Social Democracy and Market Socialism

My views fall somewhere between social democracy and market socialism. What I have in mind by "market socialism" is the model advocated by Fred M. Taylor, Oskar Lange, and Abba Lerner. (This parallels the RICH economy proposal of Robert Anton Wilson too.)

"In the case of a socialist state...the correct general procedure would be this: (1) The state would asure to the citizen a given money income and (2) the state would authorize the citizen to spend that income as he chose in buying commodies produced by the state—a procedure which would virtually authorize the citizen to dictate just what commodities the economic authorities of the state should produce."—Fred M. Taylor ("The Guidance of Production in a Socialist State")

Personally, I have no problem with private industry when production is done on a more individualistic basis. Small crafts and small businesses can still be private businesses. In that sense, I'm leaning towards a more social democratic approach. However, any business that is "too big to fail," receives substantial subsidies from the government, or enjoys monopoly or oligopoly privileges ought to be municipalized or nationalized. The notion of subsidiarity—the idea that things ought to be done at the most local level possible—must determine whether a company shall be municipalized or nationalized or operated at some other level in between.

Banks, the major auto companies, health insurance, homeowners insurance, and auto insurance ought to be nationalized. Banks and auto companies can't keep afloat without government assistance, which is really taxpayer assistance, so they ought to be nationalized—their profits ought to go directly to the taxpayers as a dividend. Insurance companies have an incentive to screw people because it's done on a for-profit basis rather than on a for-service basis. It's in the insurance companies' best interest to charge as much as they can and deny as many claims as possible. For-profit insurance always goes against the interest of consumers and of society in general. All, or nearly all, insurance should be nationalized, or at least municipalized, for the sake of the people.

Market socialism and libertarian social democracy are really in our best interest.

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