Chapter 5 Flashcards
If we SOCIALIZE an individual’s cost & value.
we spread it to society.
Karl Marx
Founder of socialism
“from each, according to his ability, to each, according to his need.”
Authoritarian Choice
Whether state’s decisions are made by a dictator, people’s elected representatives, or popular vote.
External Costs
Some costs naturally spill over to others.
External Benefits
Some value spills over to others.
Externalities
External Costs & External Benefits
2 ways that a state can respond:
- Allow individual choice
2. Use force
Fascism
System under which state does not take title to property, but orders use of property and individual in any way it wishes.
Socialism is typically…
fascist.
Eminent Domain
Property is taken for public use, such as roads and parks, but owner is compensated.
Civil Forfeiture
Person is suspected of a crime and that person’s property is seized because it is automatically suspected as contributing to crime.
“The Pursuit of Happiness”
Right to hold and use property freely, to choose one’s profession, to make contracts, and to travel.
Incentive Problem
Free market gives individuals to voluntarily serve, socialism divorces consumption from production and take incentive to voluntarily serve.
