Socialist Progressives
In reply to the discussion: Dumb question: what's a Socialist? [View all]Jim Lane
(11,175 posts)Imagine a bicycle factory. The factory can be set up to mass-produce inexpensive but durable bikes that a lot of people can use. Alternatively, it can manufacture a smaller quantity of very high-end bikes, with carbon frames, top-of-the-line components, etc. (I just checked at nashbar.com, the online cycling supplier I use. Theyll sell you their house brand road bike at $300 or a specialty manufacturers road bike at $3,000, with, of course, options in between.) Which will a particular factory make?
In a capitalist society like ours, the decision is made by individual owners who generally seek to maximize profits. The Mekk company could make more and cheaper bikes, but its making $3,000 bikes because someone will buy them. In general, although some companies do go the low markup, high volume route, some productive capacity is devoted to goods and services that may produce less overall benefit to society but that make a profit for the producer.
I take your quoted paragraph to mean that, under socialism, decisions about the allocation of resources are based instead on consideration of whats best for the entire society. That might mean making more and cheaper bikes. It might mean putting a grocery store in a low-income neighborhood, so that those folks dont have to travel as much, even if there would be more profit in using those same resources to put yet another store in a high-income neighborhood.