[This is Chapter Twenty-One of Murphey’s book Socialist Thought.]
Chapter 21
Suggested Economic and
Political Models
Socialists have shared a common hostility to an economic system that allocates resources and income through the contractual nexus of a market. They have also abhorred the "wage relation."
They have
been unable, however, to arrive at a consensus about the economic and political
model that should be installed in place of the market.
Laslett and Lipset have
said that "the
This chapter
will review the broad spectrum of socialist viewpoints about preferred economic
and political systems, together with some important associated issues. We will see the differing views about what
role, if any, private property should play in a
socialist economy. We will note, too,
the varied preferences about whether income should be distributed with absolute
equality as against a distribution that would take performance into account.
A
good example is Mussolini's "corporative state." Richard Child described the governing
apparatus Mussolini established to reflect his "national syndicalist"
position:
"On
Even
those systems that might consider themselves “state controlled” involve some
sort of organization that extends into the various parts of the economy. Many decisions will necessarily be made at
lower levels or involve interaction by those at the lower levels. We can see how difficult it becomes to
distinguish between that type of state control and a coordinated system of
collectives. Within either, there can be
significant differences in the amount of decentralization or participativeness.
Adam
Ulam has described the British Fabian
Socialist preference: “The Fabian vision of industrial organization under socialism
includes formation of national boards of managers for socialized
industries. The boards would be
accountable to the nation, just as a private board is accountable to a crowd of
shareholders.”3 Here is Ulam’s description of Harold Macmillan’s plan during the
1930s: “The key to Macmillan’s plan is
industrial self-government in major industries.
Every such industry is to have a council including the industrialists,
representatives of labor, scientists, and
technicians. All the industrial councils
are to join in a central economic council to be linked firmly and unmistakably
with the government.”
Michael
Harrington says “Louis Blanc… is usually identified as the father of the statist tradition of socialism.”4 Kirkup described
Blanc’s proposals, which Blanc made in 1848:
“Louis Blanc demanded that the democratic State should create industrial
associations, which he called social workshops, and which were destined gradually and
without shock to supersede individual workshops. The State would provide the
means; it would draw up the rules for their constitution, and it would appoint
the functionaries for the first year.
But, once founded and set in movement, the social workshop would be
self-supporting, self-acting, and self-governing. The workmen would choose
their own directors and managers; they would themselves arrange the division or
the profits….”5 This sounds
as though the state was intended to have a relatively minor role once the
system was established..
In the
Central
planning is, of course, a hallmark of the
Salvador Allende’s book Chile’s Road to Socialism tells of
the plans Allende had for the Chilean economy. He
spoke of "a national system for planning" and said that
"workers' committees will have a fundamental role in the planning system." He wanted to establish a "dominant
public sector, composed of firms already owned by the state and also by firms
which will be expropriated." a These firms were to have included those in
mining, banking, insurance, foreign trade, electricity, transportation,
communications, oil, steel, cement, chemicals, paper, and large-scale
distribution. He said that
"planning bodies will work out the National Economic Plan for 1971-6. We propose that no investment project shall
be carried out that is not part of a government-approved scheme. In this way, we hope to put an end to
experiment." He went on to say that
"establishing an area of public ownership does not mean that we are
creating a system of state capitalism... The public sector will be controlled jointly
by workers and by representatives of the state, which will be the essential
link between each firm and the entire national economy."8
Yugoslavia
has used a form of organization known as "social self-management"
which is often praised by "socialist humanists." Lucien Goldmann
says: “Seeking to react against bureaucratic or Stalinist centralization,
Yugoslavia has integrated to socialist thought the discovery that the
socialization of the means of production does not necessarily imply, as Marx
and later Marxists had thought, integral centralized planning and the
suppression of the market. The greatest achievement of Yugoslav Socialist
Democracy, self-management by the workers, is a means of ensuring an effective democracy."9
The
Scandinavian socialist regimes have used cooperatives extensively.10 This comports with Norman Thomas' prescription
for a "humanistic" socialism: "What is required of humanistic
socialism?... It will recognize that while it must provide and use a strong
state, the state must always exist for man, not man for the state; that good
government demands more than universal suffrage; that it requires the existence
of balancing forces of real strength -- labor unions,
professional societies, co-operatives, etc. -- which are not puppets of the
state."11
Certainly, in
tone and in its hope for a balance that will check the state, Thomas' model
seems different than Mussolini's. I have
not attempted a clear-cut differentiation, however, since to me, at least as an
outsider looking on from a distance, it is by no means clear just what elements
will be present to harness the state in Thomas' socialism to prevent it from
being similar to Mussolini's.
2. Those who have favored a powerful center occupying the “commanding heights” of the economy, but who have wanted to leave a system of nominally private property or even a substantial autonomous market.
Many
socialists have felt it is not necessary to nationalize all enterprises or to
turn them into collectives. Central planning can be achieved, they feel,
through control rather than through direct ownership or reorganization. Ralph Miliband has written that socialism "would leave a
considerable area of economic activity open to various forms of' small-scale
enterprise. It is not part of the
socialist purpose to establish wholesale and total collectivism under which
every corner shop and independent garage would be nationalized… It is part of
their purpose to bring the 'commanding heights' of the economy and a good many
of the lesser heights as well under one form or other of public ownership and
control.”12
Laslett and Lipsett say
that "if you just see socialism as... government ownership, it only exists
really in the Soviet countries. In other
countries, we have socialism or semi-socialism in the form of
collectivism. And the old concept of
what socialism is today is out."13
Michael
Harrington argues that "socialists cannot abandon their insistence upon
social ownership"; but,
significantly, he finds it necessary to add that "it might seem
quixotic to raise such a point just as the socialist parties of Europe have
abandoned it. The Continental social
democrats have almost all adopted the idea of a ‘social market economy’ in
which the state controls, but does not own, the crucial means of
production." 4 David Caute says "the Frankfurt Declaration of the Socialist
International in 1952 stated that socialist planning 'does not presuppose
public ownership of all the means of production...' The Social Democratic
Parties have committed themselves to the acceptance of a mixed economy, often
in its present form."15 This was the culmination of a tendency that
had begun several years before, as we see when William Paterson and Ian
Campbell inform us that in the mid-l930s the social democrats in Belgium began
emphasizing planning over public ownership, and that this "had a great
influence on Dutch, Swiss and Czech social democrats."16
Although
these passages have spoken of the continental socialists, the same movement has
occurred within British socialism. Miliband speaks of "the abandonment of public
ownership as a major commitment," and says that "this was the
defining stress of Gaitskellism and of 1950s Labour
'revisionism,' of which Anthony Crosland was the most accomplished
exponent."17 Paterson
and Campbell say that Hugh Gaitskell tried in 1959 to obtain the deletion of
Clause IV of the Labour Party's Constitution, which calls for public ownership,
but was unsuccessful.
A major
development occurred in Germany in 1959.
The Social Democrats broke sharply with Marxism and public
ownership. Paterson and Campbell say
“the Bad Godesberg Programme recognized Christian
ethics, humanism and classical philosophy, rather than Marxism, ‘as the primary
source of values for the SPD’” (the German Socialist Party). In this, the Social Democrats “totally
ignored Marx and accepted the principle of private ownership in so far as it
did not hinder the creation of a just social order.”18
Adam Ulam points out that “the argument about the danger of an
important part of the national economy remaining subject to private whims and
interests lost much of its significance during the war when the state could
control and direct industries without actually owning them.”19
The purposes
for which the Nazis used their regime were, of course, very different than the
purposes stated by European social democrats, but this should not obscure the
fact that the principle regarding the role of the state in the economy was the
same. In 1937, Werner Sombart wrote that "in the field of economy for
profit, the general endeavor must be so directed that no higher interest will
be impaired through the application of the profit-principle. The manipulation
of credit is the most important weapon at the disposal of the state to keep this
sector in order... (T)he state must have the right to eliminate industries
which show themselves as inexpedient, by withdrawing their rights."20 David Schoenbaum
has written about Nazism that "what characterized its socialism was not
the ownership of capital but its relationship to the State. Capital remained in private hands because
this seemed expedient. But the threat of
intervention was always present... In a discussion of civil rights, E. R. Huber
defined the right of property as a function of duty. If he did not fulfill
his duty, the farmer could be forced from his land, the businessman
expropriated, the worker fired." Schoenbaum goes on to say that "National Socialism
claimed total control of the economy; total command over resources; total direction
of wages, prices, production; total organization of credit, manpower,
transportation and planning." He adds that "the Third Reich was
notable for the far-reaching transfer of managerial decisions from the
managers: none of these was left to managerial decision, let alone to the
market."21
About
socialist thinking in the United States, Thomas writes that "American
socialists nowadays generally accept, as they should, a mixed economy,
controlled by the overall concept that production should be for the good of
all. For the state, under any system, to
try to own and operate everything, would deprive us of some of the important
values of private initiative and responsibility." He does, however, advocate government
ownership of the steel, coal, iron, copper and oil industries; large forests;
public utilities; and "all banks of issue."22
3.
Those who have wanted an economy consisting of collectives, but who have
either not wanted a central mechanism or have wanted a weak or transitional
one.
A prominent segment
of socialist thought has not wanted any state at all, or one that is quite weak
or is purely transitional to collectivist anarchy. This segment is "anti-statist."
Ironically, at least from a non-socialist's point of view, Marx and
Lenin are to be counted among these, since they called for an eventual
"withering away of the state" that would leave "the armed
workers" in charge of the society. Kirkup paraphrased Marx as saying that "after the
proletariat have seized political power and transformed the means of production
into State property, the State will cease to exist.” He said that such as society “is not
fundamentally different from that contemplated by the anarchist school. Both look forward to a period when men will
live in free associations, and when the administration of social affairs will
be conducted without the exercise of compulsion.”23
Lewis Feuer writes that “the dream of decentralized communist
societies on the model of the American Utopias has always remained alive as a
recessive theme in the socialist unconscious.
Allow Marx, Engels, Lenin, or Trotsky to
speculate as to their true goal, and despite their authoritarian drives, they
will fall back into a vision of society as a collection of Brook Farms. Engels, at the end
of his life, was angered by what he called the ‘State socialism’ of Jean
Jaures.”24
Some of the
leading names in nineteenth century socialist thought are associated with one
or another form of anarchist or semi-anarchist vision. They include Proudhon, Lassalle, Fourier, Chernyshevsky and Herzen.
I have had
some difficulty determining clearly what it was that Proudhon
wanted under the term "mutualism."
George Woodcock says the term described "various forms of mutual
credit systems which might eventually make governmental administration
unnecessary; he envisaged such association as becoming world-wide." A flexible federation of "communes and
industrial associations" would replace the state.25 Fried and Sanders say Proudhon
favored "small individual holdings, each worked
by the proprietor alone. The mutualist idea that Proudhon
developed... was basically a program for maintaining a socially regulated
system of such small holdings, through the administration of mutual aid -- by
freely extending credit, for example, without charging interest."26 In his Selected Writings, Proudhon speaks of "the principle of association,
through which all over Europe they are preparing to organize legal workers’
companies to compete with bourgeois concerns.”
Then he mentions “the more general and widespread principle of
Mutualism, through which working-class Democracy, putting a premium on
solidarity and groups, is preparing the way for the political and economic
reconstruction of society.”27
One of the features of his scheme is a “People’s Bank.” The bank would issue “circulating
vouchers.” The subscribers would act as
a cooperative, buying from and selling to only each other.
Ferdinand Lassalle wanted manhood suffrage so that it could induce
the Prussian state to create “state-aided producers’ associations.” These would eventually lead to a “cooperative
commonwealth.”28
Charles
Fourier wanted cooperatives known as “phalanges” in which the life of the
community would be centered in a large dwelling known
as a “phalanstery.”
Each member would be a part-owner.
Work would be turned into play, with no single job being performed “for
more than two hours at a time,” according to Fried and Sanders.29 Kirkup says “love
would be free.”
N. G. Chernyshevsky described a communal, cooperative way of life
in his What Is To Be Done? that has much in common with Proudhon and Fourier.
“I have established a workshop in order that the profits resulting from
the work may go to the workers.” And
then: “Everyone understood, in the first
place, that loans would be made to those of the participants who should chance
to have a great need of money, and no one wanted to lend at interest: poor people believe that financial aid should
be extended without interest. The
establishment of this bank was followed by the foundation of a purchasing
agency… About eighteen months later almost all the working girls were living in
one large house, had a common table, and bought their provisions as they do in
large establishments.”30
“Alexander Herzen, the ideological progenitor of Populism (in
Russia),” says David Caute, “began to convey his
theory of peasant socialism in The Bell, insisting that the ‘mir,’ or traditional commune, provided the natural basis
for Russian socialism.”31
Nor have
these been all the figures who have advocated decentralized communal or
cooperative life as the basis for socialism.
The anarchist
Emile Gautier, at his trial in 1883, spoke of “free associations (that) will be
formed for industrial and other purposes… The process of social reconstruction
is, in short, the free federation of free associations.”32
Syndicalism
is favored by D. Novak, who writes that
“anarcho-syndicalism… believes that the trade unions, or syndicates, can serve
both as leading units in the present-day struggles… and as the bases of a new
economic organization of society after a victorious revolution… The anarcho-syndicalists intend to abolish the State and carry
on the activities of society through the syndicates, associated by the
industries and localities.”33 It is interesting that from an outsider’s
point of view we come full circle here: a society organized by such syndicates
appears thereby to have a “state” of its own even though under another name, so
that this model looks similar to that favored by
Mussolini.
In England,
syndicalism took the form of “Guild Socialism.” This, according to Fried and Sanders, looked
to “the autonomous medieval guild, with its emphasis on craftsmanship and group
solidarity” as its model. A leading
author from this point of view was Samuel Hobson, who wanted each industry
“organized by the appropriate guild… The government, lacking coercive power,
would be a confederation of industries.”
Guild Socialism was a major movement prior to World War I, but collapsed
after that war.34
G. D. H. Cole
was a prominent supporter of Guild Socialism.
Fried and Sanders say his Guild Socialism Restated is “the best
summary of its doctrine.”
The variation we have just seen in
the economic models suggests that the views that have been entertained by
socialists about private property have also varied.
Some
socialists have wanted no private property.
All goods would be free. Others
have wanted to retain the private ownership of property, but to establish a
principle that the ownership is conditional.
Precisely what the conditions are will depend upon the type of
socialism. Still others talk in terms
of gradations of types of property, with some forms being collectivized while
others are being allowed to remain in private hands.
Many socialists have objected to any
form of “absentee ownership,” where the owner is not the individual actively
working the property. This relates in
part to the objection that has often been raised to the ownership of land.
Sir Thomas More, in his Utopia,
wrote that all goods would be laid out in a storehouse, and that each family
could take whatever it needed “without paying for it or leaving anything in
exchange.”35 Edward Bellamy
advocated a similar scheme in Looking Backward. George Bernard Shaw wrote that “socialism…
absolutely denies any private right of property whatever.”36
Kirkup
says, though, that “the system of Fourier admitted of private capital under
social control.”37 In Emile,
Rousseau says the rich hold their wealth conditionally: “The rich only exist through the good-will of
the poor, so they have promised to feed those who have not enough to live on.”38
We have seen before that Schoenbaum says about Nazism that “what characterized its
socialism was not the ownership of capital but its relationship to the State…
The right of property (was) a function of duty.”39 The important thing was not the taking of
title; it was control.
During his Nazi phase, Sombart wrote that “private property and common property
will continue to exist side by side. To
which, of course, must also be added,
that private property will not be an unlimited, but a restricted
possession in fee, at least so far as ownership of the means of production and
of the soil are concerned. I can fully
agree with the setting which Othmar Spann has given
to the problem when he says: ‘There is,
formally, private property.’ The right
of property will no longer determine the principles of economic control, but
the principles of economic control will determine the extent and kind of
property rights.”40
R. H. Tawney
was among the socialists who have talked in terms of gradations of
property. Forms of property closest to
personal consumption or to being worked actively by the owner have been
considered acceptable. Accumulated
property, being neither consumed nor actively worked by the owner, has been
opposed. Accordingly, Tawney spoke of “property (that) may be called passive
property, or property for acquisition, for exploitation, or for power,” which he
distinguished from “property which is actively used by its owner for the
conduct of his profession or the upkeep of his household.” On this basis he approved of “property in
payments made for personal services, property in personal possessions necessary
to health and comfort, property in land and tools used by their owners, and
property in copyright and patent rights owned by authors and inventors.” He disapproved of “profits of luck and good
fortune, monopoly profits, urban ground rents, and royalties.” He said that “pure interest, including much
agricultural rent,” was a middle category.41
Even those who want extensive state
ownership are willing to allow small private holdings. Edward Bellamy excluded personal and
household belongings from his mandate for total state ownership.42 Galvano della Volpe tells us that Soviet law permits private
property “for personal use.”43 Salvador Allende’s
regime in Chile in the early 1970s expropriated most farms, but left those of
170 acres or less in private hands.44
The variety of socialist models
suggests that there has also been a wide spectrum of suggestions about how
income should be distributed in a socialist society. Several socialists, of course, have favored a purely egalitarian apportionment, with everyone
receiving the same, although perhaps varying according to the person’s
respective needs. Others have favored differentials of one kind or another.
In Aristophanes’ spoof, the
character Praxagora says that all property “shall be
common and free, one fund for the public; then out of it we will feel and
maintain you, like housekeepers true, dispensing, and sparing, and caring for
you.”45 In keeping with
this, the anarchist George Woodcock has written that “men would get, not
according to their worth, for social worth cannot be estimated, but according
to their need, which is the only just means of sharing the goods of society.”46 But George Bernard Shaw saw that “need” is
subject to considerable latitude. “What
is enough for a gipsy is not enough for a lady,” he said. “The only way out of this difficulty is to
give everybody the same, which is the Socialist solution of the distribution
problem.”47
Lenin saw the Marxian formula “from
each according to his ability, to each according to his needs” as an ideal that
will be reached only when the dialectic of history carries humanity to a higher
level of productivity and character.
Such distribution, he said, will be possible “when people have become so
accustomed to observing the fundamental rules of social intercourse and when
their labor becomes so productive that they will
voluntarily work according to their ability.”48 Until then, payment
would have to be made to them according to their work.
Fourier argues that “hard and common
or necessary work should be best paid; useful work should come next, and
pleasant work last of all.”49 Kirkup tells
us that to Proudhon, however, every hour’s labor is equivalent to every other hour of labor: “It was his
principle that service pays service, that a day’s labor
balances a day’s labor – in other words, that the
duration of labor is the just measure of values. He did not shrink from any of the
consequences of this theory, for he would give the same remuneration to the worst
mason as to a Phidias.”50
Those socialist ideologies that have
adopted a welfare statist approach based on a mixed
economy have tended to advocate a policy of income redistribution combined with
the guarantee of a floor under all members of the society. It is along these lines that Adam Ulam has spoken of “a new and vastly different social
philosophy which holds that the state owes a minimum of maintenance to every
member of the community.”51
1.
John H. M. Laslett
and Seymour Martin Lipset (ed.s),
Failure of a Dream? Essays in the
History of American Socialism (Garden city: Anchor Press, 1974), p. 4.
2.
Benito Mussolini, My Autobiography
(London: Hutchinson & Co., 1939), pp. 317, 318.
3.
Adam
B. Ulam, Philosophical Foundations of English
Socialism (Cambridge: Harvard University Press, 1951), pp. 75, 147.
4.
Michael
Harrington, Socialism (New York: Saturday Review Press, 1970), p. 68.
5.
Thomas
Kirkup, History of Socialism (New York: The
Macmillan Company, 1909), p. 45.
6.
Edward
Bellamy, Looking Backward (New York: Signet Classic, 1960), pp. 53-54.
7.
Article
on “New Frontiers of Soviet Economic Science,” World Marxist Review,
May, 1979, pp. 116-119.
8.
Salvador
Allende, Chile’s Road to Socialism (Middlesex:
Penguin Books, 1973), p. 35, 38, 163.
9.
Article
by Predrag Vranicki,
“Socialism and the Problem of Alienation,” Socialist Humanism, Erich Fromm (ed.) (Garden City: Anchor Books, 1965), p. 313;
article by Lucien Goldmann, “Socialism and Humanism,”
Socialist Humanism, p. 50.
10.
Article
by Leopold Senghor, “Socialism is a Humanism,” Socialist Humanism, p.
60.
11.
Article
by Norman Thomas, “Humanistic Socialism and the Future,” Socialist Humanism,
p. 351.
12.
Ralph
Miliband and John Saville (ed.s), The Socialist Register 1977 (London: The
Merlin Press, 1977), p. 44.
13.
Laslett and Lipset, Failure?,
p. 12.
14.
Harrington,
Socialism, p. 295.
15.
David
Caute, The Left in Europe (Since 1789)
(New York: McGraw-Hill Book Company, 1966), p. 43.
16.
William
E. Paterson and Ian Campbell, Social Democracy in Post-War Europe (New
York: St. Martin’s Press, 1974), pp. 9, 46.
17.
Miliband and Saville, Socialist
Register 1977, p.44.
18.
Paterson
and Campbell, Social Democracy, p. 40.
19.
Ulam, Philosophical Foundations, p. 159.
20.
Werner
Sombart, A New Social Philosophy (New York:
Greenwood Press, 1969), pp. 284, 285.
21.
David
Schoenbaum, Hitler’s Social Revolution (Garden
City: Doubleday and Company, Inc.,
1966), pp. 55, 119, 157.
22.
Norman
Thomas, Socialism Re-examined (New York: W. W. Norton & Company,
Inc., 1963), pp. 137, 138, 141.
23.
Kirkup, History of Socialism, pp. 150,
151.
24.
Lewis
S. Feuer, Marx and the Intellectuals (Garden
City: Doubleday and Company, Inc., 1969), p. 193.
25.
Entry
on “Proudhon” by George Woodcock in Encyclopedia of Philosophy, Vol. 6, pp.
507-508.
26.
Albert
Fried and Ronald Sanders (ed.s.), Socialist Thought
(Garden City: Anchor Books, 1964), p. 200.
27.
Pierre-Joseph
Proudhon, Selected Writings (Garden City:
Anchor Books, 1969), pp. 181, 77.
28.
The
German Classics
(Albany,: J. B. Lyon Company, 1914), Vol. X, p. 389; George Lichtheim,
A Short History of Socialism (New York: Praeger
Publishers, 1970), p. 91.
29.
Fried
and Sanders, Socialist Thought, p. 128; Kirkup,
History of Socialism, pp. 36, 37.
30.
N.
G. Chernyshevsky, What Is To Be Done? (New York: Vintage Books, 1961), pp. 155,
158-159.
31.
Caute, The Left in Europe, p. 64.
32.
Kirkup, History of Socialism, p. 247.
33.
Leonard
I. Krimerman and Lewis Perry, Patterns of Anarchy
(Garden City: Doubleday and Company, Inc., 1966), p. 10.
34.
Fried
and Sanders, Socialist Thought, pp. 364.
35.
Famous
Utopias (New York:
Tudor Publishing Co., no year given), pp. 174-75.
36.
George
Bernard Shaw, The Intelligent Woman’s Guide to Socialism and Capitalism
(New York: Brentano’s Publishers, 1928),
p. 101.
37.
Kirkup, History of Socialism, p. 13.
38.
Jean
Jacques Rousseau, Emile (New York: J. M. Dent & Sons, Ltd., 1911),
p. 68.
39.
Schoenbaum, Hitler’s Social Revolution, p. 55.
40.
Sombart, New Social Philosophy, p. 286.
41.
R.
H. Tawney, The Acquisitive Society (New York:
Harvest Book, 1920), pp. 63-64.
42.
Edward
Bellamy, Looking Backward (New York: Modern Library, 1942), p. 92.
43.
Article
by Galvano della Volpe,
“The Legal Philosophy of Socialism,” Socialist Humanism, p. 437.
44.
Allende, Chile’s Road to Socialism, p. 19.
45.
Joseph
B. Gittler, Social Thought Among the Early Greeks
(Athens: University of Georgia Press, 1941), p. 151.
46.
Krimerman and Perry, Patterns, p. 42.
47.
Shaw,
Intelligent Woman’s Guide, pp. 47, 49.
48.
Fried
and Sanders, Socialist Thought, pp. 475-477.
49.
Kirkup, History of Socialism, p. 38.
50.
Kirkup, History of Socialism, p. 54.
51.
Ulam, Philosophical Foundations, p. 154.