The Ultimate Aim of Socialism Was the “End of History” When Perfect Social Harmony Is Established

The ultimate aim of socialism, inspired by Marx, was the “end of history,” in which perfect social harmony would be permanently established. Social harmony was to be achieved by the abolition of exploitation, by the transcendence of alienation, and above all, by the transformation of society from the “kingdom of necessity” into the “kingdom of freedom.”

Collective ownership was not an end in itself. By rationalizing material production and thus advancing it beyond the bounds reachable under capitalism, collective ownership was to usher mankind into a post-scarcity world.

The writings of Marx and his followers thus include critiques of capitalism on the grounds that its production is “irrational,” that it tends towards increasing monopolization and the immiseration of a growing proportion of the populace, and that it produces a business cycle that makes it inherently unstable. Marx and other socialists thus sought to demonstrate the productive inferiority of the capitalist system relative to what socialism could achieve.

The socialist project to which Mises responded therefore proceeded in two interrelated stages. First, by rationalizing production, socialism would eliminate the waste inherent in capitalism owing to its “anarchy of production,” eliminate capitalism’s tendency towards greater monopolization, and do away with capitalism’s inevitable crises; all of this would bring about unprecedented increases in material wealth. Second, these productivity gains would usher in a post-scarcity era, which in turn would provide the material preconditions for lasting social harmony.

—Peter J. Boettke and Peter T. Leeson, “Still Impossible after all these Years: Reply to Caplan,” Critical Review: A Journal of Politics and Society 17, nos. 1-2 (2005): 156.