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Encyclopedia > Socialist economics
Part of the Politics series on
Socialism
Currents

Communism
Democratic socialism
Eco-socialism
Guild socialism
Libertarian socialism
Market socialism
Revolutionary socialism
Social democracy
Socialist market economy
Utopian socialism
Image File history File links Unbalanced_scales. ... Shortcut: WP:NPOVD Articles that have been linked to this page are the subject of an NPOV dispute (NPOV stands for Neutral Point Of View; see below). ... For other uses, see Politics (disambiguation). ... Socialism is a broad array of ideologies and political movements with the goal of a socio-economic system in which property and the distribution of wealth are subject to control by the community for the purposes of increasing social and economic equality and cooperation. ... This article is about the form of society and political movement. ... Democratic socialism advocates socialism as a basis for the economy and democracy as a governing principle. ... Eco-socialism or Green socialism is an ideology fusing Green movement values with socialism. ... Guild socialism was a British political movement in the 1890s-1920s that wanted to give each local workplace sovereignity. ... Libertarian socialism is a group of political philosophies that aim to create a society without political, economic or social hierarchies - a society in which all violent or coercive institutions would be dissolved, and in their place every person would have free, equal access to tools of information and production, or... Market socialism is a term used to define a number of economic system(s) in which the means of production are owned either by the state or by the workers collectively, however unlike traditional socialism there is market that is directed and guided by socialist planners. ... Flag of the Revolutionary Socialists Revolutionary Socialism is a political ideology based on the work of Karl Marx and Friedrich Engels advocating the revolutionary yet democratic liberation of the Proletariat. ... Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ... Market socialism is an attempt by a Soviet-style economy to introduce market elements into its economic system to improve economic growth. ... Utopian socialism is a term used to define the first currents of modern Socialist thought. ...

Regional variants

African socialism
Arab socialism
Chinese socialism
Jewish socialism
Melanesian socialism
Zionist socialism
African socialism is a belief in sharing economic resources in a traditional African way, as distinct from classical socialism. ... Arab Socialism (ar. ... This article is about the term itself and its relationships. ... A Bundist demonstration, 1917 The General Jewish Labour Union of Lithuania, Poland and Russia, in Yiddish the Algemeyner Yidisher Arbeter Bund in Lite, Poyln un Rusland (אַלגעמײַנער ײדישער אַרבעטער בונד אין ליטע פוילין און רוסלאַנד), generally called The Bund (בונד, from German: meaning federation or union) or the Jewish Labor Bund, was a Jewish political party in several European countries... The concept of Melanesian socialism was first advocated by Father Walter Lini of the New Hebrides (now Vanuatu), who became the countrys first prime minister upon its independence from France and the United Kingdom in 1980. ... Labor Zionism (or Socialist Zionism, Labour Zionism) is the traditional left wing of the Zionist ideology and was historically oriented towards the Jewish workers movement. ...

Religious socialism

Buddhist socialism
Christian socialism
Islamic socialism
Religious socialism describes socialism that is inspired by religious values, such as Christian socialism or Islamic socialism. ... GP Malalasekara of Sri Lanka wrote about Buddhist socialism in an article published in , 1972. ... Topics in Christianity Movements · Denominations Ecumenism · Preaching · Prayer Music · Liturgy · Calendar Symbols · Art · Criticism Important figures Apostle Paul · Church Fathers Constantine · Athanasius · Augustine Anselm · Aquinas · Palamas · Luther Calvin · Wesley Arius · Marcion of Sinope Pope · Archbishop of Canterbury Patriarch of Constantinople Christianity Portal This box:      Christian socialism generally refers to those... Islamic socialism is a term coined by various Muslim leaders to counter the demand at home for a more spiritual form of socialism. ...

Key issues

Criticisms of socialism
History of socialism
Socialist economics
Socialist state
Types of socialism
Criticisms of socialism range from disagreements over the efficiency of socialist economic and political models, to condemnation of states described by themselves or others as socialist. ... The history of socialism, sometimes termed modern socialism,[1] finds its origins in the French Revolution of 1789 and the changes brought about by the Industrial Revolution, although it has precedents in earlier movements and ideas. ... The term socialist state (or socialist republic, or workers state) can carry one of several different (but related) meanings: Strictly speaking, any real or hypothetical state organized along the principles of socialism may be called a socialist state. ... Since the 19th century, socialist ideas have developed and separated into many different types of socialism. ...

People and organizations

List of socialists
First International
Second International
Third International
Fourth International
Socialist International
WFDY
IUSY
The following is a list of self-identified socialists, divided by geographical location. ... The International Workingmens Association (IWA), sometimes called the First International, was an international socialist organization which aimed at uniting a variety of different left-wing political groups and trade union organizations that were based on the working class and class struggle. ... The phrase Second International has two meanings: For the international association of socialist parties of the late 19th century, see Second International (politics) and a successor organization, the Socialist International For one of the Merriam-Webster dictionaries of American English, see Websters New International Dictionary, Second Edition This is... The Comintern (Russian: Коммунистический Интернационал, Kommunisticheskiy Internatsional – Communist International, also known as the Third International) was an international Communist organization founded in March 1919, in the midst of the war communism period (1918-1921), by Vladimir Lenin and the Russian Communist Party (Bolshevik), which intended to fight by all available means, including... For other uses, see Fourth International (disambiguation). ... The official symbol of Socialist International. ... WFDY symbol The World Federation of Democratic Youth is a youth organization, recognized by the United Nations as an international youth non-governmental organization. ... The International Union of Socialist Youth (IUSY) encompasses socialist, social democratic and Labour Party youth organizations from more than 100 states of the world. ...

Related subjects

Anarchism
Class struggle
Democracy
Dictatorship of the proletariat
Egalitarianism
Equality of outcome
Internationalism
Marxism
Proletarian revolution
Socialism in one country
Trade union
Utilitarianism Anarchist redirects here. ... The South African Police Crush Another Demonstration by the Shack dwellers Movement Abahlali baseMjondolo, 28 September, 2007 Class struggle is the active expression of class conflict looked at from any kind of socialist perspective. ... The dictatorship of the proletariat is a term employed by Karl Marx in his 1875 Critique of the Gotha Program that refers to a transition period between capitalist and communist society in which the state can be nothing but the revolutionary dictatorship of the proletariat. The term refers to a... Egalitarianism (derived from the French word égal, meaning equal or level) is a political doctrine that holds that all people should be treated as equals from birth. ... This article or section does not cite its references or sources. ... Internationalism is a political movement which advocates a greater economic and political cooperation between nations for the benefit of all. ... Marxism is both the theory and the political practice (that is, the praxis) derived from the work of Karl Marx and Friedrich Engels. ... A communist revolution is a social revolution inspired by the ideas of Marxism that aims to replace capitalism with communism, normally with socialism (public ownership over the means of production) as an intermediate stage. ... Socialism in One Country was a thesis put forward by Joseph Stalin in 1924 and further supported by Nikolai Bukharin. ... A trade union or labor union is an organization of workers. ... This article discusses utilitarian ethical theory. ...

Politics Portal ·  v  d  e 

Socialist economics is a broad, and sometimes controversial, term. A normative definition held by many socialists states that all socialist economic theories and arrangements are united by the desire to achieve greater equality and give the workers greater control of the means of production. Within the limits set by these principles, however, socialist economics can take many different forms. Another, less normative definition would define Socialist Economics as descriptive analysis of the economics of existing socialist systems. One example for this kind of analysis would be the works of Hungarian economist János Kornai[1]. Image File history File links Portal. ... Egalitarianism (derived from the French word égal, meaning equal or level) is a political doctrine that holds that all people should be treated as equals from birth. ... János Kornai, (1928-), born in Budapest, Hungary, is an economist noted for his criticism of the command economies of Eastern European communist states. ...


Socialist economics is a term which refers in its descriptive sense to the economic effects of nations with large state sectors where the government directs the kind and nature of production. However, this definition is controversial because forms of socialism such as libertarian socialism are against government ownership and instead desire social ownership by producers and consumers in direct democratic cooperatives and workers' councils, which contradicts the idea of socialist economics as state ownership. In a normative sense, it applies to economic theories which advance the idea that socialism is both the most equitable and most socially serviceable form of economic arrangement for the realization of human potentialities. Libertarian socialism is a group of political philosophies that aim to create a society without political, economic or social hierarchies - a society in which all violent or coercive institutions would be dissolved, and in their place every person would have free, equal access to tools of information and production, or... For other uses, see Coop. ... A workers council is a council, or deliberative body, composed of working class or proletarian members. ... Socialism is a broad array of ideologies and political movements with the goal of a socio-economic system in which property and the distribution of wealth are subject to control by the community for the purposes of increasing social and economic equality and cooperation. ...

Contents

Development of socialist economic thought

Main article: History of socialism

Although the values of socialism have roots in pre-capitalist institutions such as the religious communes, reciprocal obligations, and communal charity of Mediaeval Europe, the development of its economic theory primarily reflects and responds to the monumental changes brought about by the dissolution of feudalism and the emergence of specifically capitalist social relations.[2] As such it is commonly regarded as a movement belonging to the modern era. Many socialists have considered their advocacy as the preservation and extension of the radical humanist ideas expressed in Enlightenment doctrine such as Jean-Jacques Rousseau's Discourse on Inequality, Wilhelm von Humboldt's Limits of State Action, or Immanuel Kant's insistent defense of the French Revolution.[3] The history of socialism, sometimes termed modern socialism,[1] finds its origins in the French Revolution of 1789 and the changes brought about by the Industrial Revolution, although it has precedents in earlier movements and ideas. ... The Enlightenment (French: ; German: ; Italian: ; Portuguese: ) was an eighteenth century movement in European and American philosophy — some classifications also include 17th century philosophy (usually called the Age of Reason). ... Rousseau redirects here. ... Wilhelm von Humboldt Friedrich Wilhelm Christian Karl Ferdinand Freiherr von Humboldt (June 22, 1767 - April 8, 1835), government functionary, foreign diplomat, philosopher, founder of Humboldt Universität in Berlin, friend of Goethe and especially of Schiller, is especially remembered as a German linguist who introduced a knowledge of the Basque... Kant redirects here. ... The French Revolution (1789–1815) was a period of political and social upheaval in the political history of France and Europe as a whole, during which the French governmental structure, previously an absolute monarchy with feudal privileges for the aristocracy and Catholic clergy, underwent radical change to forms based on...


Capitalism appeared in mature form as a result of the problems raised when an industrial factory system requiring long-term investment and entailing corresponding risks was introduced into an internationalized commercial (mercantilist) framework. Historically speaking, the most pressing needs of this new system were an assured supply of the elements of industry - land, elaborate machinery, and labour - and these imperatives led to the commodification of these elements.[4] According to influential socialist economic historian Karl Polanyi's classic account, the forceful transformation of land, money and especially labour into commodities to be allocated by an autonomous market mechanism was an alien and inhuman rupture of the pre-existing social fabric. This rupture triggered natural counter-movements in efforts to re-embed the economy in society. These counter-movements, that included, for example, the Luddite rebellions, are the incipient socialist movements. Over time such movements gave birth to or acquired an array of intellectual defenders who attempted to develop their ideas in theory. For other uses, see Capitalism (disambiguation). ... Karl Paul Polanyi (October 21, 1886 - Pickering, Ontario April 23, 1964) was a Hungarian intellectual known for his opposition to traditional economic thought and his influential book The Great Transformation. ... The Luddites were a social movement of English textile artisans in the early nineteenth century who protested — often by destroying textile machines — against the changes produced by the Industrial Revolution, which they felt threatened their livelihood. ...


As Polanyi noted, these counter-movements were mostly reactive and therefore not full-fledged socialist movements. Some demands went no further than a wish to mitigate the capitalist market's worst effects. Subsequently, a full socialist program developed, arguing for systemic transformation. Even if markets and private property could be tamed so as not to be excessively "exploitative", or crises could be effectively mitigated, capitalist social relations would remain significantly unjust and anti-democratic, suppressing universal human needs for fulfilling, empowering and creative work, diversity and solidarity.


Within this context socialism has undergone four periods: the first in the 19th century of socialism was a period of utopian visions (1780s-1850s), the rise of revolutionary socialist and Communist movements in the 19th century as the primary opposition to the rise of corporations and industrialization (1830-1916), the polarization of socialism around the question of the Soviet Union, and adoption of socialist or social democratic policies in response (1916-1989), and the response of socialism in the neo-liberal era (1990- ). As socialism developed, so did the socialist system of economics. The term neoliberalism is used to describe a political-economic philosophy that had major implications for government policies beginning in the 1970s – and increasingly prominent since 1980 – that de-emphasizes or rejects positive government intervention in the economy, focusing instead on achieving progress and even social justice by...


Utopian socialism

Main article: Utopian socialism

The first theories which came to hold the term "socialism" began to be formulated in the late 18th century, and were termed "socialism" early in the 19th century. The central beliefs of the socialism of this period rested on the exploitation of those who labored by those who owned capital or rented land and housing. The abject misery, poverty and disease to which laboring classes seemed destined was the inspiration for a series of schools of thought which argued that life under a class of masters, or "capitalists" as they were then becoming to be called, would consist of working classes being driven down to subsistence wages. (See Iron law of wages). Utopian socialism is a term used to define the first currents of modern Socialist thought. ... Alternative meaning: Nineteenth Century (periodical) (18th century — 19th century — 20th century — more centuries) As a means of recording the passage of time, the 19th century was that century which lasted from 1801-1900 in the sense of the Gregorian calendar. ... The Iron Law of Wages was an alleged law of economics that asserted that wages can never rise above the minimum level that will enable the laborer to survive. ...


Socialist ideas found expression in utopian movements, which often formed agricultural communes aimed at being self-sufficient on the land. These included many religious movements, such as the Shakers in America. This article or section does not adequately cite its references or sources. ...


Utopian socialism had little to offer in terms of a systematic theory of economic phenomena. In theory, economic problems were dissolved by a utopian society which had transcended material scarcity. In practice, small communities with a common spirit could sometimes resolve allocation problems.


Socialism and political economy

The first organized theories of socialist economics were significantly impacted by classical economic theory, including elements in Adam Smith, Robert Malthus and David Ricardo. In Smith there is a conception of a common good not provided by the market, a class analysis, a concern for the dehumanizing aspects of the factory system, and the concept of rent as being unproductive. Ricardo argued that the renting class was parasitic. This, and the possibility of a "general glut", an over accumulation of capital to produce goods for sale rather than for use, became the foundation of a rising critique of the concept that free markets with competition would be sufficient to prevent disastrous downturns in the economy, and whether the need for expansion would inevitably lead to war. For other persons named Adam Smith, see Adam Smith (disambiguation). ... The Rev. ... David Ricardo (18 April 1772–11 September 1823), a political economist, is often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. ... Class analysis is research in sociology, politics and economics from the point of view of the stratification of the society into classes. ... The General glut problem is a problem identified within the classical political economy of the era of Adam Smith and David Ricardo. ...


Socialist political economy before Marx

A key early socialist theorist of political economy was Pierre-Joseph Proudhon. He was the most well-known of nineteenth century mutualist and collectivist theorists. Others were: agrarian radicals like Thomas Spence, William Ogilvie and William Cobbett; anti-capitalists like Thomas Hodgskin; communitarian and utopian socialists like Robert Owen, William Thompson and Charles Fourier; anti-market socialists like John Gray and John Francis Bray; the Christian mutualist William Batchelder Greene; as well as the theorists of the Chartist movement and early proponents of syndicalism.[5] Theory and practice Issues History Culture By region Lists Related Anarchism Portal Politics Portal ·        Pierre-Joseph Proudhon (pronounced [ˈpruːd É’n] in British English, [pʁu dɔ̃] in French) (January 15, 1809 – January 19, 1865) was a French mutualist political philosopher of the socialist tradition. ... Mutualism is an economic theory or system, largely associated with Pierre-Joseph Proudhon, based on a labor theory of value which holds that in extreme laissez-faire, market competition will cause the market values (prices) of commodities and services to align with the amount of labor embodied in those things. ... Collectivism, in general, is a term used to describe a theoretical or practical emphasis on the group, as opposed to (and seen by many of its opponents to be at the expense of) the individual. ... Agrarian has two meanings: It can mean pertaining to Agriculture It can also refer to the ideology of Agrarianism and Agrarian parties. ... Thomas Spence (June 21, 1750 – September 8, 1814) was the Radical inventor of a system of land nationalization. ... William Henry Ogilvie (1869-1963) was a Scottish-Australian narrative poet and horseman. ... William Cobbett, portrait in oils possibly by George Cooke around 1831. ... Thomas Hodgskin (b. ... Communitarianism as a philosophy began in the late 20th century, opposing aspects of liberalism and capitalism while advocating phenomena such as civil society. ... See Utopia (disambiguation) for other meanings of this word Utopia, in its most common and general meaning, refers to a hypothetical perfect society. ... For other uses, see Robert Owen (disambiguation). ... William Thompson (1775 Cork City, - March 28, 1833 Rosscarbery, Co. ... This article is about the French utopian socialist philosopher. ... Mutualism is a political and economic theory or system, largely associated with Pierre-Joseph Proudhon, based on a labor theory of value which holds that when labor or its product is sold, it ought to receive in exchange, an equal amount of labor or a product that required the same... William B. Greene William Batchelder Greene (1819-1878) was a 19th century individualist anarchist, Unitarian minister, soldier and currency reformer in the United States. ... A movement for social and political reform in the United Kingdom during the mid_19th century, Chartism gains its name from the Peoples Charter of 1838, which set out the main aims of the movement. ... Syndicalism refers to a set of ideas, movements, and tendencies which share the avowed aim of transforming capitalist society through action by the working class on the industrial front. ...


Das Kapital

Main article: Das Kapital

Karl Marx employed systematic analysis in an ambitious attempt to elucidate capitalism's contradictory laws of motion, as well as to expose the specific mechanisms by which it exploits and alienates. He radically modified classical political economic theories. Notably, the labor theory of value that had been worked upon by Adam Smith and David Ricardo, was transformed into his characteristic "law of value" and used for the purpose of revealing how commodity fetishism obscures the reality of capitalist society. Das Kapital (Capital, in the English translation) is an extensive treatise on political economy written by Karl Marx in German. ... Karl Heinrich Marx (May 5, 1818 – March 14, 1883) was a 19th century philosopher, political economist, and revolutionary. ... The labor theories of value (LTV) are theories in economics according to which the true values of commodities are related to the labor needed to produce them. ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... David Ricardo (18 April 1772–11 September 1823), a political economist, is often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. ... The law of value is a concept in Karl Marxs critique of political economy. ... In Marxist theory, commodity fetishism is a state of social relations, said to arise in complex capitalist market systems, in which social relationships center around the values placed on commodities. ...


His approach, which Engels would call "scientific socialism", would stand as the branching point in economic theory: in one direction went those who rejected the capitalist system as fundamentally anti-social, arguing that it could never be harnessed to effectively realize the fullest development of human potentialities wherein "free development of each is the condition for the free development of all." [1]. Scientific Socialism is the term used by Friedrich Engels to describe the socio-political-economic theory pioneered by Karl Marx. ...


Das Kapital is one of the many famous incomplete works of economic theory: Marx had planned four volumes, completed two, and left his collaborator Engels to complete the third. In many ways the work is modelled on Adam Smith's Wealth of Nations, seeking to be a comprehensive logical description of production, consumption and finance in relation to morality and the state. Das Kapital (Capital, in the English translation) is an extensive treatise on political economy written by Karl Marx in German. ... An Inquiry into the Nature and Causes of the Wealth of Nations is the magnum opus of Adam Smith, published in 1776. ...


It is a work of philosophy, anthropology and sociology as much as one of economics. However, it has several important statements:

  • The Law of Value Capitalist production is the production of “an immense multitude of commodities” or generalised commodity production. A commodity has two essential qualities firstly, they are useful, they satisfy some human want, “the nature of such wants, whether, for instance, they spring from the stomach or from fancy, makes no difference,” [2] and secondly they are sold on a market or exchanged. Critically the exchange value of a commodity “is independent of the amount of labour required to appropriate its useful qualities.” [3] But rather depends on the amount of socially necessary labour required to produce it. All commodities are sold at their value, so the origin of the capitalist profit is not in cheating or theft but in the fact that the cost of reproduction of labour power, or the worker's wage, is less than the value created during their time at work, enabling the capitalists to yield a surplus value or profit on their investments.
  • Historical Property Relations Historical capitalism represents a process of momentous social upheaval where rural masses were separated from the land and ownership of the means of production by force, deprivation, and legal manipulation, creating an urban proletariat based on the institution of wage-labour. Moreover, capitalist property relations aggravated the artificial separation between city and country, which is a key factor in accounting for the metabolic rift between human beings in capitalism and their natural environment, which is at the root of our current ecological dilemmas. [4]
  • Commodity Fetishism Marx adapted previous value-theory to show that in capitalism phenomena involved with the price system (markets, competition, supply and demand) constitute a powerful ideology that obscures the underlying social relations of capitalist society. "Commodity fetishism" refers to this distortion of appearance. The underlying social reality is one of economic exploitation.
  • Economic Exploitation Workers are the fundamental creative source of new value. Property relations affording the right of usufruct and despotic control of the workplace to capitalists are the devices by which the surplus value created by workers is appropriated by the capitalists.
  • Accumulation Inherent to capitalism is the incessant drive to accumulate as a response to the competitive forces acting upon all capitalists. In such a context the accumulated wealth which is the source of the capitalist's social power derives itself from being able to repeat the circuit of Money-->Commodity-->Money', where the capitalist receives an increment or "surplus value" higher than their initial investment, as rapidly and efficiently as possible. Moreover this driving imperative leads capitalism to its expansion on a world-wide scale.
  • Crises Marx identified natural and historically specific (i.e. structural) barriers to accumulation that were interrelated and interpenetrated one another in times of crises. Different types of crises, such as realization crises and overproduction crises, are expressions of capitalism's inability to constructively overcome such barriers. Moreover, the upshot of crises is increased centralization, the expropriation of the many capitalists by the few.
  • Centralization The interacting forces of competition, endemic crises, intensive and extensive expansion of the scale of production, and a growing interdependency with the state apparatus, all promote a strong developmental tendency towards the centralization of capital.
  • Material Development As a result of its constant drive to optimize profitability by increasing the productivity of labour, typically by revolutionizing technology and production techniques, capitalism develops so as to progressively reduce the objective need for work, suggesting the potential for a new era of creative forms of work and expanded scope for leisure.
  • Socialization, and the pre-conditions for Revolution By socializing the labour process, concentrating workers into urban settings in large scale production processes and linking them in a world-wide market, the agents of a potential revolutionary change are created. Thus Marx felt that in the course of its development capitalism was at the same time developing the preconditions for its own negation. However, although the objective conditions for change are generated by the capitalist system itself, the subjective conditions for social revolution can only come about through the apprehension of the objective circumstances by the agents themselves and the transformation of such understanding into an effective revolutionary program.[6]

The law of value is a concept in Karl Marxs critique of political economy. ... Means of production (abbreviated MoP; German: Produktionsmittel), are the combination of the means of labor and the subject of labor used by workers to make products. ... The proletariat (from Latin proles, offspring) is a term used to identify a lower social class; a member of such a class is proletarian. ... Wage labour is the socioeconomic relationship between a worker and an employer in which the worker sells their labour under a contract (employment), and the employer buys it, often in a labour market. ... Metabolic Rift: the Marxist idea that the spread of the capitalist mode of production results in humans interacting less directly with their natural environment from which they derive their sustenance, which in turn leads to its exploitation. ... In Marxist theory, commodity fetishism is a state of social relations, said to arise in complex capitalist market systems, in which social relationships center around the values placed on commodities. ... Exploitation means many different things. ... Surplus value, according to Marxism, is unpaid labour that is extracted from the worker by the capitalist, and serves as the basis for capitalist accumulation. ... Capital accumulation ...

After Marx

Marx's work sharpened the existing differences between the revolutionary and non-revolutionary socialists.


Non-revolutionary socialists took inspiration from the work of John Stuart Mill, and particularly Keynes and the Keynesians, who provided theoretical justification for (potentially very extensive) state involvement in an existing market economy. According to this view, if the business cycle could be solved by national ownership of key industries and state direction of their investment, class antagonism would be effectively tamed; a compact would be formed between labour and the capitalists. There would be no need for revolution; instead Keynes looked to the eventual "euthenasia of the rentier" sometime in the far future. Joan Robinson and Michael Kalecki employed Keynesian insights to form the basis of a critical post-keynesian economics that at times went well beyond liberal reformism. Many original socialist economic ideas would also emerge out of the trade union movement (see Guild Socialism). John Stuart Mill (20 May 1806 – 8 May 1873), British philosopher, political economist, civil servant and Member of Parliament, was an influential liberal thinker of the 19th century. ... John Maynard Keynes John Maynard Keynes [ˈkeɪns], 1st Baron Keynes of Tilton (June 5, 1883 - April 21, 1946) was an English economist, whose radical ideas had a major impact on modern economic and political thought. ... Keynesian economics, or Keynesianism, is an economic theory based on the ideas of John Maynard Keynes, as put forward in his book The General Theory of Employment, Interest and Money, published in 1936 in response to the Great Depression of the 1930s. ... Joan Violet Robinson (1903 in Surrey - 1983) was a Keynesian economist who was well known for her knowledge of monetary economics and wide-ranging contributions to economic theory. ... A trade union or labor union is an organization of workers. ... Guild socialism was a British political movement in the 1890s-1920s that wanted to give each local workplace sovereignity. ...


In the wake of Marx, "Marxist" economists developed many different, sometimes contradictory tendencies. Some of these tendencies were based on internal disputes about the meaning of some of Marx's ideas, including the 'Law of Value' and his crisis theory. Other variations were elaborations that subsequent theorists made in light of real world developments. For example the monopoly capitalist school saw Paul A. Baran and Paul Sweezy attempt to modify Marx's theory of capitalist development, which was based upon the assumption of price competition, to reflect the evolution to a stage where both economy and state were subject to the dominating influence of giant corporations. World-systems analysis, would restate Marx's ideas about the worldwide division of labour and the drive to accumulate from the holistic perspective of capitalism's historical development as a global system. Accordingly, Immanuel Wallerstein, writing in 1979, maintained that "There are today no socialist systems in the world-economy any more than there are feudal systems because there is only one world-system. It is a world-economy and it is by definition capitalist in form. Socialism involves the creation of a new kind of world-system, neither a redistributive world-empire nor a capitalist world-economy but a socialist world-government. I don't see this projection as being in the least utopian but I also don't feel its institution is imminent. It will be the outcome of a long social struggle in forms that may be familiar and perhaps in very few forms, that will take place in all the areas of the world-economy."[7] Paul A. Baran (1910 - 1964) was an American economist known for his Marxist views. ... Paul Marlor Sweezy (April 10, 1910 – February 27, 2004) was a Marxian economist and a founding editor of the magazine Monthly Review. ... Unlike former sociological theories, which presented general models of social change with particular focus at the societal level, world-systems theory (or world system perspective) explores the role and relationships between societies (and the subsequent changes produced by them). ... Immanuel Maurice Wallerstein (born 28 September 1930, New York City) is a U.S. sociologist by credentials, but a historical social scientist, or world-systems analyst by trade. ...


Meanwhile other notable strands of reformist and revolutionary socialist economics sprung up that were either only loosely associated with Marxism or wholly independent. Thorsten Veblen is widely credited as the founder of critical institutionalism. His idiosyncratic theorizing included acidic critiques of the inefficiency of capitalism, monopolies, advertising, and the utility of conspicuous consumption. Some institutionalists have addressed the incentive problems experienced by the Soviet Union. Critical institutionalists have worked on the specification of incentive-compatible institutions, usually based on forms of participatory democracy, as a resolution superior to allocation by an autonomous market mechanism. Another key socialist, closely related to Marx, Keynes, and Gramsci, was Piero Sraffa. He mined classical political economy, particularly Ricardo, in an attempt to erect a value theory that was at the same time an explanation of the normal distribution of prices in an economy, as well that of income and economic growth. A key finding was that the net product or surplus in the sphere of production was determined by the balance of bargaining power between workers and capitalists, which was in turn subject to the influence of non-economic, presumably social and political factors. The mutualist tradition associated with Proudhon also continued, influencing the development of libertarian socialism, anarchist communism, syndicalism and distributivism. Norwegian-American economist and sociologist Thorstein Veblen Thorstein Bunde Veblen (born Tosten Bunde Veblen July 30, 1857 – August 3, 1929) was a Norwegian-American sociologist and economist and a leader of the Efficiency Movement, most famous for his Theory of the Leisure Class (1899). ... Institutionalism can refer to: Institutionalism: Hierarchical organized social structures, using tactical division to divide the work force, paying wages less than needed, to pay even basic living costs, believing their own rhetoric and propaganda, serving the pinnacle position to the detriment of the whole, group think, gone mad. ... Antonio Gramsci Antonio Gramsci (January 23, 1891 - April 27, 1937) was an Italian writer (ethnic Albanian by his father) and a politician, a leader and theorist of Socialism, Communism and anti-Fascism. ... Piero Sraffa. ... Libertarian socialism is a group of political philosophies that aim to create a society without political, economic or social hierarchies - a society in which all violent or coercive institutions would be dissolved, and in their place every person would have free, equal access to tools of information and production, or... Libertarian Communism redirects here. ... Syndicalism refers to a set of ideas, movements, and tendencies which share the avowed aim of transforming capitalist society through action by the working class on the industrial front. ... Distributism, also known as distributionism and distributivism, is an economic philosophy held by such Catholic thinkers as G. K. Chesterton and Hilaire Belloc. ...


In the real world, revolutionary socialists were confronted by the necessity of running an economy, and generally a war economy, and developed ideas and practice in response to the situations they found themselves in. War economy is the term used to describe the contingencies undertaken by the modern state to mobilize its economy for war production. ...


Socialist economies in theory

Robin Hahnel and Michael Albert identify five economic models within the rubric of socialist economics [8]: A photo of Robin Hahnel Robin Hahnel is a Professor of Economics at American University. ... Michael Albert (born April 8, 1947) is a longtime activist, speaker, and writer, is co-editor of ZNet, and co-editor and co-founder of Z Magazine. ...

  • Public Enterprise Centrally Planned Economy in which all property is owned by the State and all key economic decisions are made centrally by the State, e.g. the former Soviet Union.
  • Public Enterprise State-Managed Market Economy, one form of market socialism which attempts to use the price mechanism to increase economic efficiency, while all decisive productive assets remain in the ownership of the state, e.g. China after reform.
  • A mixed economy, where public and private ownership are mixed, and where industrial planning is ultimately subordinate to market allocation, the model generally adopted by social democrats. e.g. twentieth century Sweden. It is debatable whether such an economy should be counted as "socialist".
  • Public Enterprise Employee Managed Market Economies, another form of market socialism in which publicly owned, employee-managed production units engage in free market exchange of goods and services with one another as well as with final consumers, e.g. mid twentieth century Yugoslavia.
  • Public Enterprise Participatory Planning, an economy featuring social ownership of the means of production with allocation based on an integration of decentralized democratic planning. An incipient historical forebear is that of Catalonia during the Spanish revolution. More developed theoretical models include those of Karl Polanyi, Participatory Economics and the negotiated coordination model of Pat Devine.

Market socialism is a term used to define a number of economic system(s) in which the means of production are owned either by the state or by the workers collectively, however unlike traditional socialism there is market that is directed and guided by socialist planners. ... A price mechanism or market-based method is any of a wide variety of ways to match up offers and requests that market players bid and ask: a bid is an offer to pay a fixed amount that is held open for a period of time an ask is an... There are several measures of economic efficiency: Pareto efficiency Kaldor-Hicks efficiency X-efficiency Allocative efficiency For applications of these principles see: Efficient market hypothesis Welfare economics Production theory basics See also Business efficiency Inefficiency ... A mixed economy is an economy that has a mix of economic systems. ... Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ... Market socialism is a term used to define a number of economic system(s) in which the means of production are owned either by the state or by the workers collectively, however unlike traditional socialism there is market that is directed and guided by socialist planners. ... In Spanish history, there have been several revolutions. ... Karl Paul Polanyi (October 21, 1886 - Pickering, Ontario April 23, 1964) was a Hungarian intellectual known for his opposition to traditional economic thought and his influential book The Great Transformation. ... Participatory economics, often abbreviated parecon, is a proposed economic system that uses participatory decision making as an economic mechanism to guide the allocation of resources and consumption in a given society. ... // Introduction Pat Devine began his academic studies in economics at Balliol College, Oxford. ...

Socialist economies in practice

Western Europe

Many of the industrialised, open countries of Western Europe experimented with one form of socialist development or another during the 20th century. They can be regarded as social democratic or state capitalist experiments, because they universally retained a wage-based economy and private ownership and control of the decisive means of production. Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ... There are multiple definitions of the term state capitalism. ...


Nevertheless, many Western European countries tried to restructure their economies away from a pure capitalist model. Elements of these efforts persist throughout Europe, even if they have repealed some aspects of public control and ownership.


They are typically characterised by:

  • Nationalisation of key industries, such as coal, steel, power, and transportation. A common model was for a sector to be taken over by the state and then one or more public corporations set up for its day-to-day running. Advantages of nationalisation are:
    • The ability of the state to direct investment in key industries
    • The redistribution of profits from those industries for the national good
    • The ability to direct producers to social rather than market goals
    • Greater control of the industries by and for the workers.
    • Benefits and burdens of publicly funded research and development are extended to the wider populace.
  • Redistribution of wealth, typically by progressive taxation of high earners.
  • Minimum wages, employment protection, and trade union recognition rights for the benefit of workers. There were a number of different models of protection and trade union protection which evolved. Germany, for instance, appointed union representatives at high levels in all corporations and had much less industrial strife than the UK, whose laws encouraged strikes rather than negotiation. The objectives of these policies were to redistribute and to help produce full employment.
  • National planning or state capitalism for industrial development.
  • Demand management in a Keynesian fashion to help ensure economic growth and employment.

Literally a public company is a company owned by the public. ... Invest redirects here. ... This article or section does not cite any references or sources. ... The minimum wage is the minimum rate a worker can legally be paid (usually per hour) as opposed to wages that are determined by the forces of supply and demand in a free market. ... A trade union or labor union is an organization of workers. ... There are multiple definitions of the term state capitalism. ... Demand Management is the art or science of controlling economic demand to avoid a recession. ... John Maynard Keynes John Maynard Keynes [ˈkeɪns], 1st Baron Keynes of Tilton (June 5, 1883 - April 21, 1946) was an English economist, whose radical ideas had a major impact on modern economic and political thought. ...

Union of Soviet Socialist Republics

The Soviet Union and some of its European satellites aimed for a fully centrally planned economy. They dispensed almost entirely with private ownership of capital. Workers were still, however, effectively paid a wage for their labour. Some believe that according to Marxist theory this should have been a step towards a genuine workers' state. However, some Marxists consider this a misunderstanding of Marx's views of historical materialism, and his views of the process of socialization. The economy of the Soviet Union was based on a system of state ownership and administrative planning. ... This article refers to an economy controlled by the state. ...


The characteristics of this model of economy were:

  • Production quotas for every productive unit. A farm, mine or factory was judged on the basis of whether its production met the quota. It would be provided with a quota of the inputs it needed to start production, and then its quota of output would be taken away and given to downstream production units or distributed to consumers. Critics of both left and right persuasions have argued that the economy was plagued by incentive-related problems. To ensure allocative efficiency central planners would have required accurate information about the productive capabilities of each enterprise (including labour), however the system incentivized enterprise managers to underreport their unit's productive capacities so that their quotas would be easier to achieve, especially since the manager's bonuses were linked to the fulfillment of quotas.
  • Allocation through political control. In contrast with systems where prices determined allocation of resources, in the Soviet Union, allocation, particularly of means of production was determined by a bureaucratic elite, which was notable for its exclusion of democratic process. The prices that were constructed were done so after the formulation of the economy plan, and such prices did not factor into choices about what was produced and how it was produced in the first place.
  • Full employment. Every worker was ensured employment. However workers were generally not directed to jobs. The central planning administration adjusted relative wages rates to influence job choice in accordance with the outlines of the current plan.
  • Clearing goods by planning : if a surplus of a product was accumulated, then the central planning authority would either reduce the quota for its production or increase the quota for its use.
  • Five Year Plans for the long-term development of key industries.

Five-Year Plan redirects here. ...

India

Main article: Economy of India

After gaining independence from Britain, India adopted a broadly socialist approach to economic growth. Like other countries with a democratic transition to socialism, it did not abolish private property of capital. India proceeded by nationalisation and redistribution in a manner more similar to Western European nations than to the USSR or China. It did however adopt a very firm focus on national planning with a series of Five-Year Plans. The economy of India, when measured in USD exchange-rate terms, is the twelfth largest in the world, with a GDP of US $1. ... The economy of India is based in part on planning through her five-year plans, developed, executed and monitored by the Planning Commission. ...


People's Republic of China

China embraced a wholehearted socialist model after the Communist victory in its Civil War. Private property and capital were abolished, and various forms of wealth made subject to state control or to workers' councils. The economies of the special administrative regions of Hong Kong and Macau are separate from the rest of the Peoples Republic of China. ...


The Chinese economy broadly adopted a similar system of production quotas and full employment by fiat to the Russian model. In the large agricultural sector, the state simply replaced peasants' existing warlord or landlord.


The Great Leap Forward saw a remarkable large-scale experiment with entirely abolishing wages based on work. Agricultural workers were assured that they would receive food regardless of the output of their village. This system was abolished soon afterwards, and is often considered to be one of the reasons for a significant famine in China in the 1960s, in which millions of Chinese starved. The Great Leap Forward (Simplified Chinese: ; Traditional Chinese: ; Pinyin: ) of the Peoples Republic of China (PRC) was an economic and social plan used from 1958 to 1960 which aimed to use Chinas vast population to rapidly transform mainland China from a primarily agrarian economy dominated by peasant farmers... <nowiki>Insert non-formatted text hereBold text</nowiki>A famine is a social and economic crisis that is commonly accompanied by widespread malnutrition, starvation, epidemic and increased mortality. ...


In recent decades China has opened its economy to foreign investment and to market-based trade, and started to experience economic growth. It has carefully managed the transition from a purely planned socialist economy to a mixed socialist economy.


Relation to other economic theories

In many senses socialist economics is the polar opposite of classical economics. While classical theories are about free markets producing allocative efficiency with no regard for the nature of the community that uses the goods, socialists usually advocate abolishing the market mechanism at least insofar as it is a determining force, and creating a socialist community which redefines allocative efficiency in terms of social serviceability. Classical economics is widely regarded as the first modern school of economic thought. ... Allocative efficiency is the market condition whereby resources are allocated in a way that maximizes the net benefit attained through their use. ...


The aim of implementing a socialist ownership structure is to create an economy that acts in the direct interest of workers, members, or the general populace, rather than a capitalist class. This is the source of the Economic calculation debate, an old argument between socialist and free market / Austrian school economists. Here the Austrian school economists have argued that the denial of private property ownership - as nearly all models of socialist economics promote - would inevitably create worse economic conditions for the general populace than those that would be found in market economies. Socialists, of course, reject this claim and argue that an economy based on private property inevitably benefits the wealthy few in the detriment of the poor and middle classes. In economics, a capitalist is someone who owns capital, presumably within the economic system of capitalism. ... The economic calculation problem is a criticism of socialist economics. ... A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... The Austrian School, also known as the “Vienna School” or the “Psychological School”, is a heterodox school of economic thought that advocates adherence to strict methodological individualism. ... Economists are scholars conducting research in the field of economics. ...


Many liberal or libertarian societies nevertheless allow the existence of some groups or institutions with a socialist flavour. Cooperatives or communes have existed, and competed, in market economies like the United Kingdom and Israel. Similarly, many western economies have had state controlled businesses compete against private companies, or state monopolies in some critical areas of otherwise market economies - for example Telstra in Australia. Look up liberal on Wiktionary, the free dictionary Liberal may refer to: Politics: Liberalism American liberalism, a political trend in the USA Political progressivism, a political ideology that is for change, often associated with liberal movements Liberty, the condition of being free from control or restrictions Liberal Party, members of... See also Libertarianism and Libertarian Party Libertarian,is a term for person who has made a conscious and principled commitment, evidenced by a statement or Pledge, to forswear violating others rights and usually living in voluntary communities: thus in law no longer subject to government supervision. ... For other uses, see Coop. ... Telstra Corporation (ASX: , NZX: TLS, NYSE: TLS) (formed from Telecom Australia) is an Australian telecommunications and media company under private ownership, with a dominant position in landline telephone services, a large share of mobile phone services, domestic consumer (including dial-up access, 50% of Broadband internet broadband cable modem, satellite...


While socialist economics can be green economics, it is not necessarily. Some have argued that economic bodies with socialistic ownership structures are not inherently more environmentally concerned than traditional businesses. However socialist economists are inclined to suggest that the public control that accompanies public ownership is far more compatible to the project of sustainability. Experience in the Soviet Union or in China seems to contradict this view. Green economics is an unconventional approach to economics by non-economists. ... In economics, a business is a legally-recognized organizational entity existing within an economically free country designed to sell goods and/or services to consumers, usually in an effort to generate profit. ...


References

  1. ^ Kornai, János: The Socialist System. The Political Economy of Communism. Princeton: Princeton University Press and Oxford: Oxford University Press 1992; Kornai, Janos: Economics of Shortage. Munich: Elsevier 1980. A concise summary of Kornai's analysis can be found in Verdery, Katherine: Anthropology of Socialist Societies. In: International Encyclopedia of the Social and Behavioral Sciences, ed. Neil Smelser and Paul B. Baltes. Amsterdam: Pergamon Press 2002, available for download here.
  2. ^ Wallerstein, Immanuel Historical Capitalism
  3. ^ Chomsky, Noam Perspectives on Power
  4. ^ Karl Polanyi Primitve, Archaic and Modern Economies
  5. ^ Noel Thomson The Real Rights of Man: Political Economies for the Working Class 1775-1850, 1998, Pluto Press
  6. ^ Petras, James and Veltmeyer, Henry Globalization Unmasked: Imperialism in the 21st Century
  7. ^ Wallerstein, Immanuel, The Capitalist World-Economy, 1979, Cambridge University Press
  8. ^ Robin Hahnel and Michael Albert A Quiet Revolution in Welfare Economics

Karl Paul Polanyi (October 21, 1886 - Pickering, Ontario April 23, 1964) was a Hungarian intellectual known for his opposition to traditional economic thought and his influential book The Great Transformation. ...

Further reading

  • Albert, Michael & Hahnel, Robin: The Political Economy of Participatory Economics, Princeton University Press, 1991. (Available online)
  • Amin, Samir : Spectres of Capitalism: A Critique of Current Intellectual Fashions, 1998, Monthly Review Press
  • Cole, G.D.H. : Socialist Economics, 1950, London : Victor Gollancz Ltd.
  • G.A. Cohen : If you're an Egalitarian, How Come You're So Rich? : Harvard UP
  • Horvat, Branko: The Political Economy of Socialism, 1982, M.E. Sharpe, Inc.
  • Kennedy, Liam (ed.) : Economic Theory of Co-operative Enterprises: Selected Readings, 1983, The Plunkett Foundation for Co-operative Studies.
  • Lebowitz, Michael A. : Beyond Capital, Marx's Political Economy of the Working Class, 1992, 2003, Palgrave.
  • Noel Thompson Left in the Wilderness: The Political Economy of British Democratic Socialism since 1979 2002, Acumen Publishing ISBN 1902683544
  • Sweezy, Paul M. : The Theory of Capitalist Development, 1942, Monthly Review Press.
  • Veblen, Thorstein : The Theory of the Leisure Class: An Economic Study of Institutions, 1899, New York Macmillan Company.
  • Von Mises, Ludwig, Socialism.

Michael Albert (born April 8, 1947) is a longtime activist, speaker, and writer, is co-editor of ZNet, and co-editor and co-founder of Z Magazine. ... Samir Amin (b. ... This article or section does not cite any references or sources. ... George Douglas Howard Cole (September 25, 1889 - January 14, 1959) was an English journalist and economist, closely associated with the development of Fabianism. ... Gerald Allen Cohen, (born 1941) is the Chichele Professor of Social and Political Theory, All Souls College, Oxford. ... Paul Marlor Sweezy (April 10, 1910 – February 27, 2004) was a Marxian economist and a founding editor of the magazine Monthly Review. ... Thorstein Bunde Veblen (born Tosten Bunde Veblen July 30, 1857 – August 3, 1929) was a Norwegian-American sociologist and economist and a founder, along with John R. Commons, of the Institutional economics movement. ... Ludwig Heinrich Edler von Mises (September 29, 1881 – October 10, 1973) (pronounced was a notable economist and a major influence on the modern libertarian movement. ...

See also


  Results from FactBites:
 
A New Socialist Economics (1909 words)
While most socialists have for many years opposed a crude blanket nationalization of the economy, two arguments remain over the method and extent of which socialization should be implemented under a democratic socialist government.
Socialists have rather happily come to the conclusion (some more quickly than others) that any publicly owned entity must be as decentralized as possible to assure accountability and community control, while remaining centralized enough to ensure efficient delivery systems.
The goal of a socialist society in this regard is then to ensure that enterprise and trade is fair and unexploitative of the people and their interests, and that the welfare of society is not endangered by the abuse of such enterprise by capital.
  More results at FactBites »

 
 

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