MontanaHatchet said: Socialism would be the perfect system if society was perfect. Unfortunately, that's never the case. It's far from perfect, so we have to do something more practical. |
I'll post a few definitions from Economics.com
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Socialism - The exact meaning of socialism is much debated, but in theory it includes some collective ownership of the means of production and a strong emphasis on equality, of some sort.
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Public Goods - Things that can be consumed by everybody in a society, or nobody at all. They have three characteristics. They are:
• non-rival – one person consuming them does not stop another person consuming them;
• non-excludable – if one person can consume them, it is impossible to stop another person consuming them;
• non-rejectable – people cannot choose not to consume them even if they want to.
Examples include clean air, a national defence system and the judiciary. The combination of non-rivalry and non-excludability means that it can be hard to get people to pay to consume them, so they might not be provided at all if left to Market Forces. Thus public goods are regarded as an example of MARKET FAILURE, and in most countries they are provided at least in part by Government and paid for through compulsory TAXATION.
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Market Failure - When a market left to itself does not allocate resources efficiently. Interventionist politicians usually allege market failure to justify their interventions. Economists have identified four main sorts or causes of market failure.
• The abuse of Market Power which can occur whenever a single buyer or seller can exert significant influence over Prices or Output (see Monopoly ot Monopsony).
• Externalities – when the market does not take into account the impact of an economic activity on outsiders. For example, the market may ignore the costs imposed on outsiders by a firm polluting the environment.
• Public Goods, such as national defence. How much defence would be provided if it were left to the market?
• Where there is incomplete or Asymmetric Information or uncertainty.
Abuse of market power is best tackled through Antitruest policy. Externalities can be reduced through Regulation, a tax or subsidy, or by using property rights to force the market to take into account the welfare of all who are affected by an economic activity. The supply of public goods can be ensured by compelling everybody to pay for them through the tax system.
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Any economy without some form of socialism would be a complete disaster. It is a well understood economic fact that the government has to provide some goods through taxation, as the private market is unable to provide those goods.
The difference is what people consider public goods. The government providing public goods such as roads and a military is not considered socialism, I guess because people understand this to be an economic necessity. However, people want to call other public goods, such as education and healthcare, as socialist if provided by the government. Note that healthcare's status as a public is not as clear or agreed upon as the status of roads or security.
Its unneccesary, especially when people choose to stick a name on something for emotional reasons when it serves no purpose in the economic debate.