Social ownership

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This article is about the socialist concept. For other uses, see Socialization (disambiguation).

Social ownership refers to the various forms of ownership for the means of production in socialist economic systems; encompassing public ownership, employee ownership, and citizen ownership of equity.[1] Historically social ownership implied that capital and factor markets would cease to exist under the assumption that market exchanges within the production process would be made redundant if capital goods were owned by a single entity or network of entities representing society,[2] but the articulation of models of market socialism where factor markets are utilized for allocating capital goods between socially-owned enterprises broadened the definition to include autonomous entities within a market economy. Social ownership of the means of production is the common defining characteristic of all the various forms of socialism.[3]

The two major forms of social ownership are society-wide public ownership and cooperative ownership. The distinction between these two forms lies in the distribution of the surplus product. With society-wide public ownership, the surplus is distributed to all members of the public through a social dividend; with co-operative ownership the economic surplus of an enterprise is controlled by all the worker-members of that specific enterprise.[4]

The goal of social ownership is to eliminate the distinction between the class of private owners who are the recipients of passive property income and workers who are the recipients of labor income (wages, salaries and commissions), so that the surplus product (or economic profits in the case of market socialism) belong either to society as a whole or to the members of a given enterprise. Social ownership would enable productivity gains from labor automation to progressively reduce the average length of the working day instead of creating job insecurity and unemployment. Reduction of necessary work time is central to the Marxist concept of human freedom and overcoming alienation, a concept widely shared by Marxist and non-Marxist socialists alike.[5][6]

Socialization is the process of restructuring an economy on a socialist basis,[7] either in reference to establishing social ownership of the means of production, or to a more comprehensive process of establishing of a system of "production for use" in place of the profit system. The comprehensive notion of socialization and social ownership implies an end to the operation of the economic laws of capitalism, capital accumulation, and the use of money and financial valuation in the production process.[8][9]


Social ownership is variously advocated to end the Marxian concept of exploitation, to ensure that income distribution reflects individual contributions to the social product, to eliminate unemployment arising from technological change, to ensure a more egalitarian distribution of the economy's surplus,[10] or to create the foundations for a non-market socialist economy.

In Karl Marx's analysis of capitalism, social ownership of the means of production emerges in response to the contradictions between socialized production and private appropriation of surplus value in capitalism. Marx argued that productivity gains arising from the substitution of variable capital (labor inputs) for constant capital (capital inputs) would cause labor displacement to outstrip the demand for labor. This process would lead to stagnant wages and rising unemployment for the working class alongside rising property income for the capitalist class, further leading to an over-accumulation of capital.[11] Marx argued that this dynamic would reach a point where social ownership of the highly automated means of production would be necessitated to resolve this contradiction and resulting social strife. Thus the Marxist case for social ownership and socialism is not based on any moral critique of the distribution of property income (wealth) in capitalism, but rather the Marxist case for socialism is based on a systematic analysis of the development and limits of the dynamic of capital accumulation.[12]

For Marx, social ownership would lay the foundations for the transcendence of the capitalist law of value and the accumulation of capital, thereby creating the foundation for socialist planning. The ultimate goal of social ownership of productive property for Marx was to expand the "realm of freedom" by shortening average work hours so that individuals would have progressively larger portion of their time to pursue their genuine and creative interests. Thus the end goal of social ownership is the transcendence of the Marxist concept of alienation.[13]

The economist David McMullen identifies five major benefits of social ownership, where he defines it as society-wide ownership of productive property: first, workers would be more productive and have greater motivation since they would directly benefit from increased productivity, secondly this ownership stake would enable greater accountability on the part of individuals and organizations, thirdly social ownership would eliminate unemployment, fourth it would enable the better flow of information within the economy, and finally it would eliminate wasteful activities associated with "wheeling and dealing" and wasteful government activities intended to curb such behavior and deal with unemployment.[14]

From a non-Marxist, market socialist perspective, the clearest benefit of social ownership is an equalization of the distribution of property income, eliminating the vast disparities in wealth that arise from private ownership under capitalism. Property income (profit, interest and rent) is distinguished from labor income (wages and salaries) which, in a socialist system, would continue to be unequal based on one's marginal product of labor - social ownership would only equalize passive property income.[15]

Notable non-Marxist and Marxist socialist theorists alike have argued that the most significant argument for social ownership of the means of production is to enable productivity gains to ease the work burden for all individuals in society, resulting in progressively shorter hours of work with increasing automation and thus a greater amount of free time for individuals to engage in creative pursuits and leisure.[16][17][18]

Criticism of private ownership[edit]

Social ownership is contrasted with the concept of private ownership, or private property, in the means of production. Social ownership is promoted as a solution to what its proponents view are inherent issues to the private ownership.[19] Market socialists and non-market socialists therefore have slightly different conceptions of social ownership. The former believe that private ownership and private appropriation of property income is the fundamental issue with capitalism, and thus believe that the process of capital accumulation and profit-maximizing enterprise can be retained, with their profits being used to benefit society in the form of a social dividend. By contrast, non-market socialists argue that the major problems with capitalism arise from its contradictory economic laws that make it unsustainable and historically limited. Therefore, social ownership is seen as a component of the establishment of non-market coordination and alternative "socialist laws of motion" that overcome the systemic issues of capital accumulation.[20]

The socialist critique of private ownership is heavily influenced by the Marxian analysis of capitalist property forms as part of its broader critique of alienation and exploitation in capitalism. Although there is considerable disagreement among socialists about the validity of certain aspects of Marxian analysis, the majority of socialists are sympathetic to Marx's views on exploitation and alienation.[21] Socialists critique the private appropriation of property income on the grounds that, because such income does not correspond to a return on any productive activity and is generated by the working class, it represents exploitation. The property-owning (capitalist) class lives off passive property income produced by the working population by virtue of their claim to ownership in the form of stock, bonds or private equity. This exploitative arrangement is perpetuated due to the structure of capitalist society. From this perspective, capitalism is regarded as class system akin to historical class systems like slavery and feudalism.[22]

Private ownership has also been criticized on ethical grounds by the economist James Yunker. Yunker argues that, because passive property income requires no mental or physical exertion on the part of the recipient, and because its appropriation by a small group of private owners is the source of the vast inequalities in contemporary capitalism, according to Yunker, this establishes the ethical case for social ownership and socialist transformation.[23]

The socialization debates[edit]

Not to be confused with Socialist calculation debate.

During the 1920s, socialists in Austria and Germany were engaged in a comprehensive dialogue about the nature of socialization and how a program of socialization could be effectively carried out.[24] Austrian scientific thinkers whose ideas were based on Ernst Mach's empiricist notion of energy and technological optimism, including Josef Popper-Lynkeus and Carl Ballod, proposed plans for rational allocation of exhaustible energy and materials through statistical empirical methods. This conception of non-capitalist calculation involved the use of energy and time units, the latter being viewed as the standard cardinal unity of measurement for socialist calculation. These thinkers belonged to a technical school of thought called "scientific utopianism", which is an approach to social engineering that explores possible forms of social organization.[24]

The most notable thinker belonging to this school of thought was the Viennese philosopher and economist Otto Neurath, whose conception of socialism as a natural, non-monetary economic system became widespread within the socialist movement following the end of World War I. Neurath's position was held in contrast to other socialists in this period, including the revisionist perspective stemming from Eduard Bernstein, the orthodox social democratic perspective of Karl Kautsky, the Austro-Marxism models of labor-time calculation from Otto Bauer, and the emerging school of neoclassical market socialism. Neurath's position opposed all models of market socialism because it rejected the use of money, but was also held in contrast with the more orthodox Marxist conception of socialism held by Karl Kautsky, where socialism only entails the elimination of money as capital along with super-session of the process of capital accumulation.[24]

Otto Neurath conceptualized a comprehensive view of socialization during the socialization debates. "Total socialization" involved not only a form of ownership but also the establishment of economic planning based on calculation in kind, and was contrasted with "partial socialization". "Partial socialization" involved the use of in-kind calculation and planning within a single organization, which externally operated within the framework of a monetary market economy. Neurath's conception of socialism was the initial point of criticism of Ludwig Von Mises in the socialist calculation debate.[25]

In the subsequent socialist calculation debates, a dichotomy between socialists emerged between those who argued that socialization entailed the end of monetary valuation and capital markets, and those who argued that monetary prices could be used within a socialized economy. A further distinction arose between market socialists who argued that social ownership can be achieved within the context of a market economy, where worker-owned or publicly owned enterprises maximized profit, and those who argued that socially-owned enterprises operate according to other criteria, like marginal cost pricing.


Social ownership and socialization is categorically distinct from the process of nationalization. In most cases, "socialization" is understood to be a deeper process of transforming the social relations of production within economic organizations as opposed to simply changing titles of ownership. In this sense, "socialization" often involves both a change in ownership and a change in organizational management, including self-management or some form of workplace democracy in place of a strict hierarchical form of control. More fundamentally, social ownership implies that the surplus product (or economic profits) generated by publicly-owned enterprise accrues to all of society - state ownership does not necessarily imply this.[26][10]

Fundamentally, there are two major forms of "social ownership". The first is society-wide public ownership by an entity or network of entities representing society.[27] The second major form of social ownership is employee-owned cooperative enterprise, with the members of each individual enterprise being co-owners of their organization.

Additionally, there are two major forms of management or "social control" for socially owned organizations, both of which can exist alongside the two major modes of social ownership. The first variant of control is public management, where enterprises are run by management held accountable to an agency representing the public either at the level of national, regional or local government. The second form of social control is worker self-management, where managers are elected by the member-workers of each individual enterprise or enterprises are run according to self-directed work processes.[28]

The exact forms of social ownership vary depending on whether or not they are conceptualized as part of a market economy or as part of a non-market planned economy.

Public ownership[edit]

Public ownership can exist both within the framework of a market economy and within the framework of a non-market planned economy. In market socialist proposals, public ownership takes the form of state-owned enterprises that acquire capital goods in capital markets and operate to maximize profits, which are then distributed among the entire population in the form of a social dividend.[29] In non-market models of socialism, public ownership takes the form of a single entity or a network of public entities coordinated by economic planning. A contemporary approach to socialism involves linking together production and distribution units by modern computers to achieve rapid feedback in the allocation of capital inputs to achieve efficient economic planning.[30]

The economist Alec Nove defines social ownership as a form of autonomous public ownership, drawing a distinction between state-owned and directed enterprises. Nove advocates for the existence of both forms of enterprise in his model of feasible socialism.[31]

Public ownership was advocated by neoclassical socialist economists during the interwar socialist calculation debate, most notable Oskar Lange, Fred M. Taylor, Abba P. Lerner and Maurice Dobb.

Neoclassical market socialist economists in the latter half of the 20th century who advocated public ownership highlighted the distinction between "control" and "ownership". John Roemer and Pranab Bardhan argued that public ownership, meaning a relatively egalitarian distribution of enterprise profits, does not require state control - Publicly owned enterprises can be controlled by agents who don't represent the state.[10]

David McMullen's concept of decentralized non-market socialism advocates social ownership of the means of production, believing it to be far more efficient than private ownership. In his proposal, property titles would be replaced by "usership" rights, and the exchange of capital goods would no longer be possible. Market exchange in capital goods would be replaced by internal transfers of resources, but an internal and decentralized price system would be fundamental to this systems' operation.[32]

Social ownership of equity[edit]

The social ownership of capital and corporate stock have been proposed in the context of a market socialist system, where social ownership is achieved either by having a public body or employee-owned pension funds own corporate stock.

The American economist John Roemer developed a model of market socialism that features a form of public ownership where individuals receive a non-transferable coupon entitling them to a share of the profits generated by autonomous non-governmental publicly owned enterprises. In this model, "social ownership" refers to citizen ownership of equity in a market economy.

James Yunker argues that public ownership of the means of production can be achieved in the same way private ownership is achieved in modern capitalism, using the shareholder system that effectively separates management from ownership. Yunker posits that social ownership can be achieved by having a public body, designated the Bureau of Public Ownership (BPO), own the shares of publicly listed firms without affecting market-based allocation of capital inputs. Yunker termed this model Pragmatic market socialism and argued that it would be at least as efficient as modern-day capitalism while providing superior social outcomes as public ownership would enable profits to be distributed among the entire population rather than going largely to a class of inheriting rentiers.[33]

An alternative form of social ownership of equity is ownership of corporate stock through wage earner funds and pension funds. The underlying concept was first expounded upon in 1976 by the management theorist Peter Drucker, who argued that pension funds could reconcile employees' need for financial security with capital's need to be mobile and diversified, referring to this development as "pension fund socialism". In Sweden during the late 1970s, the Meidner program was advanced by the Swedish Social Democratic Party as a way to socialize enterprises through employee wage earners' funds, which would be used to purchase corporate stock.[34] Rudolf Meidner's original plan was to require Swedish companies over a certain size to issue shares equal to 20 percent of profits, which would be owned by wage-earner funds controlled by employees through their trade unions. This plan was rejected and a watered-down proposal was adopted in 1984, which left corporate decision making just as it was and limited the scope of employee ownership to less than 3.5% of listed company shares in 1990.[35]

Cooperative ownership[edit]

Cooperative ownership refers to the organization of economic units into enterprises owned either by their works or by customers who use the products of the enterprise (this latter concept is called a Consumer cooperative). Cooperatives often involve worker self-management, either in the form of elected managers held accountable to the workforce, or in the form of direct management by the worker-members themselves. Cooperatives are often proposed by proponents of market socialism, most notably by the economists Branko Horvat, Jaroslav Vanek and Richard Wolff.

Cooperative or collective ownership comes in various forms, ranging from direct workers' ownership, employee stock ownership plans through pension funds, to the weakest version involving profit sharing, such as in the high-technology companies in Silicon Valley. [36]

The earliest model of cooperative socialism is mutualism, promoted by the French anarchist philosopher Pierre-Joseph Proudhon. In this system, the state would be abolished and economic enterprises would be owned and operated as producer cooperatives, and worker-members would be compensated in labor vouchers.[37]

The model of market socialism promoted in the former Socialist Federal Republic of Yugoslavia was based on what was officially called "social ownership", involving an arrangement where workers of each firm each became members and joint-owners and managed their own affairs in a system of worker's self-management.

Contemporary proponents of cooperative ownership cite higher motivation and performance in existing cooperatives. Critics argue that cooperative ownership by itself does not resolve the structural issues of capitalism like economic crises and the business cycle, and that cooperatives have an incentive to limit employment to boost the income of their existing members.

Commons and peer-to-peer[edit]

In the context of non-market proposals, social ownership can include the holding of the means of producing wealth in common (common ownership), with the concept of "usership" replacing the concept of ownership. Commons-based peer production involves the distribution of a critical mass of inputs and all outputs through information networks as free goods rather than commodities to be sold for profit by capitalist firms.[38]

The economist Pat Devine defines social ownership as "...ownership by those who are affected by - who have an interest in - the use of the assets involved", distinguishing it from other forms of ownership. Devine argues that this variant of social ownership will be more efficient than the other types of ownership because " enables the tacit knowledge of all those affected to be drawn upon in the process of negotiating what should be done to further the social interest in any particular context."[39]

The phrases "social production" and "social peer-to-peer" production have been used to classify the type of workplace relationships and ownership structures found in the open-source software movement and Commons-based peer production processes, which operate, value and allocate value without private property and market exchange.[40]

Ownership in Soviet-type economies[edit]

In Soviet-type economies, the means of production and natural resources were almost entirely owned by the state and collective enterprises. State enterprises were integrated into a national planning system, where factor inputs were allocated to them by the Ministry for Technical Supply (Gossnab).

According to The Great Soviet Encyclopedia, "socialist ownership" is a form of social ownership that forms the basis for the socialist system, involving the collective appropriation of material wealth by working people. Social ownership arises out of the course of capitalist development, creating the objective conditions for further socialist transformation and for the emergence of a planned economy with the aim of raising the living standards for everyone in society.

Misuse of the term[edit]

Particularly in the United States, the term "socialization" has been mistakenly used to refer to any state or government-operated industry or service (the proper term for such being either nationalization or municipalization). It has also been used to mean any tax-funded programs, whether privately run or government run. The term "socialized" is usually used in a pejorative sense, most commonly in reference to publicly funded health care programs (See: socialized medicine).[41]

See also[edit]


  1. ^ O'Hara, Phillip (September 2003). Encyclopedia of Political Economy, Volume 2. Routledge. p. 71. ISBN 0-415-24187-1. In order of increasing decentralisation (at least) three forms of socialised ownership can be distinguished: state-owned firms, employee-owned (or socially) owned firms, and citizen ownership of equity. 
  2. ^ Steele, David Ramsay (September 1999). From Marx to Mises: Post Capitalist Society and the Challenge of Economic Calculation. Open Court. p. 175-177. ISBN 978-0875484495. Especially before the 1930s, many socialists and anti-socialists implicitly accepted some form of the following for the incompatibility of state-owned industry and factor markets. A market transaction is an exchange of property titles between two independent transactors. Thus internal market exchanges cease when all of industry is brought into the ownership of a single entity, whether the state or some other organization...the discussion applies equally to any form of social or community ownership, where the owning entity is conceived as a single organization or administration. 
  3. ^ Busky, Donald F. (July 20, 2000). Democratic Socialism: A Global Survey. Praeger. p. 2. ISBN 978-0275968861. Socialism may be defined as movements for social ownership and control of the economy. It is this idea that is the common element found in the many forms of socialism. Yet having stated this as the common definition of socialism, one must necessarily admit that there are a wide variety of views among socialists of various stripes as to just what constitutes social ownership and control of the means of production, distribution and exchange. 
  4. ^ Toward a Socialism for the Future, in the Wake of the Demise of the Socialism of the Past, by Weisskopf, Thomas E. 1992. Review of Radical Political Economics, Vol. 24, No. 3-4, pp. 10: "Here again there are two principal variants of such social claims to income, depending on the nature of the community holding the claim: (1) Public surplus appropriation: the surplus of the enterprise is distributed to an agency of the government (at the national, regional, or local level), representing a corresponding community of citizens. (2) Worker surplus appropriation: the surplus of the enterprise is distributed to enterprise workers."
  5. ^ Peffer, Rodney G. (2014). Marxism, Morality, and Social Justice. Princeton University Press. p. 73. ISBN 9780691608884. Marx believed the reduction of necessary labor time to be, evaluatively speaking, an absolute necessity. He claims that real wealth is the developed productive force of all individuals. It is no longer the labor time but the disposable time that is the measure of wealth. 
  6. ^ Saros, Daniel E. (May 1, 2014). Information Technology and Socialist Construction: The end of Capital and the Transition to Socialism. Routledge. p. 61. ISBN 978-0415742924. Another characteristic that Marx and Engels emphasized as a central feature of a future socialist society was a shorter workday. According to Tucker, Marx had a ‘vision of man in a future condition of freedom-creative leisure’ that he described in volume 3 of Capital. 
  7. ^ "the act or process of making socialistic: the socialization of industry." "Socialization" at
  8. ^ Otto Neurath's concepts of socialization and economic calculation and his socialist critics. Retrieved July 5, 2010:
  9. ^ What is socialization? A program for practical socialism, by Korsch, Karl. 1975. Duke University Press. New German Critique, No. 6, pp. 60-81: "The socialization demanded by socialism signifies a new regulation of production with the goal of replacing the private capitalist economy with a socialist communal economy."
  10. ^ a b c Market Socialism, a case for rejuvenation, by Pranab Bardhan and John Roemer. 1992. Journal of Economic Perspectives, Vol. 6, No. 3, pp. 101-116: "Public ownership in the narrow sense of state control of firms is not necessary to achieve one of socialism's goals, a relatively egalitarian distribution of the economy's surplus. We take public ownership, in a wider sense, to mean that the distribution of the profits of firms is decided by the political democratic process - yet control of firms might well be in the hands of agents that do not represent the state."
  11. ^ Woirol, Gregory R. (July 30, 1996). The Technological Unemployment and Structural Unemployment Debates. Praeger. p. 20. ISBN 978-0313298929. The changing-organic-composition-of-capital argument was based on Marx's claim that technological change constantly increased the ratio of fixed to circulating capital. Since labor demand depended solely on the amount of circulating capital, the demand for labor decreased relative to a rise in total capital. The result was a tendency to increase the level of unemployment. 
  12. ^ The Social Dividend Under Market Socialism, by Yunker, James. 1977. Annals of Public and Cooperative Economics, Vol. 48, No. 1, pp. 93-133: "It was not the moral unworthiness of the exploitive surplus value mechanism which Marx proposed as the instrumentality of the collapse of capitalism. It was rather the consequences of that mechanism in providing capitalists with so much ill-gotten income that it would ultimately effectively ‘choke’ the system."
  13. ^ Wood, John Cunningham (March 26, 1996). Karl Marx's Economics: Critical Assessments, Volume 1. Routledge. pp. 247–248. ISBN 978-0415087148. It is certainly true that, according to Marx, social ownership does facilitate central planning…But the substitution of commodity production [central planning] for market exchange is not an ‘end’ in Marx’s analysis. The fundamental ‘end’ of Marxist socialism is the supersession of alienation, the ‘emancipation’ of mankind, and the creation of opportunities for the full development of man’s productive and human potentialities. Clearly, Marx perceived both social ownership and supersession of commodity production as a means to this end. 
  14. ^ McMullen, David (January 2007). Bright Future: Abundance and Progress in the 21st Century. BookSurge Publishing. p. 181. ISBN 978-0646468327. The five categories are: (1) the greater productivity of more motivated workers, (2) the greater accountability of individuals and organizations, (3) the elimination of unemployment, (4) the better flow of information and (5) the elimination of various resource wasting activities associated with wheeling and dealing, and with the activities of government. 
  15. ^ The Social Dividend Under Market Socialism, by Yunker, James. 1977. Annals of Public and Cooperative Economics, Vol. 48, No. 1, pp. 93-133: "The ‘first order effect’ of socialization will be an equalization of the property return, and it is to this that we must turn for the clearest and most certain benefit...The clearest, most immediate, and most obvious social improvement from socialism would be the abrogation of the pathologically unequal distribution of property return under capitalism."
  16. ^ Lamont, Corliss (1939). You might like socialism; a way of life for modern man. Modern Age Books, Inc. p. 239-240. ISBN 978-1330531013. Under socialism, with its economic security and progressively shorter hours of work, the leisure class is everyone. This new leisure class is not just a passive recipient and consumer of culture; it actively participates and creates, putting into effect the principle enunciated by the late American painter, Robert Hallowell, that ‘Each bears a gift for all 
  17. ^ To The Rural Poor, by Lenin, Vladimir Ilich. Collected Works, 6, Marxists, p. 366: "Machines and other improvements must serve to ease the work of all and not to enable a few to grow rich at the expense of millions and tens of millions of people. This new and better society is called socialist society."
  18. ^ Bertrand Russell (1932). "In Praise of Idleness". Zpub. Retrieved 16 November 2015. I do not regard Socialism as a gospel of proletarian revenge, nor even, primarily, as a means of securing economic justice. I regard it primarily as an adjustment to machine production demanded by considerations of common sense, and calculated to increase happiness, not only of proletarians, but of all except a tiny minority of the human race. 
  19. ^ Arnold, Scott (1994). The Philosophy and Economics of Market Socialism: A Critical Study. Oxford University Press. p. 44. ISBN 978-0195088274. First, social ownership is best understood by way of contrast with the characteristic form of ownership in free enterprise systems, namely, full liberal ownership. Second, and perhaps more important, the social vices attributed to existing free enterprise systems are traced to the ownership rights that defined that type of a system. 
  20. ^ Saros, Daniel E. (May 1, 2014). Information Technology and Socialist Construction: The end of Capital and the Transition to Socialism. Routledge. pp. 4–5. ISBN 978-0415742924. ... Marx’s only option was to study and investigate the laws of motion of capital, realizing that this work would be essential to the discovery of socialist laws of motion in the future. Whereas Mises asserted the logical impossibility of socialist economic calculation, Marx had the foresight to vaguely recognize that such calculation depended on the development of society’s productive forces. 
  21. ^ Arnold, Scott (1994). The Philosophy and Economics of Market Socialism: A Critical Study. Oxford University Press. p. 50. ISBN 978-0195088274. Though socialists have disagreed with Marx about how to conceptualize the notion of class, about the dynamics of class societies, and indeed about a whole host of other matters, most socialists seem to be broadly sympathetic to his views about what is wrong with the capitalist (free enterprise) economic system and, by implication, capitalist society ... Marx’s critique attributes basically two systemic evils to capitalism’s economic system: alienation and exploitation. 
  22. ^ O'Hara, Phillip (September 2003). Encyclopedia of Political Economy, Volume 2. Routledge. p. 1135. ISBN 0-415-24187-1. Property income is, by definition, received by virtue of owning property ... Since such income is not an equivalent return for any productive activity, it amounts to an entitlement to a portion of the aggregate output of others’ productive activity. The workforce produces output, but surrenders part of it to people who have nothing directly to do with production. Arguably, this occurs by virtue of a social system to which those in the workforce have never given their full consent, i.e. that of private property. Alternatively, it occurs by virtue of a structure of power to which the workforce is subject: property income is the fruit of exploitation. The fact that it is essential to capitalism makes the latter a class system akin to such other historical cases as slavery and feudalism. 
  23. ^ The Social Dividend Under Market Socialism, by Yunker, James. 1977. Annals of Public and Cooperative Economics, Vol. 48, No. 1, pp. 93-133: "From the human point of view, return paid to non-human factors of production is unearned and equivalent to a free gift of nature. It is the personal appropriation of this free gift of nature by a small minority of society under contemporary capitalism which establishes the ethical unworthiness of capitalism and the desirability of a socialist transformation...The employment of capital instruments and natural resources in economic production requires no personal hardship or exertion from any human being. The economic services provided by these factors of production are not corporeally inherent in human beings. The opposite is true of labor services, which can only be provided through the physical and mental activity of human beings...the really grossly exaggerated personal incomes in society are dominated by property income, and this source of inequality would be abrogated by the equalization of property income distribution."
  24. ^ a b c Jordi Cat (2014). "Political Economy: Theory, Practice, and Philosophical Consequences". Stanford Encyclopedia of Philosophy. Retrieved 3 September 2015. 
  25. ^ Otto Neurath’s Economics in Context, by Nemeth, Elisabeth; Schmitz, Stefan W.; Uebel, Thomas E. 2007.
  26. ^ Wolff and Resnick, Richard and Stephen (August 1, 1987). Economics: Marxian versus Neoclassical. The Johns Hopkins University Press. pp. 226–227. ISBN 978-0801834806. For Marxian theory, socialism and communism represent societies built around a different, noncapitalist form of the fundamental class process. That is a very different thing from a society in which the state appropriates surplus value from the productive laborers it hires and exploits ... These characteristics imply that any person who participates in the communist fundamental class is both a performer and appropriator of surplus labor…the decision of a state to operate capitalist industrial enterprises has no necessary relation to socialism... 
  27. ^ Arnold, Scott (1994). The Philosophy and Economics of Market Socialism: A Critical Study. Oxford University Press. p. 44. ISBN 978-0195088274. One conception holds that the means of production should be owned by society (or possible the working class) as a whole. By itself, this idea has not clear meaning; some institutional stand-in for society has to be found...the most obvious candidate in modern societies for that role has been the state. 
  28. ^ Toward a Socialism for the Future, in the Wake of the Demise of the Socialism of the Past, by Weisskopf, Thomas E. 1992. Review of Radical Political Economics, Vol. 24, No. 3-4, pp. 9: "There are two principal variants of such control, depending on the nature of the community in whom control rights are vested: (1) Public management: enterprises are run by managers who are appointed by and accountable to an agency of government (at the national, regional, or local level), which agency represents a corresponding politically-constituted community of citizens. (2) Worker self-management: enterprises are run by managers who are appointed by and accountable to those who work in them...with control rights resting ultimately with the community of enterprise workers ..."
  29. ^ Arnold, Scott (1994). The Philosophy and Economics of Market Socialism: A Critical Study. Oxford University Press. p. 44. ISBN 978-0195088274. Although societies in which the state owns the means of production historically have had centrally planned economies, this form of ownership is in principle compatible with a market economy ... These firms would by inputs from each other and sell outputs to each other and to consumers. 
  30. ^ Rosser, Mariana V. and J Barkley Jr. (July 23, 2003). Comparative Economics in a Transforming World Economy. MIT Press. p. 69. ISBN 978-0262182348. One approach suggests that modern computers can be linked together to overcome the Hayekian information problems and achieve rapid feedback that will maintain balances and lead to efficient planning, but with goods distributed in markets. 
  31. ^ The Economics of Feasible Socialism Revisited, by Nove, Alexander. 1991. (P.212-213): "Radoslav Selucky opts for what he calls 'social ownership', with 'means of production managed by those who make use of them', separated from the state...1) State enterprises, centrally controlled and administered, hereinafter referred to as centralized state corporations. 2) Publicly owned (or socially owned) enterprises with full autonomy and a management responsible to the workforce, hereinafter socialized enterprises."
  32. ^ McMullen, David (January 2007). Bright Future: Abundance and Progress in the 21st Century. BookSurge Publishing. ISBN 978-0646468327. 
  33. ^ Yunker, James (April 1992). Socialism Revised and Modernized: The Case for Pragmatic Market Socialism. Praeger. pp. 29–31. ISBN 978-0275941345. 
  34. ^ O'Hara, Phillip (September 2003). Encyclopedia of Political Economy, Volume 2. Routledge. p. 71-72. ISBN 0-415-24187-1. This leads us to the third form of social ownership, through a more equal initial distribution of corporate equity ... In his Unseen Revolution, published in 1976, the well-known management theorist Peter Drucker claimed that pension funds were reconciling employees’ need for financial security with capital’s need to be mobile and diversified, a form of ‘pension fund socialism’. Contemporary campaigns focusing on this dynamic include the explicitly socialist Meidner program... 
  35. ^ The Social Ownership of Capital, by Minns, Richard. 1996. New Left Review, Vol. 219, pp. 44-45."
  36. ^ Rosser, Mariana V. and J Barkley Jr. (July 23, 2003). Comparative Economics in a Transforming World Economy. MIT Press. pp. 73–74. ISBN 978-0262182348. Its form ranges from straight workers’ ownership in cooperatives, to employee stock ownership plans (ESOPs) in which workers’ ownership operates through a trust fund usually based on pension benefits, to paying workers with stock options, to the weakest version involving merely profit sharing. Successful examples of each type in the United States include for cooperatives plywood producers in the Northwest, for ESOPs the Weirton Steel Company of West Virginia (although the prominent example, United Airlines, declared bankruptcy), and for profit sharing various Silicon Valley high-technology companies…Thus the future of workable socialist forms that fulfill the goals of Karl Marx may be found in models emerging out of existing market capitalist economies in the form of worker-owned cooperatives. 
  37. ^ Busky, Donald F. (July 20, 2000). Democratic Socialism: A Global Survey. Praeger. pp. 4–5. ISBN 978-0275968861. Under mutualism, the state would be abolished, and factories would be controlled by workers in the form of producer’s cooperatives. Compensation would be retained in the form of labor checks paid to workers by people’s banks, corresponding to the number of hours they worked. 
  38. ^ Schmitt and Anton, Richard and Anatole (March 2012). Taking Socialism Seriously. Lexington Books. p. 160. ISBN 978-0739166352. Commons-based peer production bears a close family resemblance to the familiar vision of socialism sketched in the first paragraph of this chapter…In commons-based peer production a critical mass of inputs, and all outputs, are distributed within information networks as free goods rather than as commodities to be sold for profit by capitalist firms. 
  39. ^ "Participatory Planning Through Negotiated Coordination" (PDF). Retrieved 2011-10-30. 
  40. ^ Benkler, Yochai (2006). The Wealth of Networks: How Social Production Transforms Markets and Freedom. New Haven, Yale University Press. ISBN 0-300-11056-1. 
  41. ^ "Dorland's Medical Dictionary". 

Further reading[edit]

  • Korsch, Karl (1975). "What Is Socialization? A Program of Practical Socialism". New German Critique No.6: 60-81.
  • Minns, Richard (1996). "The Social Ownership of Capital". New Left Review 219. 1: 42-61.
  • O'Neil, John (2002). "Socialist Calculation and Environmental Valuation: Money, Markets and Ecology". Science and Society 66. 1: 137-158.

External links[edit]