Editing Socialism (section)

== Economics ==
{{Economic systems sidebar}}
{{main|Socialist economics}}
{{see also|Production for use}}
{{quote box
| quote = The economic anarchy of capitalist society as it exists today is, in my opinion, the real source of the evil. ... I am convinced there is only one way to eliminate these grave evils, namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals. In such an economy, the means of production are owned by society itself and are utilised in a planned fashion. A planned economy, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child. The education of the individual, in addition to promoting his own innate abilities, would attempt to develop in him a sense of responsibility for his fellow men in place of the glorification of power and success in our present society.<ref>{{cite magazine |url=http://www.monthlyreview.org/598einstein.php |title=Why Socialism? |last=Einstein |first=Albert |author-link=Albert Einstein |magazine=[[Monthly Review]] |date=May 1949}}</ref>
| author = —[[Albert Einstein]], "[[Why Socialism?]]", 1949
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[[File:Albert Einstein Head.jpg|150px|left|thumb|Albert Einstein advocated for a socialist [[planned economy]] with his 1949 article "[[Why Socialism?]]"]]

Socialist economics starts from the premise that "individuals do not live or work in isolation but live in cooperation with one another. Furthermore, everything that people produce is in some sense a social product, and everyone who contributes to the production of a good is entitled to a share in it. Society as whole, therefore, should own or at least control property for the benefit of all its members".<ref name="ReferenceB">{{cite web |url=http://www.britannica.com/EBchecked/topic/551569/socialism |title=Socialism |website=[[Encyclopedia Britannica]] |date=29 May 2023}}</ref>

The original conception of socialism was an economic system whereby production was organised in a way to directly produce goods and services for their utility (or use-value in [[Classical economics|classical]] and [[Marxian economics]]), with the direct allocation of resources in terms of physical units as opposed to financial calculation and the economic laws of capitalism (see [[law of value]]), often entailing the end of capitalistic economic categories such as [[Renting|rent]], interest, [[Profit (economics)|profit]] and money.<ref>{{harvp|Bockman|2011|p=20}}: "According to nineteenth-century socialist views, socialism would function without capitalist economic categories—such as money, prices, interest, profits and rent—and thus would function according to laws other than those described by current economic science. While some socialists recognised the need for money and prices at least during the transition from capitalism to socialism, socialists more commonly believed that the socialist economy would soon administratively mobilise the economy in physical units without the use of prices or money."</ref> In a fully developed socialist economy, production and balancing factor inputs with outputs becomes a technical process to be undertaken by engineers.<ref>{{cite book |title=Comparing Economic Systems in the Twenty-First Century |date=2004 |last1=Gregory |first1=Paul |last2=Stuart |first2=Robert |edition=Seventh |chapter=Socialist Economy |publisher=George Hoffman |isbn=978-0618261819 |page=117 |quote=In such a setting, information problems are not serious, and engineers rather than economists can resolve the issue of factor proportions.}}</ref>

[[Market socialism]] refers to an array of different economic theories and systems that use the market mechanism to organise production and to allocate factor inputs among socially owned enterprises, with the economic surplus (profits) accruing to society in a [[social dividend]] as opposed to private capital owners.<ref>{{cite book |last=O'Hara |first=Phillip |title=Encyclopedia of Political Economy, Volume 2 |publisher=[[Routledge]] |date=2003 |isbn=978-0415241878 |page=70 |quote=Market socialism is a general designation for a number of models of economic systems. On the one hand, the market mechanism is utilised to distribute economic output, to organise production and to allocate factor inputs. On the other hand, the economic surplus accrues to society at large rather than to a class of private (capitalist) owners, through some form of collective, public or social ownership of capital.}}</ref> Variations of market socialism include [[libertarian]] proposals such as [[Mutualism (economic theory)|mutualism]], based on classical economics, and [[Neoclassical economics|neoclassical]] economic models such as the [[Lange model]]. Some economists, such as [[Joseph Stiglitz]], [[Mancur Olson]], and others not specifically advancing anti-socialists positions have shown that prevailing economic models upon which such democratic or market socialism models might be based have logical flaws or unworkable presuppositions.<ref>{{cite book |last=Stiglitz |first=Joseph |title=Whither Socialism? |publisher=The MIT Press |date=1996 |isbn=978-0262691826|quote=.}}</ref><ref>{{cite book |first=Mancur |last=Olson, Jr. |orig-date=1965 |edition=2nd |date=1971 |title=The Logic of Collective Action: Public Goods and the Theory of Groups |publisher=[[Harvard University Press]]}} [http://www.hup.harvard.edu/catalog.php?isbn=9780674537514 Description], [http://www.hup.harvard.edu/catalog.php?recid=24500&content=toc Table of Contents], and [https://archive.org/details/logicofcollectiv00olso_0/page/5 preview].</ref> These criticisms have been incorporated into the models of market socialism developed by [[John Roemer]] and [[Nicholas Vrousalis]].<ref>{{cite journal |first=John E. |last=Roemer |author-link=John Roemer |title=Should Marxists be Interested in Exploitation |journal=[[Philosophy & Public Affairs]] |volume=14 |number=1 |date=1985 |pages=30–65}}</ref><ref>{{cite book |last=Vrousalis |first=Nicholas |author-link=Nicholas Vrousalis |year=2023 |title=Exploitation as Domination: What Makes Capitalism Unjust |url=https://global.oup.com/academic/product/exploitation-as-domination-9780192867698?cc=us&lang=en& |location=Oxford |publisher=[[Oxford University Press]] |isbn=978-0-19286-769-8 |access-date=9 March 2023}}</ref>{{when|date=June 2023}}

The ownership of the [[means of production]] can be based on direct ownership by the users of the productive property through [[worker cooperative]]; or [[commonly owned]] by all of society with management and control delegated to those who operate/use the means of production; or [[public ownership]] by a state apparatus. Public ownership may refer to the creation of [[state-owned enterprises]], [[nationalisation]], [[municipalisation]] or autonomous collective institutions. Some socialists feel that in a socialist economy, at least the "[[Commanding Heights: The Battle for the World Economy|commanding heights]]" of the economy must be publicly owned.<ref>{{cite book |last1=Yergin |first1=Daniel |author-link1=Daniel Yergin |url=https://www.amazon.com/dp/product-description/068483569X |title=The Commanding Heights : The Battle for the World Economy |last2=Stanislaw |first2=Joseph |date=2 April 2002 |publisher=[[Free Press (publisher)|Free Press]] |year=2002 |isbn=978-0-684-83569-3 |edition=Updated |access-date=11 February 2025}}</ref> [[Economic liberals]] and [[right libertarians]] view private ownership of the [[means of production]] and the market exchange as natural entities or moral rights which are central to their conceptions of freedom and liberty and view the economic dynamics of capitalism as immutable and absolute, therefore they perceive public ownership of the means of production, [[cooperatives]] and [[economic planning]] as infringements upon liberty.<ref name="milton">{{cite web |url=http://www.sangam.org/taraki/articles/2006/11-25_Friedman_MGR.php?uid=2075 |title=On Milton Friedman, MGR & Annaism |publisher=Sangam.org |access-date=30 October 2011}}</ref><ref>{{cite book |last=Bellamy |first=Richard |title=The Cambridge History of Twentieth-Century Political Thought |url=https://archive.org/details/cambridgehistory00ball |url-access=limited |publisher=Cambridge University Press |year=2003 |isbn=978-0521563543 |page=[https://archive.org/details/cambridgehistory00ball/page/n71 60]}}</ref>

Management and control over the activities of enterprises are based on self-management and self-governance, with equal power-relations in the workplace to maximise occupational autonomy. A socialist form of organisation would eliminate controlling hierarchies so that only a hierarchy based on technical knowledge in the workplace remains. Every member would have decision-making power in the firm and would be able to participate in establishing its overall policy objectives. The policies/goals would be carried out by the technical specialists that form the coordinating hierarchy of the firm, who would establish plans or directives for the work community to accomplish these goals.<ref name="The Political Economy of Socialism, 1982. p. 197">{{harvp|Horvat|1982|p=197}}: "The sandglass (socialist) model is based on the observation that there are two fundamentally different spheres of activity or decision making. The first is concerned with value judgments, and consequently each individual counts as one in this sphere. In the second, technical decisions are made on the basis of technical competence and expertise. The decisions of the first sphere are policy directives; those of the second, technical directives. The former are based on political authority as exercised by all members of the organisation; the latter, on professional authority specific to each member and growing out of the division of labour. Such an organisation involves a clearly defined coordinating hierarchy but eliminates a power hierarchy."</ref><ref>{{harvp|Horvat|1982|p=197}} "The sandglass (socialist) model is based on the observation that there are two fundamentally different spheres of activity or decision making. The first is concerned with value judgments, and consequently each individual counts as one in this sphere. In the second, technical decisions are made on the basis of technical competence and expertise. The decisions of the first sphere are policy directives; those of the second, technical directives. The former are based on political authority as exercised by all members of the organisation; the latter, on professional authority specific to each member and growing out of the division of labour. Such an organisation involves a clearly defined coordinating hierarchy but eliminates a power hierarchy."</ref>

The role and use of money in a hypothetical socialist economy is a contested issue. Nineteenth century socialists including [[Karl Marx]], [[Robert Owen]], [[Pierre-Joseph Proudhon]] and [[John Stuart Mill]] advocated various forms of [[labour voucher]]s or labour credits, which like money would be used to acquire articles of consumption, but unlike money they are unable to become [[Financial capital|capital]] and would not be used to allocate resources within the production process. Bolshevik revolutionary [[Leon Trotsky]] argued that money could not be arbitrarily abolished following a socialist revolution. Money had to exhaust its "historic mission", meaning it would have to be used until its function became redundant, eventually being transformed into bookkeeping receipts for statisticians and only in the more distant future would money not be required for even that role.<ref>{{cite book |first=Leon |last=Trotsky |author-link=Leon Trotsky |chapter-url=http://www.marxists.org/archive/trotsky/1936/revbet/ch04.htm |title=The Revolution Betrayed |date=1936 |chapter=4: The Struggle for Productivity of Labor |quote=Having lost its ability to bring happiness or trample men in the dust, money will turn into mere bookkeeping receipts for the convenience of statisticians and for planning purposes. In the still more distant future, probably these receipts will not be needed. |via=[[Marxists Internet Archive]]}}</ref>

=== Planned economy ===
{{main|Planned economy}}
A planned economy is a type of economy consisting of a mixture of public ownership of the means of production and the coordination of production and distribution through [[economic planning]]. A planned economy can be either decentralised or centralised. [[Enrico Barone]] provided a comprehensive theoretical framework for a planned socialist economy. In his model, assuming perfect computation techniques, simultaneous equations relating inputs and outputs to ratios of equivalence would provide appropriate valuations to balance supply and demand.<ref>{{cite book |last1=Gregory |first1=Paul |last2=Stuart |first2=Robert |title=Comparing Economic Systems in the Twenty-First Century |edition=7th |publisher=George Hoffman |year=2004 |isbn=978-0618261819 |pages=120–121}}</ref>

The most prominent example of a planned economy was the [[Economy of the Soviet Union|economic system of the Soviet Union]] and as such the centralised-planned economic model is usually associated with the [[communist state]]s of the 20th century, where it was combined with a single-party political system. In a centrally planned economy, decisions regarding the quantity of goods and services to be produced are planned in advance by a planning agency (see also the [[analysis of Soviet-type economic planning]]). The economic systems of the Soviet Union and the [[Eastern Bloc]] are further classified as "command economies", which are defined as systems where economic coordination is undertaken by commands, directives and production targets.<ref>{{cite web |last=Ericson |first=Richard E. |title=Command Economy |url=http://econ.la.psu.edu/~bickes/rickcommand.pdf |access-date=9 March 2012 |archive-url=https://web.archive.org/web/20111125010605/http://econ.la.psu.edu/~bickes/rickcommand.pdf |archive-date=25 November 2011}}</ref> Studies by economists of various political persuasions on the actual functioning of the Soviet economy indicate that it was not actually a planned economy. Instead of conscious planning, the Soviet economy was based on a process whereby the plan was modified by localised agents and the original plans went largely unfulfilled. Planning agencies, ministries and enterprises all adapted and bargained with each other during the formulation of the plan as opposed to following a plan passed down from a higher authority, leading some economists to suggest that planning did not actually take place within the Soviet economy and that a better description would be an "administered" or "managed" economy.<ref>{{harvp|Nove|1991|p=[https://archive.org/details/economicsoffeasi00nove/page/78 78]}} "Several authors of the most diverse political views have stated that there is in fact no planning in the Soviet Union: Eugene Zaleski, J. Wilhelm, Hillel Ticktin. They all in their very different ways note the fact that plans are often (usually) unfulfilled, that information flows are distorted, that plan-instructions are the subject of bargaining, that there are many distortions and inconsistencies, indeed that (as many sources attest) plans are frequently altered within the period to which they are supposed to apply ... ."</ref>

Although central planning was largely supported by [[Marxist–Leninists]], some factions within the Soviet Union before the rise of [[Stalinism]] held positions contrary to central planning. Leon Trotsky rejected central planning in favour of decentralised planning. He argued that central planners, regardless of their intellectual capacity, would be unable to coordinate effectively all economic activity within an economy because they operated without the input and tacit knowledge embodied by the participation of the millions of people in the economy. As a result, central planners would be unable to respond to local economic conditions.<ref>{{cite book |last=Trotsky |first=Leon |author-link=Leon Trotsky |title=Writings of Leon Trotsky, 1932–33 |date=1972 |publisher=[[Pathfinder Press]] |isbn=978-0873482288 |page=96}}Trotsky.</ref>

=== Self-managed economy ===
{{main|Decentralised planning|Economic democracy|Workers' self-management|Socialist self-management}}

{{quote box|quote=Socialism, you see, is a bird with two wings. The definition is 'social ownership and democratic control of the instruments and means of production.'{{sfnp|Sinclair|1918}}|author=—[[Upton Sinclair]]|align=right|width=246px|bgcolor=#c6dbf7}}
[[File:Lev Trotsky 1906-3.3 V1.jpg|250x250px|thumb|left|The [[Saint Petersburg Soviet|Soviet of Workers' Deputies of St. Petersburg]] in 1905, Trotsky in the center. The [[soviet (council)|soviets]] were an early example of a [[workers council]].]]

A self-managed, decentralised economy is based on autonomous self-regulating economic units and a decentralised mechanism of resource allocation and decision-making. This model has found support in notable classical and neoclassical economists including [[Alfred Marshall]], [[John Stuart Mill]] and [[Jaroslav Vanek]]. There are numerous variations of self-management, including labour-managed firms and worker-managed firms. The goals of self-management are to eliminate exploitation and reduce [[Social alienation|alienation]].<ref>{{cite book |last=O'Hara |first=Phillip |title=Encyclopedia of Political Economy, Volume 2 |publisher=[[Routledge]] |date=2003 |isbn=978-0415241878 |pages=8–9 |quote=One finds favorable opinions of cooperatives also among other great economists of the past, such as, for example, John Stuart Mill and Alfred Marshall...In eliminating the domination of capital over labour, firms run by workers eliminate capitalist exploitation and reduce alienation.}}</ref> [[Guild socialism]] is a political movement advocating [[workers' control]] of industry through the medium of trade-related [[guild]]s "in an implied contractual relationship with the public".<ref name="britannica.com">{{cite encyclopedia |url=http://www.britannica.com/EBchecked/topic/248652/Guild-Socialism |title=Guild Socialism |encyclopedia=Britannica.com |access-date=11 October 2013}}</ref> It originated in the United Kingdom and was at its most influential in the first quarter of the 20th century.<ref name="britannica.com"/> It was strongly associated with [[G. D. H. Cole]] and influenced by the ideas of [[William Morris]].

[[File:CyberSyn-render-106.png|right|250px|thumb|[[Project Cybersyn]] was an early form of computational [[economic planning]]]]

One such system is the cooperative economy, a largely free [[market economy]] in which workers manage the firms and democratically determine remuneration levels and labour divisions. Productive resources would be legally owned by the [[cooperative]] and rented to the workers, who would enjoy [[usufruct]] rights.<ref>Vanek, Jaroslav, ''The Participatory Economy'' (Ithaca, NY.: Cornell University Press, 1971).</ref> Another form of decentralised planning is the use of [[cybernetics]], or the use of computers to manage the allocation of economic inputs. The socialist-run government of [[Salvador Allende]] in Chile experimented with [[Project Cybersyn]], a real-time information bridge between the government, state enterprises and consumers.<ref>{{cite web |url=http://www.cybersyn.cl/ingles/cybersyn/cybernet.html |title=CYBERSYN/Cybernetic Synergy |publisher=Cybersyn.cl |archive-url=https://web.archive.org/web/20211104064421/http://www.cybersyn.cl/ingles/cybersyn/cybernet.html |archive-date=4 November 2021}}</ref> This had been preceded by similar efforts to introduce a form of cybernetic economic planning as seen with the proposed [[OGAS]] system in the Soviet Union. The OGAS project was conceived to oversee a nationwide [[information network]] but was never implemented due to conflicting, [[nomenklatura|bureaucratic interests]].<ref>{{cite journal |last1=Gerovitch |first1=Slava |title=InterNyet: why the Soviet Union did not build a nationwide computer network |journal=History and Technology |date=December 2008 |volume=24 |issue=4 |pages=335–350 |doi=10.1080/07341510802044736 |url=https://www.tandfonline.com/doi/abs/10.1080/07341510802044736 |language=en}}</ref> Another, more recent variant is [[participatory economics]], wherein the economy is planned by decentralised councils of workers and consumers. Workers would be remunerated solely according to effort and sacrifice, so that those engaged in dangerous, uncomfortable and strenuous work would receive the highest incomes and could thereby work less.<ref>{{cite book |last1=Albert |first1=Michael |author1-link=Michael Albert |last2=Hahnel |first2=Robin |author2-link=Robin Hahnel |title=The Political Economy of Participatory Economics |location=Princeton, NJ. |publisher=[[Princeton University Press]] |date=1991}}</ref> A contemporary model for a self-managed, non-market socialism is [[Pat Devine]]'s model of negotiated coordination. Negotiated coordination is based upon social ownership by those affected by the use of the assets involved, with decisions made by those at the most localised level of production.<ref>{{cite web |url=http://gesd.free.fr/devine.pdf |title=Participatory Planning Through Negotiated Coordination |access-date=30 October 2011}}</ref>

[[Michel Bauwens]] identifies the emergence of the open software movement and [[Social peer-to-peer processes|peer-to-peer production]] as a new alternative [[mode of production]] to the capitalist economy and centrally planned economy that is based on collaborative self-management, common ownership of resources and the production of use-values through the free cooperation of producers who have access to distributed capital.<ref name="CTheory">{{cite news |url=http://www.ctheory.net/articles.aspx?id=499 |title=The Political Economy of Peer Production |date=12 January 2005 |publisher=CTheory |access-date=8 June 2011 |archive-date=14 April 2019 |archive-url=https://web.archive.org/web/20190414192527/http://www.ctheory.net/articles.aspx?id=499}}</ref>

[[Anarcho-communism]] is a theory of [[anarchism]] which advocates the abolition of the [[State (polity)|state]], [[private property]] and capitalism in favour of [[common ownership]] of the [[means of production]].<ref name=Mayne>{{cite book |first=Alan James |last=Mayne |title=From Politics Past to Politics Future: An Integrated Analysis of Current and Emergent Paradigms |url=https://books.google.com/books?id=6MkTz6Rq7wUC&pg=PA131 |year=1999 |publisher=[[Greenwood Publishing]] Group |isbn=978-027596151-0 |page=131 |via=[[Google Books]]}}</ref><ref>{{cite book |url=https://books.google.com/books?id=jeiudz5sBV4C&pg=PA14 |title=Anarchism for Know-It-Alls |publisher=Filiquarian Publishing |year=2008 |isbn=978-1599862187 |via=[[Google Books]]}}{{Dead link|date=January 2023 |bot=InternetArchiveBot |fix-attempted=yes}}</ref> [[Anarcho-syndicalism]] was practised in [[Catalonia]] and other places in the [[Spanish Revolution of 1936|Spanish Revolution]] during the Spanish Civil War. [[Sam Dolgoff]] estimated that about eight million people participated directly or at least indirectly in the Spanish Revolution.<ref name=Dolgoff1974>{{citation |last=Dolgoff |first=S. |title=The Anarchist Collectives: Workers' Self-Management in the Spanish Revolution |year=1974 |isbn=978-0914156-031 |title-link=The Anarchist Collectives|publisher=Free Life Editions }}</ref>

The economy of the former [[Socialist Federal Republic of Yugoslavia]] established a [[Socialist self-management|system]] based on market-based allocation, social ownership of the means of production and self-management within firms. This system substituted Yugoslavia's Soviet-type central planning with a decentralised, self-managed system after reforms in 1953.<ref>{{cite journal |last=Estrin |first=Saul |date=1991 |title=Yugoslavia: The Case of Self-Managing Market Socialism |journal=[[Journal of Economic Perspectives]] |volume=5 |number=4 |pages=187–194 |doi=10.1257/jep.5.4.187|doi-access=free }}</ref>

The [[Marxian economist]] [[Richard D. Wolff]] argues that "re-organising production so that workers become collectively self-directed at their work-sites" not only moves society beyond both capitalism and [[state socialism]] of the last century, but would also mark another milestone in human history, similar to earlier transitions out of slavery and feudalism.<ref>{{cite book |last=Wollf |first=Richard |author-link=Richard D. Wolff |date=2012 |url=http://www.democracyatwork.info/ |title=Democracy at Work: A Cure for Capitalism |publisher=[[Haymarket Books]] |isbn=978-1608462476 |pages=[https://books.google.com/books?id=-QnzAAAAQBAJ&pg=PA13 13–14] |quote=The disappearances of slaves and masters and lords and serfs would now be replicated by the disappearance of capitalists and workers. Such oppositional categories would no longer apply to the relationships of production, Instead, workers would become their own collective bosses. The two categories—employer and employee—would be integrated in the same individuals.}}</ref> As an example, Wolff claims that [[Mondragon Corporation|Mondragon]] is "a stunningly successful alternative to the capitalist organisation of production".<ref>{{cite news |last=Wollf |first=Richard |author-link=Richard D. Wolff |date=24 June 2012 |url=https://www.theguardian.com/commentisfree/2012/jun/24/alternative-capitalism-mondragon |title=Yes, there is an alternative to capitalism: Mondragon shows the way |work=[[The Guardian]] |access-date=12 August 2013}}</ref>

=== State-directed economy ===
{{main|State socialism}}
{{see also|Dirigisme|Nationalization|Public ownership|State capitalism|Steady-state economy}}
State socialism can be used to classify any variety of socialist philosophies that advocates the ownership of the [[means of production]] by the [[state apparatus]], either as a transitional stage between capitalism and socialism, or as an end-goal in itself. Typically, it refers to a form of technocratic management, whereby technical specialists administer or manage economic enterprises on behalf of society and the public interest instead of workers' councils or workplace democracy.

A state-directed economy may refer to a type of mixed economy consisting of public ownership over large industries, as promoted by various Social democratic political parties during the 20th century. This ideology influenced the policies of the British Labour Party during Clement Attlee's administration. In the biography of the 1945 United Kingdom Labour Party Prime Minister [[Clement Attlee]], [[Francis Beckett]] states: "[T]he government ... wanted what would become known as a mixed economy."{{sfnp|Beckett|2007}}

Nationalisation in the United Kingdom was achieved through compulsory purchase of the industry (i.e. with compensation). [[British Aerospace]] was a combination of major aircraft companies [[British Aircraft Corporation]], [[Hawker Siddeley]] and others. [[British Shipbuilders]] was a combination of the major shipbuilding companies including [[Cammell Laird]], [[Govan Shipbuilders]], [[Swan Hunter]] and [[Yarrow Shipbuilders]], whereas the nationalisation of the coal mines in 1947 created a coal board charged with running the coal industry commercially so as to be able to meet the interest payable on the bonds which the former mine owners' shares had been converted into.<ref>{{cite book |title=The Strike Weapon: Lessons of the Miners' Strike |publisher=Socialist Party of Great Britain |location=London |year=1985 |url=http://www.worldsocialism.org/spgb/pdf/ms.pdf |access-date=28 April 2007 |archive-url=https://web.archive.org/web/20070614065637/http://www.worldsocialism.org/spgb/pdf/ms.pdf |archive-date=14 June 2007}}</ref><ref>{{cite journal |last=Hardcastle |first=Edgar |author-link=Edgar Hardcastle |title=The Nationalisation of the Railways |journal=[[Socialist Standard]] |volume=43 |issue=1 |year=1947 |url=http://www.marxists.org/archive/hardcastle/1947/02/railways.htm |access-date=28 April 2007 |via=[[Marxists Internet Archive]]}}</ref>

=== Market socialism ===
{{main|Market socialism}}
Market socialism consists of publicly owned or cooperatively owned enterprises operating in a [[market economy]]. It is a system that uses the market and [[Price system|monetary prices]] for the allocation and accounting of the [[means of production]], thereby retaining the process of [[capital accumulation]]. The profit generated would be used to directly remunerate employees, collectively sustain the enterprise or finance public institutions.<ref>{{cite book |title=Comparing Economic Systems in the Twenty-First Century |date=2003 |last1=Gregory |first1=Paul |last2=Stuart |first2=Robert |chapter=Marx's Theory of Change |publisher=George Hoffman |isbn=0618261818 |page=142 |quote=It is an economic system that combines social ownership of capital with market allocation of capital...The state owns the means of production, and returns accrue to society at large.}}</ref> In state-oriented forms of market socialism, in which state enterprises attempt to maximise profit, the profits can be used to fund government programs and services through a [[social dividend]], eliminating or greatly diminishing the need for various forms of taxation that exist in capitalist systems. [[Neoclassical economist]] [[Léon Walras]] believed that a socialist economy based on state ownership of land and natural resources would provide a means of public finance to make income taxes unnecessary.<ref>{{harvp|Bockman|2011|p=21}} "For Walras, socialism would provide the necessary institutions for free competition and social justice. Socialism, in Walras's view, entailed state ownership of land and natural resources and the abolition of income taxes. As owner of land and natural resources, the state could then lease these resources to many individuals and groups, which would eliminate monopolies and thus enable free competition. The leasing of land and natural resources would also provide enough state revenue to make income taxes unnecessary, allowing a worker to invest his savings and become 'an owner or capitalist at the same time that he remains a worker."</ref> [[Yugoslavia]] implemented a market socialist economy based on cooperatives and worker self-management.<ref>{{cite journal |last1=Estrin |first1=Saul |title=Yugoslavia: The Case of Self-Managing Market Socialism |journal=Journal of Economic Perspectives |date=1991 |volume=5 |issue=4 |pages=187–194 |doi=10.1257/jep.5.4.187 |doi-access=free }}</ref> Some of the economic reforms introduced during the [[Prague Spring]] by [[Alexander Dubček]], the [[Communist Party of Czechoslovakia#Leaders|leader]] of [[Czechoslovakia]], included elements of market socialism.<ref>{{cite book |last=Golan |first=Galia |title=Reform Rule in Czechoslovakia: The Dubcek Era 1968–1969 |date=1971 |publisher=[[Cambridge University Press]] |isbn=978-0521085861}}</ref>

[[File:Proudhon-children.jpg|thumb|[[Pierre-Joseph Proudhon]], main theorist of [[Mutualism (economic theory)|mutualism]] and influential French socialist thinker]]
[[Mutualism (economy)|Mutualism]] is an [[Economics|economic theory]] and [[anarchist school of thought]] that advocates a society where each person might possess a [[means of production]], either individually or collectively, with trade representing equivalent amounts of labour in the [[free market]].<ref>{{cite web |url=http://www.mutualist.org/ |title=Introduction |publisher=Mutualist.org |access-date=29 April 2010}}</ref> 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.<ref>{{cite encyclopedia|last=Miller |first=David |date=1987 |title=Mutualism |encyclopedia=The Blackwell Encyclopedia of Political Thought |publisher=[[Blackwell Publishing]] |page=11}}</ref> Mutualism is based on a [[labour theory of value]] that holds that when labour or its product is sold, in exchange it ought to receive goods or services embodying "the amount of labour necessary to produce an article of exactly similar and equal utility".<ref>{{Cite book |last=Tandy |first=Francis D. |date=1896 |title=[[Voluntary Socialism]] |chapter=6, paragraph 15}}</ref>

The current economic system in China is formally referred to as a [[socialist market economy with Chinese characteristics]]. It combines a large state sector that comprises the commanding heights of the economy, which are guaranteed their public ownership status by law,<ref>{{cite web |url=http://www.chinadaily.com.cn/china/2006-12/19/content_762056.htm |title=China names key industries for absolute state control |website=China Daily |date=19 December 2006 |access-date=2 June 2010}}</ref> with a [[private sector]] mainly engaged in commodity production and light industry responsible from anywhere between 33%<ref>{{cite web |url=http://english.people.com.cn/200507/13/eng20050713_195876.html |title=China has socialist market economy in place |publisher=[[People's Daily]] Online |date=13 July 2005 |access-date=2 June 2010}}</ref> to over 70% of GDP generated in 2005.<ref>{{cite web |url=http://www.oecd.org/dataoecd/16/3/36174313.pdf |title=China and the OECD |date=May 2006 |access-date=2 June 2010 |archive-url=https://web.archive.org/web/20081010154017/http://www.oecd.org/dataoecd/16/3/36174313.pdf |archive-date=10 October 2008}}</ref> Although there has been a rapid expansion of private-sector activity since the 1980s, privatisation of state assets was virtually halted and were partially reversed in 2005.<ref>{{cite web |last=Talent |first=Jim |url=http://www.heritage.org/Research/Reports/2010/01/10-China-Myths-for-the-New-Decade#_ftn23 |title=10 China Myths for the New Decade &#124; The Heritage Foundation |publisher=Heritage.org |access-date=2 June 2010 |url-status=unfit |archive-url=https://web.archive.org/web/20100910011308/http://www.heritage.org/research/reports/2010/01/10-china-myths-for-the-new-decade#_ftn23 |archive-date=10 September 2010}}</ref> The current Chinese economy consists of 150 [[corporatised]] state-owned enterprises that report directly to China's central government.<ref>{{cite news |url=https://www.forbes.com/2008/07/08/china-enterprises-state-lead-cx_jrw_0708mckinsey.html |title=Reassessing China's State-Owned Enterprises |work=Forbes |access-date=2 June 2010 |date=8 July 2008}}</ref> By 2008, these state-owned corporations had become increasingly dynamic and generated large increases in revenue for the state,<ref>{{cite web |url=http://us.ft.com/ftgateway/superpage.ft?news_id=fto031620081407384075 |title=InfoViewer: China's champions: Why state ownership is no longer proving a dead hand |publisher=Us.ft.com |date=28 August 2003 |access-date=2 June 2010 |archive-url=https://web.archive.org/web/20110711045431/https://us.ft.com/ftgateway/superpage.ft?news_id=fto031620081407384075 |archive-date=11 July 2011}}</ref><ref>{{cite web |url=http://ufirc.ou.edu/publications/Enterprises%20of%20China.pdf |title=Today's State-Owned Enterprises of China |access-date=18 November 2009 |archive-url=https://web.archive.org/web/20110720024533/http://ufirc.ou.edu/publications/Enterprises%20of%20China.pdf |archive-date=20 July 2011}}</ref> resulting in a state-sector led recovery during the 2009 financial crises while accounting for most of China's economic growth.<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/business/8153138.stm |work=[[BBC News]] |title=China grows faster amid worries |date=16 July 2009 |access-date=7 April 2010}}</ref> The Chinese economic model is widely cited as a contemporary form of state capitalism, the major difference between Western capitalism and the Chinese model being the degree of state-ownership of shares in publicly listed corporations. The Socialist Republic of Vietnam has adopted a similar model after the [[Doi Moi]] economic renovation but slightly differs from the Chinese model in that the Vietnamese government retains firm control over the state sector and strategic industries, but allows for private-sector activity in commodity production.<ref>{{cite web |url=http://www.vietnamembassy-usa.org/news/story.php?d=20031117235404 |url-status=dead |archive-url=https://web.archive.org/web/20110727075147/http://www.vietnamembassy-usa.org/news/story.php?d=20031117235404 |archive-date=27 July 2011 |title=VN Embassy: Socialist-oriented market economy: concept and development soluti |website=Radio Voice of Vietnam |publisher=Embassy of the Socialist Republic of Vietnam in the United States of America |date=17 November 2003 |access-date=2 June 2010}}</ref>