Not A Free Market One. And with his death, the blogosphere is already awash with obituaries and reflections on his policies. Free markets create wealth; socialism creates poverty. So why is Singapore so rich?
Karl Marx and Friedrich Engels believed that hunter-gatherer societies and some primitive agricultural societies were communal, and called this primitive communism. Engels wrote about this at length in the book The Origin of the Family, Private Property and the Statewhich was based on the unpublished notes of Marx on the work of Lewis Henry Morgan.
Many socialists have considered their advocacy as the preservation and extension of the radical humanist ideas expressed in Enlightenment doctrine such as Jean-Jacques Rousseau 's Discourse on Inequality, Wilhelm von Humboldt 's Limits of State Action, or Immanuel Kant 's insistent defense of the French Revolution.
Marx had viewed the process in a similar light, referring to it as part of the process of "primitive accumulation" whereby enough initial capital is amassed to begin capitalist production.
The dislocation that Polyani and others describe, triggered natural counter-movements in efforts to re-embed the economy in society.
These counter-movements, that included, for example, the Luddite rebellions, are the incipient socialist movements. Over time such movements gave birth to or acquired an array of intellectual defenders who attempted to develop their ideas in theory.
As Polanyi noted, these counter-movements were mostly reactive and therefore not full-fledged socialist movements.
Some demands went no further than a wish to mitigate the capitalist market's worst effects. Later, a full socialist program developed, arguing for systemic transformation. Its theorists believed that even if markets and private property could be tamed so as not to be excessively "exploitative", or crises could be effectively mitigated, capitalist social relations would remain significantly unjust and anti-democratic, suppressing universal human needs for fulfilling, empowering and creative work, diversity and solidarity.
Within this context socialism has undergone four periods: As socialism developed, so did the socialist system of economics.
Utopian socialism The first theories which came to hold the term "socialism" began to be formulated in the late 18th century, and were termed "socialism" early in the 19th century. The central beliefs of the socialism of this period rested on the exploitation of those who labored by those who owned capital or rented land and housing.
The abject misery, poverty and disease to which laboring classes seemed destined was the inspiration for a series of schools of thought which argued that life under a class of masters, or "capitalists" as they were then becoming to be called, would consist of working classes being driven down to subsistence wages.
See Iron law of wages. Socialist ideas found expression in utopian movements, which often formed agricultural communes aimed at being self-sufficient on the land. These included many religious movements, such as the Christian socialism of the Shakers in America and the Hutterites. The Zionist kibbutzim and communes of the counterculture are also manifestations of utopian socialist ideas.
Utopian socialism had little to offer in terms of a systematic theory of economic phenomena[ citation needed ]. In theory, economic problems were dissolved by a utopian society which had transcended material scarcity.
In practice, small communities with a common spirit could sometimes resolve allocation problems. Socialism and classical political economy[ edit ] The first organized theories of socialist economics were significantly impacted by classical economic theory, including elements in Adam SmithRobert Malthus and David Ricardo.
In Smith there is a conception of a common good not provided by the market, a class analysisa concern for the dehumanizing aspects of the factory system, and the concept of rent as being unproductive.
Ricardo argued that the renting class was parasitic. This, and the possibility of a " general glut ", an over accumulation of capital to produce goods for sale rather than for use, became the foundation of a rising critique of the concept that free markets with competition would be sufficient to prevent disastrous downturns in the economy, and whether the need for expansion would inevitably lead to war.
Socialist political economy before Marx[ edit ] Charles Fourierinfluential early French socialist thinker A key early socialist theorist of political economy was Pierre-Joseph Proudhon. He was the most well-known of nineteenth century mutualist theorists and the first thinker to refer to himself as an anarchist.
Count Henri de Saint-Simon was the first individual to coin the term "socialism". The Ricardian socialistssuch as Thomas Hodgskin and Charles Hall, were based on the work of David Ricardo and reasoned that the equilibrium value of commodities approximated producer prices when those commodities were in elastic supply, and that these producer prices corresponded to the embodied labor.
The Ricardian socialists viewed profit, interest and rent as deductions from this exchange-value. Das Kapital Karl Marx employed systematic analysis in an attempt to elucidate capitalism's contradictory laws of motion, as well as to expose the specific mechanisms by which it exploits and alienates.
He radically modified classical political economic theories. Marx transformed the labor theory of valuewhich had been worked upon by Adam Smith and David Ricardointo his " law of value ", and used it for the purpose of revealing how commodity fetishism obscures the reality of capitalist society.
His approach, which Friedrich Engels would call " scientific socialism ", would stand as the branching point in economic theory. In one direction went those who rejected the capitalist system as fundamentally anti-social, arguing that it could never be harnessed to effectively realize the fullest development of human potentialities wherein "the free development of each is the condition for the free development of all.
In many ways, the work is modelled on Smith's Wealth of Nationsseeking to be a comprehensive logical description of production, consumption, and finance in relation to morality and the state.
The work of philosophy, anthropology, sociology, and economics includes the following topics: The Law of Value: A commodity has two essential qualities firstly, they are useful, they satisfy some human want, "the nature of such wants, whether, for instance, they spring from the stomach or from fancy, makes no difference"  and secondly they are sold on a market or exchanged.
Critically the exchange value of a commodity "is independent of the amount of labour required to appropriate its useful qualities".Do long-term institutional investors contribute to financial stability? – Evidence from equity investment in Hong Kong and international markets.
Economics Q & A - 1) The current recession is the longest since the Great Depression in the 's.
Singapore: Inflation rate from to * (compared to the previous year) This statistic shows the average inflation rate in Singapore from to , with projections up until Learn about what total cost really means in the economic world. Find out the important components that make up total cost and see how to correctly calculate some common total costs of products and. The following outline is provided as an overview of and topical guide to economics. Economics – analyzes the production, distribution, and consumption of goods and ashio-midori.com aims to explain how economies work and how economic agents interact.
We are still far from a recovery with unemployment at about % . So I challenge my students to tell me one economic theory, Neo-Classical or Marxist or whatever, that can explain Singapore’s success.
There is no such theory because Singaporean reality combines extreme elements of capitalism and socialism.
Intake 17 Elements of Economics Contents Introduction 3 CPI inflation 4 MAS inflation 5 Private road transport 5 Accommodation 6 Recommendation 7 Conclusion 8 References 9 Inflation here up % in December Introduction Last December, Singapore’s inflation, which is defined as a persistently rising price level, rose to per cent on a year-on .
Since independence in , the Singapore economy has experienced rapid economic development. Singapore's strong economic performance reflects the success of its open and outward-oriented development strategy.
Over the years, the composition of Singapore's exports has evolved from labour-intensive to high value-added products, such as electronics, chemicals and biomedical. The yield spread between long-term and short-term Treasury securities is known to be a good predictor of economic activity, particularly of looming recessions.