Fred M. Taylor
Encyclopedia
Fred Manville Taylor was a U.S. economist and educator best known for his contribution to the theory of market socialism
. He taught mostly history at Albion College
from 1879 to 1892. He taught in the department of economics at University of Michigan
from 1892 to 1929 after receiving his Ph.D. in political philosophy
there in 1888. His Principles of Economics text went through 9 editions. Of a libertarian
ideology
, he was noted as a clear and rigorous expositor of economic theory in the partial-equilibrium
lineage of Alfred Marshall
.
In his American Economic Association
presidential address, Taylor (1929) laid out the conditions under which a socialist economy could in theory achieve an efficient allocation of resources. The conditions parallel those of a private-enterprise economy
. They include the state providing money income to its citizens, citizens using their income as they choose to buy output produced by state
enterprises
, and the state setting prices equal to least cost so as to compensate factors of production, including labor, with prices set by trial-and-error to clear markets. In this, Taylor stated principles of market socialism
developed by Abba Lerner and Oscar Lange in the following decade and anticipated in mathematical form by Enrico Barone
in 1908.
Market socialism
Market socialism refers to various economic systems where the means of production are either publicly owned or cooperatively owned and operated for a profit in a market economy. The profit generated by the firms system would be used to directly remunerate employees or would be the source of public...
. He taught mostly history at Albion College
Albion College
Albion College is a private liberal arts college located in Albion, Michigan. Related to the United Methodist Church, it was founded in 1835 and was the first private college in Michigan to have a chapter of Phi Beta Kappa. It has a student population of about 1500.The school's sports teams are...
from 1879 to 1892. He taught in the department of economics at University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
from 1892 to 1929 after receiving his Ph.D. in political philosophy
Political philosophy
Political philosophy is the study of such topics as liberty, justice, property, rights, law, and the enforcement of a legal code by authority: what they are, why they are needed, what, if anything, makes a government legitimate, what rights and freedoms it should protect and why, what form it...
there in 1888. His Principles of Economics text went through 9 editions. Of a libertarian
Libertarianism
Libertarianism, in the strictest sense, is the political philosophy that holds individual liberty as the basic moral principle of society. In the broadest sense, it is any political philosophy which approximates this view...
ideology
Economic ideology
An economic ideology distinguishes itself from economic theory in being normative rather than just explanatory in its approach. It expresses a perspective on the way an economy should be run and to what end, whereas the aim of economic theories is to create accurate explanatory models...
, he was noted as a clear and rigorous expositor of economic theory in the partial-equilibrium
Partial equilibrium
Partial equilibrium is a condition of economic equilibrium which takes into consideration only a part of the market, ceteris paribus, to attain equilibrium....
lineage of Alfred Marshall
Alfred Marshall
Alfred Marshall was an Englishman and one of the most influential economists of his time. His book, Principles of Economics , was the dominant economic textbook in England for many years...
.
In his American Economic Association
American Economic Association
The American Economic Association, or AEA, is a learned society in the field of economics, headquartered in Nashville, Tennessee. It publishes one of the most prestigious academic journals in economics: the American Economic Review...
presidential address, Taylor (1929) laid out the conditions under which a socialist economy could in theory achieve an efficient allocation of resources. The conditions parallel those of a private-enterprise economy
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
. They include the state providing money income to its citizens, citizens using their income as they choose to buy output produced by state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
enterprises
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
, and the state setting prices equal to least cost so as to compensate factors of production, including labor, with prices set by trial-and-error to clear markets. In this, Taylor stated principles of market socialism
Market socialism
Market socialism refers to various economic systems where the means of production are either publicly owned or cooperatively owned and operated for a profit in a market economy. The profit generated by the firms system would be used to directly remunerate employees or would be the source of public...
developed by Abba Lerner and Oscar Lange in the following decade and anticipated in mathematical form by Enrico Barone
Enrico Barone
Enrico Barone was a soldier, military historian, and economist.Barone studied the classics and mathematics before becoming an army officer. He taught military history for eight years from 1894 at the Officers' Training School. There he wrote a series of influential historical military works...
in 1908.