market-socialists

"If people want to anticipate the development of Capitalism over a long period a knowledge of Marx is a much more effective starting point than a knowledge of Wieser, Boehm-Bawerk, Pareto or even Marshall (though the last-named is in this respect much superior). But Marxian economics would be a poor basis for running a central bank or anticipating the effects of a change in the rate of discount."

"I have pointed out that the real source of the superiority of Marxian economics is in the field of explaining and anticipating a process of economic evolution. It is not the specific economic concepts used by Marx, but the definite specification of the institutional framework in which the economic process goes on in capitalist society that makes it possible to establish a theory of economic evolution different from mere historical description. Most orthodox Marxists, however, believe that their superiority in understanding the evolution of Capitalism is due to the economic concepts with which Marx worked, i.e. to his using the labour theory of value. They think that the abandonment of the classical labour theory of value in favour of the theory of marginal utility is responsible for the failure of "bourgeois" economics to explain the fundamental phenomena of capitalist evolution. That they are wrong can be easily shown by considering the economic meaning of the labour theory of value. It is nothing but a static theory of general economic equilibrium. In an individualistic exchange economy, based on division of labour, in which there is no central authority to direct which commodities, and in what quantities, are to be produced, the problem is solved automatically by the fact that competition enforces such a distribution of productive resources between the various industries that prices are proportional to the amount of labour necessary for producing the respective commodities (these being the "natural prices" of classical economics)."

"Our results may be summarised as follows: (1) The superiority of Marxian economics in analysing Capitalism is not due to the economic concepts used by Marx (the labour theory of value), but to the exact specification of the institutional datum distinguishing Capitalism from the concept of an exchange economy in general. (2) The specification of this institutional datum allows of the establishment of a theory of economic evolution from which a "necessary" trend of certain data in the capitalist system can be deduced. (3) Jointly with the theory of historical materialism this theory of economic evolution accounts for the actual changes occurring in the capitalist system and forms a basis for anticipating the future."

"The fundamental propositions of the theory of interest being obtained from a theory of production into which time does not enter as a variable, it follows that interest is not connected with time in any different way from the way in which the general theory of production is connected with time."

"Having treated the theoretical determination of economic equilibrium in a socialist society, let us see how equilibrium can be determined by a method of trial and error similar to that in a competitive market. This method of trial and error is based on the parametric function of prices. Let the Central Planning Board start with a given set of prices chosen at random. All decision of the managers of production and of the productive resources in public ownership and also all decisions of individuals as consumers and as suppliers of labour are made on the basis of these prices. As a result of these decisions the quantity demanded and supplied of each commodity is determined. If the quantity demanded of a commodity is not equal to the quantity supplied the price of that commodity has to be changed. It has to be raised if demand exceeds supply and lowered if the reverse is the case. Thus the Central Planning Board fixes a new set of prices which serves as a basis for new decisions, and which results in a new set of quantities demanded and supplied. Through this process of trial and error equilibrium prices are finally determined. Actually the process of trial and error would, of course, proceed on the basis of the prices historically given. Relatively small adjustments of those prices would constantly be made, and there would be no necessity of building up an entirely new price system."

"The rules of consistency of decisions and of efficiency in carrying them out in a socialist economy are exactly the same as those that govern the actual behavior of entrepreneurs on a purely competitive market. Competition forces entrepreneurs to act much as they would have to act were they managers of production in a socialist system. The fact that free competition tends to enforce rules of behavior similar to those in an ideal planned economy makes competition the pet idea of the economist. But if competition enforces the same rules of allocating resources as would have to be accepted in a rationally conducted socialist economy, what is the use of bothering about socialism? Why change the whole economic system if the same result can be attained within the present system, if only it could be forced to maintain the competitive standard? But the analogy between the allocation of resources in a competitive capitalist and a socialist economy is only a purely formal one. The formal principles are the same, but the actual allocation may be quite different."

"The capitalist system is far removed from the model of a competitive economy as elaborated by economic theory. And even if it conformed to it, it would be, as we have seen, far from maximizing social welfare. Only a socialist economy can fully satisfy the claim made by many economists with regard to the achievements of free competition."

"The actual capitalist system is much better described by the analysis of Mrs. Robinson and of Professor Chamberlin than by that of Walras and of Marshall. But the work of the latter two will be more useful in solving the problems of a socialist system."

"It seems to us, indeed, that the real danger of socialism is that of a bureaucratization of economic life, and not the impossibility of coping with the problem of allocation of resources. Unfortunately, we do not see how the same, or even greater, danger can be averted under monopolistic capitalism. Officials subject to democratic control seem preferable to private corporation executives who practically are responsible to nobody."

"An economic system based on private enterprise and private property of the means of production can work only as long as the security of private property and of income derived from property and from enterprise is maintained. The very existence of a government bent on introducing socialism is a constant threat to this security. Therefore, the capitalist economy cannot function under a socialist government unless the government is socialist in name only."

"The administration of scarce resources is influenced by the standards of civilisation and by the organisation and institutions of the society in which men live. The influence is a two-fold one. The wants which the resources serve to satisfy are produc of standards of civilisation historically developed in society. The ways in which scarce resources are procured, adapted to various purposes, distributed among different persons are all results of social organisation and social institutions. Forms of ownership, institutions like corporations and banks, technical knowledge acquired in institutes of research and transmitted by schools, regulation by government agencies, habits and moral standards all influence the ways of administering scarce resources."

"No scientific law applies when its prerequisite conditions do not occur. Since the administration of scarce resources is influenced by social organisation and institutions, such organisation and institutions are among the conditions implied in economic laws. Consequently, economic laws which hold under one type of social organisation may fail to do so under another type. Most economic laws are thus "limited historically" to certain given types of social organisation and institutions. This, however, does not imply any basic difference between the laws of economics (or of other social sciences) and the laws of the natural sciences. The latter, too, are contingent upon conditions which are subject to change. Different laws of the natural sciences have different degrees of historic permanence, usually a much higher one than the laws of economics, though even this is not always the case (some laws of meteorology are less permanent than some laws of economics). The differences is but one of degree. Like all scientific laws, economic laws are established in order to make successful prediction of the outcome of human actions."

"Our conclusion about the objectivity of economic science may seem startling. Economists are rather notorious for being unable to reach agreement and for being divided into opposing "schools of thought," "orthodox" and "unorthodox," "bourgeois" and "socialist," and many others. The existence of profound disagr ment among economists, however, does not refute our thesis about the objectivity of economics as a science."

"The existence of an ideological element in each science has caused some representatives of the sociology of knowledge to deny the objective validity of scientific statements, particularly in the domain of the social sciences. Such a conclusion is unwarranted. The validity of scientific statements can be ascertained with impersonal objectivity through an appeal to facts. Predictions derived from scientific statements are or are not borne out under the test of verification. The outcome is entirely independent of human motivations, conscious or subconscious; it depends entirely on the correctness of the scientific procedure applied in establishing the statements."

"Planning and the market do not exclude each other. Planning may utilise the uniformity of behaviour patterns of units operating in the market as one of the means of influencing their decisions. This happens, for instance, when the planning authority imposes tariffs or pays subsidies in order to influence the quantities bought or sold. Sometimes regulation—a special method of planning—is necessary in order to enable the market to achieve co-ordination of the units' decisions. The two methods of co-ordination co-exist with each other. However, in different historic societies, one or the other of these methods plays the preponderant role and appears as the chief means of co-ordinating all the units in the economy. The development of economics as a science is closely connected with the growing preponderance of the market in modern times. The co-ordinating operation of the market and, at times, the failure of the market to achieve co-ordination of decisions have posed the intellectual problems which have led to the emergence and growth of economic science."

"Capitalism operates only on the basis of private costs, only private costs are rewarded and repaid, and not social costs. And even in a competitive capitalism where competition forces producers to sell at cost price takes into account only private costs and not social costs."

"Human needs, although originally derived from biological necessity, are thus a result of the existence of society and are conditioned by the stage of development which society has reached."

"In my essay I refuted the Hayek-Robbins argument by showing how a market mechanism could be established in a socialist economy which would lead to the solution of the simultaneous equations by means of an empirical procedure of trial and error. [...] Were I to rewrite my essay today my task would be much simpler. My answer to Hayek and Robbins would be: so what’s the trouble? Let us put the simultaneous equations on an electronic computer and we shall obtain the solution in less than a second. The market process with its cumbersome tatonnements appears old-fashioned. Indeed, it may be considered as a computing device of the preelectronic age."

"Mathematical programming assisted by electronic computers becomes the fundamental instrument of long-term economic planning, as well as of solving dynamic economic problems of a more limited scope. Here, the electronic computer does not replace the market. It fulfils a function which the market never was able to perform."

"The basic sources of the defects in Lange's theoretical analysis are the emphasis on formal structure, the attempt to generalize without first specifying in detail the facts to be generalized, and the failure to recognize that the ultimate test of the validity of a theory is not conformity to the canons of formal logic but the ability to deduce facts that have not yet been observed, that are capable of being contradicted by observation, and that subsequent observation does not contradict. In consequence, these defects are found in much economic theorizing that is not taxonomic in character. They are, however, especially likely to arise when the taxonomic approach is adopted, as their presence in the writings of so able and careful a theorist as Lange testifies."

"When they criticise the government when it tries to prevent violence and punish perpetrators of that violence we take the position that they can go hang."

"Mr Bush, Mr. Blair and now Mr Brown's sense of human rights precludes our people's right to their God-given resources, which in their view must be controlled by their kith and kin. I am termed dictator because I have rejected this supremacist view and frustrated the neo-colonialists."

"Let Mr. Bush read history correctly. Let him realise that both personally and in his representative capacity as the current President of the United States, he stands for this "civilisation" which occupied, which colonised, which incarcerated, which killed. He has much to atone for and very little to lecture us on the Universal Declaration of Human Rights. His hands drip with innocent blood of many nationalities."

"He imprisons and tortures at Guantanamo. He imprisoned and tortured at Abu Ghraib. He has secret torture chambers in Europe. Yes, he imprisons even here in the United States, with his jails carrying more blacks than his universities can ever enroll. He even suspends the provisions of the Universal Declaration on Human Rights. Take Guantanamo for example; at that concentration camp international law does not apply. The national laws of the people there do not apply. Laws of the United States of America do not apply. Only Bush's law applies. Can the international community accept being lectured by this man on the provisions of the universal declaration of human rights? Definitely not!"

"Our economy is a hundred times better, than the average African economy. Outside South Africa, what country is [as good as] Zimbabwe? … What is lacking now are goods on the shelves—that is all."

"I will never, never, never, never surrender. Zimbabwe is mine. I am a Zimbabwean. Zimbabwe for Zimbabweans. Zimbabwe never for the British. Britain for the British."

"[Referring to Zimbabweans] Your leadership in the inclusive government urges you to desist from any acts of violence that will cause harm to others and become a blight on our society [...] Don't fight even over girlfriends. The country is full of beautiful women. If you can't get one, come to Mugabe for assistance."

"That isn't true. Zimbabwe is the most highly developed country in Africa. After South Africa, I want to see another country as highly developed. [We have 14 universities and a literacy rate of over 90%, the highest in Africa.] And yet they talk about us as a fragile state. We have a bumper harvest, not only maize, but also tobacco and many other crops. We are not a poor country. If anyone wants to call us fragile, they can. You can also call America fragile."

"What was the most important thing for (Mandela) was his release from prison and nothing else. He cherished that freedom more than anything else and forgot why he was put in jail."

"The congress is due in a few weeks from now and I will preside over its processes, which must not be prepossessed by any acts calculated to undermine or to compromise the outcomes in the eyes of the public."

"President Mugabe is like a lion — when he roars, he leaves some quotable quotes that linger in the mind for a very long time."

"...I believe there should be openness; there should be possibility for dissent, for disagreement. Even if that means slowing us down, that's worth it. For that reason, I'm worried about what's about to happen in Zimbabwe. It seems to me one of the brightest spots in Africa. Mugabe is brilliant, and things have gone remarkably well there considering all the problems. But there is this obsession with getting rid of opposition. There'll be all kinds of theorists and dogmatic people telling you that "We'll have dissent within the party." And it seems to me to be just an obsession that we must all be in one group. It's neater that way; it's tidier; but that's not the way life is."

"Internal discipline is what he's mastered. What to do with anger, for instance: he is able to control it and not show it. He can sit face to face with his opponents and detractors, smiling and talking and listening, even if he's boiling inside. That's where he keeps his anger - inside."

"What amazes me is how many people are happy for Saddam to stay. They ask why we don't get rid of Mugabe, why not the Burmese lot. Yes, let's get rid of them all. I don't because I can't, but when you can you should."

"Over the course of more than 2 years, the Government of Zimbabwe has systematically undermined that nation's democratic institutions, employing violence, intimidation, and repressive means including legislation to stifle opposition to its rule. This campaign to ensure the continued rule of Robert Mugabe and his associates was clearly revealed in the badly flawed presidential election held in March 2002. Subsequent to the election, the Mugabe government intensified its repression of opposition political parties and those voices in civil society and the independent press calling on the government to respect the nation's democratic values and the basic human rights of its citizens. To add to the desperation of the besieged Zimbabwean people, the current government has engaged in a violent assault on the rule of law that has thrown the economy into chaos, devastated the nation's agricultural economy, and triggered a potentially catastrophic food crisis."

"The big, looming, monetary issue is "quantitative easing": that is, printing money. What happens is that the government borrows from the Bank of England, not from the markets. It expands the money supply to keep the economy going and also to counter deflation without simultaneously increasing government debt. The attractions are obvious, as are the dangers. The Robert Mugabe school of economics provides a salutary warning about uncontrolled monetary expansion in generating hyper-inflation. The road to Harare is not as long as we might hope. Monetary easing may prove to be necessary but will have to be managed with great skill and care: Too little easing and the crisis drags on – as in Japan. If there is too much, the authorities face the messy task of mopping-up liquidity by issuing bonds which add to the burden of borrowing or else we lurch back from deflation to inflation. So interest rates may soon become yesterday's story."

"Mugabe wasn't human at all. You couldn't warm to him as a person. You could admire his skills and intellect and so on, but he was an awfully slippery sort of person - reptilian, as I say."

"Also, when I came into office, I was determined to see Rhodesia changed into Zimbabwe, to give that country a chance to be independent and to remove the blight of racial discrimination against the blacks who live there. Not too long ago, Prime Minister Mugabe came to see me in the East Room of the White House to express his appreciation to me and to the people of the country for helping his country find democracy."

"I give you a replica of liberator Simon Bolivar's sword. For you who, like Bolivar, took up arms to liberate your people. For you who, like Bolivar, are and will always be a true freedom fighter. [Mugabe] continues, alongside his people, to confront the pretensions of new imperialists."

"As the turmoil in Zimbabwe continues after a seriously tainted election process, President Mugabe is employing brutal tactics against dissenters in an attempt to retain power. In addition to raids on opposition party offices and the killing of opposition democracy activists by Mugabe supporters, there are increasing reports that the police are interrogating, arresting, and beating Anglican parishioners and preventing them from attending Church."

"There's an ideological fervor about this prosecution that's almost religious in its intensity, because let's be clear, this is a heresy trial by any other name. They can't refute Mr. Wilders' statements, so instead they've resorted to the kind of cheap legal stunt we'd expect from the likes of Mugabe to shut their opponent up."

"Zimbabwe. Zimbabwe is a wonderful country - I've been there umpteen times and it is being brought to extinction by Mugabe. The average life expectancy is 33, so if you are not dying from Aids, malnutrition, starvation, deprivation or stagnation, don your flannels, black up, play leather on willow. Mugabe as captain and witch doctor, imagine him out at Lord's casting a tincture of bats' tongues and gorillas' gonads."

"He’s one of the worst human beings I’ve ever met. He treated black and white with equal contempt. He was a horrible human being."

"I believe that Mugabe was … driven into a permanent rage by the adulation heaped internationally on Nelson Mandela, an accolade of praise and recognition that he felt was more properly due to himself. And, harboring this grievance, he decided to denude his own unhappy country of anything that might remind anybody of Mandela's legacy."

"With his poor childhood development record, even minor criticism would be experienced as a wound by Mugabe. He is a person who cannot tolerate difference. Being profoundly doubtful about himself, he is oversensitive to the idea that he is not as good as everyone else. People are either with him or against him. Differences of opinion are provocative and hurtful to Mugabe, who may think that compromise reduces him. The closer a compromise comes to his emotional self, the more he resists it."

"People see him as a hero. Not just in Zimbabwe or here in Zambia but across the whole of southern Africa. It's no good demonising Robert Mugabe."

"Tanzania is standing by the people of Zimbabwe including President Mugabe... Mugabe is there, he is president, he has been elected. If Tanzania had simply said, stupid, you’re hopeless, a murderer, a violator of basic human rights; does that remove Mugabe from office? It doesn’t."

"My delegation also wish to place on record our deep appreciation to His Excellency Mr Robert Mugabe for his guidance of the affairs of the Movement (Non-Aligned Movement) during his Chairmanship. The Movement`s current high standing in international affairs is a tribute to the dedication and statesmanship of Mr Mugabe."

"Mugabe fought and liberated his country from colonists. But I am here as a guest of the Zimbabwe people. I am not a personal guest of Mugabe. And veterans of the liberation struggle are well aware of this fact."

"The situation in Zimbabwe has reached a decisive moment. After the years in which the repressive regime of President Robert Mugabe has made a mockery of law while turning what was once southern Africa's breadbasket into a literal economic basket case, the people of Zimbabwe nonetheless bravely went to the polls. The delay in publishing the results of the election raise serious doubts about what is happening. It is now time for the international community, especially Zimbabwe's immediate neighbors, to stand up and be heard in support of Zimbabwe's people, demanding that their votes be respected."