What is the transformation problem in marxist economics?
In: Economics
It has to do with the transformation from Socialism to Communism. Communism is an ideal, and has never actually existed. Socialism is supposed to lead to communism. The USSR was Socialist, not communist, for example.
The problem with Socialism is that it doesn’t work.
The problem with Capitalism is that it doesn’t work very well, either. In that the wealth tends to accumulate among a small percentage of the population; and then you get people clamoring for socialism, where the wealth tends to accumulate among a small percentage of the population.
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