Thursday, May 28, 2009
The Italian Economy: Day 1
Most interesting part of today? He outlined very distinct differences between communism and socialism. They do not seem "correct" to me, at least in my Masonomics paradigm - but I can't put my finger on why. Please help! Write out your definitions of each before you read these...
Communism: A system where the state owns and operates everything - all businesses, etc.
Socialism: A system where there is some state involvement in the economy, but also a good amount of private interactions as well.
To me, his definition of socialism is more of a definition of a mixed economy. He drew the number line, from total free market to no free market, and I was glad he noted that although the US is held as the beacon of market economy, it truly has plenty of gov't involvement. Italy, according to Patania, is moving towards a more market-oriented economy... I believe that.
Am I wrong to be confused by his definitions?
Compared with the totality of knowledge which is continually utilized in the evolution of a dynamic civilization, the difference between the knowledge that the wisest and that which the most ignorant individual can deliberately employ is comparatively insignificant. ~Fredrich Hayek in The Constitution of Liberty