On the Workability of Market Socialism--student

On the Workability of Market Socialism--student -...

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Comparative Economic Systems Grand Valley State University Dr. Daniel Giedeman
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The Response This paper is a response to Shleifer and Vishny Starts off with giving Shleifer and Vishny’s arguments for why market socialism “simply does not work”: 1) Under all forms of market socialism… the state ultimately controls the firms and hence the state’s objectives must determine resource allocation.” 2) These objectives are such that government interest in economic efficiency is fundamentally implausible. 3) Under socialism the government pursuing objectives that are inherent in the democratic process is likely to damage the economy much worse than the same government under capitalism.
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The Response Bardhan and Roemer “strongly disagree with these three points.” Bardhan and Roemer argue that their system of bank-control shows that resource allocation doesn’t have to be determined by the state And they say that arguments (2) and (3) display a simple-minded
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This note was uploaded on 04/05/2011 for the course ECO 365 taught by Professor Giederman during the Winter '11 term at Grand Valley State University.

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On the Workability of Market Socialism--student -...

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