Libertarians for Ron Paul

A Move towards Market Socialism

“The recent financial crisis has renewed interest in old issues. The Bush administration has announced plans to buy $85 billion in preferred stock in what are (for the time being) private financial institutions, like Bank of America, J.P. Morgan, Wells Fargo, and Morgan Stanley. The total commitment by the Treasury is set at $250 billion. While this move by the Treasury Department into the financial industry is unique in American history, it has precedents elsewhere, and has been debated many times.”

“Karl Marx proposed “centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.” Years later, so-called “market socialists” like Oscar Lange, Abba Lerner, and H.D. Dickinson proposed state control over credit and financial capital. While these market socialists accepted trade and the use of money with consumer goods, markets for capital goods would be simulated and markets for financial capital would be wholly replaced by central planning. Capital investment would therefore be determined by state officials, rather than by competition for funds in financial markets.”

Complete Essay by D. W. McKenzie @ http://www.mises.org/story/3157