Market socialism

market socialistmarketright-socialistsocialist free marketcentrally plannedeconomic liberalisationmarket economymarket socialistsmarket-oriented socialist economymarket-socialist
Market socialism is a type of economic system involving the public, cooperative or social ownership of the means of production in the framework of a market economy.wikipedia
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Socialism

socialistsocialistssocialistic
Market socialism differs from non-market socialism in that the market mechanism is utilized for the allocation of capital goods and the means of production.
By contrast, market socialism retains the use of monetary prices, factor markets and in some cases the profit motive, with respect to the operation of socially owned enterprises and the allocation of capital goods between them.

Social dividend

Depending on the specific model of market socialism, profits generated by socially owned firms (i.e. net revenue not reinvested into expanding the firm) may variously be used to directly remunerate employees, accrue to society at large as the source of public finance or be distributed amongst the population in a social dividend. Similar policies to the market socialist proposal of a social dividend and basic income scheme have been implemented on the basis of public ownership of natural resources in Alaska (Alaska Permanent Fund) and in Norway (The Government Pension Fund of Norway).
The concept notably appears as a key characteristic of market socialism, where it takes the form of a dividend payment to each citizen derived from the property income generated by publicly owned enterprises, representing the individual’s share of the capital and natural resources owned by society.

Socialist economics

socialist economysocialistsocialist economies
Contemporary market socialism emerged from the debate on socialist calculation during the early-to-mid 20th century among socialist economists who believed that a socialist economy could neither function on the basis of calculation in natural units nor through solving a system of simultaneous equations for economic coordination, and that capital markets would be required in a socialist economy.
Socialist systems that utilize markets for allocating inputs and capital goods among economic units are designated market socialism.

Social ownership

socializationsocializesocially-owned
Market socialism is a type of economic system involving the public, cooperative or social ownership of the means of production in the framework of a market economy.
Historically social ownership implied that capital and factor markets would cease to exist under the assumption that market exchanges within the production process would be made redundant if capital goods were owned by a single entity or network of entities representing society, but the articulation of models of market socialism where factor markets are utilized for allocating capital goods between socially owned enterprises broadened the definition to include autonomous entities within a market economy.

Market economy

market economiesfree market economymarket
Market socialism is a type of economic system involving the public, cooperative or social ownership of the means of production in the framework of a market economy.
In addition, there are many variations of market socialism where the majority of capital assets are socially-owned with markets allocating resources between socially-owned firms.

Socialist calculation debate

economic calculation debateeconomic calculation argumentobjectively determined
Although economic proposals involving social ownership with factor markets have existed since the early 19th century, the term "market socialism" only emerged in the 1920s during the socialist calculation debate.
Recent contributions to the debate in the late 20th century and early 21st century involve proposals for market socialism and the use of information technology and distributed networking as a basis for decentralized economic planning.

Abba P. Lerner

Abba LernerLerner
In the early 20th century, Oskar Lange and Abba Lerner outlined a neoclassical model of socialism which included a role for a central planning board (CPB) in setting prices equal to marginal cost to achieve Pareto efficiency.
Lerner developed a model of market socialism which featured decentralised market pricing proportional to marginal social cost and in so doing contributed to the Lange–Lerner–Taylor theorem.

Oskar R. Lange

Oscar LangeOskar Lange
In the early 20th century, Oskar Lange and Abba Lerner outlined a neoclassical model of socialism which included a role for a central planning board (CPB) in setting prices equal to marginal cost to achieve Pareto efficiency.
He is best known for advocating the use of market pricing tools in socialist systems and providing a model of market socialism.

Workers' self-management

self-managementautogestionworker self-management
Economists active in the former Yugoslavia, including Czech-born Jaroslav Vanek and Croat-born Branko Horvat, promoted a model of market socialism dubbed the Illyrian model, where firms were socially owned by their employees and structured on workers' self-management and competed with each other in open and free markets.
Self-management is a characteristic of many forms of socialism, with proposals for self-management having appeared many times throughout the history of the socialist movement, advocated variously by market socialists, communists, and anarchists.

Fred M. Taylor

Fred Taylor
Lange and Fred M. Taylor (1929) proposed that central planning boards set prices through "trial and error", making adjustments as shortages and surpluses occurred rather than relying on a free price mechanism.
Fred Manville Taylor (July 11, 1855, Northville, Michigan – August 7, 1932) was a U.S. economist and educator best known for his contribution to the theory of market socialism.

Social democracy

social democraticsocial-democraticsocial democrat
Market socialism also contrasts with social democratic policies implemented within capitalist market economies: while social democracy aims to achieve greater economic stability and equality through policy measures such as taxes, subsidies and social welfare programs, market socialism aims to achieve similar goals through changing patterns of enterprise ownership and management.
Giddens says that although there have been proponents of market socialism who have rejected such central planned socialism as well as being resistant to capitalism, "[t]here are good reasons, in my view, to argue that market socialism isn't a realistic possibility".

Economic system

economyeconomic systemseconomical
Market socialism is a type of economic system involving the public, cooperative or social ownership of the means of production in the framework of a market economy.
Socialist economic systems (all of which feature social ownership of the means of production) can be subdivided by their coordinating mechanism (planning and markets) into planned socialist and market socialist systems.

Socialist Federal Republic of Yugoslavia

SFR YugoslaviaYugoslaviaFPR Yugoslavia
The economy of the former Socialist Federal Republic of Yugoslavia is widely considered to be a model of market-based socialism, which was based on the predominance of socially-owned cooperatives, worker self-management and market allocation of capital.
It became one of the founding members of the Non-Aligned Movement, and transitioned from a planned economy to market socialism.

Calculation in kind

calculation performed in-kindcalculation-in-kindcalculation in natural units
Contemporary market socialism emerged from the debate on socialist calculation during the early-to-mid 20th century among socialist economists who believed that a socialist economy could neither function on the basis of calculation in natural units nor through solving a system of simultaneous equations for economic coordination, and that capital markets would be required in a socialist economy.
Neurath was the most forceful advocate of physical planning (economic planning using calculation-in-kind) in contrast to market socialist neoclassical economists who advocated use of notional prices computed by solving simultaneous equations.

Lange model

Lange–Lerner modelLange-model socialismLange–Lerner
Although the Lange–Lerner model was often labelled as "market socialism", it is better described as "market simulation" because factor markets did not exist for the allocation of capital goods.
Although Lange and Lerner called it "market socialism", the Lange model is a form of planned economy where a central planning board allocates investment and capital goods, while markets allocate labor and consumer goods.

Economy of Belarus

BelarusianBelarusian economyBelarus
The contemporary Economy of Belarus has been described as a "market socialist" system.
After the 1994 election of Alexander Lukashenko as the first President, launched the country on the path of "market socialism" as opposed to what Lukashenko considered "wild capitalism" chosen by Russia at that time.

Public finance

fiscalpublic financingpublic finances
Depending on the specific model of market socialism, profits generated by socially owned firms (i.e. net revenue not reinvested into expanding the firm) may variously be used to directly remunerate employees, accrue to society at large as the source of public finance or be distributed amongst the population in a social dividend.
Various market socialist systems or proposals utilize revenue generated by state-run enterprises to fund social dividends, eliminating the need for taxation altogether.

Mutualization

mutual ownershipmutualisationremutualised
Socialist theories that favored the market date back to the Ricardian socialists and anarchist economists, who advocated a free-market combined with public ownership or mutual ownership of the means of production.
Market socialism

Branko Horvat

Economists active in the former Yugoslavia, including Czech-born Jaroslav Vanek and Croat-born Branko Horvat, promoted a model of market socialism dubbed the Illyrian model, where firms were socially owned by their employees and structured on workers' self-management and competed with each other in open and free markets.
A democratic socialist, he advocated a model of market socialism, dubbed the Illyrian model, where firms were owned and self-managed by their workers and competed with each other in open and free markets.

Ricardian socialism

Ricardian socialistsRicardian socialist(Ricardian) socialist
Socialist theories that favored the market date back to the Ricardian socialists and anarchist economists, who advocated a free-market combined with public ownership or mutual ownership of the means of production. Among early advocates of market socialism were the Ricardian socialist economists and mutualist philosophers.
Market Socialism

Socialist market economy

Chinese modelSocialism with Chinese characteristicscapitalism in China
However, Chinese political and economic proponents of the "socialist market economy" do not consider it to be a form of market socialism in the neoclassical sense and many Western economists and political scientists question the degree to which this model constitutes a form of market socialism, often preferring to describe it as "state capitalism".
Proponents of this economic model distinguish it from market socialism as market socialists believe that economic planning is unattainable, undesirable or ineffective and thus view the market as an integral part of socialism whereas proponents of the socialist market economy view markets as a temporary phase in development of a fully planned economy.

Economic democracy

economic democratizationdemocratic economic systemdemocratic manner
American economists in the latter half of the 20th century developed models based such as "Coupon Socialism" (by the economist John Roemer) and "Economic Democracy" (by the philosopher David Schweickart).
According to Michael Howard, "in preserving commodity exchange, a market socialism has greater continuity with the society it displaces than does nonmarket socialism, and thus it is more likely to emerge from capitalism as a result of tendencies generated within it."

Mikhail Gorbachev

GorbachevMr. GorbachevPresident Gorbachev
The Soviet Union attempted to introduce a market system with its perestroika reforms under Mikhail Gorbachev.
The purpose of reform was to prop up the centrally planned economy—not to transition to market socialism.

Basic income

universal basic incomebasic income guaranteeunconditional basic income
Similar policies to the market socialist proposal of a social dividend and basic income scheme have been implemented on the basis of public ownership of natural resources in Alaska (Alaska Permanent Fund) and in Norway (The Government Pension Fund of Norway).
These systems would be directly financed from returns on publicly owned assets and are featured as major components of many models of market socialism.

David Schweickart

Schweickart, David
American economists in the latter half of the 20th century developed models based such as "Coupon Socialism" (by the economist John Roemer) and "Economic Democracy" (by the philosopher David Schweickart).
In After Capitalism and other works, Schweickart has developed the model of market socialism he refers to as "economic democracy".