Socialist economic planning is impossible. While agreeing to this, the public and private sectors will work together to realize a new capitalism. Can these two be compatible? Will the state's intervention in the market economy lead to economic development and people to become more free?
The impossibility of economic planning was proven by the Austrian School's socialist calculation debate. The task of confirming once again why socialism is impossible will be essential in considering whether new capitalism, a new interventionism, is really possible.
Therefore, this paper will conduct a basic study to derive implications for constitutional law from the Austrian school of human behavior (praxeology) and its main concepts of subjectivism and interest in institutions. First, we will confirm that the analysis of human behavior and the constitution are not unrelated, and we will see that economics as a social science is useful as a means of analyzing legal systems. We will also organize the theoretical essence of the Austrian school in law and economics. I then state that the impossibility of socialist calculation is part of the impossibility of rationalist intervention in human behavior in general.
As Ludwig von Mises and Friedrich August von Hayek argued, allowing interference in economic life also allows interference in mental life, and that approving economic plans will lead to the collapse of democracy and freedom. The fear has not faded even now.