Socialism vs Social Democracy as Income-Equalizing Institutions
AbstractSocialism is defined as a normative property of an allocation: that the allocation of labor and output be Pareto efficient, and that output received by individuals be proportional to the value of the labor they expended in production. Social democracy is an institution: the redistribution of income through taxation, with a system of private ownership of capital. We present a stylized parameterization of the US economy and compute its (unique) socialist allocation, and the Gini coefficient of the income distribution in that allocation. We compute the Gini coefficient of after-tax income in the present US “social democracy” and show that it is lower than in the socialist allocation. Hence, socialists must choose between two mutually exclusive alternatives: eliminating exploitation in the Marxian sense (achieving socialism, as defined above), or equalizing income. We propose that egalitarians must go beyond socialism, as it has been classically conceived. Eastern Economic Journal (2008) 34, 14–26. doi:10.1057/palgrave.eej.9050011
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Eastern Economic Journal.
Volume (Year): 34 (2008)
Issue (Month): 1 (Winter)
Contact details of provider:
Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).
If references are entirely missing, you can add them using this form.