Socialism is much more than public ownership of productive enterprises. Still, if there is one policy that clearly distinguishes socialists from their (or rather our) opponents, it is support for public enterprise as a way of organizing large-scale production, and, in particular, as the preferred model for industries characterized by natural monopoly or other major market failures. The opposite view, dominant since the 1970s, is the market liberal framework that favors comprehensive private ownership, with “light-handed” regulation as the response to market “imperfections”.
Now that I’ve explicitly adopted the term “socialist”, I’ve been struck by the fact that I seem to be pushing against an open door....
As a socialist, I support a mixed economy in which both public and private ownership play important roles. The evidence of the past century shows, in my view, that most large-scale infrastructure should be publicly owned, and operate on a statutory authority model, accountable to the public through governments, but with politicians kept at arms length from day-to-day decisions. On the other hand, small business should be left to private ownership. That leaves a large share of the economy to balance between large for-profit corporations and public enterprise. The design of a mixed economy involves getting that balance right.
In my view, feudalism is a socio-economic system that prioritizes land (control of territory) as a factor of production. Capitalism is a socio-economic system that prioritizes capital (ownership). Socialism is an socio-economic system that prioritizes workers (people).
John Quiggin's Blog
We are all socialists nowJohn Quiggin | Professor and an Australian Research Council Laureate Fellow at the University of Queensland, and a member of the Board of the Climate Change Authority of the Australian Government
