The Forum > General Discussion > How do you define socialism?
How do you define socialism?
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This string also has mentioned the market. The free market is belief rather than reality. Adam Smith, the great economist, wrote the Wealth of Nations (WON) which developed basic market theory.
A free market operates under the conditions:
1. There is a commodity that is roughly the same regardless of who produces it.
2. No producer or consumer is big enough to affect the market.
The only market that approaches that model is the market for agricultural commodities such as the trade in grain. However, such entities as the Australian Wheat Board destroy that market.
In WON there is much wisdom containing the failings of the market and the necessity for government regulation.
WON about capitalist conspiracies:
“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies, much less to render them necessary.”
WON about excessive profits and complaining about paying wages:
Our merchants and master-manufacturers complain much of the bad effects of high wages in raising the price, and thereby lessening the sale of their goods both at home and abroad. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.
WON on capitalist propaganda:
They [general public] have commonly neither inclination nor fitness to enter into combinations; and the clamour and sophistry of merchants and manufacturers easily persuade them that the private interest of a part, and of a subordinate part of the society, is the general interest of the whole.