Models of Market Socialism
Socialist Goals
1) Equality of wealth, income and power
2) Democracy (social & economic, as well as political)
3) Free development of each individual (in community)
Characteristics
Ownership of
wealth/means of
production
Accumulation, control &
use of surplus (e.g.,
investment)
Coordination: market vs.
planning
Accountability of
management
State
State appropriation and
investment
central planning
to state bureaucracy
Type of System
Soviet Socialism
Problems:
1. concentration of power; 2. information; 3. incentives; 4. innovation
private and inheritable
Exploitation; private savings;
private banks
markets in consumer and
producer goods, capital and
labor; fiscal & monetary
policy; minimal state
investment
Market Socialism:
A. Economic
Democracy
social
taxation on capital assets (similar
to interest); disbursement to
regional public banks on a per
capita basis
markets in consumer and
producer goods; planning of
major investment priorities
to workers (eg.
Mondragon)
Market Socialism:
B. Roemer's Model
socialized stock market;
citizen shareholders, eg.
Alaska PFD
private savings, public banks
markets in producer and
consumer goods, capital
(restricted), and labor; major
investment planning (eg.,
Japan)
to citizen shareholders
and banks
Capitalism
to non-working
owners