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Fri May 30 04:35:31 MDT 2008


"Market socialism is a term used to  denote two different economic
system(s) based in socialism which operate  according to market
principles. The first term relates to an economy directed  and guided
by socialist planners on either a local or state level. The  earliest
models of this form of market socialism were developed by  Enrico
Barone (1908) and Oskar R. Lange (c. 1936). Lange and Fred M.  Taylor
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."

Reply:
 
Yes, but this is a system which is traditionally used to maintain existing  
social relations by attempting to alleviate the worst effects of the market. My 
 interest is in changing social relations.
 
The example of Cuba and the US under the New Deal provide concrete examples  
of the transitional nature of any economy which attempts to survive the  
external pressures of competing economic social and economic systems, one  moving 
from left to right and the other vice versa. 
 
Under the pressure of a global depression, and with the Soviet  Union a 
spectre in the background, the Roosevelt administration was  forced to intervene on 
the wide of the US working class as the  contradictions in the existing 
economy threatened to explode into social  convulsion and the threat of revolution. 
In so doing it moved to the left and in  the direction of a planned economy.
 
As for Cuba, due again to external and internal pressures  (external in the 
form of the blockade. Internal in the form of  the increased demand for access 
to consumer goods by its people), is keen  to attract FDI to its economy. In 
so doing it has moved economically in a  rightwards trajectory and social 
relations have been affected, albeit  within the parameters of a social system 
committed to social and economic  justice. However, if this increased look to 
market reforms continues, there  will inevitably come a point at which this 
commitment will be tested and  strained more and more.



   


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