Capitalism, Socialism and Property Rights: Why market socialism cannot substitute the market

The comparative analysis of socialist and capitalist economic systems has neglected the "market socialism" model, which seeks to imitate the functional efficiency of capitalism by simulating a competitive economy. This work examines the system of ownership, or property rights, which highlights fundamental problems in the market socialism model. Mateusz Machaj argues that the mechanism of efficiency in market socialism is unable to play the part ascribed to it by its theoreticians, as it disregards the fact that property rights are fundamental to the shaping of prices. The book offers new and original insights into the theory of competition, pricing, property laws, the relation between law and economics, and the economics of the market socialism model.

Format: Hardback
Length: 224 pages
Publication date: 21 December 2020
Publisher: Agenda Publishing

The comparative analysis of socialist and capitalist economic systems has sparked a vast literature in economic thought, yet detailed examination of the "market socialism" model, which aims to replicate the functional efficiency of capitalism through competitive economic simulation, has been relatively overlooked. In this groundbreaking work, Mateusz Machaj aims to rectify this imbalance by delving into one of the defining distinctions between capitalism and socialism: the system of ownership, or property rights. By adopting a broadly Austrian perspective, Machaj demonstrates that the efficiency mechanism proposed by market socialism cannot fulfill its intended role, as it disregards the fundamental importance of property rights in shaping prices and, consequently, the abolition of ownership in market socialism renders its efficiency mechanism a mere fiction. Indeed, Machaj argues that the economic terms used in the market capitalism model merely reflect the names of the real economic variables that contribute to its efficiency, rather than their functions.

The book offers fresh and original insights into the theory of competition, pricing theories, property laws, the relationship between law and economics, and the economics of the market socialism model. It will appeal to a diverse range of heterodox economists, scholars, and policymakers seeking to explore alternative economic systems and their implications for society.

Weight: 510g
Dimension: 165 x 241 x 29 (mm)
ISBN-13: 9781788210355