By Peter J. Boettke (ed.)
This 3rd quantity within the sequence is split into 4 components. the 1st provides a symposium on types of socialism, the second one provides present study, the 3rd, evaluation essays, and the fourth, booklet experiences.
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Extra info for Advances in Austrian Economics, Volume 3
A . The Political Determination of Investment In Roemer's scheme, political parties compete for votes by offering different visions of the country's economic future. This vision would be implemented by state control of new investment. For example, the Green Party might promise more investment in pollution control technology, whereas the Party of the Future, which represents computer geeks and other technophiles, might propose more investment in high technology. But how exactly would this work? What would the mechanisms be?
This difference--in tune with Prychitko's distinction between different kinds of market systems---cannot be overemphasized and the present section is intended to elaborate on the subject of this differentiation. We will speak primarily about the distinct "continents" of present day capitalism (on 36 JAROSLAV VANEK one side of the ocean) and economic democracy as identified with the last row of our table. We pride ourselves on our free democratic systems and institutions. Yet what concerns the most creative and active part of our human existence--the process of production--is entirely undemocratic.
And what is the incentive for them to do a good job monitoring the corporations in their group? Indeed, because they are appointed by political authorities, it would seem that the most serious potential impediment to effective monitoring would be political pressure put on the managers to forgive or renegotiate bad loans. This is the analogue of the problem ofthe"soft budget constraint" in formerly communist countries. For political reasons, communist governments often threw good money after bad by bailing out inefficient firms.
Advances in Austrian Economics, Volume 3 by Peter J. Boettke (ed.)