Socialism  v • d • e  Currents African socialism Arab socialism Communism DeLeonism Democratic socialism Eco-Socialism Guild socialism Libertarian socialism Market socialism Revolutionary socialism Social anarchism Social democracy Socialist market economy Utopian socialism Religious socialism Buddhist socialism Christian socialism Islamic socialism Key Issues Criticisms of socialism History of socialism Socialist economics Socialist state Types of socialism People and organizations List of socialists International Workingmen's Association Second International Third International Fourth International Socialist International WFDY IUSY Related subjects Anarchism Autogestion Class struggle Democracy Dictatorship of the proletariat Egalitarianism Equality of outcome Impossibilism Internationalism Marxism Proletarian revolution Socialism in one country Trade union Utilitarianism

Socialist economics is a broad, and sometimes controversial, term. Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution African socialism is a belief in sharing economic resources in a "traditional" African way as distinct from classical Socialism. Arab Socialism (الاشتراكية العربية al-ishtirākīya al-‘arabīya) is a political ideology based on an amalgamation of Pan-Arabism and Communism is a Socioeconomic structure that promotes the establishment of an egalitarian, classless, stateless Society based De Leonism, occasionally known as Marxism-Deleonism, is a form of Marxism developed by Daniel De Leon. Democratic socialism is a description used by various socialist movements tendencies and organizations to emphasize the democratic character of their political orientation Eco-socialism, Green socialism or Socialist ecology is an Ideology merging aspects of Marxism, Socialism, Green politics Guild socialism is a political movement advocating workers' control of industry through the medium of trade-related Guilds. 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 Market socialism is a term used to denote two different Economic system (s based in Socialism which operate according to Market principles The term revolutionary socialism refers to Socialist tendencies that advocate the need for fundamental social change through Revolution, as a strategy to achieve a Social anarchism, socialist anarchism, anarcho-socialism, anarchist socialism or Communitarian anarchism,(sometimes used interchangeably with Social democracy is a Political ideology of the left and centre-left A socialist market economy is an economic form that is practiced in the People's Republic of China, where it is called Socialism with Chinese characteristics Utopian socialism is a term used to define the first currents of modern socialist thought Religious socialism is a Term used to describe forms of Socialism that are based on Religious values. Buddhist socialism is a Political ideology which advocates Socialism based on the principles of Buddhism. Christian socialism generally refers to those on the Christian left whose politics are both Christian and Socialist and who see these two philosophies as Islamic socialism is a term coined by various Muslim leaders to meet the demand for a more spiritual form of Socialism. Criticisms of Socialism range from disagreements over the efficiency of socialist economic and political models to condemnation of states described by themselves The history of socialism, sometimes termed 'modern socialism' finds its origins in the French Revolution of 1789 and the changes brought about by the Industrial Revolution The term socialist state (or socialist republic, or workers' state) can carry one of several different (but related meanings In strictly speaking any Since the 18th century Socialist ideas have developed and separated into many different types of socialism. The following is a list of self-identified Socialists divided by geographical location The International Workingmen's Association (IWA, sometimes called the First International, was an international socialist organization which aimed at uniting a variety The Second International (1889-1916 was an organization of socialist and labour parties formed in Paris on July 14, 1889. The Comintern ( Com munist Intern ational also known as the Third International) was an international Communist organisation founded in Moscow The Fourth International ( FI) is a communist international organisation working in opposition to both Capitalism and Stalinism. Socialist International is a worldwide organization of socialist ( social democratic and labour) political parties The World Federation of Democratic Youth (WFDY is a left-wing 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 Anarchism is a Political philosophy encompassing theories and attitudes which support the elimination of all compulsory Government, i Worker self-management (or autogestion) is a form of workplace decision-making in which the workers themselves agree on choices (for issues like customer care general production Class struggle is the active expression of Class conflict looked at from any kind of socialist perspective Democracy is a form of government in which the supreme power is held completely by the people under a free electoral system The " dictatorship of the proletariat " or workers' state is a term employed by Marxists that refers to what they see as a temporary state between the Egalitarianism (derived from the French word égal, meaning equal) is a political doctrine that holds that all people should be treated as equals and have Equality of outcome or equality of condition is a form of Egalitarianism which seeks to reduce or eliminate differences in material condition between individuals or Impossibilism is an interpretation of Marxism. It emphasizes the limited value of reforms in overturning capitalism and insists on revolutionary political action as the only For the Marxist concept of internationalism see Proletarian internationalism. Marxism is the political philosophy and practice derived from the work of Karl Marx and Friedrich Engels. A proletarian revolution is a social and/or political Revolution in which the Working class attempts to overthrow the Bourgeoisie. Socialism in One Country was a thesis developed by Nikolai Bukharin in 1925 and adopted as state policy by Joseph Stalin. A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming Utilitarianism is the idea that the moral worth of an action is solely determined by its contribution to overall Utility, that is its contribution to happiness 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 (though not private control). Egalitarianism (derived from the French word égal, meaning equal) is a political doctrine that holds that all people should be treated as equals and have 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]. János Kornai, (21 January 1928- born in Budapest, Hungary, is an Economist noted for his criticism of the command economies of Eastern

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. For the government of parliamentary systems see Executive (government. 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. 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 A workers' council is a Deliberative assembly, composed of Working class members intended to institute Workers' self-management or Workers' control 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. Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution

Contents 1 Development of socialist economic thought 1.1 Utopian socialism 2 Socialism and political economy 2.1 Socialist political economy before Marx 2.2 Das Kapital 2.3 After Marx 3 Socialist economies in theory 4 Socialist economies in practice 4.1 Western Europe 4.2 Union of Soviet Socialist Republics 4.3 India 4.4 People's Republic of China 5 Relation to other economic theories 6 References 7 Further reading 8 See also

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. The history of socialism, sometimes termed 'modern socialism' finds its origins in the French Revolution of 1789 and the changes brought about by the Industrial Revolution ^[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. The Age of Enlightenment or The Enlightenment is a term used to describe a phase in Western philosophy and cultural life centered upon the eighteenth century Friedrich Wilhelm Christian Karl Ferdinand Freiherr von Humboldt ( June 22, 1767 April 8, 1835) government functionary Immanuel Kant (ɪmanuəl kant 22 April 1724 12 February 1804 was an 18th-century German Philosopher from the Prussian city of Königsberg The French Revolution (1789–1799 was a period of political and social upheaval in the History of France, during which the French governmental structure previously an ^[3]

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. Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where 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. Karl Paul Polanyi ( October 25, 1886, Vienna, Austria — April 23, 1964, Pickering Ontario) was a Hungarian 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. The Luddites were a Social movement of British Textile artisans in the early Nineteenth century who protested&mdashoften by destroying mechanized Over time such movements gave birth to or acquired an array of intellectual defenders who attempted to develop their ideas in theory.

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- ). The Union of Soviet Socialist Republics (USSR was a constitutionally Socialist state that existed in Eurasia from 1922 to 1991 Originally coined by its critics and opponents " neoliberalism " is a label referring to the recent reemergence of Economic liberalism or Classical liberalism As socialism developed, so did the socialist system of economics.

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. Utopian socialism is a term used to define the first currents of modern socialist thought The 19th century of the Common Era began on January 1, 1801 and ended on December 31, 1900, according to the Gregorian calendar 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). The Subsistence Theory of Wages, also known as the "Iron Law of Wages" was a law of economics that asserted that real wages in the long run would trend toward the value needed

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. The United Society of Believers in Christ’s Second Appearing, known as the Shakers, was a Protestant religious denomination that originated in Manchester

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. Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. Thomas Robert Malthus FRS (13 February 1766 – 23 December 1834 was an English political economist and demographer who expressed views David Ricardo (18 April 1772 &ndash 11 September 1823 was an English political economist, often credited with systematizing economics and was one of the most influential 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. Class analysis is research in Sociology, Politics and Economics from the point of view of the stratification of the society into dynamic classes 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. A general glut is caused by too much production in all fields of production in comparison with what resources are available to consumption to purchase said production

Socialist political economy before Marx

A key early socialist theorist of political economy was Pierre-Joseph Proudhon. Pierre-Joseph Proudhon (ˈpruːd ɒn in British English, dɔ̃ in French) ( 15 January 1809 – 19 January 1865) was He was the most well-known of nineteenth century mutualist theorists. Mutualism, is an Anarchist school of thought, can be traced to the writings of Pierre-Joseph Proudhon that envisioned a society where each person might possess a 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. Agriculture refers to the production of goods through the growing of plants and fungi and the raising of domesticated Animals The study of agriculture Thomas Spence ( June 21, 1750 &ndash September 8, 1814) was a Radical democrat and advocate of the common ownership of land William Ogilvie may refer to William Ogilvie (surveyor (1846-1912 Canadian surveyor William Ogilvie (Ardglass, tutor to Lord Edward William Cobbett ( 9 March 1763 &ndash 18 June 1835) was an English political pamphleter Farmer and prolific Thomas Hodgskin (b December 12, 1787 Chatham Kent d - August 21, 1869 Feltham Middlesex was an english socialist Communitarianism, as a group of related but distinct philosophies began in the late 20th century opposing in its opinion exalted forms of Individualism while advocating phenomena Utopia is a name for an ideal community taken from the title of a book written in 1516 by Sir Thomas More describing a fictional Island in the Robert Owen (14 May 1771 – 17 Nov 1858 born in Newtown, Montgomeryshire, Wales was a social reformer and one of the founders of Socialism William Thompson (1775 &ndash 28 March 1833 Rosscarbery, Co Cork was an Irish political and philosophical Writer and François Marie Charles Fourier ( April 7, 1772 - October 10, 1837) was a French Utopian Mutualism, is an Anarchist school of thought, can be traced to the writings of Pierre-Joseph Proudhon that envisioned a society where each person might possess a William Batchelder Greene ( April 4, 1819 &ndash May 30, 1878) was a 19th century Individualist anarchist, Unitarian For chartism in financial markets see Technical analysis, and for the British socialist journal see Chartist (magazine Chartism was Syndicalism is a type of movement which aims to degrade capitalist societies through action by the Working class on the industrial front ^[5]

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. The labor theories of value (LTV are theories in Economics according to which the values of Commodities are related to the labor needed to Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. David Ricardo (18 April 1772 &ndash 11 September 1823 was an English political economist, often credited with systematizing economics and was one of the most influential The law of value is a concept in Karl Marx 's critique of Political economy. In Marxist theory Commodity Fetishism is a state of social relations said to arise in capitalist market based societies in which social relationships

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 "the free development of each is the condition for the free development of all. Scientific Socialism is the term used by Friedrich Engels to describe the socio-political-economic theory pioneered by Karl Marx. " [1].

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. An Inquiry into the Nature and Causes of the Wealth of Nations is the Magnum opus of the Scottish economist Adam Smith.

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. The law of value is a concept in Karl Marx 's critique of Political economy. 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. Means Of Production is a compilation of Aim 's early 12" and EP releases recorded between 1995 and 1998 The proletariat (from Latin la ''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 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. The term metabolic rift is the Marxist idea that the spread of the capitalist Mode of production results in humans interacting less directly with their natural [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. In Marxist theory Commodity Fetishism is a state of social relations said to arise in capitalist market based societies in which social relationships "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. The term " exploitation " may carry two distinct meanings The act of utilizing something for any purpose 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. Surplus value is a concept created by Karl Marx in his critique of Political economy, where its ultimate source is unpaid Surplus labor
• Accumulation Inherent to capitalism is the incessant drive to accumulate as a response to the competitive forces acting upon all capitalists. Most generally the accumulation of capital refers simply to the gathering or amassment of objects of value the increase in wealth or the creation of wealth 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. Productivity in Economics refers to measures of output from production processes per unit of input
• 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]

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. John Stuart Mill (20 May 1806 &ndash 8 May 1873 British Philosopher, political economist, civil servant and Member of Parliament, was an influential John Maynard Keynes 1st Baron Keynes CB (ˈkeɪnz "cains" (5 June 1883 &ndash 21 April 1946 was a British Economist whose ideas In Economics Keynesian economics (ˈkeɪnziən also Keynesianism and Keynesian Theory) is based on the ideas of twentieth-century British economist 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. Joan Violet Robinson ( October 31, 1903 in Surrey - August 5, 1983 in Cambridge) was a post-Keynesian economist Many original socialist economic ideas would also emerge out of the trade union movement (see Guild Socialism). A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming Guild socialism is a political movement advocating workers' control of industry through the medium of trade-related Guilds.

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. 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 Marxist economist 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. World system approach is a Post-Marxist view of world affairs one of several historical and current applications of Marxism to International relations. 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. Immanuel Maurice Wallerstein (born 28 September 1930, New York City) is a U 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]

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. Thorstein Bunde Veblen (born Tosten Bunde Veblen July 30, 1857 &ndash August 3, 1929) was a Norwegian-American sociologist 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. Antonio Gramsci ('ɡramʃi ( January 23, 1891 &ndash April 27, 1937) was an Italian Philosopher, Writer, Piero Sraffa (1898-1983 was an influential Italian Economist whose book Production of Commodities by Means of Commodities is taken as founding the 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. 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 Syndicalism is a type of movement which aims to degrade capitalist societies through action by the Working class on the industrial front Distributism, also known as distributionism and distributivism, is a third-way economic philosophy formulated by such Roman Catholic

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 mobilise 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]:

• 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. 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 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. Market socialism is a term used to denote two different Economic system (s based in Socialism which operate according to Market principles A price mechanism or market-based mechanism is any of a wide variety of ways to match up buyers and sellers Economic efficiency is used to refer to a number of related concepts 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. A mixed economy is an Economic system that incorporates aspects of more than one economic system Social democracy is a Political ideology of the left and centre-left g. in twentieth century Sweden.
• 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. Market socialism is a term used to denote two different Economic system (s based in Socialism which operate according to Market principles g. mid twentieth century Yugoslavia, A more theoretical model is Prabhat Ranjan Sarkar's Progressive Utilization Theory. Prabhat Ranjan Sarkar (May 21 1921 &ndash October 21 1990 also known by his spiritual name Shrii Shrii Anandamurti, was an Indian philosopher author social
• 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. The Spanish Revolution of 1936 began during the outbreak of the Spanish Civil War. More developed theoretical models include those of Karl Polanyi, Participatory Economics and the negotiated coordination model of Pat Devine. Karl Paul Polanyi ( October 25, 1886, Vienna, Austria — April 23, 1964, Pickering Ontario) was a Hungarian Participatory economics, often abbreviated parecon, is a proposed Economic system that uses participatory decision making as an economic mechanism Pat Devine is currently ( 2008) an honorary research fellow at Manchester University.

Socialist economies in practice

Western Europe

Many of the industrialized, 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 of the left and centre-left State capitalism, in its classic meaning is a private capitalist economy under State control

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 characterized by:

• Nationalization 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. A public company usually refers to a company that is permitted to offer its registered securities ( Stock, bonds, etc Advantages of nationalization 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. Investment or investing is a term with several closely-related meanings in Business management, Finance and Economics, related to saving
  • 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. A minimum wage is the lowest hourly daily or monthly Wage that employers may legally pay to employees or workers A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming 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. Strike action, often simply called a strike, is a work stoppage caused by the mass refusal by Employees to perform work. The objectives of these policies were to redistribute and to help produce full employment.
• National planning or state capitalism for industrial development. State capitalism, in its classic meaning is a private capitalist economy under State control
• Demand management in a Keynesian fashion to help ensure economic growth and employment. In Economics, demand management is the art or science of controlling economic Demand to avoid a Recession. John Maynard Keynes 1st Baron Keynes CB (ˈkeɪnz "cains" (5 June 1883 &ndash 21 April 1946 was a British Economist whose ideas

Union of Soviet Socialist Republics

Main article: Economy of the Soviet Union

The Soviet Union and some of its European satellites aimed for a fully centrally planned economy. The economy of the Soviet Union was based on a system of State ownership, administrative planning Socialist competition and free labour The Union of Soviet Socialist Republics (USSR was a constitutionally Socialist state that existed in Eurasia from 1922 to 1991 A planned economy or directed economy is an Economic system in which the Government or Workers' councils manages the 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 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.

India

Main article: Economy of India

After gaining independence from Britain, India adopted a broadly socialist approach to economic growth. The economy of India, measured in USD exchange-rate terms is the twelfth largest in the world with a GDP of around $1 trillion (2008 India, officially the Republic of India (भारत गणराज्य inc-Latn Bhārat Gaṇarājya; see also other Indian languages) is a country 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 is based in part on planning through its Five-year plans, developed executed and monitored by the Planning Commission.

People's Republic of China

Main article: Economy of the People's Republic of China

China embraced a wholehearted socialist model after the Communist victory in its Civil War. China has the second-largest economy in the world with a GDP of over $ 6 China ( Wade-Giles ( Mandarin) Chung¹kuo² is a cultural region, an ancient Civilization, and depending on perspective a National Private property and capital were abolished, and various forms of wealth made subject to state control or to workers' councils.

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. The Great Leap Forward ( of the People's Republic of China (PRC was an economic and social plan used from 1958 to 1960 which aimed to use China 's vast population 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. A famine is a widespread shortage of food that may apply to any Faunal species which phenomenon is usually accompanied by regional Malnutrition, Starvation

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 planned socialist economy to a mixed economy.

Relation to other economic theories

In many senses socialist economics is the polar opposite of classical economics. Classical economics is widely regarded as the first modern school of economic thought. 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. Allocative efficiency is a situation in which the limited resources of a firm are allocated in accordance with the wishes of Consumers An allocatively efficient economy

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. The economic calculation problem is a criticism of Socialist economics. A free market is a Market in which property rights are voluntarily exchanged at a price arranged completely by the mutual consent of sellers and buyers The Austrian School, also known as the “ Vienna School ” or the “ Psychological School ” is a heterodox school of economics that advocates An economist is an expert in the Social science of Economics. 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.

Many liberal or libertarian societies nevertheless allow the existence of some groups or institutions with a socialist flavour. Libertarianism is a term used by a broad spectrum of political philosophies which prioritize individual Liberty and seek to minimize or even abolish the Cooperatives or communes have existed, and competed, in market economies like the United Kingdom and Israel. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located For a topic outline on this subject see List of basic Israel topics. 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. Telstra or Telstra Corporation (often abbreviated as Telstra Corp) () is an Australian Telecommunications and media company formerly For a topic outline on this subject see List of basic Australia topics.

While socialist economics can be green economics, it is not necessarily. Ecological economics is a Transdisciplinary field of academic research within Economics that aims to address the interdependence between human economies and natural Some have argued that economic bodies with socialistic ownership structures are not inherently more environmentally concerned than traditional businesses. A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to However, socialist economists are inclined to suggest that the public control that accompanies public ownership is far more compatible to the project of sustainability than the private ownership model.

References

Further reading

• Albert, Michael & Hahnel, Robin: The Political Economy of Participatory Economics, Princeton University Press, 1991. Karl Paul Polanyi ( October 25, 1886, Vienna, Austria — April 23, 1964, Pickering Ontario) was a Hungarian Michael Albert (born April 8, 1947) is a longtime activist speaker and writer is co-editor of ZNet, and co-editor (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. Samir Amin ( Arabic: سمير أمين) (born 3 September 1931) is an Egyptian economist Monthly Review is an independent Marxist journal published in New York City. George Douglas Howard Cole ( 25 September 1889 &ndash 14 January 1959) was an English Political theorist, Economist
• 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. Gerald Allan "Jerry" Cohen, (born 1941 is a marxist political philosopher presently the Chichele Professor of Social and Political Theory, All Souls College 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. Paul Marlor Sweezy ( April 10, 1910 – February 27 2004) was a Marxist economist
• Veblen, Thorstein : The Theory of the Leisure Class: An Economic Study of Institutions, 1899, New York Macmillan Company. Thorstein Bunde Veblen (born Tosten Bunde Veblen July 30, 1857 &ndash August 3, 1929) was a Norwegian-American sociologist
• Von Mises, Ludwig, Socialism. Ludwig Heinrich Edler von Mises (ˈluːtvɪç fɔn ˈmiːzəs ( September 29, 1881 – October 10, 1973) was an Austrian
• Makoto Itoh, Political Economy of Socialism. Professor Makoto Itoh (1936-) is a Japanese Economist and is considered internationally to be one of the most important scholars of Marx's theory of value

See also

• Collectivism
• Economic calculation debate
• Fair Trade
• Feminist economics
• Gandhian economics
• History of economic thought
• Labour economics
• Market socialism
• Marxist economics
• Mutualism (economic theory)
• Participatory economics
• Post-capitalism
• Syndicalism
• Welfare economics

Collectivism is a term used to describe any moral political or social outlook that stresses human Interdependence and the importance of a Collective, rather than The economic calculation problem is a criticism of Socialist economics. Fair trade is an organized Social movement and market-based approach to empowering developing country producers and promoting sustainability Feminist economics broadly refers to a developing branch of Economics that applies feminist lenses to economics Gandhian economics is a school of economic thought based on the Socio-economic principles expounded by Indian leader Mohandas Gandhi. The history of economic thought deals with different thinkers and theories in the field of Political economy and Economics from the ancient world to the present Labour economics seeks to understand the functioning of the Market and dynamics for labour. Market socialism is a term used to denote two different Economic system (s based in Socialism which operate according to Market principles Note Marxian economics is not restricted to Marxist economics as it includes the economic thought of those inspired by Marx's works who do not identify with Mutualism, is an Anarchist school of thought, can be traced to the writings of Pierre-Joseph Proudhon that envisioned a society where each person might possess a Participatory economics, often abbreviated parecon, is a proposed Economic system that uses participatory decision making as an economic mechanism Post-capitalism refers to any hypothetical future Economic system which are proposed to replace Capitalism as the dominant economic system Syndicalism is a type of movement which aims to degrade capitalist societies through action by the Working class on the industrial front Welfare economics is a branch of Economics that uses microeconomic techniques to simultaneously determine Allocative efficiency within an economy and the

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