Socialism—The Tragedy of an Idea

1. Front Matter

   Pages i-xiii

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2. Introduction

   • Lajos Bokros

   Pages 1-24

3. Is Socialism Possible?

   • Lajos Bokros

   Pages 25-66

4. Is Socialism Inevitable?

   • Lajos Bokros

   Pages 67-88

5. Is Socialism Desirable?

   • Lajos Bokros

   Pages 89-148

6. Concluding Remarks: Historicism Leads to Dictatorship

   • Lajos Bokros

   Pages 149-158

7. Back Matter

   Pages 159-164

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This book explores the idea of socialism from three angles and raises the questions if socialism is possible, inevitable, and desirable. Socialism as an economic and societal system was possible based on the two most important pillars of Marxian political economy: State ownership in the means of production and mandatory central planning (command economy). Nevertheless, these two characteristics are compatible only with dictatorship. On this basis, socialism is neither inevitable nor desirable, because it excludes competition, freedom, democracy, and the rule of law.


The three questions are analyzed through the academic work of five towering figures: Joseph A. Schumpeter, Karl Polanyi, Friedrich A. Hayek, Karl Popper, and Hannah Arendt. The theoretical findings and inferences resulting from this analysis are compared with the reality of socialism as it existed rather than an imaginary uncontroversial blueprint of socialism.


The bookdiscusses the evolution of Soviet communism and its attempts with market reforms to solve its inherent contradictions. It concludes that totalitarian regimes tend to fail in reforms because market freedom is inconsistent with totalitarian control. The author makes a strong case against dictatorship, also in the context of the spreading of nationalist populism around the globe. This book is a must-read for everybody interested in a better understanding of the ideas of socialism, totalitarianism, and populism.

• Central planning
• Command economy
• Dictatorship
• Market reforms
• Democratic socialism
• Totalitarianism
• Marxism
• Joseph Schumpeter
• Karl Polanyi
• Friedrich Hayek
• Karl Popper
• Hannah Arendt
• Freedom and democracy
• Individualism and collectivism
• Fascism
• Nationalist populism

• Central European University, Vienna, Austria

  Lajos Bokros

Lajos Bokros is professor of economics and public policy at the Central European University (Budapest, Hungary and Vienna, Austria) and at Babes-Bolyai University (Cluj, Romania). He was a member of the European Parliament between 2009 and 2014. Before, he served as chairman of the economic council of the largest university in Hungary, ELTE, from 2005 to 2009, was director of the World Bank between 1996 and 2004, and Hungarian Minister of Finance from 1995 to 1996. From 1991 to 1995 he was the CEO of Budapest Bank and the first chairman of the Budapest Stock Exchange from 1990 to 1995. He also served as the deputy head of department and managing director at the National Bank of Hungary from 1987 to 1991 and was a research fellow and division chief at the Financial Research Institute of Hungary between 1980 and 1987.

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