ABSTRACT
This chapter analyzes briefly but fairly carefully what is meant and implied by pragmatic socialism. It argues the plausibility of the contention that pragmatic socialism at the present time is a highly relevant model of market socialism, and possibly more relevant in fact than the models receiving the greatest amount of explicit attention in the literature. The chapter evaluates the two critical issues pertaining to the potential efficiency of the scheme of pragmatic socialism. It examines the question of the arbitrariness of the savings rate, and the question of incentives in capital management. The chapter investigates the question of the practical consistency of state ownership of the non-human factors of production with economic efficiency. It proposes that the true and authentic concept of market socialism is bound up with a system people have termed "pragmatic socialism".
