4 ms·
Collectivism is a take on a Marxist "To everyone from his means to everyone to his needs". Their is multiple ways of doing this, the ordo-liberal + socialist wa
by orwin 5y ago
Collectivism is a take on a Marxist "To everyone from his means to everyone to his needs". Their is multiple ways of doing this, the ordo-liberal + socialist way (You give up to XXXX€/month to every handicapped adult, depending on his handicap), or the marginalist (pre-1920 capitalism from Menger and Walras) + communist way, which is what USSR under Stalin attempted with no success and china did with great failure. It is deeply rooted in general equilibrium model theory (Again, read Walras) and suppose that a perfect market balance exist (theoretically true), and that the State can organize it.
More modern takes on marginalism make the assumption that as market are chaotic, only deregulation can lead to true market balance but as that was tested 150 years ago and did not work, it feel to a lot of young economists that general balance is oversimplified and is pretty much useless in real life, although partial equilibrium might be attainable (MIRAGE) in microeconomics.
Macroeconomics are complicated, tied politically, nobody really understand it, no even macroeconomists, but everyone fake it enough. If economy interest you, you should read economists books (commented, because those are hard to understand), probably from Adam Smith and upward, and notice each of them turn their comprehension of previous to their political advantage (Hello Mankiw!). Its basically the same work ethics as continental philosophy, maybe even worse.