Market Socialism--a rejuvenation--student

Market Socialism--a rejuvenation--student - Comparative...

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Comparative Economic Systems Bardhan & Roemer: "Market Socialism: A Case for Rejuvenation" Grand Valley State University Dr. Daniel Giedeman
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Some Background Three features of traditional (and failed) socialism: 1) state ownership of the means of production 2) non-competitive, non-democratic politics 3) command/administrative allocation of resources and commodities
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Market Socialism Bardhan and Roemer argue for a systems based only upon #1 (state ownership of the means of production) which they take to mean “distribution of the profits of firms is decided by the political democratic process” “Our claim is that competitive markets are necessary to achieve an efficient and vigorous economy, but that full-scale private ownership is not necessary for the successful operation of competition and markets.” They address the “soft-budget constraint” problem by suggesting that banks can monitor and reward/punish firms/managers.
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Market Socialism Why not just use the real thing (i.e. markets)? 1) Real-thing might not be possible in many places. They describe how Germany and Japan developed bank-centric financial systems to mitigate a historical handicap in capital market institutions 2) “Secondly, at the risk of belaboring the obvious, the whole purpose of designing blueprints for market socialism that can achieve production efficiency roughly similar to that of capitalism, instead of rushing for the “real thing,” is our conviction that such a system would have a more egalitarian income distribution, and would be more sensitive to social needs, such as education, health care, and environmental protection.”
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Market Socialism “We do not believe that entrepreneurial functions require, for their elicitation, the large drain on the social surplus that corporate capitalists usually extract, nor that inherited wealth
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Market Socialism--a rejuvenation--student - Comparative...

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