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Competition. Economic theories of neoliberals and utopian socialists (most important)

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33. Economic theories of neoliberals and utopian socialists

Neoliberalism was formed in the 30s. 20th century as one of the main directions of bourgeois political economy during the period of the general crisis of capitalism. Neoliberalism opposes Marxism-Leninism.

social market economy, according to neoliberals, is the ideal type of economy. Modern capitalism is seen as "a perverted historical form of the market economy." So they preach principles of ordoliberal "social market economy", the main of which they consider:

1) a commodity-money economy without monopolies;

2) free prices;

3) price competition and free pricing;

4) private property and private competition.

Neoliberals under capitalism could not deny the role of the state, although this contradicts their interpretation of the "free market economy". To reconcile these contradictions, the liberals claim that the ordoliberal "social market economy" is not an anarchy of production, but a harmonious development, a synthesis between a free and socially binding social order.

First ideas utopian socialism arose in the late Middle Ages. However, it flourished in the era of the formation of capitalism. Expressing the dreams of the nascent proletariat about the future society, the utopian socialists came out with a revealing critique of capitalism. The utopians first pointed to the historically transitory character of capitalism, noting that capitalist relations are not eternal and natural. The development of human society was considered as a historical process in which the previous stage is replaced by another, more highly developed one. The ideas of the utopian projects: the absence of exploitation, the elimination of the opposition between mental and physical labor, the disappearance of private property. The proletariat acted as an ally of the bourgeoisie in the struggle against the remnants of absolute monarchy and feudal exploitation. At that time, manufactory dominated, and factory production was just in its infancy. Utopian socialists did not see real ways of transition to a society of social justice, they did not understand the historical mission of the proletariat, although they noted the opposition of class interests. They wanted to achieve socialism without class struggle, through reason and humanity.

Author: Ilyina V.N.

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