<p>Economics 110 </p><p>General Principles of Democratic Socialism a. Democratic 1. Seeks to bring about social change that is peaceful, non-violent, gradual, and acceptable to the majority of people (contrast to Marx) 2. Prefers small-scale direct democracy to large-scale representative government (model is the local school board) 3. sees the modern corporation as having important social outcomes and therefore it must be brought under democratic control (contrast with the private property rights theory) 4. Extends democratic principles to the non-political aspects of society, such as work and Education b. Moralistic 1. No rejection of religion 2. High value given to social justice, cooperation, “brotherhood”, and peace 3. “to eliminate all unnecessary suffering caused by economic or social structures” c. Egalitarianism 1. “No one is so much richer or poorer that they cannot mix socially on equal terms” 2. Inequality should be the minimum necessary to achieve production incentives 3. Sees inequality as due to monopoly power, luck, and the unequal bargaining power between employers and workers 4. Argument: Relate to the Theory of Marginal Utility Argument: John Rawls Argument: Inequality of wealth generates inequality in political power (ruins the idea of democracy) Argument: Inequality of wealth precludes equality of opportunity (Thurow’s crew race) Argument: Inequality fosters divisiveness and breaks down social cohesion Argument: market is analogous to dollar votes. But some have many more votes than others. (How do we use wood for yachts while there are homeless people?) 5. Sees certain goods (education, health, housing) as too important to be treated as mere Commodities 6. Stresses community and common purpose d. Freedom 1. Places a high value on individuality and diversity 2. Requires Empowerment (c.f. Marx) --- more than just freedom from government 3. A worker should have the same rights as a citizen does! 4. Requires relative equality e. Seeks to reform capitalism, not overthrow it. Criticisms of capitalism: (c.f. Marx) 1. tendency toward instability, especially recessions 2. generates inequality in the distribution of income and wealth (focus on inheritance); need government to overcome the inequality in the distribution of ownership of capital 3. generates inequality in the distribution of power (corporations have power over workers) 4. generates monopolies 5. generates inequalities between the developed capitalist world and the poor countries f. Criticisms of Communism 1. not democratic 2. does not enhance personal freedom 3. replaces one ruling class with another 4. no concern with basic liberties and with human rights 5. alienating and dehumanizing 6. not legitimate (not accepted by the people)</p>