Max Weber, Socialism, and the Space for Time

In Economy and Society Weber provides a detailed criticism of socialism emphasizing the dynamic nature of the formal rationality of economic action, thus indicating the limits of bureaucratic rationality. Unfortunately, Weber's critique has received scant attention, commentators concentrating instead on remarks in his political essays. Weber's main argument against socialism is that it would lead to a decrease in formal rationality. Drawing upon Austrian political economy, Weber attempts to secure a 'realm of freedom' within anarchical capitalist production through emphasizing the dynamic nature of economic decision making which necessarily precludes the possibility of a rational socialist planned economy.