The ‘Socialism’ of Léon Walras and His Economic Thinking

Abstract

Abstract. Léon Walras was one of the few outstanding 19th century economists who, though as a theoretician belonged to the mainstream of orthodox economics, expressed views which at one time were considered to be too radical. He advocated in particular the nationalization of land as the solution to the social problem. This would generate sufficient revenue to government to enable it to do away with taxing income derived from wages and salaries. As a result workers would be in a position to invest their untaxed income and thus acquire their rightful share in the national wealth. Contrary to what many have argued, such ‘socialistic’ policy was not incompatible with Walras’ theoretical model of perfect competition. In the absence of private ownership of land and natural resources, there would be no place for big enterprises and monopolies. His great compromise was: allow social reforms in the realm of distribution, but promote lassser‐faire in the production of goods and services. Walras was convinced that if, on top of a radical land reform, the State sought to secure the working of a free competitive system, then the economic system could function very closely to the theoretical model. Though there are flaws in his proposals, his ideas no longer appear as preposterous as they did in his own time.

The Training of Jobseekers by Non‐profit Organizations: An Analysis Based on Data from the Upper Normandy Region of France

“…In this respect, his thinking is similar to that of Walras (Cirillo, ), who was interested in NPOs (he uses the term ‘popular association’) as both a practitioner and a theoretician (Hébert, ). As a theoretician, he did not see NPOs as a means of resolving the social difficulties of his time, which were of great concern to him (Cirillo, ). Their purpose was not, to use Walras's own expression, ‘ to do away with capital, but to make everyone a capitalist ’ (Demoustier, , p. 22).…”

Contribuciones de la distribución de la tierra al desarrollo de los países. Una revisión de la literatura

“…Su principal argumento consistió en que una nacionalización permite a los gobiernos ingresos suficientes y por eso pueden eliminar los impuestos a los ingresos derivados del trabajo. El principio de Walras de pensar la tierra como derecho natural de propiedad del Estado está influenciado por la igualdad de oportunidades, asimismo, considera a la igualdad absoluta de oportunidades como el remedio para superar la injustica (Cirillo, 1980). A pesar de lo radical de la idea de nacionalización de la tierra de los Mill y de Walras, los autores merecen reconocimientos por su interés de brindar soluciones a los problemas sociales.…”

The cultural foundations of economic categories: finance and class in the marginalist revolution

“…Walras described himself as a liberal-socialist mainly because he thought that in a liberal world, anyone who supported social reforms should be regarded as a socialist of some sort (Cirillo, 1980). It is also noteworthy that his notion of social justice was based on the liberal principle of 'equality of conditions, inequality of positions' (Jaffe ´, 1975).…”

“…The end goal of the scheme, however, was to create a national leasing market for publicly owned land. The revenues from this market, Walras suggested, would allow the state to abolish all forms of taxation (Cirillo, 1980). He argued that the poor living conditions of the working class are caused by income taxes rather than any exploitation (Wood, 1993).…”

“…A national market for land, he argued, would allow the elimination of income taxes, enabling workers to save part of their income. As Cirillo (1980) concludes, Walras thought that the solution to the social question was to turn everyone into a capitalist.…”