Can market socialism realize the socialist vision of the good society by ending exploitation and alienation, substantially reducing inequalities of wealth and income, ensuring full employment, and correcting other market irrationalities? A comparative analysis of the organizational forms of capitalism (notably the small owner?operated firm and the large corporation) and market socialism (the self?managed cooperative that rents its capital from the state) reveals the relative efficiencies of capitalism in reducing transaction costs, in turn reducing the opportunities for exploitation. By contrast, (...) the transaction cost inefficiencies of the organizations of market socialism permit and encourage forms of exploitation that are precluded or discouraged under capitalism. (shrink)

Historically, critics of capitalism have had a great deal to say about the defects and social ills that afflict capitalist society and correspondingly little to say about how alternative institutional arrangements might solve these problems. One can only speculate about why this has been so. One reason might be a simple matter of priorities. Bertolt Brecht once said that when a man's house is on fire, one does not inquire too closely into alternative arrangements for shelter. The analogy between capitalism (...) and a burning house may seem overwrought today, but in the dark days of the Depression of the 1930s it probably seemed more apt. Another explanation for the scant attention paid to alternatives to capitalism has to do with both the factual and ideological beliefs of capitalism's critics. If one believes that the existing order would be destroyed by a mass movement, that new institutions would be constructed by the people in a democratic spirit, and that furthermore all of this would be a good thing, it would be unwise and counterproductive to try to spell out exactly where history is headed. After all, a genuine mass movement has little use for self-proclaimed prophets of history. Finally, men and women of modest intellectual pretensions might be humbled by the prospects of trying to spell out in any detail social institutions that should exist or might exist but are not as yet found anywhere in the world. (shrink)

In a series of important papers, G.A. Cohen has developed a forceful argument for the claim that workers are rendered unfree by capitalist institutions. His argument poses a powerful challenge to those who think that capitalist institutions best promote freedom. Yet, formidable as it is, Cohen's argument can be shown to be flawed at several crucial points. It is not one argument, but three at least, and one of the goals of my criticism of Cohen on this question is to (...) distinguish and assess the various separate lines of reasoning that together make up his case for the unfreedom under capitalism of workers as a class. Cohen argues of workers that they are rendered unfree by the institution of private property on which the capitalist system depends, that they suffer a form of collective unfreedom under capitalism, and that they are forced to sell their labor power under capitalism. (shrink)