From: glevy@PRATT.EDU
Date: Thu Apr 19 2007 - 09:05:18 EDT
Hi Alejandro A: Thanks for the response and clarifications. >>> As I recently expressed it in another mailing list: the touchtone of the last one type of market socialism is a phenomenon experienced under capitalism and paradoxically pointed out by an Austrian, Joseph Schumpeter. It is what he called the evaporation of the material substance of property or what Neoclassical economists term the principal-agent theory. It is the break of the property and management of capital, where stockholders are prompted to hire managements and make them act profitably. What would happen if the State takes the place of the stockholders? <<< A society governed by workers state doesn't merely take the place of stockholders. The main issue concerns workers' empowerment and democratic decision-making rather than merely determining the optimal allocation of resources. Social need, rather than merely efficiency, must guide social decisions. >>> It is true that Lange’s system implies a high degree of centralization and sure because of this it loses the dynamic property of rivalry. What turned him a market socialist was his undoubted acceptance of consumers’ freedom to choose –an elusive issue in classical Marxism– and his vindication of subjective theory of value. <<< Maybe (or maybe not?) Lange thought he was vindicating a subjective theory of value (it's been a while since I read his book), but I don't see how it constitutes a vindication. Of course, given the conditions in Poland when Lange was writing, he was concerned about consumer goods and on what basis they were produced and allocated. And, yes, it can be an "elusive issue" for many Marxists. There is, for example, the question of whether workers collectively decide ex ante what goods to produce in what quantities or whether they decide ex post through their individual decisions in the market. The latter process raise some thorny issues concerning the possibility of increasing inequality, wasted resources, and social stratification. Once again, welcome to the list. I look forward to your continued participation. In solidarity, Jerry
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