Socialist Calculation Debate Shakes Foundation of General Equilibrium Theory.
The Socialist Calculation Debate in the 1930s influenced how economists viewed General Equilibrium Theory. It revealed a confusion in interpreting the theory, leading to different opinions on how to coordinate economic activities. Before the debate, GET was seen as a way to show the efficiency of competitive markets. But after the late 1920s, some economists argued that GET could also support socialist economic systems.