Socialism vs Social Democracy as Income-Equalizing Institutions
Socialism 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
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 34 (2008)
Issue (Month): 1 (Winter)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
Postal:c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
Phone: (201) 684-7346
Web page: https://www.qu.edu/eea/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/41302|
When requesting a correction, please mention this item's handle: RePEc:pal:easeco:v:34:y:2008:i:1:p:14-26. See general 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: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.