Why did so many socialist economies fail?

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A neoliberal critic of capitalism such as Hayek would argue that socialist economies fail because they are based on the false notion that the government can have the kind of knowledge needed for planning the economy. In command economies, the government is responsible for the manufacture and allocation of goods based on what planners believe to be the people's needs. In other words, they take on the role which in a capitalist economy would be performed by the...

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