Socialist economics in the context of "Social market economy"

Free association, also known as free association of producers, is a relationship among individuals where there is no private ownership of the means of production. A key feature of socialist economics, it has been defined differently by different schools of socialism, entailing either the individual, collective or common ownership of the means of production.

Social ownership is a type of property where an asset is recognized to be in the possession of society as a whole rather than individual members or groups within it. Social ownership of the means of production is the defining characteristic of a socialist economy, and can take the form of community ownership, state ownership, common ownership, employee ownership, cooperative ownership, and citizen ownership of equity. Within the context of socialist economics it refers particularly to the appropriation of the surplus product produced by the means of production (or the wealth that comes from it) to society at large or the workers themselves. Traditionally, social ownership implied that capital and factor markets would cease to exist under the assumption that market exchanges within the production process would be made redundant if capital goods were owned and integrated by a single entity or network of entities representing society. However, the articulation of models of market socialism where factor markets are utilized for allocating capital goods between socially owned enterprises broadened the definition to include autonomous entities within a market economy.

The two major forms of social ownership are society-wide public ownership and cooperative ownership. The distinction between these two forms lies in the distribution of the surplus product. With society-wide public ownership, the surplus is distributed to all members of the public through a social dividend whereas with co-operative ownership the economic surplus of an enterprise is controlled by all the worker-members of that specific enterprise.

Types of socialism include a range of economic and social systems characterised by social ownership and democratic control of the means of production and organizational self-management of enterprises as well as the political theories and movements associated with socialism. Social ownership may refer to forms of public, collective or cooperative ownership, or to citizen ownership of equity in which surplus value goes to the working class and hence society as a whole. There are many varieties of socialism and no single definition encapsulates all of them, but social ownership is a common element shared by its various forms. Socialists disagree about the degree to which social control or regulation of the economy is necessary, how far society should intervene, and whether government, particularly existing government, is the correct vehicle for change.

As a term, socialism represents a broad range of theoretical and historical socioeconomic systems and has also been used by many political movements throughout history to describe themselves and their goals, generating a variety of socialism types. Socialist economic systems can be further divided into market and non-market forms. The first type of socialism utilizes markets for allocating inputs and capital goods among economic units. In the second type of socialism, planning is utilized and include a system of accounting based on calculation-in-kind to value resources and goods wherein production is carried out directly for use.

Workers' control is participation in the management of factories and other commercial enterprises by the people who work there. It has been variously advocated by anarchists, socialists (notably Trotskyists), communists, social democrats, distributists and Christian democrats, and has been combined with various socialist and mixed economy systems.

Workers' councils are a form of workers' control. Council communism, such as in the early Soviet Union, advocates workers' control through workers' councils and factory committees. Syndicalism advocates workers' control through trade unions. Guild socialism advocates workers' control through a revival of the guild system. Participatory economics represents a recent variation on the idea of workers' control.

Criticism of socialism is any critique of socialist economics and socialist models of organization and their feasibility, as well as the political and social implications of adopting such a system. Some critiques are not necessarily directed toward socialism as a system but rather toward the socialist movement, parties, or existing states. Some critics consider socialism to be a purely theoretical concept that should be criticized on theoretical grounds, such as in the economic calculation problem and the socialist calculation debate, while others hold that certain historical examples exist and that they can be criticized on practical grounds. Because there are many types of socialism, most critiques are focused on a specific type of socialism, that of the command economy and the experience of Soviet-type economies that may not apply to all forms of socialism. Different models of socialism conflict with each other over questions of property ownership, economic coordination and how socialism is to be achieved. Critics of specific models of socialism might be advocates of a different type of socialism.

According to the Austrian School economist Ludwig von Mises, an economic system (specifically centralized economic planning) that does not use money, financial calculation, and market pricing would be unable to effectively value capital goods and coordinate production, and therefore in his view socialism is impossible because it lacks the necessary information to perform economic calculation in the first place. Another central argument leveled against socialist systems based on economic planning is based on the use of dispersed knowledge. Socialism is unfeasible in this view because information cannot be aggregated by a central body and effectively used to formulate a plan for an entire economy, because doing so would result in distorted or absent price signals; this is known as the economic calculation problem. Other economists criticize models of socialism based on neoclassical economics for their reliance on the faulty and unrealistic assumptions of economic equilibrium and Pareto efficiency.

Christian socialism is a religious and political philosophy that blends Christianity and socialism, endorsing socialist economics on the basis of the Bible and the teachings of Jesus. Many Christian socialists believe capitalism to be idolatrous and rooted in the sin of greed. Christian socialists identify the cause of social inequality to be the greed that they associate with capitalism. Christian socialism became a major movement in the United Kingdom beginning in the 19th century. The Christian Socialist Movement, known as Christians on the Left since 2013, is one formal group, as well as a faction of the Labour Party.

According to the Encyclopædia Britannica, socialism is a "social and economic doctrine that calls for public rather than private ownership or control of property and natural resources. According to the socialist view, individuals do not live or work isolated, but live in cooperation with one another. Furthermore, everything that people produce is in some sense a social product, and everyone who contributes to the production of a good is entitled to a share in it. Society as a whole, therefore, should own or at least control property for the benefit of all its members. ... Early Christian communities also practised the sharing of goods and labour, a simple form of socialism subsequently followed in certain forms of monasticism. Several monastic orders continue these practices today."