Market Socialism
Market socialism refers to various economic systems that involve either public ownership and management or worker cooperative ownership over the means of production, or a combination of both, and the market mechanism for allocating economic output, deciding what to produce and in what quantity. In state-oriented forms of market socialism where state enterprises attempt to maximize profit, the profits can fund government programs and services eliminating or greatly diminishing the need for various forms of taxation that exist in capitalist systems.
Some forms of market socialism are based on neoclassical economic theory, with the aim of attaining pareto efficiency by setting price to equal marginal cost in public enterprises. This form of socialism was promoted by Oskar Lange, Abba Lerner and Fredrick Taylor. Other forms of market socialism are based on classical economics, such as those advocated by Thomas Hodgskin, who viewed interest accumulation, rent and profit as deductions from exchange-value, so that eliminating the capitalist element from the economy would lead to a free-market and socialism. The term market socialism has also been applied to planned economic systems that try to organize themselves partially along market-lines while retaining centralized state ownership of capital.
Other types of market socialist systems, such as Mutualism, are related to the political philosophy of Libertarian socialism.
Examples of market socialism include: economic democracy, the Lange Model, the New Economic Mechanism, Ricardian socialism, Liberal socialism and Mutualism.
Read more about this topic: Types Of Socialism
Famous quotes containing the words market and/or socialism:
“The market came with the dawn of civilization and it is not an invention of capitalism.... If it leads to improving the well-being of the people there is no contradiction with socialism.”
—Mikhail Gorbachev (b. 1931)
“Successful socialism depends on the perfectibility of man. Unless all, or nearly all, men are high-minded and clear-sighted, it is bound to be a rotten failure in any but a physical sense. Even through it is altruism, socialism means materialism. You can guarantee the things of the body to every one, but you cannot guarantee the things of the spirit to every one; you can guarantee only that the opportunity to seek them shall not be denied to any one who chooses to seek them.”
—Katharine Fullerton Gerould (1879–1944)