Also, “sound finance” is very much a tenent of neoliberalism, especially so under an economy with significant for-profit private sector. It’s the job of the state to ensure that overproduction isn’t going to ‘trash’ (giant trade surpluses). I say its trash because its very similar, if the market fails and there is an excess of say, wheat, in the economy, most socialists would say the Government should purchase it at a floor price and give it for free. Now, instead of giving to your own people, you decide to give to Americans and Westerners just because they can afford to buy it, its done ‘naturally’ by the market.
Exports under a market economy cannot be considered the same as a central planner deciding to give solar panels to Cuba for free or at cost for ideological or political reasons. It arises from the capitalist wanting to maximize profits.
In such an economy it is capitalist tendency to hoard and to much lesser extent workers tendency to save that give rise to massive Government deficits or build up of private sector (commercial bank) debt.
In a pure state run economy (without commercial bank lending), the state deficits would be naturally much smaller, since prices are flexible downwards without causing unemployment and because a large source of leakage i.e. capitalist tendency to hoard is absent.
Also, “sound finance” is very much a tenent of neoliberalism, especially so under an economy with significant for-profit private sector. It’s the job of the state to ensure that overproduction isn’t going to ‘trash’ (giant trade surpluses). I say its trash because its very similar, if the market fails and there is an excess of say, wheat, in the economy, most socialists would say the Government should purchase it at a floor price and give it for free. Now, instead of giving to your own people, you decide to give to Americans and Westerners just because they can afford to buy it, its done ‘naturally’ by the market.
Exports under a market economy cannot be considered the same as a central planner deciding to give solar panels to Cuba for free or at cost for ideological or political reasons. It arises from the capitalist wanting to maximize profits.
In such an economy it is capitalist tendency to hoard and to much lesser extent workers tendency to save that give rise to massive Government deficits or build up of private sector (commercial bank) debt.
In a pure state run economy (without commercial bank lending), the state deficits would be naturally much smaller, since prices are flexible downwards without causing unemployment and because a large source of leakage i.e. capitalist tendency to hoard is absent.