I wonder if it might not be useful for people to make a distinction between capitalism (system where owners of big capital dominate) and a market economy. A very high degree of social democracy is compatible with a market economy.
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Not a good idea for workers to have both their incomes and their capital tied up in single firms, while also subjecting those firms to market competition that means many of them will inevitably go out of business.
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This is just a path to the creation of a new set of owners and managers. Trotsky got this one right (though he refused to face its implications...)
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And high degrees of state ownership in any and all industries that 1. Are monopolistic or oligopolistic 2. Are essential to the public welfare 3. Rely on public subsidy to such an extent that they may as well be publicly owned
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