Originally posted by EL
[email protected] 9 2005, 09:15 PM
"Wouldn't banks also be nationalized? This means that if a specific industry needs financial assistance, the government would simply move some funds into that industry. "
> The money has to come from somewhere,where would this money from the bank come from ? If all the starting business needed x amount of money to start, would there be chances there wouldn't be enough money for all of them ,or that the banks themselves could be in some sort of debt ?
"With the tax system that I think would exist, along with reduced military expenses, and with a certain amount of funds from sales going towards the government, moving or adding funds to an industry would be rather easy (a surplus in government money is almost guarenteed)."
> But in a nationalized industry,doesn't all the money go to the social programs the government provides,except ofcourse the wages of workers ? And if there was surplus money wouldn't it be more likely the money would be decided to go into social programs or to be given to the workers as bonuses ?
"It is in this way that the government in a socialist system can provide economic stability to sectors of the economy that have no stability under capitalism."
But, ofcourse the Government would have to decide which industries are needed and not,or to expand an industry, right ?
"(And what is that thing in your avatar?)"
Its a modified photo of my dog.
The government will bring in an extensive amount of money with socialism. All large private businesses are eliminated (and owned by the gov't), and so all money private companies would be receivng will go to the gov't, and that is in addition to taxes. So in reality it would be the local governments distributing some of this incoming money to local places of production, with the guarentee, of course, that this loan would be repaid in full when the local production place gets back on its feet. I think that the banks will mostly handle citizen's accounts, not large factory loans. Local governments will see the failing of specific factories in their area and then call to the state and federal governments to get some extra money moved toward this factory (if such a move is practical).
Workers salaries would be determined by the efficiency of production of the their workplace. This means that if a certain amount of goods from their factory is sold in the market, some money made will be distributed back to theat workplace and be used for worker salaries (with this planning of production and consumption, factories and other workplaces will likely be able to actually plan wages ahead of tiime). There will be extra money from these sales, of course, and these profits will go to the store or service distributing these goods for wages. Extra money, after all wages are taken care of, will go to the government. Also, the government will take in taxes from every citizen. This money will be used to fund social programs, but it is rather outlandish to believe that all of this money will be used in social programs. I imagine soem sort of government trust will be set up for extra money. From this trust, gov't loans can be payed out to factories experiencing a bad year (that is, if the factory has atleast a moderate chance of survival, if their product is simply outdated, production will be reformed). I hope that explains things a bit.
And yes, of course the government will decide if an industry is 'washed up' so to speak, of if an industry is ready to boom. These things can be determined by looking at consumption tendencies.