Meaning: This quote by John Bates Clark, an influential American economist, addresses the fundamental question of whether socialism has a legitimate claim to existence. It also raises the issue of whether the allegations made by socialism regarding the present economic system are true. The quote reflects Clark's intention to test the power of recent economic theory to provide an exact answer to this question.

John Bates Clark was a prominent figure in the field of economics during the late 19th and early 20th centuries. He is best known for his work on the marginal productivity theory of distribution, which sought to explain how the income of factors of production, such as labor and capital, is determined in a market economy. Clark's ideas had a significant impact on the development of economic thought and continue to be influential today.

In this quote, Clark is addressing the ideological and economic debate between socialism and capitalism. Socialism, as an economic and political system, advocates for collective or state ownership and control of the means of production and distribution, aiming to create a more equitable society. Capitalism, on the other hand, is characterized by private ownership of the means of production and the operation of a free market economy.

The first issue Clark raises is whether socialism has a right to exist. This question delves into the legitimacy of socialism as a competing economic system to capitalism. It reflects the ongoing debate about the role of government intervention in the economy and the extent to which resources and production should be controlled and distributed.

Clark also questions whether the allegations made by socialism concerning the present economic system are true. This suggests a critical examination of the claims made by socialism regarding the fairness and efficiency of the capitalist system. Socialists often argue that capitalism perpetuates inequality, exploitation, and alienation, while proponents of capitalism contend that it fosters innovation, efficiency, and individual freedom.

Moreover, Clark expresses his intention to test the power of recent economic theory to provide an exact answer to these questions. This reflects his belief in the capacity of economic theory to offer rigorous and empirical analysis of economic systems and their outcomes. By seeking an "exact answer," Clark emphasizes the importance of precision and evidence in evaluating the claims of socialism and capitalism.

Overall, the quote encapsulates the enduring debate between socialism and capitalism, highlighting the need for a thorough examination of the economic and ideological principles underlying both systems. It also underscores the role of economic theory in providing insights into the functioning and consequences of different economic arrangements.

In conclusion, John Bates Clark's quote serves as a thought-provoking entry point into the ongoing discourse on socialism, capitalism, and the role of economic theory in evaluating these competing systems. It prompts reflection on the legitimacy of socialism, the veracity of its critiques of capitalism, and the potential for economic theory to provide clarity on these complex and consequential issues.