I’ve been thinking about market socialism and how it intends to achieve greater economic efficiency without the social costs of capitalism. Some of the arguments in favor of socialism go around market failures and imperfections, which seem to make an argument for government intervention.
Such market imperfections (as you may recall) include asymmetry of information, moral hazard, conflict of incentives, adverse selection…
This market failures reduce our confidence in market solutions, however, it is a fallacy to argue that because markets are imperfect, governmental intervention (as in a socialist model) is needed. Imperfect information and its externalities are not feasibly solved by a centralized-socialist market either. Thus, it is not a a valid argument against markets that the resulting distribution of income is undesirable.
Moving on, Market Socialism seems to be backed up by the SWT arguing that lump sum redistributions can achieve efficiency. The SWT is often presented as establishing the decentralizability of the economy, but many have argued against the flaws of this theorem.
My question is the following: has anyone given a thought of how new technologies could change market imperfections? Blockchain, AI, machine learning… most of all Blockchain.
Go watch Blade Runner on your closest cinema and think about the potential changes on economics of information and the extent to which the economy can be descentralized not through the price mechanism but through these new technologies.
I would love to get this conversation going!