Lemon socialism

Lemon socialism

Lemon socialism is a term for the practice in supposedly free market capitalist economies in which the government steps in to bailout or otherwise subsidize weak or failing firms. [cite web
title=Bailout on Wheels
first=George F.
publisher=The Washington Post
] [cite book
title=Newspeak: A Dictionary of Jargon
pages=p. 142
] [cite web
title=The Return of “Lemon” Socialism
publisher=Beyond Chron

A government attempting to transition from capitalism to socialism by this method takes control of the worst industries — the "lemons" — first, which undermines such an approach. [cite book
title=Economic Justice and Democracy
pages=p. 116
] Socialists socialize the losses while capitalists keep the profits. [cite book
author=Forum for Contemporary History
publisher=Skeptic Magazine
volume=1976-1977 no.11-22
pages=p. 54
] Similarly, in post-Communist societies, nationalized industries which had the least capital with which to modernize are the last targets for privatization. [cite book
title=Ethnic Nationalism: The Tragic Death of Yugoslavia
first=Bogdan Denis
chapter=3 Troubled Transitions: Post Communist Societies in Crisis
pages=p. 91
publisher=University of Minnesota Press
] The Emergency Economic Stabilization Act of 2008 has been cited as an example of lemon socialism. [cite web
title=GOP, RIP? Nearly three decades of Republican dominance may be coming to an end
authorlink=Timothy Noah
] [cite web
title=The Bush Crisis Plan: Greatest transfer of wealth in world history

ee also

*The Market for Lemons
*Gresham's law
*Socialism for the rich and capitalism for the poor


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  • lemon socialism — /lɛmən ˈsoʊʃəlɪzəm/ (say lemuhn sohshuhlizuhm) noun (pejorative) the provision of government financial assistance to a private company of a size or type which makes it significant to the country s economy, in order to prevent the collapse of the… …   Australian English dictionary

  • lemon socialism — noun The practice in otherwise free market capitalist economies in which the government steps in to bailout or otherwise subsidize weak or failing firms. A government attempting to transition from capitalism to socialism by this method takes… …   Wiktionary

  • Socialism for the rich and capitalism for the poor — is a classical political economic argument, formulated around 1970, [John Wykert1, Gerald M. Pomper2, 3 and David M. Gordon [http://www.springerlink.com/content/42306v75113724lh/ Society Volume 9, Number 3 / January, 1972] ] stating that in the… …   Wikipedia

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  • Bailout — For other uses of the term, see Bailout (disambiguation). In economics, a bailout is an act of loaning or giving capital to an entity (a company, a country, or an individual) that is in danger of failing, in an attempt to save it from bankruptcy …   Wikipedia

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