Freakonomics Radio Does Anyone Really Know What Socialism Is? (Ep. 408 Rebroadcast)
Sep 17, 2020
In this thought-provoking discussion, Jeffrey Sachs, a Columbia University professor and sustainable development expert, teams up with James Robinson, a University of Chicago professor known for his insights on institutional economics. They dive into the rising interest in socialism among millennials and dissect its implications in the U.S. They explore global perspectives on economic systems, contrasting successful models like Norway with the struggles in Venezuela, while emphasizing the importance of strong institutions in managing resources and addressing inequality.
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Socialism vs. Mixed Economies
- Jeffrey Sachs argues that "socialism" is too broad and poorly defined.
- He suggests focusing on whether an economy is "mixed" (combining market and government elements) or "socialist" (social ownership of production).
Nordic Model: Social Democracy, Not Socialism
- Nordic countries are not socialist democracies, clarifies Sachs.
- They are social democracies with mixed economies, where production is mainly private, but taxes fund extensive public services.
Venezuela's Economic Collapse
- Venezuela's GDP has fallen drastically, exceeding the US Great Depression's decline, says Ricardo Hausmann.
- He attributes this to weak property rights and excessive government controls, not socialism, despite the government's label.
