Elon Musk, the world's richest person, recently asserted that market prices are indispensable for an economy to function properly. In a post on X (formerly Twitter), the Tesla CEO wrote, “Prices are critical information without which an economy cannot function.” Musk’s comments emerged during an online discussion about socialist planning and the economic theories of Austrian economist Ludwig von Mises.
Background of the Discussion
An X account called Rothmus recently discussed von Mises’ 1920 paper, Economic Calculation in the Socialist Commonwealth. The post argued that socialist central planning could not work effectively because it lacked real market prices. “Mises showed that socialist central planning isn't merely inefficient, it's impossible,” the account wrote.
The discussion focused on the idea that without private property and market-based prices, governments cannot accurately decide how to distribute resources or measure costs and demand. The post also referenced economist Oskar Lange, who supported a form of “market socialism” where a central authority would adjust prices through trial and error.
Musk’s Response
Sharing the post on his timeline, Elon Musk replied, stating that prices are critical information without which an economy cannot function. While Musk did not elaborate further, his brief comment drew attention due to his growing influence in discussions around technology, business, and economic policy.
Previous Criticism of Socialism
Earlier this year, Musk shared a post on X criticizing socialists with his “eat the rich” remarks. He remarked that after socialists “eat the rich,” they will eventually face starvation, highlighting his belief in the inefficacy of wealth redistribution without sustainable economic growth. “The problem is that after they 'eat the rich', they will starve,” Musk said on X, responding to a post that read: “Capitalists: 'If you want to end poverty, create more wealth.' Socialists: 'If you want to end poverty, eat the wealth creators.'”
