Socialism from the viewpoint of economics

Abstract

The purpose of the present article is to discuss the role the socialist ideas played in the development of economic thoughts. The paper considers a brief history of socialist thought, fundamental ideas of the scientists and publicists who made the greatest contribution to development of socialist concepts; common principles at a huge variety of such concepts; and criticism of socialist ideas made by representatives of alternative schools. A special focus of the paper is the discussion held in the period between the world wars on whether socialism could take place. In the critics’ opinion, socialization of the economy resulted in corrupted economic information which made economic calculations impossible in socialism and abolition of private ownership – in both eliminated freedom of choice and lower economic growth. In response, economists-socialists insisted on positive impacts through lower transactional costs and they proposed different types of market socialism. The author also makes an attempt to formulate what the socialist theories contributed to modern economics from the viewpoint of its research subject and definitions.