[OPE-L:5646] Re: socialist economic policies in transition period

[charlie <charles1848@xxxxxxxxx>]

First, let us on OPE-L thank Paul for his inquiry, which is a
breath of fresh air.

That said, I would not presume to advise on a political situation
whose particulars I do not know. So I mention one policy tool,
not to recommend it but to offer a line of thought that Paul may
explore as he judges worthwhile.

The idea is that the state takes pieces of equity/ownership and
gives longterm bonds in return. The interest in effect pensions
off the equity holder. Eventually the bonds mature, but perhaps
death and inheritance taxes deal with that situation.

Some swaps could be mandatory, while other situations might be
voluntary offers when the government wants to put a floor under
share prices.

The Chinese government used this technique in the early 1950s
with national capitalists, and government publications have
described details.

Charles Andrews
Web site for my book is at http://www.LaborRepublic.org