How are capital goods gradually diminished in social democracies(Europe)? Economic theory says that continual saving is needed to maintain capital goods. Yet, I cannot see any reason that central planners cannot just hire somebody to fix the machines and the factories, etc. The statement about continual saving is very vague to me.
Also, is it possible for socialism to work if technology that eliminates 'wear and tear' is developed? Like if a technologically developed country has a communist revolution and the communists inherit an abundance of capital goods whose value will not diminish over time.
Kenneth"Yet, I cannot see any reason that central planners cannot just hire somebody to fix the machines and the factories, etc. The statement about continual saving is very vague to me."
Could central planners simply hire anyone needed for any purpose they deem necessary and any time? How is hiring repairmen different from any other function the central planner faces with the coordination problem? Who trains the repairman? Where does the capital come from to provide the tools to train the repairman? Does the central planner just order up teachers and tools for this purpose so the repairman can then be trained prior to going to the factory? How does the central planner build a pencil in an economically viable manner?
Have you read this? I, Pencil - Leonard Read
"The market is a process." - Ludwig von Mises, as related by Israel Kirzner. "Capital formation is a beautiful thing" - Chloe732.
Kenneth: "Also, is it possible for socialism to work if technology that eliminates 'wear and tear' is developed? "
A technology that eliminates wear and tear? Well, why not ask if socialism can work if a technology can be developed that eliminates hunger, or thirst, or decease, or death? Then, no economic system would manifest itself because there would be no scarcity.
Kenneth: "Like if a technologically developed country has a communist revolution and the communists inherit an abundance of capital goods whose value will not diminish over time."
So the commies confiscate capital goods, but why would the value not diminish over time? I don't follow. Are you trying to determine what it would take to make socialism viable? The answer is, nothing can make socialism work in the real world. Socialism of the variety imposed in Europe will lead to the inevitable consequences, just as interventionism here will at some point, lead to disaster. It's only a matter of time before the shell game is exposed.