Market socialism

Market socialism is a type of economic system involving the public, cooperative or social ownership of the means of production in the framework of a market economy. Market socialism differs from non-market socialism in that the market mechanism is utilized for the allocation of capital goods and the means of production. Depending on the specific model of market socialism, profits generated by socially owned firms (i.e. net revenue not reinvested into expanding the firm) may variously be used to directly remunerate employees, accrue to society at large as the source of public financeor be distributed amongst the population in a social dividend. Market socialism is distinguished from the concept of the mixed economy because models of market socialism are complete and self-regulating systems, unlike the mixed economy. Market socialism also contrasts with social democratic policies implemented within capitalist market economies. While social democracy aims to achieve greater economic stability and equality through policy measures such as taxes, subsidies and social welfare programs, market socialism aims to achieve similar goals through changing patterns of enterprise ownership and management.