Socialism

Question 1

What do revolutionary socialists / Marxists believe about the economy?

Answer 1

• They believe that any amount of capitalism is immoral
• They advocate for full state and full worker ownership of the economy and industry
• They believe that a worker run economy is the only way to guarantee that workers are fairly treated and equal
• They believe that capitalism is designed to exploit the working class and prevents full equality
• Some revolutionary socialists believe that a complete overthrow of the current capitalist system is needed, not gradual evolution as that will inevitably lead to the retention of some aspects of capitalism (e.g. Rosa Luxemburg)
• Other State-socialists would advocate for gradual evolution, rather than complete revolution (e.g. Beatrice Webb, socialism should be implemented by democracy)

Question 2

What do social democrats believe about the economy?

Answer 2

• Social democrats believe in a mixed economy with state owned industries and private industry
• They believe that capitalism has changed since the 19th century and so can be used to generate wealth and that it is not inherently exploitative (Anthony Crossland - the future of socialism)
• They believe in Keynesian economic policy as they believe that state intervention can be used to boost productivity and wealth generation
• They support wealth redistribution through strong state welfare

Question 3

What do third-way socialists believe about the economy?

Answer 3

• They believe that the economy should be solely based in capitalism
• They believe that that the best way to grow the economy and reduce unemployment is through capitalism
• Any form of state intervention stifles investment and productivity
• Third way socialists believe that there should be an emphasis on equality of opportunity through investment in education (Anthony Giddens)
• The also emphasise the importance of community in order to prevent the negative side of the market e.g. excessive materialism
• Embrace private investment in the public sphere e.g. New Labour introducing the Private Finance Initiative (PFI) and other private investment into the NHS