Market socialism refers to various economic systems in which the government owns the economic institutions or major industries but operates them according to the rules of supply and demand. In a traditional market socialist economy, prices would be determined by a government planning ministry, and enterprises would either be state-owned or cooperatively-owned and managed by their employees.
Libertarian socialists and left-anarchists often promote a form of market socialism in which enterprises are owned and managed collectively by the workers, but compete with each other in the same way private companies compete in a capitalist market.
The People's Republic of China currently has a form of market socialism referred to as the socialist market economy, in which most of the industry is state-owned, but prices are not set by the government. Within this model, the state-owned enterprises are free from excessive regulation and function more autonomously in a more decentralized fashion than in other socialist economic systems.
The social market economic model is based upon the free market economy, combined with regulative measures from the state. A conceptual worker who is not satisfied with his income can threaten to work for a company that will pay him more, giving the designer greater bargaining power in a firm over the distribution of income thus class divisions arise.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment