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74-564: AMAG may stand for: American Mission for Aid to Greece, Cold War mission established under the Truman Doctrine Austria Metall AG , an Austrian metal manufacturer. AMAG Automobil- und Motoren AG , a Swiss automobile importer. Asian Martial Arts Games AMAG Technology, a US manufacturer of access control and video security systems. Originated as "American MAGnetics" AMAG Pharmaceuticals Topics referred to by

148-731: A connection between capitalism and Protestantism . The economist Jeffrey Sachs has stated that his work was inspired by the healing characteristics of Judaism. Chief Rabbi Lord Sacks of the United Synagogue draws a correlation between modern capitalism and the Jewish image of the Golden Calf . In the Christian faith, the liberation theology movement advocated involving the church in labor market capitalism. Many priests and nuns integrated themselves into labor organizations while others moved into

222-598: A de facto labor market for conceptual workers. David McNally argues in the Marxist tradition that the logic of the market inherently produces inequitable outcomes and leads to unequal exchanges, arguing that Adam Smith 's moral intent and moral philosophy espousing equal exchange was undermined by the practice of the free markets he championed. The development of the market economy involved coercion, exploitation and violence that Smith's moral philosophy could not countenance. McNally also criticizes market socialists for believing in

296-510: A market-determined free price system to allocate capital goods and labor. In addition, there are many variations of market socialism where the majority of capital assets are socially owned with markets allocating resources between socially owned firms. These models range from systems based on employee-owned enterprises based on self-management to a combination of public ownership of the means of production with factor markets . Supply and demand supposedly work in tandem. The economic theory

370-429: A mix of roles of varying creativity, responsibility and empowerment) in a market economy, class divisions would arise, arguing: Without taking the argument that far, it is evident that in a market system with uneven distribution of empowering work, such as Economic Democracy, some workers will be more able than others to capture the benefits of economic gain. For example, if one worker designs cars and another builds them,

444-710: A nation well within the sphere of influence of Britain. Stalin had respected the " percentages agreement " with Winston Churchill not to intervene, but Yugoslavia and Albania defied the USSR's policy and sent supplies during the Greek Civil War to the army of the Communist Party of Greece , the DSE (Democratic Army of Greece). The UK had given aid to the royalist Greek forces, leaving the Communists (without Soviet aid and having boycotted

518-756: A policies referendum known as " 3 times YES " ( 3 razy TAK ; 3xTAK ), whereupon a second vote rigged election was held to get the desired result. Fraudulent Polish elections held in January 1947 resulted in Poland's official transformation to the People's Republic of Poland . Initially Stalin directed systems in the Eastern Bloc countries that rejected Western institutional characteristics of market economies , democratic governance (dubbed " bourgeois democracy " in Soviet parlance) and

592-504: A presentation of the ideological struggle that became known as the "Truman Doctrine." Although based on a simplistic analysis of internal strife in Greece and Turkey, it became the single dominating influence over U.S. policy until at least the Vietnam War . Truman's speech had a tremendous effect. The anti-communist feelings that had just begun to hatch in the U.S. were given a great boost, and

666-476: A profit , structured on the process of capital accumulation . In general, in capitalist systems investment, distribution, income and prices are determined by markets, whether regulated or unregulated. There are different variations of capitalism with different relationships to markets. In laissez-faire and free-market variations of capitalism, markets are utilized most extensively with minimal or no state intervention and minimal or no regulation over prices and

740-699: A silenced Congress voted overwhelmingly in approval of aid. The United States would not withdraw back to the Western Hemisphere as it had after World War I . In September, 1947 the Central Committee secretary Andrei Zhdanov declared that <quote>" the Truman Doctrine …intended for accordance of the American help to all reactionary regimes, that actively oppose to democratic people, bears an undisguised aggressive character".</quote> From then on,

814-583: A single organizational body. For market economies to function efficiently, governments must establish clearly defined and enforceable property rights for assets and capital goods. However, property rights do not specifically mean private property rights and market economies do not logically presuppose the existence of private ownership of the means of production . Market economies can and often do include various types of cooperatives or autonomous state-owned enterprises that acquire capital goods and raw materials in capital markets . These enterprises utilize

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888-1362: A substantial impact on supply and demand. Technological innovations may increase supply, while laws issued by governments could decrease it or even demand. Natural disasters have the ability to severely disrupt supply chains, creating shortages of key items that increase costs while simultaneously decreasing demand. Supply and demand play an indispensable role in any market economy by ensuring prices reflect market forces accurately, adapting accordingly as conditions shift between supply and demand situations, while producers adjust production according to price signals from consumers, fulfilling customers' requests while giving individuals freedom in making purchasing choices based on personal preferences or financial constraints. Thus supply and demand play an instrumental part in shaping and stabilizing economies governed by market forces. A sustainable market economy seeks to balance economic expansion and environmental preservation. It acknowledges that sustainable environmental protection and resource management are essential for long-term economic growth. To achieve this balance, implementing sustainable practices across sectors, such as lowering carbon emissions, developing renewable energy sources, and putting circular economy ideas into practice. Tax incentives, carbon trading programs, and environmental requirements are just

962-491: A truly laissez-faire system would be anti-capitalist and socialist . Welfare capitalism is a capitalist economy that includes public policies favoring extensive provisions for social welfare services. The economic mechanism involves a free market and the predominance of privately owned enterprises in the economy, but public provision of universal welfare services aimed at enhancing individual autonomy and maximizing equality. Examples of contemporary welfare capitalism include

1036-403: A whole as opposed to private owners. The distinguishing feature between non-market socialism and market socialism is the existence of a market for factors of production and the criteria of profitability for enterprises. Profits derived from publicly owned enterprises can variously be used to reinvest in further production, to directly finance government and social services, or be distributed to

1110-415: Is neoliberalism or ordoliberalism . Market socialism is a form of market economy where the means of production are socially owned . In a market socialist economy, firms operate according to the rules of supply and demand and operate to maximize profit; the principal difference between market socialism and capitalism being that the profits accrue either directly to the workers of the company or society as

1184-450: Is a significant role for government intervention to boost the efficiency of markets and to address the pervasive market failures that exist in contemporary economies. A fair market economy is in fact a martingale or a Brownian motion model and for a participant competitor in such a model there is no more than 50% of success chances at any given moment. Due to the fractal nature of any fair market and being market participants subject to

1258-419: Is achieved through public ownership of equity in a market economy. A Bureau of Public Ownership would own controlling shares in publicly listed firms, so that the profits generated would be used for public finance and the provision of a basic income. Some anarchists and libertarian socialists promote a form of market socialism in which enterprises are owned and managed cooperatively by their workforce so that

1332-409: Is an economic system where prices for goods and services are set freely by the forces of supply and demand and are expected by its supporters to reach their point of equilibrium without intervention by government policy. It typically entails support for highly competitive markets, private ownership of productive enterprises. Laissez-faire is a more extensive form of free-market economy where the role of

1406-435: Is based upon the idea of realizing the benefits of a free-market economy, especially economic performance and high supply of goods while avoiding disadvantages such as market failure , destructive competition, concentration of economic power and the socially harmful effects of market processes. The aim of the social market economy is to realize greatest prosperity combined with best possible social security. One difference from

1480-468: Is defined as any increase in price leading to an increase in supply from producers; demand on the other hand means any drop leads to an increase in desired quantities from consumers; these two laws meet at equilibrium when provided quantity equals quantity demanded - known as equilibrium price/quantity equilibrium point. Prices play an extremely vital role in market economies by providing important information about commodity and service availability. When there

1554-468: Is different from Wikidata All article disambiguation pages All disambiguation pages Cold War (1947%E2%80%931948)#The Greek Civil War and the Truman Doctrine The list of world leaders in these years is as follows: Clement Attlee (UK); Harry Truman (US); Vincent Auriol (France); Joseph Stalin (USSR); Chiang Kai-shek (Allied China). Several of the other countries that

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1628-476: Is frequently characterized as state capitalism instead of market socialism because there is no meaningful degree of employee self-management in firms, because the state enterprises retain their profits instead of distributing them to the workforce or government and because many function as de facto private enterprises. The profits neither finance a social dividend to benefit the population at large, nor do they accrue to their employees. In China, this economic model

1702-645: Is necessary for the government to provide protection from coercion and theft, maintaining peace and property rights and providing for basic public goods. Right-libertarian advocates of anarcho-capitalism see the state as morally illegitimate and economically unnecessary and destructive. Although laissez-faire has been commonly associated with capitalism, there is a similar left-wing laissez-faire system called free-market anarchism , also known as free-market anti-capitalism and free-market socialism to distinguish it from laissez-faire capitalism. Thus, critics of laissez-faire as commonly understood argues that

1776-406: Is presented as a preliminary stage of socialism to explain the dominance of capitalistic management practices and forms of enterprise organization in both the state and non-state sectors. A wide range of philosophers and theologians have linked market economies to concepts from monotheistic religions. Michael Novak described capitalism as being closely related to Catholicism, but Max Weber drew

1850-455: Is restricted to providing public goods and services and safeguarding private ownership, to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare . State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning —which guides yet does not substitute

1924-500: Is strong demand but limited supply, prices increase, signaling to producers that there may be opportunities to increase profits by producing more of that product. Conversely, when there is low demand with increased supply then prices reduce, showing manufacturers they must either reduce output or find methods of cutting costs in order to stay competitive and remain profitable. External factors, including shifting technological standards, new government laws, and natural catastrophes can have

1998-413: Is that supply slopes upwards as people buy more and demand drops as prices rise and people buy less. Market economies rely upon a price system to signal market actors to adjust production and investment. Price formation relies on the interaction of supply and demand to reach or approximate an equilibrium where the unit price for a particular good or service is at a point where the quantity demanded equals

2072-717: The Deutsche Mark and ultimately lead to the creation of an independent West German state. When the Soviets learned about this, they claimed that such plans were in violation of the Potsdam Agreement , that obviously the Western powers were not interested in further regular four-power control of Germany and that under such circumstances the Control Council had no further purpose. On 20 March 1948, Marshal Vasily Sokolovsky walked out of

2146-606: The Joint Chiefs of Staff over growing communist influence in Germany, as well as of the failure of the rest of the European economy to recover without the German industrial base on which it previously had been dependent. Administration officials met with Soviet Foreign Minister Vyacheslav Molotov and others to press for an economically self-sufficient Germany, including a detailed accounting of

2220-643: The Nordic model of capitalism predominant in Northern Europe. Anglo-Saxon capitalism is the form of capitalism predominant in Anglophone countries and typified by the economy of the United States . It is contrasted with European models of capitalism such as the continental social market model and the Nordic model . Anglo-Saxon capitalism refers to a macroeconomic policy regime and capital market structure common to

2294-540: The Soviet Union occupied that were not directly annexed into the Soviet Union became Soviet satellite states . Other states were converted into Soviet Satellite states, such as East Germany , the People's Republic of Poland , the People's Republic of Hungary , the Czechoslovak Socialist Republic , the People's Republic of Romania and the People's Republic of Albania , which aligned itself in

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2368-633: The U.S. State Department also published a collection of documents titled Nazi–Soviet Relations, 1939–1941: Documents from the Archives of The German Foreign Office , which contained documents recovered from the Foreign Office of Nazi Germany revealing Soviet conversations with Germany regarding the Molotov–Ribbentrop Pact , including its secret protocol dividing eastern Europe, the 1939 German–Soviet Commercial Agreement , and discussions of

2442-617: The 1960s away from the Soviet Union and towards the People's Republic of China. In East Germany after local election losses, a forced merger of political parties in the Socialist Unity Party ("SED") , followed by elections in 1946 where political opponents were oppressed. In the non- USSR annexed portion of Poland , less than a third of Poland's population voted in favor of massive communist land reforms and industry nationalizations in

2516-513: The Anglophone economies. Among these characteristics are low rates of taxation, more open international markets, lower labor market protections and a less generous welfare state eschewing collective bargaining schemes found in the continental and northern European models of capitalism. The East Asian model of capitalism involves a strong role for state investment and in some instances involves state-owned enterprises. The state takes an active role in promoting economic development through subsidies,

2590-532: The Morgenthau plan in September 1946 with Secretary of State James F. Byrnes ' speech Restatement of Policy on Germany . In January 1947 Truman appointed General George Marshall as Secretary of State, and enacted JCS 1779, which decreed that an orderly and prosperous Europe requires the economic contributions of "a stable and productive Germany." The directive comported with the view of General Lucius D. Clay and

2664-657: The Soviet Union potentially becoming the fourth Axis Power . In response, one month later, the Soviet Union published Falsifiers of History , a Stalin edited and partially re-written book attacking the West. The book did not attempt to directly counter or deal with the documents published in Nazi-Soviet Relations and rather, focused upon Western culpability for the outbreak of war in 1939. It argues that "Western powers" aided Nazi rearmament and aggression, including that American bankers and industrialists provided capital for

2738-592: The Soviet Union's dissolution . Relations between the Western Allies (especially the United States and the United Kingdom) and the Soviet Union deteriorated and so did their cooperation in the administration of occupied Germany by the Allied Control Council . In September 1946, disagreement arose regarding the distribution of coal for industry in the four occupation zones and the Soviet representative in

2812-511: The Truman administration decided that additional action was necessary. With Congress solidly in Republican hands, and with isolationist sentiment strong among the U.S. public, Truman adopted an ideological approach. In a meeting with congressional leaders, the argument of "apples in a barrel infected by one rotten one" was used to convince them of the significance in supporting Greece and Turkey. It

2886-459: The U.S. actively fought communist advances anywhere in the globe under the ostensible causes of "freedom", "democracy" and "human rights." The U.S. brandished its role as the leader of the "free world." Meanwhile, the Soviet Union brandished its position as the leader of the "progressive" and "anti-imperialist" camp. Comporting with the Truman Doctrine , Marshall pressured France and Italy under

2960-469: The Western world since the end of mercantilism . However, it is argued that the term mixed economies more precisely describes most contemporary economies due to their containing both private-owned and state-owned enterprises. In capitalism, prices determine the demand-supply scale. Higher demand for certain goods and services leads to higher prices and lower demand for certain goods lead to lower prices, in relation to supply. A capitalist free-market economy

3034-568: The church. The Buddhist approach to the market economy was dealt with in E. F. Schumacher 's 1966 essay "Buddhist Economics". Schumacher asserted that a market economy guided by Buddhist principles would more successfully meet the needs of its people. He emphasized the importance or pursuing occupations that adhered to Buddhist teachings. The essay would later become required reading for a course that Clair Brown offered at University of California, Berkeley . The economist Joseph Stiglitz argues that markets suffer from informational inefficiency and

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3108-533: The council withdrew his support of the plan agreed upon by the governments of the United States, Britain and France. Against Soviet protests, the two English-speaking powers pushed for a heightened economic collaboration between the different zones and on 1 January 1947 the British and American zones merged to form the Bizone . Over the course of 1947 and early 1948, they began to prepare the currency reform that would introduce

3182-456: The decisions regarding investment , production , and distribution to the consumers are guided by the price signals created by the forces of supply and demand . The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production . Market economies range from minimally regulated free market and laissez-faire systems where state activity

3256-481: The designer will use his cognitive skills more frequently than the builder. In the long term, the designer will become more adept at conceptual work than the builder, giving the former greater bargaining power in a firm over the distribution of income. A conceptual worker who is not satisfied with his income can threaten to work for a company that will pay him more. The effect is a class division between conceptual and manual laborers, and ultimately managers and workers, and

3330-719: The elections) at a disadvantaged position. However, by 1947, the near-bankrupt British government could no longer maintain its massive overseas commitments. In addition to granting independence to India and handing back the Palestinian Mandate to the United Nations, the British government decided to withdraw from Greece. This would have left Greece on the brink of a communist-led revolution. Notified that British aid to Greece and Turkey would end in less than six weeks, and already hostile towards and suspicious of Soviet intentions, because of their reluctance to withdraw from Iran ,

3404-571: The facilitation of "national champions" and an export-based model of growth. The actual practice of this model varies by country. This designation has been applied to the economies of China , Japan , Singapore , South Korea , and Vietnam . A related concept in political science is the developmental state . The social market economy was implemented by Alfred Müller-Armack and Ludwig Erhard after World War II in West Germany . The social market economic model, sometimes called Rhine capitalism ,

3478-422: The free market economy is that the state is not passive, but instead takes active regulatory measures. The social policy objectives include employment, housing and education policies, as well as a socio-politically motivated balancing of the distribution of income growth. Characteristics of social market economies are a strong competition policy and a contractionary monetary policy . The philosophical background

3552-512: The growth of German war industries, while deliberately encouraging Hitler to expand eastward. The book also included the claim that, during the Pact's operation, Stalin rejected Hitler's offer to share in a division of the world, without mentioning the Soviet offers to join the Axis . Historical studies, official accounts, memoirs and textbooks published in the Soviet Union used that depiction of events until

3626-434: The industrial plants, goods and infrastructure already removed by the Soviets. After six weeks of negotiations, Molotov refused the demands and the talks were adjourned. Marshall was particularly discouraged after personally meeting with Stalin, who expressed little interest in a solution to German economic problems. The United States concluded that a solution could not wait any longer. Both East and West regarded Greece as

3700-467: The law of competition which impose reinvesting an increasing part of profits, the mean statistical chance of bankruptcy within the half life of any participant is also 50% and 100% whether an infinite sample of time is considered. Robin Hahnel and Michael Albert claim that "markets inherently produce class division ". Albert states that even if everyone started out with a balanced job complex (doing

3774-440: The market for economic planning —a form sometimes referred to as a mixed economy . Market economies are contrasted with planned economies where investment and production decisions are embodied in an integrated economy-wide economic plan. In a centrally planned economy , economic planning is the principal allocation mechanism between firms rather than markets, with the economy's means of production being owned and operated by

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3848-400: The market to their favor, either in the form of monopoly and market power, or by utilizing their wealth and resources to legislate government policies that benefit their specific business interests. Additionally, Vaněk states that workers in a socialist economy based on cooperative and self-managed enterprises have stronger incentives to maximize productivity because they would receive a share of

3922-573: The meeting of the council and no further Soviet representative was sent until 1970s, thus incapacitating in practice the council and abandoning any pretense of the World War II alliance's persistence. The Cold War generated innumerable documents. The texts of 171 documents appear in The Encyclopedia of the Cold War (2008). Market economy A market economy is an economic system in which

3996-558: The newly formed Cominform from accepting Marshall Plan aid. In Czechoslovakia , that required a Soviet-backed Czechoslovak coup d'état of 1948 , the brutality of which shocked Western powers more than any event so far and set in a motion a brief scare that war would occur and swept away the last vestiges of opposition to the Marshall Plan in the United States Congress. Relations further deteriorated when, in January 1948,

4070-439: The possibility of fair markets based on equal exchanges to be achieved by purging parasitical elements from the market economy such as private ownership of the means of production . McNally argues that market socialism is an oxymoron when socialism is defined as an end to wage-based labor . Supply and demand play an instrumental role in driving market economies by setting both prices and quantities traded in markets. Supply

4144-578: The presumed efficiency of markets stems from the faulty assumptions of neoclassical welfare economics, particularly the assumption of perfect and costless information and related incentive problems. Neoclassical economics assumes static equilibrium and efficient markets require that there be no non- convexities , even though nonconvexities are pervasive in modern economies. Stiglitz's critique applies to both existing models of capitalism and to hypothetical models of market socialism. However, Stiglitz does not advocate replacing markets, but instead states that there

4218-499: The profits (based on the overall performance of their enterprise) in addition to receiving their fixed wage or salary. The stronger incentives to maximize productivity that he conceives as possible in a socialist economy based on cooperative and self-managed enterprises might be accomplished in a free-market economy if cooperatives were the norm as envisioned by various thinkers including Louis O. Kelso and James S. Albus . Market socialism traces its roots to classical economics and

4292-485: The profits directly remunerate the employee-owners. These cooperative enterprises would compete with each other in the same way private companies compete with each other in a capitalist market. The first major elaboration of this type of market socialism was made by Pierre-Joseph Proudhon and was called mutualism. Self-managed market socialism was promoted in Yugoslavia by economists Branko Horvat and Jaroslav Vaněk . In

4366-454: The profits would be disbursed among the population in a social dividend. This model came to be referred to as market socialism because it involved the use of money, a price system and simulated capital markets, all of which were absent from traditional non-market socialism. A more contemporary model of market socialism is that put forth by the American economist John Roemer , referred to as economic democracy . In this model, social ownership

4440-415: The public at large through a social dividend or basic income system. Advocates of market socialism such as Jaroslav Vaněk argue that genuinely free markets are not possible under conditions of private ownership of productive property. Instead, he contends that the class differences and inequalities in income and power that result from private ownership enable the interests of the dominant class to skew

4514-463: The quantity supplied. The price data point where the supply and demand lines intersect is called the market-clearing price . Governments can intervene by establishing price ceilings or price floors in specific markets (such as minimum wage laws in the labor market), or use fiscal policy to discourage certain consumer behavior or to address market externalities generated by certain transactions ( Pigovian taxes ). Different perspectives exist on

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4588-550: The report to be published in the journal Foreign Affairs under the pseudonym "X." Biographer Douglas Brinkley has dubbed Forrestal "godfather of containment" on account of his work in distributing Kennan's writing. The use of the word "containment" originates from this so-called "X Article": "In these circumstances it is clear that the main element of any United States policy toward the Soviet Union must be that of long-term, patient but firm and vigilant containment of Russian expansive tendencies." Having lost 27 million people in

4662-445: The role of government in both regulating and guiding market economies and in addressing social inequalities produced by markets. Fundamentally, a market economy requires that a price system affected by supply and demand exists as the primary mechanism for allocating resources irrespective of the level of regulation. Capitalism is an economic system where the means of production are largely or entirely privately owned and operated for

4736-555: The rule of law subduing discretional intervention by the state. They were economically communist and depended upon the Soviet Union for significant amounts of materials. While in the first three years following World War II, massive emigration from these states to the West occurred, restrictions implemented thereafter stopped most East-West migration, except that under limited bilateral and other agreements. In January 1947 Kennan drafted an essay entitled " The Sources of Soviet Conduct ." Navy Secretary James Forrestal gave permission for

4810-405: The same term [REDACTED] This disambiguation page lists articles associated with the title AMAG . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=AMAG&oldid=1183055347 " Category : Disambiguation pages Hidden categories: Short description

4884-413: The self-managed model of socialism, firms would be directly owned by their employees and the management board would be elected by employees. These cooperative firms would compete with each other in a market for both capital goods and for selling consumer goods. Following the 1978 reforms , China developed what it calls a socialist market economy in which most of the economy is under state ownership, with

4958-481: The slums to live among the poor. The Holy Trinity was interpreted as a call for social equality and the elimination of poverty. However, the Pope John Paul II was highly active in his criticism of liberation theology. He was particularly concerned about the increased fusion between Christianity and Marxism . He closed Catholic institutions that taught liberation theology and dismissed some of its activists from

5032-484: The state enterprises organized as joint-stock companies with various government agencies owning controlling shares through a shareholder system. Prices are set by a largely free-price system and the state-owned enterprises are not subjected to micromanagement by a government planning agency. A similar system called socialist-oriented market economy has emerged in Vietnam following the Đổi Mới reforms in 1986. This system

5106-592: The state is limited to protecting property rights and enforcing contracts . Laissez-faire is synonymous with what was referred to as strict free-market economy during the early and mid-19th century as a classical liberal ideal to achieve. It is generally understood that the necessary components for the functioning of an idealized free market include the complete absence of government regulation, subsidies, artificial price pressures and government-granted monopolies (usually classified as coercive monopoly by free market advocates) and no taxes or tariffs other than what

5180-484: The supply of goods and services. In interventionist , welfare capitalism and mixed economies , markets continue to play a dominant role, but they are regulated to some extent by the government in order to correct market failures or to promote social welfare. In state capitalist systems, markets are relied upon the least, with the state relying heavily on either indicative planning and/or state-owned enterprises to accumulate capital. Capitalism has been dominant in

5254-607: The threat of denying any financial aid into purging communists from their governments in the events known as the May 1947 crises . Nevertheless, he subsequently announced in a speech delivered on 5 June 1947 a comprehensive program of American assistance to all European countries wanting to participate, including the Soviet Union and its satellites, called the Marshall Plan . Fearing American political, cultural and economic penetration, Stalin eventually forbade Soviet Eastern bloc countries of

5328-417: The war, the Soviet Union was determined to destroy Germany's capacity for another war, and pushed for such in wartime conferences. The resulting Morgenthau plan policy foresaw returning Germany to a pastoral state without heavy industry. Because of the increasing costs of food imports to avoid mass-starvation in Germany, and with the danger of losing the entire nation to communism, the U.S. government abandoned

5402-624: The works of Adam Smith , the Ricardian socialists and mutualist philosophers. In the 1930s, the economists Oskar Lange and Abba Lerner developed a model of socialism that posited that a public body (dubbed the Central Planning Board) could set prices through a trial-and-error approach until they equaled the marginal cost of production in order to achieve perfect competition and pareto optimality . In this model of socialism, firms would be state-owned and managed by their employees and

5476-408: Was to become the " domino theory ". On the morning of March 12, 1947, President Harry S. Truman appeared before Congress to ask for $ 400 million of aid to Greece and Turkey. Calling on congressional approval for the United States to "support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures," or in short a policy of " containment ", Truman articulated

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