadth who was conversant in history, social theory, and philosophy.

His greatest book, Human Action, is a master of his life. theory and

throughout his greatest book, Human Action, is a masterful exposition of Praxiology, the science of human action,

and throughout his many other books, such as theory and history, the epistemological problems of economics, and the theory of money and credit, we see an original first-rate mind at work.

Meezes is perhaps best known for his early critique of socialism, which

convinced many economists, including a young socialist named Friedrich Heikhe, that rational

economic calculation is impossible in a socialist system.

Optimal economic coordination requires a free market in which prices transmit crucial information about the supply and demand of capital goods.

Mises drew on the Austrian theory of value to argue that socialism cannot solve the problem of

economic calculation.

Thus, before presenting the Ms.esian argument, I will present some relevant background information on this theory of value.

Central to all economic analysis is the concept of value.

In classical economics whose major exponents include Adam Smith, David Ricardo, and

John Stuart Mill, two kinds of value were often distinguished, namely the value in use and value in exchange.

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