The Claim to Economic Rationality

Włodzimierz Brus and Kazimierz Laski

in From Marx to the Market

Published in print April 1991 | ISBN: 9780198283997
Published online November 2003 | e-ISBN: 9780191596032 | DOI:

Series: Clarendon Paperbacks

 The Claim to Economic Rationality

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The chapter concentrates on presenting the Marxist claim that socialism surpasses its predecessor—capitalism—in terms of economic rationality. The basis for this rationality is to be provided by social ownership of means of production. This is supposed to allow ‘internalisation of externalities’ by means of central planning—ex ante coordination of economic activity on a macro scale, as well as gearing production to satisfaction of needs, which in turn promotes cooperative behaviour of economic agents instead of competition for profits.

Keywords: central planning; competition; cooperation; economic rationality; Karl Marx; ownership; Joseph Schumpeter; social justice; socialism; X‐efficiency

Chapter.  4602 words. 

Subjects: Economic Systems

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