Marx and Market Socialism

Karl Marx went on record as ruling out any role for the market in a socialist economy. ‘Within the cooperative society based on common ownership of the means of production’, he wrote, ‘the producers do not exchange their products’ (Marx, 1938’ p. 8). Marx’s collaborator, Frederick Engels, stated their position even more bluntly: ‘The seizure of the means of production by society puts an end to commodity production … [and at that point the market is to be] replaced by conscious organization on a planned basis’ (Engels, 1939, p. 309). Clearly, neither Marx nor Engels saw any role for markets in a socialist society.