MODELS OF MARKET SOCIALISM SOCIALIST GOALS 1) EQUALITY OF

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

Type of System

Soviet Socialism

State

State appropriation and investment

central planning

to state bureaucracy

Problems:

1. concentration of power; 2. information; 3. incentives; 4. innovation

Capitalism

private and inheritable

Exploitation; private savings; private banks

markets in consumer and producer goods, capital and labor; fiscal & monetary policy; minimal state investment

to non-working owners

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