Chapter 5 Flashcards
If we socialize an individuals cost or value?
we spread it to society at large
The market reflects individual values of goods and services by?
people paying private costs to receive things they privately value
An advocate for socialism asserts that…?
the individual should act to promote the good of society; not to promote the individuals well being
Who is Karl Marx?
the founder of socialism; he said “production should come “from each”, according to his ability, to each, according to his need”
What is the alternative to individual economic freedom?
authoritarian choice
What are external costs?
costs and values that naturaly spill over to others
What are externalities?
external costs and benefits
For ex. A polluting firm imposes costs on others and does not pay these costs
How does the state respond when the people don’t agree with the state’s assessments?
1) Allow individual choice; bu this choice will not be based on what the state sees as serving societal wellbeing, so it will not maintain the socialist order
2) use force and threat of force to maintain socialist order
What is a form of fascism?
when the state doesn’t take title to property, but orders the use of the property and the individual any way it wishes
What is eminent domain?
when property is taken for public/state use and the owner is compensated
What is civil forfeiture?
when a person is suspected of a crime and that persons property is seized b/c it is automatically suspected as contributing to the crime
The more spending a country does, the more they become…
socialistic
What did the pursuit of happiness mean?
the right to hold and use property freely, to choose ones profession, to make contracts, and to travel
What is called the “incentive problem” of socialism?
socialism divorces consumption from production, and in that way, takes the incentives to voluntary serve
What are four forms of rationale that socialists argue?
1) exploitation rationale
2) fairness rationale
3) we must socialize individuals decisions by state force in order to counter nature’s socializing effects (externalities rationale)
4) the latest socialist rationale (if an individual receives benefits from goods provided by the state, the state has the right to the individuals property)
