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Market socialism is a type of
economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The idea of a two-way effect is essential in the co ...
involving the
public In public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization An organization, or organisation (English in the Commonwealth of Nations, Commonwealth Engli ...
,
cooperative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous The federal subject The federal subjects of Russia, also referred to as the subjects of the Russian Federation (russian: субъекты Российск ...
, or
social ownership Social ownership is the appropriation of the surplus product Surplus product (german: Mehrprodukt, links=no) is an economic concept explicitly theorised by Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philoso ...
of the
means of production The means of production is a concept that encompasses the social use and ownership Ownership is the state or fact of exclusive right In Anglo-Saxon law Anglo-Saxon law (Old English Old English (, ), or Anglo-Saxon, is the earliest record ...
in the framework of a
market economy A market economy is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The ide ...
. Market socialism differs from non-market
socialism Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other forms of Power (social and political), power relations between individuals, ...
in that the market mechanism is utilized for the allocation of
capital good The economic concept of a capital good (also called complex product systems (CoPS), H. Rush, "Managing innovation in complex product systems (CoPS)," IEE Colloquium on EPSRC Technology Management Initiative (Engineering & Physical Sciences Research ...
s and the means of production. 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 Public finance is the study of the role of the government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''Sta ...
, or be distributed amongst the population in a
social dividend The social dividend is the return on the capital assets and natural resources owned by society in a socialist Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decision ...
. Market socialism is not exclusive, but can be distinguished from the concept of the
mixed economy A mixed economy is variously defined as an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), distribution of go ...
because some models of market socialism are complete and self-regulating systems, unlike the mixed economy. Market socialism also contrasts with
social democratic Social democracy is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other forms of Power (social and political), power relations between individu ...
policies implemented within capitalist market economies. While social democracy aims to achieve greater
economic stabilityEconomic stability is the absence of excessive fluctuations in the macroeconomy. An economy with fairly constant GDP, output growth and low and stable inflation would be considered economically stable. An economy with frequent large recessions, a pro ...
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. Early models of market socialism trace their roots to the work of
Adam Smith Adam Smith ( 1723 – 17 July 1790) was a Scottish economist, philosopher as well as a moral philosopher Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and ...

Adam Smith
and the theories of
classical economics Classical economics or classical political economy is a school of thought in economics that flourished, primarily in Kingdom of Great Britain, Britain, in the late 18th and early-to-mid 19th century. Its main thinkers are held to be Adam Smith, Je ...
, which consisted of proposals for co-operative enterprises operating in a
free-market In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of pl ...
economy. The aim of such proposals was to eliminate exploitation by allowing individuals to receive the full product of their labor, while removing the market-distorting effects of concentrating ownership and wealth in the hands of a small class of
private property Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property Public property is property Property (''latin: Res Privata'') in the Abstract ...
owners. Among early advocates of this type of market socialism were the
Ricardian socialist Ricardian socialism is a branch of classical economic thought based upon the work of the economist David Ricardo David Ricardo (18 April 1772 – 11 September 1823) was a British political economist, one of the most influential of the classi ...
economists and mutualist philosophers, but the term "market socialism" only emerged in the 1920s during the
socialist calculation debate The socialist calculation debate, sometimes known as the economic calculation debate, was a discourse on the subject of how a Socialist mode of production, socialist economy would perform economic calculation given the absence of the law of value ...
. Although sometimes described as "market socialism", the Lange model is a form of market simulated planning where a central planning board allocates investment and capital goods by simulating factor market transactions, while markets allocate labor and consumer goods. The system was devised by 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.


Theoretical history


Classical economics

The key theoretical basis for market socialism is the negation of the underlying expropriation of
surplus value In Marxian economics Marxian economics, or the Marxian school of economics, is a Heterodox economics, heterodox school of political economic thought. Its foundations can be traced back to Karl Marx, Karl Marx's Critique of political economy#M ...
present in other
modes of production In the Marxist theory of historical materialism Historical materialism is a Historical method, methodology to understand human societies and their development throughout history, arguing that historical changes in social structure are ultim ...
. Socialist theories that favored the market date back to the
Ricardian socialists Ricardian socialism is a branch of Classical economics, classical economic thought based upon the work of the economist David Ricardo (1772–1823). The term is used to describe economists in the 1820s and 1830s who developed a theory of capitali ...
and anarchist economists, who advocated a
free market In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of pl ...
combined with
public ownership State ownership, also called government ownership and public ownership, is the ownership of an industry Industry may refer to: Economics * Industry (economics) In macroeconomics, an industry is a branch of an economy that produces a clos ...
or mutual ownership of the means of production. Proponents of early market socialism include the Ricardian socialist economists, the classical liberal philosopher
John Stuart Mill John Stuart Mill (20 May 1806 – 7 May 1873), also cited as J. S. Mill, was an English philosopher, Political economy, political economist, Member of Parliament (United Kingdom), Member of Parliament (MP) and civil servant. One of the most i ...
and the anarchist philosopher
Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, , ; 15 January 1809, Besançon – 19 January 1865, Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, most populous city of France, with an estimated popu ...

Pierre-Joseph Proudhon
. These models of socialism entailed perfecting or improving the
market mechanism In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods a ...
and
free price system A free price system or free price mechanism (informally called ''the price system'' or ''the price mechanism'') is a mechanism of resource allocation that relies upon monetary prices set by the interchange of supply and demand In microeco ...
by removing distortions caused by
exploitation Exploitation may refer to: *Exploitation of natural resources *Exploitation of labour *Exploitation fiction *Exploitation film *Exploitation (film), ''Exploitation'' (film), a 2012 film *Sexual slavery and other forms of slavery *Oppression See al ...
,
private property Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property Public property is property Property (''latin: Res Privata'') in the Abstract ...
and
alienated labor Karl Marx's theory of alienation describes the social alienation Social alienation is "a condition in social relationships reflected by (1) a low degree of integration or common values and (2) a high degree of distance or isolation (3a) betwe ...
. This form of market socialism has been termed free-market socialism because it does not involve planners.


John Stuart Mill

Mill's early
economic philosophy An economic ideology distinguishes itself from economic theory Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, ...
was one of
free market In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of pl ...
s that he moved toward a more socialist bent, adding chapters to his ''Principles of Political Economy'' in defence of a socialist outlook, and defending some socialist causes. Within this revised work he also made the radical proposal that the whole wage system be abolished in favour of a co-operative wage system. Nonetheless, some of his views on the idea of flat taxation remained, albeit altered in the third edition of the ''Principles of Political Economy'' to reflect a concern for differentiating restrictions on unearned incomes which he favoured; and those on earned incomes, which he did not favour. (3rd edition; the passage about flat taxation was altered by the author in this edition, which is acknowledged in this online edition's footnote 8. This sentence replaced in the 3rd ed. a sentence of the original: "It is partial taxation, which is a mild form of robbery". Mill's ''Principles'', first published in 1848, was one of the most widely read of all books on economics in the period. As
Adam Smith Adam Smith ( 1723 – 17 July 1790) was a Scottish economist, philosopher as well as a moral philosopher Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and ...

Adam Smith
's ''
Wealth of Nations ''An Inquiry into the Nature and Causes of the Wealth of Nations'', generally referred to by its shortened title ''The Wealth of Nations'', is the '' magnum opus'' of the Scottish economist An economist is a practitioner in the social scien ...

Wealth of Nations
'' had during an earlier period, Mill's ''Principles'' dominated economics teaching. In the case of
Oxford University Oxford () is a city in England. It is the county town and only city of Oxfordshire. In 2017, its population was estimated at 152,450. It is northwest of London, southeast of Birmingham, and northeast of Bristol. The city is home to the Unive ...

Oxford University
, it was the standard text until 1919, when it was replaced by
Alfred Marshall Alfred Marshall (26 July 1842 – 13 July 1924) was an English economist, who was one of the most influential economists of his time. His book, '' Principles of Economics'' (1890), was the dominant economic textbook in England for many years. ...

Alfred Marshall
's '' Principles of Economics''. In later editions of ''Principles of Political Economy'', Mill would argue that "as far as economic theory was concerned, there is nothing in principle in economic theory that precludes an economic order based on socialist policies". Mill also promoted substituting capitalist businesses with worker cooperatives, writing:
The form of association, however, which if mankind continue to improve, must be expected in the end to predominate, is not that which can exist between a capitalist as chief, and work-people without a voice in the management, but the association of the labourers themselves on terms of equality, collectively owning the capital with which they carry on their operations and working under managers elected and removable by themselves.


Mutualism

Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, , ; 15 January 1809, Besançon – 19 January 1865, Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, most populous city of France, with an estimated popu ...

Pierre-Joseph Proudhon
developed a theoretical system called mutualism which attacks the legitimacy of existing
property rights The right to property, or the right to own property (cf. ownership Ownership is the state or fact of exclusive rights and control over property, which may be any asset, including an object, land or real estate, intellectual property, or until th ...
,
subsidies A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the term ...
,
corporations A corporation is an organization—usually a group of people or a company A company, abbreviated as co., is a legal entity In law, a legal person is any person A person (plural people or persons) is a being that has certain capa ...

corporations
,
banking A bank is a financial institution Financial institutions, otherwise known as banking institutions, are corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), stat ...

banking
and
rent Rent may refer to: Economics *Renting Renting, also known as hiring or letting, is an agreement where a payment is made for the temporary use of a good, service or owned by another. A is when the pays a flat rental amount and the pays ...
. Proudhon envisioned a decentralized market where people would enter the market with equal power, negating
wage slavery Wage slavery is a term used to describe a situation where a person's entire livelihood A person's livelihood (derived from ''life-lode'', "way of life"; cf. Old German, OG ''lib-leit'') refers to their "means of securing the basic necessities (food ...
. Proponents believe that cooperatives, credit unions and other forms of worker ownership would become viable without being subject to the
state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, Un ...
. Market socialism has also been used to describe some
individualist anarchist Individualist anarchism is the branch of anarchism that emphasizes the individual and their Will (philosophy), will over external determinants such as groups, society, traditions and ideological systems."What do I mean by individualism? I mean b ...
works which argue that free markets help workers and weaken capitalists.


Individualist anarchism in the United States

For American anarchist historian Eunice Minette Schuster, " is apparent ..that
Proudhon Pierre-Joseph Proudhon (, , ; 15 January 1809, Besançon – 19 January 1865, Paris) was a French socialist,Landauer, Carl; Landauer, Hilde Stein; Valkenier, Elizabeth Kridl (1979)
959 Year 959 ( CMLIX) was a common year starting on SaturdayA common year starting on Saturday is any non-leap year A leap year (also known as an intercalary year or bissextile year) is a calendar year that contains an additional day (or, in the ...
"The Three Anticapitalistic Movements". ''European Soc ...
ian Anarchism was to be found in the United States at least as early as 1848 and that it was not conscious of its affinity to the Individualist Anarchism of
Josiah Warren Josiah Warren (; 26 June, 1798 – 14 April, 1874) was an American utopian socialist Utopian socialism is the term often used to describe the first current of modern socialism Socialism is a Political philosophy, political, Social philoso ...

Josiah Warren
and
Stephen Pearl Andrews Stephen Pearl Andrews (March 22, 1812 – May 21, 1886) was an American individualist anarchist, linguist, political philosopher, outspoken abolitionist Abolitionism, or the abolitionist movement, was the movement to end slavery. In W ...

Stephen Pearl Andrews
. .. William B. Greene presented this Proudhonian Mutualism in its purest and most systematic form". Josiah Warren is widely regarded as the first American
anarchist Anarchism is a political philosophy and Political movement, movement that is sceptical of authority and rejects all involuntary, coercive forms of hierarchy. Anarchism calls for the abolition of the State (polity), state, which it holds to ...

anarchist
, and the four-page weekly paper he edited during 1833, ''The Peaceful Revolutionist'', was the first anarchist periodical published, an enterprise for which he built his own printing press, cast his own type, and made his own printing plates. Warren was a follower of
Robert Owen Robert Owen (; 14 May 1771 – 17 November 1858) was a Welsh Welsh may refer to: Related to Wales * Welsh, referring or related to Wales * Welsh language, a Brittonic Celtic language of the Indo-European language family, indigenous to the Bri ...
and joined Owen's community at
New Harmony, Indiana New Harmony is a historic town on the Wabash River in Harmony Township, Posey County, Indiana, Harmony Township, Posey County, Indiana, Posey County, Indiana. It lies north of Mount Vernon, Indiana, Mount Vernon, the county seat, and is part of th ...

New Harmony, Indiana
. Josiah Warren termed the phrase " cost the limit of price", with "cost" here referring not to monetary price paid but the labor one exerted to produce an item. Therefore, " proposed a system to pay people with certificates indicating how many hours of work they did. They could exchange the notes at local time stores for goods that took the same amount of time to produce". He put his theories to the test by establishing an experimental "labor for labor store" called the
Cincinnati Time Store The Cincinnati Time Store (1827-1830) was the first in a series of retail stores created by American individualist anarchist Josiah Warren to test his economic labor theory of value. The experimental store operated from May 18, 1827 until May 18 ...
where trade was facilitated by notes backed by a promise to perform labor. The store proved successful and operated for three years after which it was closed so that Warren could pursue establishing colonies based on mutualism. These included
Utopia A utopia ( ) typically describes an imaginary community A community is a social unit (a group of living things) with commonality such as Norm (social), norms, religion, values, Convention (norm), customs, or Identity (social science), identi ...
and
Modern TimesModern Times may refer to modern history. Modern Times may also refer to: Music * Modern Times (band), a band from Luxembourg * Modern Times (Al Stewart album), ''Modern Times'' (Al Stewart album), a 1975 album by Al Stewart * Modern Times (Bob Dy ...
. Warren said that
Stephen Pearl Andrews Stephen Pearl Andrews (March 22, 1812 – May 21, 1886) was an American individualist anarchist, linguist, political philosopher, outspoken abolitionist Abolitionism, or the abolitionist movement, was the movement to end slavery. In W ...

Stephen Pearl Andrews
' ''The Science of Society'', published in 1852, was the most lucid and complete exposition of Warren's own theories. Later,
Benjamin Tucker Benjamin Ricketson Tucker (; April 17, 1854 – June 22, 1939) was an American anarchist Anarchism is a political philosophy and Political movement, movement that is sceptical of authority and rejects all involuntary, coercive forms of h ...

Benjamin Tucker
fused the economics of Warren and Proudhon and published these ideas in ''
Liberty Broadly speaking, liberty is the ability to do as one pleases, or a right or immunity enjoyed by prescription or by grant (i.e. privilege). It is a synonym for the word freedom Freedom, generally, is having the ability to act or change withou ...

Liberty
'' calling them "Anarchistic-Socialism". Tucker said: " e fact that one class of men are dependent for their living upon the sale of their labour, while another class of men are relieved of the necessity of labour by being legally privileged to sell something that is not labour. ..And to such a state of things I am as much opposed as any one. But the minute you remove privilege ..every man will be a labourer exchanging with fellow-labourers. ..What Anarchistic-Socialism aims to abolish is usury ..it wants to deprive capital of its reward". American
individualist anarchists Individualist anarchism is the branch of anarchism that emphasizes the individual and their Will (philosophy), will over external determinants such as groups, society, traditions and ideological systems."What do I mean by individualism? I mean b ...
such as Tucker saw themselves as economic market socialists and political individualists while arguing that their "anarchistic socialism" or "individual anarchism" was "consistent Manchesterism".
Left-wing market anarchism Left-wing market anarchismZwolinski, Matt (9 January 2013)"Markets Not Capitalism" Foundation for Economic Education. Retrieved 10 January 2020. is a strand of free-market anarchism and an individualist anarchist, left-libertarianSheldon Rich ...
is a modern branch of
free-market anarchism Free-market anarchism, or market anarchism, also known as free-market anti-capitalism and free-market socialism, is the branch of anarchism that advocates a free-market economic system based on voluntary interactions without the involvement o ...
that is based on a revival of such market socialist theories.


Neoclassical economics


Early 20th century

Beginning in the early 20th century,
neoclassical economic theory Neoclassical economics is an approach to economics in which the production, consumption and valuation (pricing) of goods and services are driven by the supply and demand, supply and demand model. According to this line of thought, the value of a ...
provided the theoretical basis for more comprehensive models of market socialism. Early neoclassical models of socialism included a role for a central planning board (CPB) in setting prices equal
marginal cost In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods a ...

marginal cost
to achieve
Pareto efficiency Pareto efficiency or Pareto optimality is a situation where no individual or preference criterion can be better off without making at least one individual or preference criterion worse off or without any loss thereof. The concept is named after Vi ...
. Although these early models did not rely on conventional markets, they were labeled market socialist for their utilization of financial prices and calculation. Alternative outlines for market socialism involve models where socially owned enterprises or producer co-operatives operate within
free market In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of pl ...
s under the criterion of profitability. In recent models proposed by American neoclassical economists, public ownership of the means of production is achieved through public ownership of
equity Equity may refer to: Finance, accounting and ownership *Equity (finance), ownership of assets that have liabilities attached to them ** Stock, equity based on original contributions of cash or other value to a business ** Home equity, the differe ...
and social control of investment. The earliest models of neoclassical socialism were developed by
Léon Walras Marie-Esprit-Léon Walras (; 16 December 1834 – 5 January 1910) was a French mathematical economics, mathematical economist and Georgist. He formulated the Marginalism, marginal theory of value (independently of William Stanley Jevons and Carl Men ...
,
Enrico Barone Enrico Barone (; 22 December 1859, Naples Naples (; it, Napoli ; nap, Napule ; grc, wikt:Νεάπολις, Νεάπολις, Neápolis), from grc, Νεάπολις, lit=new city. is the regional capital of Campania and the third-largest c ...
(1908) and
Oskar R. Lange Oskar Ryszard Lange (27 July 1904 – 2 October 1965) was a Poland, Polish economics, economist and diplomat. He is best known for advocating the use of market (economics), market pricing tools in socialism, socialist systems and providing a model ...

Oskar R. Lange
(c. 1936). Lange and (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. If there were shortages, prices would be raised; if there were surpluses, prices would be lowered. Raising the prices would encourage businesses to increase production, driven by their desire to increase their profits, and in doing so eliminate the shortage. Lowering the prices would encourage businesses to curtail production to prevent losses, which would eliminate the surplus. Therefore, it would be a simulation of the market mechanism, which Lange thought would be capable of effectively managing supply and demand. 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. The objective of the Lange–Lerner model was explicitly to replace markets with a non-market system of resource allocation. H. D. Dickinson published two articles proposing a form of market socialism, namely "Price Formation in a Socialist Community" (''The Economic Journal'' 1933) and "The Problems of a Socialist Economy" (''The Economic Journal'' 1934). Dickinson proposed a mathematical solution whereby the problems of a socialist economy could be solved by a central planning agency. The central agency would have the necessary statistics on the economy, as well as the capability of using statistics to direct production. The economy could be represented as a system of equations. Solution values for these equations could be used to price all goods at marginal cost and direct production. Hayek (1935) argued against the proposal to simulate markets with equations. Dickinson (1939) adopted the Lange-Taylor proposal to simulate markets through trial and error. The Lange–Dickinson version of market socialism kept capital investment out of the market. Lange (1926 p65) insisted that a central planning board would have to set capital accumulation rates arbitrarily. Lange and Dickinson saw potential problems with bureaucratization in market socialism. According to Dickinson, "the attempt to check irresponsibility will tie up managers of socialist enterprises with so much red tape and bureaucratic regulation that they will lose all initiative and independence" (Dickinson 1938, p. 214). In ''The Economics of Control: Principles of Welfare Economics'' (1944), Abba Lerner admitted that capital investment would be politicized in market socialism.


Late 20th century and early 21st century

Economists active in the former Yugoslavia, including Czech-born Jaroslav Vaněk and Croat-born
Branko Horvat Branko Horvat (24 July 1928 – 18 December 2003) was a Croatian economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts f ...
, promoted a model of market socialism dubbed the Illyrian model, where firms were socially owned by their employees and structured around
workers' self-management Workers' self-management, also referred to as labor management and organizational self-management, is a form of organizational management Management (or managing) is the administration of an organization, whether it is a business, a not-for ...
, competing with each other in open and free markets. American economists in the latter half of the 20th century developed models based such as coupon socialism (by the economist
John Roemer John E. Roemer (; born February 1, 1945 in Washington, D.C., to Ruth Roemer and Milton Roemer, namesake of Roemer's law) is an American economist and political scientist. He is currently the Elizabeth S. and A. Varick Stout Professor of Political S ...
) and
economic democracy Economic democracy is a socioeconomic Socioeconomics (also known as social economics) is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern society, societies soci ...

economic democracy
(by the philosopher David Schweickart).
Pranab Bardhan Pranab Kumar Bardhan (born 11 September 1939 in Calcutta) is an Indian economist who has taught and worked in the United States since 1979. He is Professor Emeritus of Economics at the University of California, Berkeley. Biography Bardhan rece ...

Pranab Bardhan
and
John Roemer John E. Roemer (; born February 1, 1945 in Washington, D.C., to Ruth Roemer and Milton Roemer, namesake of Roemer's law) is an American economist and political scientist. He is currently the Elizabeth S. and A. Varick Stout Professor of Political S ...
proposed a form of market socialism where there was a stock market that distributed shares of the capital stock equally among citizens. In this stock market, there is no buying or selling of stocks that leads to negative externalities associated with a concentration of capital ownership. The Bardhan and Roemer model satisfied the main requirements of both socialism (workers own all the factors of production, not just labour) and market economies (prices determine efficient allocation of resources). New Zealand economist Steven O'Donnell expanded on the Bardhan and Roemer model and decomposed the capital function in a general equilibrium system to take account of entrepreneurial activity in market socialist economies. O'Donnell (2003) set up a model that could be used as a blueprint for transition economies and the results suggested that although market socialist models were inherently unstable in the long term, they would provide in the short term the economic infrastructure necessary for a successful transition from planned to market economies. In the early 21st century, the
Marxian economist Marxian economics, or the Marxian school of economics, is a school of political economic thought. Its foundations can be traced back to . However, unlike , Marxian economists tend to accept the concept of as a reasonable object of inquiry in i ...
Richard D. Wolff refocused Marxian economics giving it a microfoundational focus. The core idea was that transition from capitalism to socialism required the reorganization of the enterprise from a top-down hierarchical capitalist model to a model where all key enterprise decisions (what, how, and where to produce and what to do with outputs) were made on a one-worker, one vote basis. Wolff called them workers self-directed enterprises (WSDEs). How they would interact with one another and with consumers was left open to democratic social decisions and could entail markets or planning, or likely mixtures of both. Advocates of market socialism such as Jaroslav Vaněk argue that genuinely free markets are not possible under conditions of private ownership of productive property. Instead, he contends that the class differences and inequalities in income and power that result from private ownership enable the interests of the dominant class to skew the market to their favor, either in the form of monopoly and market power, or by utilizing their wealth and resources to legislate government policies that benefit their specific business interests. Additionally, Vaněk states that workers in a socialist economy based on cooperative and self-managed enterprises have stronger incentives to maximize productivity because they would receive a share of the profits (based on the overall performance of their enterprise) in addition to receiving their fixed wage or salary. The stronger incentives to maximize productivity that he conceives as possible in a socialist economy based on cooperative and self-managed enterprises might be accomplished in a free-market economy if
employee-owned companies Employee stock ownership, or employee share ownership, is where a company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal personality, legal or a m ...
were the norm as envisioned by various thinkers including Louis O. Kelso and .


Anti-equilibrium economics

Another form of market socialism has been promoted by critics of
central planning A planned economy is a type of economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. T ...
and generally of neoclassical
general equilibrium theory In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an ove ...
. The most notable of these economists were
Alec Nove Alexander Nove, FRSE Fellowship of the Royal Society of Edinburgh (FRSE) is an award granted to individuals that the Royal Society of Edinburgh, Scotland's national academy of science and Literature, letters, judged to be "eminently distingui ...
and
János Kornai János Kornai (born János Kornhauser; 21 January 1928) is a Hungarian economist An economist is a practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and conc ...
. In particular, Alec Nove proposed what he called feasible socialism, a mixed economy consisting of state-run enterprises, autonomous publicly owned firms, cooperatives and small-scale private enterprise operating in a market economy that included a role for macroeconomic planning.


In practice

A number of market socialist elements have existed in various economies. The
economy An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products ...
of the former
Socialist Federal Republic of Yugoslavia The Socialist Federal Republic of Yugoslavia, commonly referred to as SFR Yugoslavia or simply Yugoslavia, was a Socialist state, socialist country in Southeast Europe, Southeast and Central Europe that existed from its foundation in the afte ...
is widely considered to have been a form of market-based socialism, based on socially-owned cooperatives,
workers' self-management Workers' self-management, also referred to as labor management and organizational self-management, is a form of organizational management Management (or managing) is the administration of an organization, whether it is a business, a not-for ...
and market allocation of capital. Some of the economic reforms introduced during the
Prague Spring#REDIRECT Prague Spring The Prague Spring ( cs, Pražské jaro, sk, Pražská jar) was a period of political liberalization and mass protest in the Czechoslovak Socialist Republic The Czechoslovak Socialist Republic ( Czech and sk, Česk ...
by
Alexander Dubček Alexander Dubček (; 27 November 1921 – 7 November 1992) was a Slovaks, Slovak politician who served as the First Secretary of the Presidium of the Central Committee of the Communist Party of Czechoslovakia (KSČ) (''de facto'' leader of Czech ...
, the
leader Leadership, both as a research area and as a practical skill, encompasses the ability of an individual, group or organization An organization, or organisation (Commonwealth English The use of the English language English ...

leader
of
Czechoslovakia , , yi, טשעכאסלאוואקיי, , common_name = Czechoslovakia , life_span = 1918–19391945–1992 , p1 = Austria-Hungary , image_p1 = , s1 = Czech Re ...

Czechoslovakia
, included elements of market socialism. Likewise,
Vietnam Vietnam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,, group="n" is a country in Southeast Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia or SEA, is the ...

Vietnam
's
socialist-oriented market economy The socialist-oriented market economy ( Vietnamese: ''Kinh tế thị trường theo định hướng xã hội chủ nghĩa'') is the official title given to the current economic system in the Socialist Republic of Vietnam. It is described as a ...
is self-described as market socialist. It has an extremely high prevalence of cooperatives, especially in agriculture and retail, with the continued
state ownership State ownership, also called government ownership and public ownership, is the ownership of an industry Industry may refer to: Economics * Industry (economics) In macroeconomics, an industry is a branch of an economy that produces a clo ...
of the
commanding heights of the economy In Marxism–Leninism Marxism–Leninism is a communist ideology and the main communist movement throughout the 20th century.Lansford, Thomas (2007). ''Communism''. New York: Cavendish Square Publishing. pp. 9–24, 36–44. . "By 1985, one-t ...
. Cooperative businesses in Vietnam are also incentivized and supported by the government, receiving many benefits that private companies do not. The
Mondragon Corporation The Mondragon Corporation is a corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law ...
in the
Basque Country Image:Euskal Herriaren terminologia.png, Map showing the geographical and political divisions of the Basque Country Basque Country may refer to: *Basque Country (autonomous community) (''Euskal Autonomia Erkidegoa'' in Basque; ''Comunidad Autónoma ...
,
Coop Coop, COOP or Co-op most often refers to: * A chicken coop A chicken coop or hen house is a structure where chickens or other fowl are kept safe and secure. There may be nest boxes and perches in the house. Housing controversies There ...
in Italy and cooperatives in many other countries are widely cited as highly successful co-operative enterprises based on worker- or consumer-ownership and democratic management. Peter Drucker described the United States system of regulated pension funds providing capital to financial markets as "pension fund socialism". William H. Simon characterized pension fund socialism as "a form of market socialism", concluding that it was promising but perhaps with prospects more limited than those envisioned by its enthusiasts. The Economy of Cuba, economy of Cuba under the rule of Raúl Castro has been described as attempting market socialist reforms. Similarly, the economy of History of Libya under Muammar Gaddafi, Libya under Muammar Gaddafi could be described as a form of market socialism as Muammar Gaddafi's Third International Theory shared many similarities with Yugoslav self-management. Policies similar to the market socialist proposal of a
social dividend The social dividend is the return on the capital assets and natural resources owned by society in a socialist Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decision ...
and Basic income guarantee, 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).


Relation to political ideologies


Marxism–Leninism

The phrase market socialism has occasionally been used in reference to any attempt by a Soviet-type economic planning, Soviet-type planned economy to introduce market elements into its economic system. In this sense, market socialism was first attempted during the 1920s in the Soviet Union as the New Economic Policy (NEP) before being abandoned. Later, elements of market socialism were introduced in Hungary (where it was nicknamed goulash communism),
Czechoslovakia , , yi, טשעכאסלאוואקיי, , common_name = Czechoslovakia , life_span = 1918–19391945–1992 , p1 = Austria-Hungary , image_p1 = , s1 = Czech Re ...

Czechoslovakia
and Yugoslavia (see Titoism) in the 1970s and 1980s. The contemporary Economy of Belarus has been described as a market socialist system. The Soviet Union attempted to introduce a market system with its perestroika reforms under Mikhail Gorbachev. During the later stages there was talk within top circles that the Soviet Union should move toward a market-based socialist system. Historically, these kinds of market socialist systems attempt to retain state ownership of the
commanding heights of the economy In Marxism–Leninism Marxism–Leninism is a communist ideology and the main communist movement throughout the 20th century.Lansford, Thomas (2007). ''Communism''. New York: Cavendish Square Publishing. pp. 9–24, 36–44. . "By 1985, one-t ...
such as heavy industry, energy and infrastructure while introducing decentralised decision making and giving local managers more freedom to make decisions and respond to market demands. Market socialist systems also allow private ownership and entrepreneurship in the service and other secondary economic sectors. The Market (economics), market is allowed to determine prices for consumer goods and agricultural products, and farmers are allowed to sell all or some of their products on the open market and keep some or all of the profit as an incentive to increase and improve production.


Socialism with Chinese characteristics

The term market socialism has been used to refer to reformed economic systems in Marxist–Leninist states, most notably in reference to the contemporary economy of the People's Republic of China, where a
free price system A free price system or free price mechanism (informally called ''the price system'' or ''the price mechanism'') is a mechanism of resource allocation that relies upon monetary prices set by the interchange of supply and demand In microeco ...
is used for the allocation of capital goods in both the state and private sectors. 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. Although similar in name, market socialism differs markedly from the socialist market economy and
socialist-oriented market economy The socialist-oriented market economy ( Vietnamese: ''Kinh tế thị trường theo định hướng xã hội chủ nghĩa'') is the official title given to the current economic system in the Socialist Republic of Vietnam. It is described as a ...
models practiced in the contemporary People's Republic of China and Socialist Republic of Vietnam, respectively. Officially these economic systems represent market economies that are in the long-term process of transition toward socialism. Key differences between models of market socialism and the Chinese and Vietnamese models include the role of private investment in enterprises, the lack of a social dividend or basic income system to equitably distribute state profits among the population and the existence and role of financial markets in the Chinese model—markets which are absent in the market socialist literature. The Chinese experience with socialism with Chinese characteristics is frequently referred to as a socialist market economy where the Commanding heights of the economy, commanding heights are state-owned, but a substantial portion of both the state and private sectors of economy are governed by market practices, including a stock exchange for trading equity and the utilization of indirect macroeconomic market mechanisms (i.e. fiscal policy, fiscal, Monetary policy, monetary and industrial policies) to influence the economy in the same manner governments affect the economy in capitalist economies. The market is the arbitrator for most economic activity, with economic planning being relegated to macro-economic government indicative planning that does not encompass the microeconomic decision-making that is left to the individual organizations and state-owned enterprises. This model includes a significant amount of privately owned firms that operate as a business for profit, but only for consumer goods and services. In the Chinese system, directive planning based on mandatory output requirements and quotas were displaced by market mechanisms for most of the economy, including both the state and private sectors, although the government engages in indicative planning for large state enterprises. In comparison with the Soviet-type planned economy, the Chinese socialist market model is based on the corporatization of state institutions, transforming them into joint-stock companies. As of 2008, there were 150 state-owned corporations directly under the central government. These state-owned corporations have been reformed and become increasingly dynamic and a major source of revenue for the state in 2008, leading the economic recovery in 2009 during the wake of the global financial crises. This economic model is defended from a Marxist–Leninist perspective which states that a planned socialist economy can only emerge after first developing the basis for socialism through the establishment of a market economy and commodity-exchange economy; and that socialism would only emerge after this stage has exhausted its historical necessity and gradually transforms itself into socialism. Proponents of this model argue that the economic system of the former Soviet Union and its Eastern Bloc, satellite states attempted to go from a natural economy to a planned economy by decree, without passing through the necessary market economy phase of development.


Democratic socialism

Some democratic socialists advocate forms of market socialism, some of which are based on self-management. Others advocate for a non-market Participatory economics, participatory economy based on decentralized economic planning.


Anarchism

The French philosopher
Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, , ; 15 January 1809, Besançon – 19 January 1865, Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, most populous city of France, with an estimated popu ...

Pierre-Joseph Proudhon
is the first person to call himself an wikt:anarchist, anarchist and considered among its most influential theorists. Proudhon is considered by many to be the "father of anarchism". Proudhon became a member of the French Parliament after the French Revolution of 1848, whereon he referred to himself as a ''federalist''. Proudhon's best-known assertion is that "Property is theft!", contained in his first major work ''What Is Property?'', published in 1840. The book's publication attracted the attention of the French authorities. It also attracted the scrutiny of Karl Marx, who started a correspondence with Proudhon. The two influenced each other and met in Paris while Marx was exiled there. Their friendship finally ended when Marx responded to Proudhon's ''The Philosophy of Poverty'' with the provocatively titled ''The Poverty of Philosophy''. The dispute became one of the sources of the split between the anarchist and Marxist wings of the International Working Men's Association. Mutualism (economic theory), Mutualism is an anarchist school of thought and market socialist economic theory that advocates a socialist society where each person possess a
means of production The means of production is a concept that encompasses the social use and ownership Ownership is the state or fact of exclusive right In Anglo-Saxon law Anglo-Saxon law (Old English Old English (, ), or Anglo-Saxon, is the earliest record ...
, either individually or collectively, with trade representing equivalent amounts of labor in the
free market In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of pl ...
. Integral to the scheme was the establishment of a mutual-credit bank that would lend to producers at a minimal interest rate, just high enough to cover administration. Mutualism is based on a labor theory of value which holds that when labor or its product is sold it ought to receive in exchange goods or services embodying "the amount of labor necessary to produce an article of exactly similar and equal utility". Mutualism originated from the writings of Proudhon. Mutualists oppose the idea of individuals receiving an income through loans, investments and rent as they believe these individuals are not laboring. Although opposed this type of income, Proudhon expressed that he had never intended "to forbid or suppress, by sovereign decree, ground rent and interest on capital. I think that all these manifestations of human activity should remain free and voluntary for all: I ask for them no modifications, restrictions or suppressions, other than those which result naturally and of necessity from the universalization of the principle of reciprocity which I propose". Insofar as they ensure the worker's right to the full product of their labor, mutualists support Market (economics), markets or artificial markets and property in the product of labor. However, mutualists argue for conditional titles to land, whose ownership is legitimate only so long as it remains in use or occupation (which Proudhon called ''possession''), advocating personal property in place of
private property Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property Public property is property Property (''latin: Res Privata'') in the Abstract ...
. However, some individualist anarchists such as
Benjamin Tucker Benjamin Ricketson Tucker (; April 17, 1854 – June 22, 1939) was an American anarchist Anarchism is a political philosophy and Political movement, movement that is sceptical of authority and rejects all involuntary, coercive forms of h ...

Benjamin Tucker
started calling possession as ''property'' or ''private property''.
Josiah Warren Josiah Warren (; 26 June, 1798 – 14 April, 1874) was an American utopian socialist Utopian socialism is the term often used to describe the first current of modern socialism Socialism is a Political philosophy, political, Social philoso ...

Josiah Warren
is widely regarded as the first American
anarchist Anarchism is a political philosophy and Political movement, movement that is sceptical of authority and rejects all involuntary, coercive forms of hierarchy. Anarchism calls for the abolition of the State (polity), state, which it holds to ...

anarchist
and the four-page weekly paper he edited during 1833, ''The Peaceful Revolutionist'', was the first anarchist periodical published. For American anarchist historian Eunice Minette Schuster, " is apparent ..that Proudhonian Anarchism was to be found in the United States at least as early as 1848 and that it was not conscious of its affinity to the Individualist Anarchism of
Josiah Warren Josiah Warren (; 26 June, 1798 – 14 April, 1874) was an American utopian socialist Utopian socialism is the term often used to describe the first current of modern socialism Socialism is a Political philosophy, political, Social philoso ...

Josiah Warren
and
Stephen Pearl Andrews Stephen Pearl Andrews (March 22, 1812 – May 21, 1886) was an American individualist anarchist, linguist, political philosopher, outspoken abolitionist Abolitionism, or the abolitionist movement, was the movement to end slavery. In W ...

Stephen Pearl Andrews
. .. William B. Greene presented this Proudhonian Mutualism in its purest and most systematic form". Later, the American individualist anarchist Benjamin Tucker "was against both the state and capitalism, against both oppression and exploitation. While not against the market and property he was firmly against capitalism as it was, in his eyes, a state-supported monopoly of social capital (tools, machinery, etc.) which allows owners to exploit their employees, i.e. to avoid paying workers the full value of their labour. He thought that the "labouring classes are deprived of their earnings by usury in its three forms, interest, rent and profit". Therefore, "''
Liberty Broadly speaking, liberty is the ability to do as one pleases, or a right or immunity enjoyed by prescription or by grant (i.e. privilege). It is a synonym for the word freedom Freedom, generally, is having the ability to act or change withou ...

Liberty
'' will abolish interest; it will abolish profit; it will abolish monopolistic rent; it will abolish taxation; it will abolish the exploitation of labour; it will abolish all means whereby any labourer can be deprived of any of his product". This stance puts him squarely in the libertarian socialist tradition and, unsurprisingly, Tucker referred to himself many times as a socialist and considered his philosophy to be "[a]narchistic socialism". Individualist anarchism in France, French individualist anarchist Émile Armand shows clearly opposition to capitalism and centralized economies when he said that the individualist anarchist "inwardly he remains refractory – fatally refractory – morally, intellectually, economically (The capitalist economy and the directed economy, the speculators and the fabricators of single systems are equally repugnant to him.)". He argued for a pluralistic economic logic when he said that "Here and there everything happening – here everyone receiving what they need, there each one getting whatever is needed according to their own capacity. Here, Gift economy, gift and barter – one product for another; there, exchange – product for representative value. Here, the producer is the owner of the product, there, the product is put to the possession of the collectivity". The Spanish individualist anarchist Miguel Giménez Igualada thought that "capitalism is an effect of government; the disappearance of government means capitalism falls from its pedestal vertiginously. ..That which we call capitalism is not something else but a product of the State, within which the only thing that is being pushed forward is profit, good or badly acquired. And so to fight against capitalism is a pointless task, since be it State capitalism or Enterprise capitalism, as long as Government exists, exploiting capital will exist. The fight, but of consciousness, is against the State". His view on class division and technocracy are as follows "Since when no one works for another, the profiteer from wealth disappears, just as government will disappear when no one pays attention to those who learned four things at universities and from that fact they pretend to govern men. Big industrial enterprises will be transformed by men in big associations in which everyone will work and enjoy the product of their work. And from those easy as well as beautiful problems anarchism deals with and he who puts them in practice and lives them are anarchists. ..The priority which without rest an anarchist must make is that in which no one has to exploit anyone, no man to no man, since that non-exploitation will lead to the limitation of property to individual needs".
Left-wing market anarchism Left-wing market anarchismZwolinski, Matt (9 January 2013)"Markets Not Capitalism" Foundation for Economic Education. Retrieved 10 January 2020. is a strand of free-market anarchism and an individualist anarchist, left-libertarianSheldon Rich ...
is a market socialist form of individualist anarchism, left-libertarianism and libertarian socialism associated with scholars such as Kevin Carson, Roderick T. Long, Charles W. Johnson, Brad Spangler, Samuel Edward Konkin III, Sheldon Richman, Chris Matthew Sciabarra and Gary Chartier, who stress the value of radically free markets, termed ''freed markets'' to distinguish them from the common conception which these libertarians believe to be riddled with capitalist and statist privileges. Referred to as left-wing market anarchists or market-oriented left-libertarians, proponents of this approach strongly affirm the classical liberal ideas of free markets and self-ownership while maintaining that taken to their logical conclusions these ideas support anti-capitalist, anti-corporatist, Social hierarchy, anti-hierarchical, pro-labor positions in economics; anti-imperialism in foreign policy; and thoroughly liberal or radical views regarding socio-cultural issues. The genealogy of contemporary left-wing market anarchism, sometimes labelled market-oriented left-libertarianism, overlaps to a significant degree with that of Steiner–Vallentyne left-libertarianism as the roots of that tradition are sketched in the book ''The Origins of Left-Libertarianism''. Carson–Long-style left-libertarianism is rooted in 19th-century mutualism and in the work of figures such as Thomas Hodgskin, French Liberal School thinkers such as Gustave de Molinari and the American individualist anarchists Benjamin Tucker and Lysander Spooner. While with notable exceptions market-oriented libertarians after Tucker tended to ally with the political right, relationships between those libertarians and the New Left thrived in the 1960s, laying the groundwork for modern left-wing market anarchism. Left-wing market anarchism identifies with left-libertarianism which names several related yet distinct approaches to politics, society, culture and political and social theory, which stress both Political freedom, individual freedom and social justice.Related, arguably synonymous, terms include ''libertarianism'', ''left-wing libertarianism'', ''egalitarian-libertarianism'', and ''libertarian socialism''. * Sundstrom, William A.
An Egalitarian-Libertarian Manifesto
." * Bookchin, Murray and Biehl, Janet (1997). ''The Murray Bookchin Reader''. New York:Cassell. p. 170. * Sullivan, Mark A. (July 2003). "Why the Georgist Movement Has Not Succeeded: A Personal Response to the Question Raised by Warren J. Samuels." ''American Journal of Economics and Sociology''. 62:3. p. 612.
Unlike right-libertarians, left-libertarians believe that neither claiming nor Labor theory of property, mixing one's labor with natural resources is enough to generate full
private property Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property Public property is property Property (''latin: Res Privata'') in the Abstract ...
rights and maintain that natural resources (land, oil, gold and trees) ought to be held in some egalitarian manner, either unowned or owned collectively. Those left-libertarians who support property do so under different property normsSchnack, William (13 November 2015)
"Panarchy Flourishes Under Geo-Mutualism"
Center for a Stateless Society. . Retrieved 10 August 2018.
Byas, Jason Lee (25 November 2015)
"The Moral Irrelevance of Rent"
Center for a Stateless Society. Retrieved 21 March 2020.
Carson, Kevin (8 November 2015)
"Are We All Mutualists?"
Center for a Stateless Society. Retrieved 21 March 2020.
Gillis, William (29 November 2015)
"The Organic Emergence of Property from Reputation"
Center for a Stateless Society. Retrieved 8 April 2020.
and theories, or under the condition that recompense is offered to the Local community, local or global community.


Criticism

Market abolitionism, Market abolitionists such as David McNally (professor), David McNally argue in the Marxist tradition that the logic of the market inherently produces inequitable outcomes and leads to unequal exchanges, arguing that
Adam Smith Adam Smith ( 1723 – 17 July 1790) was a Scottish economist, philosopher as well as a moral philosopher Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and ...

Adam Smith
's moral intent and moral philosophy espousing equal exchange was undermined by the practice of the free market he championed—the development of the
market economy A market economy is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The ide ...
involved coercion, exploitation and violence that Smith's moral philosophy could not countenance. McNally criticizes market socialists for believing in the possibility of fair markets based on equal exchanges to be achieved by purging parasitical elements from the market economy such as private ownership of the
means of production The means of production is a concept that encompasses the social use and ownership Ownership is the state or fact of exclusive right In Anglo-Saxon law Anglo-Saxon law (Old English Old English (, ), or Anglo-Saxon, is the earliest record ...
, arguing that market socialism is an oxymoron when
socialism Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other forms of Power (social and political), power relations between individuals, ...
is defined as an end to wage labour.


See also

* Co-determination ** Worker representation on corporate boards of directors * Cooperative * Worker cooperative * Distributism * Employee stock ownership * Liberal socialism * New Economic Mechanism * Social market economy * Social ownership * Socialist-oriented market economy * Titoism * Mutualism (economic theory), Mutualism


References


Further reading

* Alejandro Agafonow (2012)
"The Austrian Dehomogenization Debate, or the Possibility of a Hayekian Planner,"
''Review of Political Economy'', Vol. 24, No. 02. * Gary Chartier, Chartier, Gary; Johnson, Charles W. (2011). ''Markets Not Capitalism: Individualist Anarchism Against Bosses, Inequality, Corporate Power, and Structural Poverty.'' Brooklyn, NY:Minor Compositions/Autonomedia * Bertell Ollman ed. (1998). ''Market Socialism: the Debate Among Socialists'', with other contributions by James Lawler, Hillel Ticktin and David Schewikart
Preview.
* Steven O'Donnell (2003). ''Introducing Entrepreneurial Activity Into Market Socialist Models'', University Press, Auckland * John Roemer, John E. Roemer et al. (E. O. Wright, ed.) (1996). ''Equal Shares: Making Market Socialism Work'', Verso. *
Alec Nove Alexander Nove, FRSE Fellowship of the Royal Society of Edinburgh (FRSE) is an award granted to individuals that the Royal Society of Edinburgh, Scotland's national academy of science and Literature, letters, judged to be "eminently distingui ...
(1983). ''The Economics of Feasible Socialism'', HarperCollins. * David Miller (political theorist), David Miller (1989). ''Market, State, and Community: Theoretical Foundations of Market Socialism'', Clarendon Press, Oxford. * David Schweickart (2002). ''After Capitalism'', Rowman & Littlefield, Lanham, Maryland. * Johanna Bockman (2011)
''Markets in the Name of Socialism: The Left-Wing Origins of Neoliberalism''
Stanford University Press, Stanford. {{DEFAULTSORT:Market socialism Market socialism, Comparative economic systems Economic ideologies Libertarianism by form Neoclassical economics Socialism Socialist calculation Left-wing politics