Economic ideology
From Wikipedia, the free encyclopedia
An economic ideology discerns itself from a pure economic theory because it is normative rather than just explanatory in its approach. It describes the way an economy should be run and to what end, whereas the only aim of economic theories is to create accurate descriptive models. However the two are closely interrelated. A good way of discerning whether an ideology can be classified an economic ideology is to query if it inherently takes a specific and detailed economic standpoint. For instance, Anarchism cannot be said to be an economic ideology as such, because it has amongst others Anarcho-capitalism on the one hand and Anarcho-communism on the other as subcategories thereof, which in turn can. Furthermore, economic ideologies can be said to be a distinct subset of economic systems, because of the ideological element which is not part of economic systems per se.
[edit] Examples
Capitalism is a laissez-faire "system of perfect liberty" where competition in the free market determines the price, production and consumption of goods through the invisible hand of supply and demand reaching efficient market equilibrium. Capital, property and enterprise are privately owned and managed for a profit incentive. New enterprises may freely gain market entry without State restriction. Employment and wages are determined by a free labour market that will result in some unemployment. Government and Judicial intervention are necessary at times to ensure the efficient operation of markets against price fixing and collusion by producers and organised labour, and abuse of market power by monopolies. The capitalist economy will likely follow a business cycle of economic growth and recession.
In Socialism, nearly all enterprises are publicly owned and managed by the State according to an economic plan. Private property and private ownership of capital is restricted. The State dictates incomes, prices and levels of production with limited response to market cues. Unemployment is abolished and employment is guaranteed for life. Through income and price subsidization and cradle to the grave provision of social services an equal society is produced that may one day develop into Communism.
Communism is the evolution of Socialism that has developed sufficiently so that the central role of the State has 'withered away' and is no longer necessary for the functioning of a planned economy. All property and capital are collectively owned and managed in a classless and equal society. Currency is no longer needed, all economic activity, enterprise, labour, production and consumption is freely exchanged "from each according to his ability, to each according to his needs".
The term of socialization is a doctrine created by the economic fascism and, in the intentions of its proponents, would have been the "third way" as opposed to the two major economic systems of the twentieth century, capitalism and communism both as regards the economy is on its reflections on the social consequence.
The basis of socialization is the total absence of employees, in which any economically productive entity belongs equally to all its employees, no longer masters nor employees. This unlike capitalism, where production is an entity owned by a person or a society of people also unconnected to production, while production is entrusted to employees. And unlike communism, where the property is replaced "by the state" and is managed by administrators appointment political. Similarly to capitalism, the theory socializationist provides for the right to private property, freedom of economic initiative, respect for the law "demand-offert" and free competition.
