Federal market socialism

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Federal market socialism is an economic ideology enabling control of markets by government whilst preserving some level of a free market, pioneered by the Alsann Republic. It is based on the concept of market socialism, however is far more structured and tailored toward a federal-based nation. It is compatible with multiple, however works best in a democratic environment with a previously free market. It also requires some kind of self-governing subdivisions to function, generally a federation.

The only nation to have adopted federal market socialism is its pioneer, the Alsann Republic. Though not implemented to its full scope, federal market socialism remains an official government policy in Alsann.

Etymology

Market socialism is a form of socialism which often allows private enterprises while encouraging social ownership of companies within a market environment. Federal market socialism is therefore an extension of market socialism involving a federation, a status reflected in the economic system's name.

Policy

The basic policy of federal market socialism is that government should control large businesses, whilst allowing smaller enterprises to thrive. The government will acquire 'large' businesses, meaning those which exhibit a high level of control over a certain resource. The profits of these are directed to the government. If the company in question holds their control nearly exclusively in one of Alsann's subdivisions, that subdivision will be granted the business by the federal government. At the same time, many small businesses will be allowed and even encouraged to function.

In addition to the government control over markets, some more policies are relevant to federal market socialism. One of the most significant is universal basic income. Universal basic income within federal market socialism is always above the poverty line, and is paid to all people regardless of regular income. People may then earn additional income on top of their universal basic income. Some less significant policies include keeping inflation as close to 0% as possible and ensuring that the stock market is regulated as that companies cannot use it unless it is underpinning a service.

Policy reasoning

Federal market socialism reasons all of its policies are for the benefit of the people. Control over large businesses takes wealth from the very wealthy, and allows the government to have more money to spend. It also reasons that support for small businesses is essential as it helps boost an economy, diversify its goods and services and increase the incomes and employment opportunities of the public. Universal basic income helps keep people above the poverty line and reduces the homelessness rate. Keeping inflation at zero also involves regulating household products, keeping them affordable, which then limits prices in the broader economy. A regulated stock market ensures no company can be set up just to get wealthy off betting on performance.

Implementation in Alsann

The Alsann Republic was the first nation to adopt federal market socialism, with the policies having fed in through late October 2022. Their acquisition of business is limited to Aeonia Slate, which controlled resource exports from Banyowla. Incentives for small business creation in Alsann include government grants. Universal basic income is the only significant part of federal market socialism not implemented in Alsann, due to a severe lack of funding for the scheme. Though the nation does not have a stock market or inflation control, those policies are reportedly ready to launch.

See also