ABSTRACT
In the following article (published in the “Economic Journal” in 1935) tried to show why the institutions of competition do not, and in my view cannot, lead to a wise direction of our economic life—or (putting the same proposition into technical jargon) why the optimal distribution of our resources, defined in the theory of value, does not result from openistic competition. If this negative proposition is accepted the problem of the next article then arises—how can the theory of value be applied within the institutions of a planned economy.
