Calculation in kind is a type of accounting based on physical magnitudes and physical quantities rather than a common unit of accounting for economic calculation. Calculation in kind, or valueless calculation, is often described as the form of calculation that would supersede monetary calculation

Money

Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...

 in a moneyless socialist economy. As a replacement for monetary calculation, calculation in kind would dispense of an object's exchange-value inherent to all commodities in monetary economies, so that only an object's use value

Use value

Use value or value in use is the utility of consuming a good; the want-satisfying power of a good or service in classical political economy. In Marx's critique of political economy, any labor-product has a value and a use-value, and if it is traded as a commodity in markets, it additionally has an...

 would remain as the basis for economic accounting.

Political economist Otto Neurath

Otto Neurath

Otto Neurath was an Austrian philosopher of science, sociologist, and political economist...

 argued in favor of calculation in kind as a basis for a moneyless socialist economy in opposition to market socialists and Austrian school

Austrian School

The Austrian School of economics is a heterodox school of economic thought. It advocates methodological individualism in interpreting economic developments , the theory that money is non-neutral, the theory that the capital structure of economies consists of heterogeneous goods that have...

 critics of economic planning.

See also

Economic planning Economic planning Economic planning refers to any directing or planning of economic activity outside the mechanisisms of the market, in an attempt to achieve specific economic or social outcomes. Planning is an economic mechanism for resource allocation and decision-making in contrast with the market mechanism... Economic calculation problem Economic calculation problem The economic calculation problem is a criticism of central economic planning. It was first proposed by Ludwig von Mises in 1920 and later expounded by Friedrich Hayek. The problem referred to is that of how to distribute resources rationally in an economy... Otto Neurath Otto Neurath Otto Neurath was an Austrian philosopher of science, sociologist, and political economist... Material balance account

Production for use Production for use Production for use is a defining criterion of a socialist economy and distinguishes socialism from capitalism... Socialist economics Socialist economics Socialist economics are the economic theories and practices of hypothetical and existing socialist economic systems.A socialist economy is based on public ownership or independent cooperative ownership of the means of production, wherein production is carried out to directly produce use-value,... Socialist mode of production Time-based currency Time-based currency In economics, a time-based currency is an alternative currency where the unit of exchange is the man-hour.Some time-based currencies value everyone’s contributions equally. One hour equals one service credit...

External Links

• World Socialist Party (US) (the wspus.org quoted above)