The Philosophy and Economics of Market Socialism : A Critical Study

N. Scott Arnold argues that the most defensible version of a market socialist economic system would be unable to realize widely held socialist ideals and values. In particular, it would be responsible for widespread and systematic exploitation. The charge of exploitation, which is really a charge of injustice, has typically been made against capitalist systems by socialists. This book argues that it is market socialism--the only remaining viable form of socialism--that is systematically exploitative. In This Closely Reasoned Examination Of The Case For Market Socialism, N. Scott Arnold Argues That Even The Most Defensible Version Of Market Socialism Would Be Deeply Flawed. Specifically, It Would Be Responsible For Systematic And Widespread Exploitation. The Charge Of Exploitation, Which Is Really A Charge Of Injustice, Has Typically Been Made Against Capitalist Systems By Socialists. This Book Argues That It Is Actually Market Socialism - The Only Remaining Viable Form Of Socialism - That Is Systematically Exploitative. Recent Work On The Economics Of Contracts And Organizations Is Used To Show That The Characteristic Organizations Of A Free Enterprise System - The Classical Capitalist Firm And The Modern Corporation - Are Structured In Such A Way That Opportunities For Exploitation Among Economic Actors (e.g., Managers, Workers, Providers Of Capital, Customers) Are Minimized. By Contrast, Arnold Argues, In A Market Socialist Regime Of Worker Cooperatives, Opportunities For Exploitation Abound. Arnold Locates His Comparative Analysis Of Market Socialism And The Free Enterprise System In The Larger Context Of The Capitalism/socialism Debate. In His Account Of This Debate - And In His Contribution To It - He Offers A Distinctive And Attractive Vision Of The Relationship Between Economics And Political Philosophy. This Vision Clearly Identifies The Respective Contributions That Economics And Political Philosophy Can Make To The Fundamental Question Of How Social Institutions Are To Be Evaluated. 1. Capitalism Versus Socialism: An Analytical Perspective. Defining The Terms. The Nature Of The Dispute. Criticizing Economic Systems. Defending Economic Systems. Resolution And Progress In The Dispute -- 2. Why Market Socialism? Motivating The Market. Social Ownership In A Market Economy. The Motivations For Social Ownership -- 3. Economic Exploitation. Exploitation As The Failure Of Reciprocity. The Value Of One's Contribution. Fair Exchanges And The Value Of One's Contribution. The Question Of Alternatives -- 4. Exploitation And The Economics Of Organizations. Comparing Types Of Economic Systems. The Foundations Of The Economics Of Organizations. An Illustration: The Classical Capitalist Firm. The Empirical Preconditions For Exploitation. Opportunism, Appropriable Quasi-rents, And Exploitative Exchange -- 5. Transactions Cost Efficiencies Of Capitalist Organizations. Some Methodological Considerations. The Classical Capitalist Firm Revisited. The Open Corporation. The Employment Relation In A Free Enterprise System -- 6. Exploitation In A Market Socialist Economy I. More Methodological Considerations. Exploitation Among And By The Residual Claimants In The Cooperative. Other Forms Of Exploitation In The Small-to-medium-sized Cooperative -- 7. Exploitation In A Market Socialist Economy Ii. Exploitation In And Through The Large Cooperative. Exploitation Through State Organizations -- 8. Other Options For Market Socialism? Equity Ownership And Market Socialism. Other Forms Of Ownership And Market Socialism. The Socialist Vision Of The Good Society. N. Scott Arnold. Includes Bibliographical References And Index. Contents......Page 14 Defining the Terms......Page 18 The Nature of the Dispute......Page 26 Criticizing Economic Systems......Page 31 Defending Economic Systems......Page 37 Resolution and Progress in the Dispute......Page 42 Motivating the Market......Page 49 Social Ownership in a Market Economy......Page 58 The Motivations for Social Ownership......Page 65 Exploitation as the Failure of Reciprocity......Page 80 The Value of One's Contribution......Page 85 Fair Exchanges and the Value of One's Contribution......Page 89 The Question of Alternatives......Page 100 Comparing Types of Economic Systems......Page 108 The Foundations of the Economics of Organizations......Page 115 An Illustration: The Classical Capitalist Firm......Page 121 The Empirical Preconditions for Exploitation......Page 126 Opportunism, Appropriable Quasi-Rents, and Exploitative Exchange......Page 132 Some Methodological Considerations......Page 137 The Classical Capitalist Firm Revisited......Page 141 The Open Corporation......Page 151 The Employment Relation in a Free Enterprise System......Page 168 More Methodological Considerations......Page 180 Exploitation among and by the Residual Claimants in the Cooperative......Page 190 Other Forms of Exploitation in the Small-to-Medium-sized Cooperative......Page 202 Exploitation in and through the Large Cooperative......Page 221 Exploitation through State Organizations......Page 233 Equity Ownership and Market Socialism......Page 249 Other Forms of Ownership and Market Socialism......Page 261 The Socialist Vision of the Good Society......Page 270 Notes......Page 278 References......Page 298 C......Page 308 E......Page 310 G......Page 311 M......Page 312 P......Page 313 S......Page 314 V......Page 315 Z......Page 316 This treatise offers a comparative evaluation of market socialism and free enterprise systems. It argues that a market socialist system would be responsible for widespread and systematic exploitation that is precluded or minimized in a free enterprise system