The Red and the Black
Profit is the motor of capitalism. What would it be under socialism?
by
Seth Ackerman
Radicals have a habit of speaking in the conditional. Underlying all their talk about the changes they’d like to see in the world is the uneasy knowledge that our social system places rigid limits on how much change can be accomplished now. “After the revolution . . .” is the wistful, ironic preface to many a fondly expressed wish on the Left.
Why, then, are radicals so hesitant to talk about what a different system might look like? One of the oldest and most influential objections to such talk comes from Marx, with his oft-quoted scorn toward utopian “recipes” for the “cookshops of the future.” The moral of the quote, supposedly, is that a future society must emerge from the spontaneous dynamics of history, not from the isolated imaginings of some scribbler. This isn’t without some irony, since two years later Marx the scribbler wrote his own little cookshop recipe in his Critique of the Gotha Program — it involved labor tokens, storehouses of goods, and an accounting system to determine how much workers would get paid.
As it happens, Marx’s comment was a riposte to a negative review he’d received in a Paris newspaper run by devotees of the philosopher Auguste Comte, criticizing Marx for offering no concrete alternative to the social system he condemned. (That’s why, in the original quote, he asks wryly if the recipes the reviewers had hoped to see happened to be “Comtist” ones.) To grasp the context, you have to understand that like many utopian writers of the era, Comte proffered scenarios for a future society that were marked by an almost deranged grandiosity, featuring precise and fantastically detailed instructions on practically every facet of daily life. It was this obsessive kind of future-painting that Marx was really taking aim at.
A related cause for reticence is the feeling that to spell out ideas for future social institutions amounts to a sort of technocratic elitism that stifles the utopian élan of the people-in-motion. Great social change never happens without multitudes becoming inspired to heroic acts of enthusiasm, and patient attempts to grapple realistically with the material problems of a functioning society are rarely so inspiring. This is by no means a trivial objection; one of the oldest fallacies on the Left is the illusion that change happens when someone comes along with a brilliant ten-point plan and manages to convince everyone of its genius.
Still, a successful radical project has to appeal to every emotional register: not just those ecstatic moments when history opens up and everything seems possible, but also those pensive and critical moods when even inveterate optimists-of-the-will find doubt and reflection taking over. Even a struggle as epic and impassioned as the movement for the eight-hour day — which “seemed one of the most striking utopias of revolutionary socialism” at the time, as Elie Halévy remembered — was, in the end, about a bureaucratic measure, enforced by legal directives and factory inspectors.
Maybe the most fundamental reason the Left has been suspicious of such visions is that they have so often been presented as historical
endpoints — and endpoints will always be disappointing. The notion that history will reach some final destination where social conflict will disappear and politics come to a close has been a misguided fantasy on the Left since its genesis. Scenarios for the future must never be thought of as final, or even irreversible; rather than regard them as blueprints for some future destination, it would be better to see them simply as maps sketching possible routes out of a maze. Once we exit the labyrinth, it’s up to us to decide what to do next.
In this essay, I start from the common socialist assumption that capitalism’s central defects arise from the conflict between the pursuit of private profit and the satisfaction of human needs. Then I sketch some of the considerations that would have to be taken into account in any attempt to remedy those defects.
What I’m not concerned with here is achieving some final and total harmony between the interests of each and the interests of all, or with cleansing humanity of conflict or egotism. I seek the
shortest possible step from the society we have now to a society where most productive property is owned in common — not in order to rule out more radical change, but precisely in order to rule it in.
There is nothing wrong with thinking concretely and practically about how we can free ourselves from social institutions that place such confining limits on the kind of society we are able to have. Because of one thing we can be certain: the present system will either be replaced or it will go on forever.
Radicals responded to the end of “really existing socialism” mainly in two ways. Most stopped talking about a world after capitalism at all, retreating to a modest politics of piecemeal reform, or localism, or personal growth.
The other response was exactly the opposite — an escape forward into the purest and most uncompromising visions of social reconstruction. In certain radical circles, this impulse has lately heightened the appeal of a leap toward a world with no states or markets, and thus no money, wages, or prices: a system in which goods would be freely produced and freely taken, where the economy would be governed entirely by the maxim “from each according to his abilities, to each according to his needs.”
Whenever such ideas are considered, debate seems to focus immediately on big philosophical questions about human nature. Skeptics scoff that people are too selfish for such a system to work. Optimists argue that humans are a naturally cooperative species. Evidence is adduced for both sides of the argument. But it’s best to leave that debate to the side. It’s safe to assume that humans display a mixture of cooperation and selfishness, in proportions that change according to circumstances.
The lofty vision of a stateless, marketless world faces obstacles that are not moral but technical, and it’s important to grasp exactly what they are.
We have to assume that we would not want to regress to some sharply lower stage of economic development in the future; we would want to experience at least the same material comforts that we have under capitalism. On a
qualitative level, of course, all sorts of things ought to change so that production better satisfies real human and ecological needs. But we would not want to see an overall decline in our productive powers.
But the kind of production of which we are now capable requires a vast and complex division of labor. This presents a tricky problem. To get a concrete sense of what it means, think of the way Americans lived at the time of the American Revolution, when the typical citizen worked on a small, relatively isolated family farm. Such households largely produced what they consumed and consumed what they produced. If they found themselves with a modest surplus of farm produce, they might sell it to others nearby, and with the money they earned they could buy a few luxuries. For the most part, though, they did not rely on other people to provide them with the things they needed to live.
Compare that situation with our own. Not only do we rely on others for our goods, but the sheer
number of people we rely on has increased to staggering proportions.
Look around the room you’re sitting in and think of your possessions. Now try to think of how many people were directly involved in their production. The laptop I’m typing on, for example, has a monitor, a case, a DVD player, and a microprocessor. Each was likely made in a separate factory, possibly in different countries, by various companies employing hundreds or thousands of workers. Then think of the raw plastic, metal, and rubber that went into those component parts, and all the people involved in producing them. Add the makers of the fuel that fired the factories and the ship crews and trucking fleets that got the computer to its destination. It’s not hard to imagine millions of people participating in the production of just those items now sitting on my desk. And out of the millions of tasks involved, each individual performed only a tiny set of discrete steps.
How did they each know what to do? Of course, most of these people were employees, and their bosses told them what to do. But how did their bosses know how much plastic to produce? And how did they know to send the weaker, softer kind of plastic to the computer company, even though it would have been happy to take the sturdier, high-quality plastic reserved for the hospital equipment makers? And how did these manufacturers judge whether it was worth the extra resources to make laptops with nice LCD monitors, rather than being frugal and making old, simpler cathode ray models?
The total number of such dilemmas is practically infinite for a modern economy with millions of different products and billions of workers and consumers. And they must all be resolved in a way that is globally consistent, because at any given moment there are only so many workers and machines to go around, so making more of one thing means making less of another. Resources can be combined in an almost infinite number of possible permutations; some might satisfy society’s material needs and desires fairly well, while others would be disastrous, involving huge quantities of unwanted production and lots of desirable things going unmade. In theory, any degree of success is possible.
This is the problem of economic calculation. In a market economy, prices perform this function. And the reason prices can work is that they convey systematic information concerning how much of one thing people are willing to give up to get another thing, under a given set of circumstances. Only by requiring people to give up one thing to get another, in some ratio, can quantitative information be generated about how much, in relative terms, people value those things. And only by knowing how much relative value people place on millions of different things can producers embedded in this vast network make rational decisions about what their minute contribution to the overall system ought to be.
None of this means that calculation can be accomplished through prices alone, or that the prices generated in a market are somehow ideal or optimal. But there is no way a decentralized system could continually generate and broadcast so much quantitative information without the use of prices in some form. Of course, we don’t have to have a decentralized system. We could have a centrally planned economy, in which all or most of society’s production decisions are delegated to professional planners with computers. Their task would be extremely complex and their performance uncertain. But at least such a system would provide
some method for economic calculation: the planners would try to gather all the necessary information into their central department and then figure out what everyone needs to do.
So
something needs to perform the economic calculation function that prices do for a market system and planners do for a centrally planned system. As it happens, an attempt has been made to spell out exactly what would be required for economic calculation in a world with no states or markets. The anarchist activist Michael Albert and the economist Robin Hahnel have devised a system they call Participatory Economics in which every individual’s freely made decisions about production and consumption would be coordinated by means of a vast society-wide plan formulated through a “participatory” process with no central bureaucracy.
Parecon, as it’s called, is an interesting exercise for our purposes, because it rigorously works out exactly what would be needed to run such an “anarchist” economy. And the answer is roughly as follows: At the beginning of each year, everyone must write out a list of every item he or she plans to consume over the course of the year, along with the quantity of each item. In writing these lists, everyone consults a tentative list of prices for every product in the economy (keep in mind there are more than two million products in Amazon.com’s “kitchen and dining” category alone), and the total value of a person’s requests may not exceed his or her personal “budget,” which is determined by how much he or she promises to work that year.
Since the initial prices are only tentative estimates, a network of direct-democratic councils must feed everyone’s consumption lists and work pledges into computers, in order to generate an improved set of prices that will bring planned levels of production and consumption (supply and demand) closer to balance. This improved price list is then published, which kicks off a second “iteration” of the process: now everyone has to rewrite their consumption requests and work pledges all over again, according to the new prices. The whole procedure is repeated several times until supply and demand are finally balanced. Eventually, everyone votes to choose between several possible plans.
In their speaking and writing, Albert and Hahnel narrate this remarkable process to show how attractive and feasible their system would be. But for many people — I would include myself in this group — the effect is exactly the opposite. It comes off instead as a precise demonstration of why economic calculation in the absence of markets or state planning would be, if perhaps not impossible in theory, at least impossible to imagine working in a way that most people could live with in practice. And Parecon is itself a compromise from the purist’s point of view, since it violates the principle “from each according to ability, to each according to need” — individuals’ consumption requests are not allowed to exceed their work pledges. But of course without that stipulation, the plans wouldn’t add up at all.
The point is not that a large-scale stateless, marketless economy “wouldn’t work.” It’s that, in the absence of some coordinating mechanism like Albert and Hahnel’s, it simply wouldn’t exist in the first place. The problem of economic calculation, therefore, is something we have to take seriously if we want to contemplate something better than the status quo.
gonna get to it later)
Which is good, very good actually
Why isn't Anarchism in the thread title?