According to Marx public ownership would increase efficiency of production. Also, it will change people's attitudes toward work since an equal distribution of income would eliminate "poverty and restricted consumption of the masses" (Erlich, p. 303). These propositions may not be easy to attain, however. Professor Joan Robinson thinks that they may not be as difficult as they seem. She says that if capitalists reinvest their savings then the "restricted consumption" need not occur. On the contrary, she says, it will lead to faster growth. |
According to Marx, "socialism is defined by predominantly public ownership of means of production and centrally planned allocation of resources" (Erlich, p. 301). As mentioned earlier, Marx felt that under socialism "waste of social labor" in the production of certain goods can be eliminated. However, Marx admitted to the fact that market mechanism can also lead to extremely fast growth. He asserted that competition in the production for profit can result in fast growth of the economy. |