Socialist alternatives to capitalism I: Marx to Hayek

Socialist alternatives to capitalism I: Marx to Hayek
Duncan Foley
New School for Social Research, Department of Economics, 2017
Level: leicht
Perspektiven: Österreichische Schule, Marxistische Politische Ökonomik
Thema: Kapitalismuskritik, Soziale Bewegungen & Transformation
Format: Working Paper
Link: https://ideas.repec.org/p/new/wpaper/1705.html

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Socialist alternatives to capitalism I: Marx to Hayek

Duncan Foley | 2017

 

Abstract: This paper surveys the development of the concept of socialism from the French Revolution to the socialist calculation debate. Karl Marx’s politics of revolutionary socialism led by an empowered proletariat nurtured by capital accumulation envisions socialism as a “top-down” system resting on political institutions, despite Marx’s keen appreciation of the long-period analysis of the organization of social production in the classical political economists. Collectivist thinking in the work of Enrico Barone and Wilfredo Pareto paved the way for the discussion of socialism purely in terms of the allocation of resources. The Soviet experiment abandoned the mixed economy model of the New Economic Policy for a political-bureaucratic administration of production only loosely connected to theoretical concepts of socialism. The socialist calculation debate reductively recast the problem of socialism as a problem of allocation of resources, leading to general equilibrium theory. Friedrich Hayek responded to the socialist calculation debate by shifting the ground of discussion from class relations to information revelation.

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