Lumifer comments on On Walmart, And Who Bears Responsibility For the Poor - LessWrong

13 Post author: ChrisHallquist 27 November 2013 05:08AM

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Comment author: Lumifer 03 December 2013 12:58:51AM *  0 points [-]

my definition of socialism is public ownership of the means of production, operated for public good (however that ends up being defined)

OK, so the USSR, Cuba, North Korea, and China until twenty years ago or so -- all were/are socialist countries, right? On the other hand, countries like Sweden or France were never socialist -- correct?

its only real goal--production of public good

The expression "public goods" has specific meaning in econospeak, I assume you're not using that but just talking about goods for public consumption.

But I'm still confused. The (more or less free) markets do indeed signal to the producers what to produce. The mechanism by which they do that is price. Desireable goods command high prices and so create the incentive to make more, while goods not in demand are not sold and their manufacturers either switch production or go out of business.

Given the state ownership of the means of production and the absence of the profit motive I wonder how will the market mechanism operate. After all in USSR and similar countries the "market" existed -- people bought things in stores and paid money for what they bought. It's just that the signals from this market were ignored -- nobody cared about them.

What exactly would make state-owned companies with no profit motive care about prices or demand?