11-26-2006, 02:29 PM
<!--QuoteBegin-suresh+Nov 26 2006, 12:31 PM-->QUOTE(suresh @ Nov 26 2006, 12:31 PM)<!--QuoteEBegin-->Socialism is the intermediate stage between capitalism and communism. Until communism-common ownership-is established, we must stick to state ownership of the means of production. Proletariats will form the state, which is why we call it 'dictatorship of the proletariat.' <!--QuoteEnd--><!--QuoteEEnd-->
I take it you mean, that a communist system is the desired end-result for a socialist state. How do you propose to bring about common ownership of the means of production? By Ahimsa? What about those people who do not think Communism is the right way to go? What will happen to their means of production? Will they be confiscated "for the good of society"? Would that not be "himsa"?
<!--QuoteBegin-suresh+Nov 26 2006, 12:31 PM-->QUOTE(suresh @ Nov 26 2006, 12:31 PM)<!--QuoteEBegin-->The state will control production based on the needs of the people, unlike free market economies. For instance, a socialist government in India would rather focus on producing and distributing more rice and wheat, rather than put a man on the moon. Why so? Because production is based on need, and the needs of millions of hungry mouths determine this particular production target. This, in effect, will guide a socialist economy.
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The big question is <b>how?</b>
How does the state adjudge the needs of the people? How does it trade-off the needs of one set of people, against the needs of another set? How does it set priorities between and among these? <b>How does it know what are the needs of its people, and how does it know how great is this need?</b> Does it conduct a survey? How does it know if people lied during the survey?
Basically how does it propose to know every individual's preference for a product or service, and how does it propose to measure it objectively, across crores of human beings?
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->One doesn't have to worry that the economy will 'stagnate' on account of this, because the law (in this case, diminishing marginal utility) will ensure that development takes place at the right speed.
....
Once this is accomplished, the law of diminishing marginal utility will take us to the next step. What would a self-sufficient village do? It can become a center of production itself. Thus more wealth is generated. As you can see, there is no 'stagnation' once needs are fulfilled.<!--QuoteEnd--><!--QuoteEEnd-->
Your explanation is missing several steps. Go ahead and explain to us (in baby steps) why you think the Law of Diminishing Marginal Utility (which pertains to individual consumers of a product) will work miracles in a socialist economy, but not in a free-market economy.
Remember by the way, that the effects of the Law of DMU are visible in the free-market through the market price of a good. If the seller brings too many apples to the market, he is going to find out - from the low price he will get from the buyers. In a socialist economy, where quantity produced and price are set by a planner, how is the DMU going to make itself visible? As I said before, please explain in baby steps.
I take it you mean, that a communist system is the desired end-result for a socialist state. How do you propose to bring about common ownership of the means of production? By Ahimsa? What about those people who do not think Communism is the right way to go? What will happen to their means of production? Will they be confiscated "for the good of society"? Would that not be "himsa"?
<!--QuoteBegin-suresh+Nov 26 2006, 12:31 PM-->QUOTE(suresh @ Nov 26 2006, 12:31 PM)<!--QuoteEBegin-->The state will control production based on the needs of the people, unlike free market economies. For instance, a socialist government in India would rather focus on producing and distributing more rice and wheat, rather than put a man on the moon. Why so? Because production is based on need, and the needs of millions of hungry mouths determine this particular production target. This, in effect, will guide a socialist economy.
<!--QuoteEnd--><!--QuoteEEnd-->
The big question is <b>how?</b>
How does the state adjudge the needs of the people? How does it trade-off the needs of one set of people, against the needs of another set? How does it set priorities between and among these? <b>How does it know what are the needs of its people, and how does it know how great is this need?</b> Does it conduct a survey? How does it know if people lied during the survey?
Basically how does it propose to know every individual's preference for a product or service, and how does it propose to measure it objectively, across crores of human beings?
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->One doesn't have to worry that the economy will 'stagnate' on account of this, because the law (in this case, diminishing marginal utility) will ensure that development takes place at the right speed.
....
Once this is accomplished, the law of diminishing marginal utility will take us to the next step. What would a self-sufficient village do? It can become a center of production itself. Thus more wealth is generated. As you can see, there is no 'stagnation' once needs are fulfilled.<!--QuoteEnd--><!--QuoteEEnd-->
Your explanation is missing several steps. Go ahead and explain to us (in baby steps) why you think the Law of Diminishing Marginal Utility (which pertains to individual consumers of a product) will work miracles in a socialist economy, but not in a free-market economy.
Remember by the way, that the effects of the Law of DMU are visible in the free-market through the market price of a good. If the seller brings too many apples to the market, he is going to find out - from the low price he will get from the buyers. In a socialist economy, where quantity produced and price are set by a planner, how is the DMU going to make itself visible? As I said before, please explain in baby steps.