At the end of "The Use of Knowledge in Society," Hayek was doubtless responding to Schumpeter's discussion of socialism in Capitalism, Socialism and Democracy, first published in 1942, and perhaps especially to the chapters titled Clearing Decks and The Socialist Blueprint, where Schumpeter states "Can socialism work? Of course it can." and "There is nothing wrong with the pure logic of socialism." Schumpter reached these conclusions by noting that from the perspective of static general equilibrium theory, there is no difference between a pure market system and a pure socialist system. From Hayek's perspective, Schumpter was misled by his theoretical tools. Bruce Caldwell