Book Review: Looking Forward

Looking Forward: Participatory Economic for the Twenty First Century by Michael Albert and Robin Hahnel. Boston, South End Press, 1991
Review by Jeff Stein [Published in Libertarian Labor Review No. 12]

The economy in the Soviet Union is a mess and always has been,” say Marxist theorists Michael Albert and Robin Hahnel. The problem isn’t with having a planned economy, but a matter of who is doing the planning. In the Soviet Union, economic planning was exclusively a power of an elite class of “coordinators” [i.e. the Communist bureaucrats]. Thus it should have come as no surprise whose interest the Soviet economy served. Instead of “coordinatorism” the authors propose a rough model of a system of economic planning in which all workers and consumers would have a voice.

The model proposed by the authors is based upon a sort of democratic bargaining in which yearly production proposals made by workplace councils are compared to yearly consumption request made by consumer councils. A series of “facilitation boards” tabulate all the proposals and revises the “prices” of goods and services in terms of additional labor required to meet consumer demands. Goods and services, for which supply is not expected to meet demands, go up in price and vice versa. The councils then revise their previous proposals based upon the new prices. This continues for several rounds or “iteration” of planning proposals until at some point an exact match is made between projected yearly production and consumption. In order to encourage a convergence towards a final plan, councils are limited by how much they can alter a previous proposal in the next round. Proposals leading in direction of convergence can be changed up to 50%. Proposals leading away from an agreement can only be changed by 25%.

To make sure that everyone benefits equally from their economic model, Albert and Hahnel propose that every worker receive an equal share of consumption and be required to work an equal number of hours. In the former case, this can be modified somewhat by local consumer councils, based upon individual needs. A local consumer council can decide to increase or decrease the share of individual members; as long as the council’s total consumption stays the same. In the case of the latter, the requirement to work an equal number of hours is accompanied by the requirement that the overall quality of working conditions also be equal for all workers. Thus every worker is required to have a “balanced job complex”, made up of an average amount of pleasant tasks and drudgery.

The idea of “balanced job complexes” comes from the traditional socialist rejection of the capitalist division of labor, which condemns most individuals to a life of dull, repetitive, often dangerous hand labor, in order to free up a minority for the more creative and artistic work. Unlike some socialists (principally other Marxists) who merely propose to ameliorate the bad side effects of the division of labor by complex wage schemes, etc., Albert and Hahnel insist on doing away with the division of labor entirely. They argue that the quality of work assignments determines the amount of power an individual worker has within the economy. People with more interesting and enjoyable jobs have more control. As the authors put it, “Classlessness and real rather than formal workplace democracy require that each worker has a job complex composed of comparably fulfilling responsibilities.the half dozen or so tasks that I regularly do must be roughly as empowering as the half dozen or so tasks that you regularly do if we are to participate as equals in council decision making.” (p.19, my emphasis)

I am sure many will find Looking Forward a thought-provoking read. However I am not so sure how useful a guide it is towards creating a self-managed social economy. The general idea of allowing everyone to take part in the planning process is good, although I don’t agree on their specific suggestions for how to implement it. I also think their suggestion for making economic planning into a sort of bargaining process through several sessions or “iterations” could be useful. However in many ways I thought their system to be far less decentralized and “participatory” than they claim it to be. The authors tend to be somewhat vague about the role of the government in enforcing their system. For instance what about a workplace council which finds the final plan so intolerable that they refuse to go along with it? Can they negotiate their own separate agreement, or will some higher authority lock them out of their facilities, cut their rations, or worse? The authors say nothing about the right to strike, not to mention the right of voluntary association, the basis of federalism.

The authors, being Marxists, still tend to be complacent about the potential for authoritarian abuses in their model. Their economic organization requires a large number of “facilitation boards”: CFCBs . “Collective Consumption Facilitation Boards,” CFBs . “Consumption Facilitation Boards”, EFBs . “Employment Facilitation Boards,” HFBs . “Housing Facilitation Boards,” IFBs . “Iteration Facilitation Boards,” PFBs . “Production Facilitation Boards,” and UFBs . “Updating Facilitation Boards.” Supposedly the facilitators have no power other than collecting information and communicating it back to society via computer networks. But there is a tremendous amount of power involved in the control of information and its flow, particularly when this information is presented as being “objective and unbiased” (even more so when it is presented as computer data . about which the authors suggest “computers never lie”). Albert and Hahnel argue that such power would not be abused since the facilitator would (theoretically) be limited to the same consumption levels as everyone else and would therefore have nothing to gain by cooking the data. The authors somehow can not envision any other reason for distorting data other than direct economic benefit, such as ideological bias or pursuit of political objectives.

It is not hard to imagine a “facilitatorism” developing if these boards do not have sufficient safeguards placed upon them. It is somewhat disturbing that Albert and Hahnel seem reluctant to insist upon even the most elementary safeguards, such as limiting the terms of board members, since [as they say] this might interfere with the need for “expertise” at facilitation. This is even more surprising considering that they see expertise in every other job as being so unnecessary that it doesn’t interfere with their “job complex” work rotation scheme at all. Apparently anybody can fly a passenger airline jet but it takes a special breed to “facilitate” society.

Even supposing the facilitator had to be changed once and a while (every four years?), however, “job complexing” would not necessarily end the division of labor. The point of doing away with divided labor is to help workers control their own work, to understand the full implications of their efforts by allowing them to play a role in the design of their products and organize their own jobs as they see fit. Thus the artificial separation between hand work and brain work, labor and management, is abolished. Albert and Hahnel, however, have devised more of a socialist job enrichment scheme in which workers would be required to move between several workplaces each week, doing one task here, one task there, as though the sum total of all these fragmented experiences would give them a sense of control over the entire economy. Spending a few hours each week picking apples will not give a construction worker a better understanding of either agriculture or the construction industry. Nor would it necessarily give farm workers more control of their industry. The influx of thousands of part-time workers with no particular knowledge of or interest in the industry, could make matters worse on the job if the part-timers had an equal vote in workplace matters and were played off against the regular workforce.

The division of labor is not negated by forcing workers to frequently change jobs. Instead of empowering workers, such a scheme could make them even more dependent on the few within industry who “facilitate” all the job rating and the rotation of work assignments. Proudhon made this point in reference to similar suggestions by utopian socialists, “As if to change ten, fifteen, twenty times a day from one kind of divided labor to another was to make labor synthetic.Even if such industrial vaulting was practicable . and it may be asserted in advance that it would disappear in the presence of making laborers responsible and therefore their functions personal . it would not change at all the physical, moral, and intellectual condition of the laborer; the dissipation would only be a surer guarantee of his incapacity and, consequently, his dependence.” (System of Economic Contradictions, Tucker, trans., p.186)

Job complexing could certainly work at the workplace level and may be desirable, but making it a strict requirement for shuffling workers between industries is incompatible with self-management. Albert and Hahnel have the relationship between power and desirable work reversed. People do not lack power at their workplaces because they do the lousy jobs; rather they do the lousy jobs because they lack power. It is far more important to discuss the distribution of decision-making within workplaces and industry, than to try to formulate an elaborate job-sharing scheme which should be left up to the workers themselves. Formal democracy hat hides an informal class system is a valid concern, but I suspect that wherever this exists it may have more to do with a minority having a monopoly on information and education and a “good ol’ boy” political network, than with the absence of a system for rating every job for some abstract enjoyment level.

Another problem with the Albert-Hahnel model is its use of the labor theory of value as a means for determining individual consumption levels. The authors are correct in making the simple observation that if society as a whole wants to consume more, that at any given technological level, some people will have to work more. It only seems fair that those who wish to do the extra consuming should have to do the extra working. A problem comes in determining exactly how much each individual’s labor is worth when production is a complex and interdependent social undertaking. Albert and Hahnel get around this problem with their “job complexing”. In theory, every hour of labor is equal to some average because every worker works at the same average level of intensity under the same average working conditions. (This certainly makes things easier for the statisticians.)

Yet even if it were possible to balance all jobs in society according to some average level (and ignoring the huge bureaucracy this might require), Albert and Hahnel sacrifice the most valid application of the labor theory of value, its connection to technological change, while they retain the theory’s negative side effect, its neglect of ecological devastation. One might say, they have kept the bath water and thrown out the baby.

Let’s take a look at the “baby”, the labor theory of value and its connection to technological change. If you wish to make goods and services more plentiful, you must economize and reduce the amount of labor required to reduce them. According to the Albert-Hahnel model, workers at workplaces who adopt more efficient labor-saving technologies would be “rewarded” by being forced to work the hours they saved at less desirable jobs in other industries. Although it is true that this is no worse than under capitalism where labor-saving technology “rewards” workers with unemployment and subsequent loss of income, the point is that under the Albert-Hahnel model workers would be reluctant to adopt new technology since they would not benefit directly. Under a socialist system it would seem that the best reward for improving productivity would be to allow workers to decrease their work hours with no loss of income.

Albert and Hahnel would probably argue that their system would still reward labor saving efforts by giving a collective benefit to all workers. If workplace A, for instance, cuts its labor needs by say five hours a week per worker, then all workers throughout society would experience some small fraction of that reduction spread out proportionally. So even though the workers at workplace A might have to work part of the time elsewhere, instead of the five hours, it might be only 4 hours and 45 minutes at the other job. Even supposing that is sufficient incentive to keep technological progress going, there still remains the problem of using labor time as a method of pricing commodities and services.

One of the criticisms used by the Marxists against any sort of market system for determining prices has been that the “law of supply and demand” creates”commodity fetishism”. Consumers only concerned with getting the most commodities for the lowest price, ignore the labor involved and that lowest price often is accompanied by maximum labor exploitation. Although a pricing system based on labor time, may make this more apparent to consumers, the labor theory of value ignores the ecological costs of goods: energy, raw materials, wastes generated, natural habitats destroyed, etc. These costs can’t be measured in labor units. Thus instead of “commodity fetishism”, Albert and Hahnel would create a “labor fetish”.

For an example of how their use of the labor theory of value ignores ecological costs, let’s use one of their own examples. In the chapter on “Participatory Allocation”, Albert and Hahnel pose the problem of an increased demand for milk. “Sometimes, however, changes will not balance so that the net increase, say, in milk demand must be communicated to milk producers, who then either produce more . by increasing work intensity, hours worked by each employee, or adding personnel . or refuse to increase production.’ (p.80) Clearly, the assumption is that increased production only requires additional human labor. But how about the cattle that actually produce this milk? How about the extra land that must be set aside to feed the cattle, perhaps wilderness and wetlands destroyed? How about the degraded water supply from the animal wastes in the run-off from feed lots or pastures? These ecological consequences can’t be factored into a labor pricing system, and therefore would not show up on the computer terminals of consumers voting on the yearly economic plan.

Looking Forward has been accused by more orthodox Marxists of being an anarcho-syndicalist inspired proposal. Unfortunately this is not so. Although the authors clearly would like to give local economic bodies some autonomy, there still lingers a central plan and a state authority in the background (one the authors claim will wither away as their system has less “need” for it). Some rather ambiguous remarks made towards that end about Cuba suggest that the authors haven’t strayed too far from the Marxist fold. At best the Albert-Hahnel model could be described as “central-planning by referendum”.

While terms like “councils” and “federations” and anarchist quotes litter the text, there is no clear understanding of these demonstrated by the authors. Looking Forward is a utopian Marxist proposal with little anarchism in it.

Bakunin: The Collectivist Tradition

Anarchist economics began with Proudhon but eventually developed into two schools of thought: anarcho-syndicalism with its emphasis on mass production industries in an urban environment, and anarchist-communism with its emphasis on egalitarian distribution and small-scale communities. Both these theories developed out of anarcho-collectivism, a radical economic federalism developed by the libertarian elements of the (First) International Workingmen’s Association. Its principal advocates were Michael Bakunin and James Guillaume, but the real credit for the theory of collectivism should go to the workers belonging to the International, who took the various socialist and trade union economic ideas of the time and modified them in light of their own experience.

The Limits of Proudhonian Economics

The collectivists shared a number of ideas with the followers of Proudhon in the International, in particular the concepts of workers self-management of industry and economic federalism. On the other hand they saw a need to go beyond the sort of utopian thinking that led the Proudhonists to believe capitalism might be transformed by the growth of worker cooperatives and mutualist credit. By the time the International was formed in 1864, worker cooperatives had been experimented with for several decades and by now were floundering. In the last years of his life, even Proudhon was forced to admit the cooperative movement was not developing as he had hoped:

Not many years later, in 1857, he severely criticized the existing workers’ associations; inspired by naive, utopian illusions, they had paid the price of their lack of experience. They had become narrow and exclusive, had functioned as collective employers, and had been carried away by hierarchical and managerial concepts. All the abuses of capitalist companies “were exaggerated further in these so-called brotherhoods.” They had been torn by discord, rivalry, defections, and betrayals. Once their managers had learned the business concerned, they retired to “set up as bourgeois employers on their own account.” In other instances, the members had insisted on dividing up the resources. In 1848 several hundred workers’ associations had been set up; nine years later only twenty remained. (Guerin, pp. 47-48)

These same observations were made by the members of the International: “The English section reported on cooperatives. Without denying the usefulness of cooperative organizations, it indicated a dangerous tendency noticeable in a majority of such bodies in England, which were beginning to develop into purely commercial and capitalist institutions, thus creating the opportunity for the birth of a new class – the working bourgeoisie.” (Maximoff, p. 47)

The small, isolated, under-capitalized worker cooperatives could barely survive in competition with their better established capitalist rivals. The few cooperatives that prospered, often betrayed their working class supporters and began to operate as though their facilities were their own private property, aided and abetted by the laws and existing capitalist businesses. The failings of the cooperatives had raised the thorny issue of how to turn the socialization of the means of production from an ideal into a practical reality. The solution suggested by the collectivists was to expropriate the means of production from the capitalists and for the workers’ associations to own these “collectively”, no longer recognizing any individual ownership rights to divide up and sell them. The third Congress of the International accordingly passed a resolution that the main purpose of the cooperatives must go beyond narrow self-interest. Instead their purpose must be support the struggle “to wrench from the hands of the capitalists the means of production and return them to their rightful owners, the workers themselves.” (Guillaume, p. 70)

As we have seen, in The Principle of Federation (1863), Proudhon began to sketch the outlines of a sort of economic federalism before he died. This did not, however, prevent his mutualist followers from trying to defend his earlier ideas. At the 1869 Basel Congress of the International, a dispute arose over a resolution calling for the collectivization of the land. The Proudhonists held out for the right of small farmers to own land privately, as long as they did not rent out the land for others to work. Tolain, speaking for the mutualists, suggested the resolution be changed to read, “The Congress declares that, to realize the emancipation of the worker, it must transform the leases of farmland…to contracts of sale: so that ownership, continually in circulation, ceases to be abusive in itself; and consequently [by ensuring the individual worker the right to the product of his labors]…safeguards the liberty of the individual groups.” (Guillaume, p. 197)

Bakunin, speaking for the collectivists, disputed the notion that private property, even in a limited form, was justified as a means for safeguarding individual rights.

…the individual is a product of society, and without society man is nothing. All productive labor is above all social labor; “production is only possible through the combination of the labor of past generations with the present generation, there is not ever labor that can be called individual labor.” He [Bakunin] is thus a supporter of collective property, not only of the soil, but of all social wealth. As for the organization of agricultural production, it is concluded by the solidarization of the communes, as proposed by the majority of the commission, all the more willingly that this solidarization implies the organization of society from the bottom upwards, while the proposition of the minority presupposes a State [to guarantee and enforce the terms of sale]. (Guillaume, p. 197)

To be fair to Proudhon and the mutualists, their waffling on the issue of private property was not so much due to ambivalence about collective ownership, as an example of the extremes they were prepared to go to avoid a revolutionary confrontation. Mutualist credit was intended to produce “a new economic arrangement” which would somehow avoid the “shock” of violent confrontation with the capitalists over their property rights. To the collectivists, who were veterans of bitter labor strikes and insurrections, this was hopelessly idealistic. Capitalism had not originated out of a peaceful, democratic debate as to how to organize production to ensure economic justice and well-being for all, but was the product of centuries of fraud, theft, and State-sponsored violence. Proudhon often ignored that these activities were as much a part of the functioning of the existing economy as was the official market side of capitalism. The State and the capitalists would not disappear with a new set of rules, since they, more often than not, did not play by their own rules.

Although Proudhon had discovered many of the contradictions of capitalist economics, his non-confrontational solutions were just too out of touch with reality. What the anarchists needed was to base their economics less on moral arguments than on a positivist materialism. As Bakunin put it:

…Proudhon remained an incorrigible idealist all his life, swayed at one moment by the Bible and at the next by Roman Law …His great misfortune was that he never studied natural science and adopted its methods….As a thinker Marx is on the right path. He has set up the principle that all religious, political and legal developments in history are not the cause but the effect of economic developments. Many others before him had a hand in the unveiling of it and even expressed it in part, but in the last resort credit is due to him for having developed the idea scientifically and having made it the basis of his whole scientific teaching. On the other hand, Proudhon understood the idea of freedom better than Marx. (Jackson, pp. 128-129)

Collectivism and Marxism

The criticism Bakunin made of Proudhon’s idealism was perhaps a kinder version of the same criticism Marx had made in The Poverty of Philosophy. It is on the basis of such statements, as well as his praise for Marx’s Capital, that some argue that Bakunin shared the economic views of Marx. In reality Bakunin and his fellow collectivists differed with Marx on economic grounds as well as on political matters. Bakunin did begin a translation of Capital into Russian, but never completed it. Had his enthusiasm for the work been as overwhelming as some claim, he would no doubt have finished it and collected the remainder of the sum agreed upon by the Russian publishing house (instead of getting expelled at the Hague Congress of the International for allegedly threatening the publisher in order to get out of the deal). A closer look at what Bakunin thought about Capital reveals his real reason for admiring the work:

…nothing, that I know of, contains an analysis so profound, so luminous, so scientific, so decisive and if I can express it thus, so merciless an expose of the formation of bourgeois capital and the systematic and cruel exploitation that capital continues exercising over the work of the proletariat. The only defect of this work…is that it has been written, in part, in a style excessively metaphysical and abstract…which makes it difficult to explain and nearly unapproachable for the majority of workers. (Bakunin, p. 195)

Bakunin, more the revolutionary than the economist, admired Capital as a great piece of revolutionary propaganda. Marx, drawing his facts and figures out of British government documents and parliamentary debates, had hoisted the capitalists by their own petards. This does not mean he endorsed it verbatim. Bakunin had earlier translated The Communist Manifesto into Russian and made no bones about his disagreements with Marx and Engels over their proposals for a centralized state socialist economy.

I am not a communist because communism concentrates and absorbs all the powers of society into the state, because it necessarily ends in the centralization of property in the hands of the state…I want society and collective property to be organized from the bottom upwards by means of free association and not from the top downwards by means of some form of authority…it is in this sense that I am a collectivist. (quoted in Cahm, p. 36)

Rather than a State or a market determining the allocation of resources and the distribution of products, the workers would decide these things themselves by free agreements among the associations. These agreements would be monitored by the communes, and industrial federations to make sure that labor was not exploited. Bakunin, however, recognized that any system of free exchange of products still held the danger of monopoly and private accumulation of wealth, particularly by the self-employed farmer or artisan, who tried to pass on land or equipment to his children. Thus he also called for the abolition of inheritance to prevent the rise of a new working class bourgeoisie.

The International debated the subject of inheritance at its Basel Congress in 1869. Marx was opposed to the International taking a position on the subject of inheritance on the grounds that once the private ownership of the means of production had been abolished (and expropriated by the workers’ government), there would be nothing left to inherit. Even worse, it implied the International would support something other than the state communism of Marx. As Eccarius, speaking for Marx, put it, “the abolition of the right of inheritance can not be the point of departure for the same social transformation: it would be too absurd to require the abolition of the law of supply and demand while continuing the state of conditions of exchange; it would be a reactionary theory in practice. By treating the laws of inheritance, we suppose necessarily that individual ownership of the means of production would continue to exist.” (Guillaume, p. 201)

Eccarius was half right. Bakunin and the other collectivists intended that something other than the state ownership of the means of production and central control would exist, but it would not necessarily be capitalist ownership nor a market economy. The full collectivization of the economy would not be carried out by a single decree, but over a generation. Abolition of wage labor by the collectivization of the capitalist employers would be the first step, but the right of the self-employed, particularly the small farmer, to their means of livelihood would be respected. To recognize this right of possession to the tools needed for one’s own labor, however, was not to recognize an ownership right that could be bought and sold or passed on to one’s children. This was the meaning behind the collectivist demand for the abolition of inheritance.

If after having proclaimed the social liquidation, we attempted to dispossess by decree millions of small farmers, they would necessarily be thrown onto the side of reaction, and in order for them to submit to the revolution, it would be necessary to employ force against them…It would be well then to leave them possessors in fact of those small parcels of which they are proprietors. But if you don’t abolish the right of inheritance what would happen? They would transfer their holdings to their children…If, to the contrary, at the same time that you would make the social liquidation… you abolish the right of inheritance what would remain with the peasants? Nothing but defacto possession, and that possession… no longer sheltered by the protective power of the state, would easily be transformed under the pressure of events and of revolutionary forces. (Bakunin, quoted by Guillaume, p. 203)

The Collectivist Economic Doctrine

Collectivism, unlike Proudhon’s Mutualism or Marxism, was not a well developed theory, the product of a single mind. Its principal advocates were socialist revolutionaries and workers caught up in the events of the time: the upheavals of 1848 which occurred throughout Europe, the birth of the labor unions, and the Paris Commune of 1871. As far as they could tell, a social revolution was not an abstract goal looming far off in the distance, but something that had to be prepared for right away. Some sort of workable economic program had to be agreed upon by the labor movement, which had broad appeal to the various socialist and labor groupings that made up the International, without locking everyone into something they might regret later. This explains why collectivism often was so sketchy in details, and some of its advocates disagreed among themselves over various points.

The closest thing to a “definitive” statement of collectivism is an essay written by James Guillaume in 1874, “Ideas on Social Organization” (see Dolgoff, pp. 356-379). Guillaume begins by emphasizing that there can be no “blueprint” for social revolution, since it must be left up to the workers themselves to decide how best to organize themselves in their own areas. However, having said that, he begins to make various suggestions about the collectivist approach. First the system of wage labor will be abolished by the workers “taking possession” of all capital and tools of production, ie. the collectivization of property. The self-employed and the owners of family businesses are to be left alone to operate as they wish, but with this important exception: “his former hired hands, if he had any, will become his partners and share with him the products which their common labor extracts from the land.” (Dolgoff, p. 359)

The internal organization of the worker collectives, working conditions, hours, distribution of responsibilities, and share of income, etc., are to be left in the hands of their members: “Each workshop, each factory, will organize itself into an association of workers who will be free to administer production and organize their work as they think best, provided that the rights of each worker are safeguarded and the principles of equality and justice are observed.” (Dolgoff, p. 363, my emphasis)

However the fact that the collectivists were willing to tolerate those groups which decided to distribute income according to hours worked, does not mean the collectivists believed in the principle, “to each according to their work.” As Guillaume makes clear, this is only justified (where it is practiced) as a temporary expedient, to discourage over-consumption during the transition period when capitalist conditions of scarcity will not yet have been overcome.

In some communities remuneration will be in proportion to hours worked; in others payment will be measured by both the hours of work and the kind of work performed; still other systems will be experimented with to see how they work out. The problem of property having been resolved, and there being no capitalists placing a tax on the labor of the masses, the question of types of distribution and remuneration become secondary. We should to the greatest possible extent institute and be guided by the principle From each according to his ability, to each according to his need. When, thanks to the progress of scientific industry and agriculture, production comes to outstrip consumption, and this will be attained some years after the Revolution, it will no longer be necessary to stingily dole out each worker’s share of goods… (Dolgoff, p. 361)

Although collectivism promotes the greatest autonomy for the worker associations, it should not be confused with a market economy. The goods produced by the collectivized factories and workshops are exchanged not according to highest price that can be wrung from consumers, but according to their actual production costs. The determination of these honest prices is to be by a “Bank of Exchange” in each community (obviously an idea borrowed from Proudhon).

…the [labor] value of the commodities having been established in advance by a contractual agreement between the regional cooperative federations [ie. industrial unions] and the various communes, who will also furnish statistics to the Banks of Exchange. The Bank of Exchange will remit to the producers negotiable vouchers representing the value of their products; these vouchers will be accepted throughout the territory included in the federation of communes. (Dolgoff, p. 366) The Bank of Exchange …[will] arrange to procure goods which the commune is obliged to get from outside sources, such as certain foodstuffs, fuels, manufactured products, etc. These outside products will be featured side by side with local goods…and all goods will be uniformly priced. [Since similar goods all have the same average labor value.] (Dolgoff, p. 367)

Although this scheme bears a strong resemblance to Proudhonian “People’s Banking,” it should be noted that the Banks of Exchange, along with a “Communal Statistical Commission,” are intended to have a planning function as well.

…each Bank of Exchange makes sure in advance that these products are in demand [in order to risk] nothing by immediately issuing payment vouchers to the producers. (p. 367) ….By means of statistics gathered from all the communes in a region, it will be possible to scientifically balance production and consumption. In line with these statistics, it will also be possible to add more help in industries where production is insufficient and reduce the number of men where there is a surplus of production. (Dolgoff, p. 370)

As conditions permit, the exchange functions of the communal banks are to be gradually replaced by the distribution of goods “in accordance with the needs of the consumers.” (p. 368) Until that point is reached, the local community has the responsibility for providing certain basic needs for everyone without regard for production done by that particular individual. Among these essential needs to be distributed freely are education, housing, health, personal security and fire protection, disaster relief, and food services. The worker collectives engaged in these essential communal services will not be required to exchange them for their “labor value,” but “will receive from the commune vouchers enabling them to acquire all commodities necessary for the decent maintenance of their members.” (Dolgoff, p. 365)

Therefore each “commune” is to provide a basic standard of living for all its members during the transitional period leading towards economic abundance. Those people desiring a higher income will be given the right of access to the means of production in order to produce goods both for themselves and for exchange. Each worker collective, however, will not have to shift for itself but will receive assistance from the communes, and local and regional industry associations.

…social organization is completed, on the one hand by the establishment of regional corporative federations comprising all the groups of workers in the same industry; and on the other by the establishment of a federation of communes….The corporative federations will unite all the workers in the same industry; they will no longer unite to protect their wages and working conditions against the onslaughts of their employers, but primarily to guarantee mutual use of the tools of production which are the property of each of these groups and which will by a reciprocal contract become the collective property of the whole corporative federation. In this way, the federation of groups will be able to exercise constant control over production, and regulate the rate of production to meet the fluctuating consumer needs of society….The statistics of production, coordinated by the statistical bureaus of every a rational manner of the hours of labor, the cost price of products and their exchange value, and the quantities in which these products should be produced to meet the needs of consumers. (Dolgoff, pp. 376-377)

A Limited Form of Communism

In his essay, “Must We Apply Ourselves with an Examination of the Ideal of a Future System?”, Peter Kropotkin pointed out that the anarcho-collectivism advocated by Bakunin, Guillaume, and the anarchists in the First International, was actually a variety of anarchist communism, but “in an altered and limited form” (Miller, p. 59). The anarcho-collectivists felt that full communism, ie. the free distribution of all goods and services, would have to wait until the economy had been reorganized and the scarcity artificially created by the capitalist market had been overcome. Until then much of production would be according to the principle of “to each workplace according to their product.” This is not the same as the state collectivists who argued for “to each worker according to their work,” and called for elaborate schemes of income hierarchy. The worst that can be said about the anarcho- collectivists, is that they were willing to tolerate income differences at various workplaces for the sake of giving each collective the autonomy to decide for themselves. This was, however, not their ideal. Even for the transition period, the anarcho-collectivist principle was income equality for all working in the same collective.

Do not the manager’s superior training and greater responsibilities entitle him to more pay and privileges than manual workers? Is not administrative work just as necessary to production as is manual labor – if not more so? Of course, production would be badly crippled, if not altogether suspended, without efficient and intelligent management. But from the standpoint of elementary justice and even efficiency, the management of production need not be exclusively monopolized by one or several individuals. And the managers are not at all entitled to more pay… (Bakunin, quoted in Dolgoff, p. 424)

A much more serious problem for collectivism is the inequality which would inevitably arise between workers due to the exchange of products. The collectivists sought to ameliorate this to a certain extent by giving the investment arm of the communes, the Banks of Exchange, a more activist role in economic planning, and by putting an income floor under all workers by providing free housing, food, and public services. However, this creates further possible sources of inequality, since the communal service workers are supposed to work in return for meeting all their needs regardless of their productivity. Thus a possible source of conflict arises between a communist service sector and an exchange-based production sector. If the production goes well, the communal workers may resent the higher incomes gained by the production workers. If production goes poorly, the production workers may resent the income security of the service workers.

For the collectivists these problems were seen as minor, if recognized at all. Guillaume, for instance, assumed that the material abundance developed during the transitional period would bring about a blossoming of morality, which would soon make the exchange economy irrelevant. Unfortunately, this begs the question, since he did not bother to define what “abundance” is and how we are to know when we have achieved it. We can safely predict that in any future economy there is virtually no limit to human desires for material goods, while there will always be limits to what society and the ecology are able to provide without causing a breakdown. “Abundance” means different things to different people. The danger is that by leaving this point of development undefined, those who may be the economic”winners” of the transitional period, may be unwilling to make the next step.

The Collectivist Legacy

The main contribution of the collectivists to anarchist economics was their attempt to anticipate many of the problems which would be encountered during the revolutionary transition from capitalism to stateless communism, and their emphasis on the need for finding a balance between ultimate goals and day-to-day realities. These methods contributed enormously to the early successes of the 1936 revolution in Spain, where the anarchist movement retained a strong collectivist tradition. The specific proposals made by Guillaume and others, while useful as an example of applying anarchist principles to existing conditions, have lost most of their relevance. We do not live in 19th century europe nor 1930s Spain, but in a high-tech economy threatened by environmental exhaustion. In most industries, technology has developed well beyond the point needed for “abundance” in 19th century terms. This makes the question of defining the minimum level of abundance all the more important for modern anarchists, as well as the more practical problem of how to go beyond a crude exchange economy during the transition.

Bibliography

Bakunin, M. Obras Completas , Volume III. Translated by Santillan, Buenos Aires, 1926.

Cahm, Caroline. Kropotkin and the Rise of Revolutionary Anarchism 1872 – 1886 . Cambridge University Press, 1989.

Dolgoff, Sam. Bakunin on Anarchism. Black Rose Books, Montreal, 1980.

Guerin, Daniel. Anarchism. Monthly Review Press, 1970.

Guillaume, James. L’Internationale : Documents et Souvenirs (1864 – 1878) . Paris, 1905. 4 volumes.

Jackson,J. Marx, Proudhon and European Socialism. Collier, New York, 1966.

Maximoff, G.P. Constructive Anarchism. Chicago, 1952.

Miller, Martin A. Selected Writings on Anarchism and Revolution: P.A. Kropotkin. M.I.T. Press, 1970.

(I would like to thank Nan DiBello for her assistance with this article.)

Market Anarchism? Caveat Emptor!

In A Structured Anarchism, John Griffin argues that an anarchist communist society, while a desirable goal in the distant future, is not practical in the short-term. This is because 1) people accustomed to a capitalist society aren’t culturally prepared for it, and 2) the modern economy is too complicated to organize without the “self-regulation” of a market system. Therefore Griffin calls for a series of short term compromises to be made with classical liberal economics, and dubs this “collectivist anarchism.”

Griffin, unfortunately, doesn’t understand collectivism nor economics in general. He manages to garble and lump together the views of Proudhon, Bakunin, and Malatesta. Bakunin was the only collectivist of the three. Proudhon was a mutualist and Malatesta, an anarchist communist. Besides mistakenly lumping them all as “collectivists,” Griffin makes an even bigger error by equating collectivism with “market anarchism.” Collectivism, however, was not based on a market economy, but on a federally coordinated system of “honest exchange” of products at their labor cost. In a market system the prices of products are determined according to their relative scarcity (ie. the “law of supply and demand”). These are not the same thing. Time and again, whether on the issue of markets or money, Griffin proves he is in no position to lecture other anarchists about their shaky grasp of economics. For instance, on page 22 he writes, “The extraction of large amounts of unearned income by the capitalists is a source of inflation, since too much money is generated to buy the available goods, thus encouraging price rises. Any inflation in a collectivist [sic] economy will not be aggravated by this spurious money growth, since those who operate it are remunerated only for work done.”

The extraction of value by the capitalist out of the workers’ gross product has nothing whatsoever to do with the money supply, since the capitalist does not print his/her own money. (In effect, Griffin is saying that a robber creates money when he steals your purse.) If what Griffin was saying were true, the history of capitalism would be one long inflationary spiral, without periodic economic depressions. On the contrary, capitalism, if not interfered with by the state, tends towards economic depressions (which cause deflation), since its constant drive to reduce workers to low wages and unemployment has a depressive effect.

In reality, the individual capitalist has very little control over the money supply, which is a source of constant consternation to the pro-laissez faire monetarists, like Hayek and Milton Friedman, so oddly respected by Griffin (p.23). The monetarists, however, do not suggest that the money supply be set according to what has been produced, since according to them only the market can determine the “true” value of these products anyway. What the monetarists argue is that the state should increase the money supply at a constant rate, so the capitalists can plan ahead without having to worry about whether the state economic planners will overreact to some minor market “adjustment.” According to classical laissez faire theory, business cycles are inevitable and the market eventually corrects itself. As for the effects these cycles have on working people and the poor in the meantime, Hayek and Friedman could bloody well care less. We should not forget the role of the “Chicago Boys” (a group of Friedman’s disciples) in running the economy of the ruthless Pinochet regime in Chile. Griffin should freely choose his mentors more carefully.

The state has always played a key role in the capitalist market and monetary systems. First its role was as a defender of private property, strike breaker of last resort, and as a foundation of a (somewhat) stable currency. More recently it has acted as a “pump primer,” business subsidizer, and money lender of the last resort. The so-called “Keynesian revolution” in capitalist economics was not the beginning of the state’s role in the economy, just an attempt to better play that role in hopes of making a more smooth running system and to stave off its collapse. Griffin himself admits that “the manipulation of the market by both the State and the Capitalists make the so-called ‘free market’ unfree.” (p.24)

Yet by making this admission, Griffin has inadvertently undermined one of his own arguments. On the one hand he attacks the anarchist communist position because “it lacks empirical justification from modern technological societies: it is not enough in my view to dwell on its great ethical strength, and gloss over organizational problems.” (p.24) But on the other, he doesn’t hold his own doctrine up to the same standard. It may be true that the market system “works” (perhaps in the since that the inhabitants of Europe and North America haven’t all starved to death so far), but as he admits it is not a “free market,” and thus cannot be used to accurately predict what might happen in an anarchist version. What of the many problems which would result when the state no longer plays even its “limited” role in the laissez faire sense? Who, for instance, would issue money in his anarcho-market economy and guarantee its value? Although Griffin cites Malatesta to back-up his claim for the necessity of money during the transition towards an anarchist economy, he apparently missed the Malatesta’s admonition that “one should seek a way to ensure that money truly represents the useful work by its possessors…” (Malatesta: Life and Ideas, edited by Richards, p. 101). Griffin, in spite of his enthusiasm for money, doesn’t address this problem.

Unlike the anarchist communists, what Griffin lacks in empirical evidence and practical concern for organizational problems, he can not make up for with “ethical strength.” For in his conciliatory approach towards market economics, he is prepared to sacrifice even the most basic anarchist principles, including the abolition of wage slavery and an end to the private ownership of the means of production: “I think we have to face up to the fact that if some people want to be employed and others want to employ them, then wage labor will continue. Recourse to coercion by anarchists not involved should in my view be regarded as a ‘cure’ which is worse than the disease. As long as libertarian cultures constitute the dominant socializing force, I do not think that the presence of small scale capitalist enterprises is very important.” (p.30)

Perhaps Griffin does not understand the implications of what he has written. We are not talking about economic individualism, self-employment or family businesses (which as long as they don’t employ non-family members, are not capitalist). The only reason workers want to be employed by capitalists is because they have no other means for making a living, no access to the means of production other than by selling themselves. For a capitalist sector to exist there must be some form of private ownership of productive resources, and a scarcity of alternatives. The workers must be in a condition of economic desperation for them to be willing to give up an equal voice in the management of their daily affairs and accept a boss. Wage labor would not be tolerated in an anarchist society anymore than extortion or blackmail, no matter how much the perpetrator might claim the victims “asked for it.” It would not take any “coercion” to get rid of wage labor either, as long as the condition for possession of any productive property is that all workers be given an equal voice in management. If not, the facility in question is given to some other group that will run things democratically.

To the extent that A Structured Anarchism was meant to stir controversy, it has succeeded. If it was meant to lay the foundation for a more practical anarchist economic alternative, it is a botched attempt. Griffin’s “collectivism” might more accurately be described as watered-down mutualism mixed with laissez faire liberal ideology.

–Jeff Stein

Bakunin on The Capitalist System

This pamphlet is an excerpt from The Knouto-Germanic Empire and the Social Revolution and included in The Complete Works of Michael Bakunin under the title “Fragment.”
This, the first complete English translation of this text, was published by ASR in 1993. It continues to be available from us as a pamphlet.
Parts of the text were originally translated into English by G.P. Maximoff for his anthology of Bakunin’s writings, with missing paragraphs translated by Jeff Stein from the Spanish edition, Diego Abad de Santillan, trans. (Buenos Aires 1926) vol. III, pp. 181-196.

Is it necessary to repeat here the irrefutable arguments of Socialism which no bourgeois economist has yet succeeded in disproving? What is property, what is capital in their present form? For the capitalist and the property owner they mean the power and the right, guaranteed by the State, to live without working. And since neither property nor capital produces anything when not fertilized by labor — that means the power and the right to live by exploiting the work of someone else, the right to exploit the work of those who possess neither property nor capital and who thus are forced to sell their productive power to the lucky owners of both.
Note that I have left out of account altogether the following question: In what way did property and capital ever fall into the hands of their present owners? This is a question which, when envisaged from the points of view of history, logic, and justice, cannot be answered in any other way but one which would serve as an indictment against the present owners. I shall therefore confine myself here to the statement that property owners and capitalists, inasmuch as they live not by their own productive labor but by getting land rent, house rent, interest upon their capital, or by speculation on land, buildings, and capital, or by the commercial and industrial exploitation of the manual labor of the proletariat, all live at the expense of the proletariat. (Speculation and exploitation no doubt also constitute a sort of labor, but altogether non-productive labor.)
I know only too well that this mode of life is highly esteemed in all civilized countries, that it is expressly and tenderly protected by all the States, and that the States, religions, and all the juridical laws, both criminal and civil, and all the political governments, monarchies and republican — with their immense judicial and police apparatuses and their standing armies — have no other mission but to consecrate and protect such practices. In the presence of these powerful and respectable authorities I cannot even permit myself to ask whether this mode of life is legitimate from the point of view of human justice, liberty, human equality, and fraternity. I simply ask myself: Under such conditions, are fraternity and equality possible between the exploiter and the exploited, are justice and freedom possible for the exploited?
Let us even suppose, as it is being maintained by the bourgeois economists and with them all the lawyers, all the worshippers and believers in the juridical right, all the priests of the civil and criminal code — let us suppose that this economic relationship between the exploiter and the exploited is altogether legitimate, that it is the inevitable consequence, the product of an eternal, indestructible social law, yet still it will always be true that exploitation precludes brotherhood and equality.
It goes without saying that it precludes economic equality. Suppose I am your worker and you are my employer. If I offer my labor at the lowest price, if I consent to have you live off my labor, it is certainly not because of devotion or brotherly love for you. And no bourgeois economist would dare to say that it was, however idyllic and naive their reasoning becomes when they begin to speak about reciprocal affections and mutual relations which should exist between employers and employees. No, I do it because my family and I would starve to death if I did not work for an employer. Thus I am forced to sell you my labor at the lowest possible price, and I am forced to do it by the threat of hunger.
But — the economists tell us — the property owners, the capitalists, the employers, are likewise forced to seek out and purchase the labor of the proletariat. Yes, it is true, they are forced to do it, but not in the same measure. Had there been equality between those who offer their labor and those who purchase it, between the necessity of selling one’s labor and the necessity of buying it, the slavery and misery of the proletariat would not exist. But then there would be neither capitalists, nor property owners, nor the proletariat, nor rich, nor poor: there would only be workers. It is precisely because such equality does not exist that we have and are bound to have exploiters.
This equality does not exist because in modern society where wealth is produced by the intervention of capital paying wages to labor, the growth of the population outstrips the growth of production, which results in the supply of labor necessarily surpassing the demand and leading to a relative sinking of the level of wages. Production thus constituted, monopolized, exploited by bourgeois capital, is pushed on the one hand by the mutual competition of the capitalists to concentrate evermore in the hands of an ever diminishing number of powerful capitalists, or in the hands of joint-stock companies which, owing to the merging of their capital, are more powerful than the biggest isolated capitalists. (And the small and medium-sized capitalists, not being able to produce at the same price as the big capitalists, naturally succumb in the deadly struggle.) On the other hand, all enterprises are forced by the same competition to sell their products at the lowest possible price. It [capitalist monopoly] can attain this two-fold result only by forcing out an ever-growing number of small or medium-sized capitalists, speculators, merchants, or industrialists, from the world of exploiters into the world of the exploited proletariat, and at the same time squeezing out ever greater savings from the wages of the same proletariat.
On the other hand, the mass of the proletariat, growing as a result of the general increase of the population — which, as we know, not even poverty can stop effectively — and through the increasing proletarianization of the petty-bourgeoisie, ex-owners, capitalists, merchants, and industrialists — growing, as I have said, at a much more rapid rate than the productive capacities of an economy that is exploited by bourgeois capital — this growing mass of the proletariat is placed in a condition wherein the workers are forced into disastrous competition against one another.
For since they possess no other means of existence but their own manual labor, they are driven, by the fear of seeing themselves replaced by others, to sell it at the lowest price. This tendency of the workers, or rather the necessity to which they are condemned by their own poverty, combined with the tendency of the employers to sell the products of their workers, and consequently buy their labor, at the lowest price, constantly reproduces and consolidates the poverty of the proletariat. Since he finds himself in a state of poverty, the worker is compelled to sell his labor for almost nothing, and because he sells that product for almost nothing, he sinks into ever greater poverty.
Yes, greater misery, indeed! For in this galley-slave labor the productive force of the workers, abused, ruthlessly exploited, excessively wasted and underfed, is rapidly used up. And once used up, what can be its value on the market, of what worth is this sole commodity which he possesses and upon the daily sale of which he depends for a livelihood? Nothing! And then? Then nothing is left for the worker but to die.
What, in a given country, is the lowest possible wage? It is the price of that which is considered by the proletarians of that country as absolutely necessary to keep oneself alive. All the bourgeois economists are in agreement on this point. Turgot, who saw fit to call himself the ‘virtuous minister’ of Louis XVI, and really was an honest man, said:
“The simple worker who owns nothing more than his hands, has nothing else to sell than his labor. He sells it more or less expensively; but its price whether high or low, does not depend on him alone: it depends on an agreement with whoever will pay for his labor. The employer pays as little as possible; when given the choice between a great number of workers, the employer prefers the one who works cheap. The workers are, then, forced to lower their price in competition each against the other. In all types of labor, it necessarily follows that the salary of the worker is limited to what is necessary for survival.” (Reflexions sur la formation et la distribution des richesses)
J.B. Say, the true father of bourgeois economists in France also said: “Wages are much higher when more demand exists for labor and less if offered, and are lowered accordingly when more labor is offered and less demanded. It is the relation between supply and demand which regulates the price of this merchandise called the workers’ labor, as are regulated all other public services. When wages rise a little higher than the price necessary for the workers’ families to maintain themselves, their children multiply and a larger supply soon develops in proportion with the greater demand. When, on the contrary, the demand for workers is less than the quantity of people offering to work, their gains decline back to the price necessary for the class to maintain itself at the same number. The families more burdened with children disappear; from them forward the supply of labor declines, and with less labor being offered, the price rises… In such a way it is difficult for the wages of the laborer to rise above or fall below the price necessary to maintain the class (the workers, the proletariat) in the number required.” (Cours complet d’ economie politique)
After citing Turgot and J.B. Say, Proudhon cries: “The price, as compared to the value (in real social economy) is something essentially mobile, consequently, essentially variable, and that in its variations, it is not regulated more than by the concurrence, concurrence, let us not forget, that as Turgot and Say agree, has the necessary effect not to give to wages to the worker more than enough to barely prevent death by starvation, and maintain the class in the numbers needed.”1
The current price of primary necessities constitutes the prevailing constant level above which workers’ wages can never rise for a very long time, but beneath which they drop very often, which constantly results in inanition, sickness, and death, until a sufficient number of workers disappear to equalize again the supply of and demand for labor. What the economists call equalized supply and demand does not constitute real equality between those who offer their labor for sale and those who purchase it. Suppose that I, a manufacturer, need a hundred workers and that exactly a hundred workers present themselves in the market — only one hundred, for if more came, the supply would exceed demand, resulting in lowered wages. But since only one hundred appear, and since I, the manufacturer, need only that number — neither more nor less — it would seem at first that complete equality was established; that supply and demand being equal in number, they should likewise be equal in other respects. Does it follow that the workers can demand from me a wage and conditions of work assuring them of a truly free, dignified, and human existence? Not at all! If I grant them those conditions and those wages, I, the capitalist, shall not gain thereby any more than they will. But then, why should I have to plague myself and become ruined by offering them the profits of my capital? If I want to work myself as workers do, I will invest my capital somewhere else, wherever I can get the highest interest, and will offer my labor for sale to some capitalist just as my workers do.
If, profiting by the powerful initiative afforded me by my capital, I ask those hundred workers to fertilize that capital with their labor, it is not because of my sympathy for their sufferings, nor because of a spirit of justice, nor because of love for humanity. The capitalists are by no means philanthropists; they would be ruined if they practiced philanthropy. It is because I hope to draw from the labor of the workers sufficient profit to be able to live comfortably, even richly, while at the same time increasing my capital — and all that without having to work myself. Of course I shall work too, but my work will be of an altogether different kind and I will be remunerated at a much higher rate than the workers. It will not be the work of production but that of administration and exploitation.
But isn’t administrative work also productive work? No doubt it is, for lacking a good and an intelligent administration, manual labor will not produce anything or it will produce very little and very badly. But from the point of view of justice and the needs of production itself, it is not at all necessary that this work should be monopolized in my hands, nor, above all, that I should be compensated at a rate so much higher than manual labor. The cooperative associations already have proven that workers are quite capable of administering industrial enterprises, that it can be done by workers elected from their midst and who receive the same wage. Therefore if I concentrate in my hands the administrative power, it is not because the interests of production demand it, but in order to serve my own ends, the ends of exploitation. As the absolute boss of my establishment I get for my labor ten or twenty times more than my workers get for theirs, and this is true despite the fact that my labor is incomparably less painful than theirs.
But the capitalist, the business owner, runs risks, they say, while the worker risks nothing. This is not true, because when seen from his side, all the disadvantages are on the part of the worker. The business owner can conduct his affairs poorly, he can be wiped out in a bad deal, or be a victim of a commercial crisis, or by an unforeseen catastrophe; in a word he can ruin himself. This is true. But does ruin mean from the bourgeois point of view to be reduced to the same level of misery as those who die of hunger, or to be forced among the ranks of the common laborers? This so rarely happens, that we might as well say never. Afterwards it is rare that the capitalist does not retain something, despite the appearance of ruin. Nowadays all bankruptcies are more or less fraudulent. But if absolutely nothing is saved, there are always family ties, and social relations, who, with help from the business skills learned which they pass to their children, permit them to get positions for themselves and their children in the higher ranks of labor, in management; to be a state functionary, to be an executive in a commercial or industrial business, to end up, although dependent, with an income superior to what they paid their former workers.
The risks of the worker are infinitely greater. After all, if the establishment in which he is employed goes bankrupt, he must go several days and sometimes several weeks without work, and for him it is more than ruin, it is death; because he eats everyday what he earns. The savings of workers are fairy tales invented by bourgeois economists to lull their weak sentiment of justice, the remorse that is awakened by chance in the bosom of their class. This ridiculous and hateful myth will never soothe the anguish of the worker. He knows the expense of satisfying the daily needs of his large family. If he had savings, he would not send his poor children, from the age of six, to wither away, to grow weak, to be murdered physically and morally in the factories, where they are forced to work night and day, a working day of twelve and fourteen hours.
If it happens sometimes that the worker makes a small savings, it is quickly consumed by the inevitable periods of unemployment which often cruelly interrupt his work, as well as by the unforeseen accidents and illnesses which befall his family. The accidents and illnesses that can overtake him constitute a risk that makes all the risks of the employer nothing in comparison: because for the worker debilitating illness can destroy his productive ability, his labor power. Over all, prolonged illness is the most terrible bankruptcy, a bankruptcy that means for him and his children, hunger and death.
I know full well that under these conditions that if I were a capitalist, who needs a hundred workers to fertilize my capital, that on employing these workers, all the advantages are for me, all the disadvantages for them. I propose nothing more nor less than to exploit them, and if you wish me to be sincere about it, and promise to guard me well, I will tell them:
“Look, my children, I have some capital which by itself cannot produce anything, because a dead thing cannot produce anything. I have nothing productive without labor. As it goes, I cannot benefit from consuming it unproductively, since having consumed it, I would be left with nothing. But thanks to the social and political institutions which rule over us and are all in my favor, in the existing economy my capital is supposed to be a producer as well: it earns me interest. From whom this interest must be taken — and it must be from someone, since in reality by itself it produces absolutely nothing — this does not concern you. It is enough for you to know that it renders interest. Alone this interest is insufficient to cover my expenses. I am not an ordinary man as you. I cannot be, nor do I want to be, content with little. I want to live, to inhabit a beautiful house, to eat and drink well, to ride in a carriage, to maintain a good appearance, in short, to have all the good things in life. I also want to give a good education to my children, to make them into gentlemen, and send them away to study, and afterwards, having become much more educated than you, they can dominate you one day as I dominate you today. And as education alone is not enough, I want to give them a grand inheritance, so that divided between them they will be left almost as rich as I. Consequently, besides all the good things in life I want to give myself, I also want to increase my capital. How will I achieve this goal? Armed with this capital I propose to exploit you, and I propose that you permit me to exploit you. You will work and I will collect and appropriate and sell for my own behalf the product of your labor, without giving you more than a portion which is absolutely necessary to keep you from dying of hunger today, so that at the end of tomorrow you will still work for me in the same conditions; and when you have been exhausted, I will throw you out, and replace you with others. Know it well, I will pay you a salary as small, and impose on you a working day as long, working conditions as severe, as despotic, as harsh as possible; not from wickedness — not from a motive of hatred towards you, nor an intent to do you harm — but from the love of wealth and to get rich quick; because the less I pay you and the more you work, the more I will gain.”
This is what is said implicitly by every capitalist, every industrialist, every business owner, every employer who demands the labor power of the workers they hire.
But since supply and demand are equal, why do the workers accept the conditions laid down by the employer? If the capitalist stands in just as great a need of employing the workers as the one hundred workers do of being employed by him, does it not follow that both sides are in an equal position? Do not both meet at the market as two equal merchants — from the juridical point of view at least — one bringing a commodity called a daily wage, to be exchanged for the daily labor of the worker on the basis of so many hours per day; and the other bringing his own labor as his commodity to be exchanged for the wage offered by the capitalist? Since, in our supposition, the demand is for a hundred workers and the supply is likewise that of a hundred persons, it may seem that both sides are in an equal position.
Of course nothing of the kind is true. What is it that brings the capitalist to the market? It is the urge to get rich, to increase his capital, to gratify his ambitions and social vanities, to be able to indulge in all conceivable pleasures. And what brings the worker to the market? Hunger, the necessity of eating today and tomorrow. Thus, while being equal from the point of juridical fiction, the capitalist and the worker are anything but equal from the point of view of the economic situation, which is the real situation. The capitalist is not threatened with hunger when he comes to the market; he knows very well that if he does not find today the workers for whom he is looking, he will still have enough to eat for quite a long time, owing to the capital of which he is the happy possessor. If the workers whom he meets in the market present demands which seem excessive to him, because, far from enabling him to increase his wealth and improve even more his economic position, those proposals and conditions might, I do not say equalize, but bring the economic position of the workers somewhat close to his own — what does he do in that case? He turns down those proposals and waits. After all, he was not impelled by an urgent necessity, but by a desire to improve his position, which, compared to that of the workers, is already quite comfortable, and so he can wait. And he will wait, for his business experience has taught him that the resistance of workers who, possessing neither capital, nor comfort, nor any savings to speak of, are pressed by a relentless necessity, by hunger, that this resistance cannot last very long, and that finally he will be able to find the hundred workers for whom he is looking — for they will be forced to accept the conditions which he finds it profitable to impose upon them. If they refuse, others will come who will be only too happy to accept such conditions. That is how things are done daily with the knowledge and in full view of everyone.
If, as a consequence of the particular circumstances that constantly influence the market, the branch of industry in which he planned at first to employ his capital does not offer all the advantages that he had hoped, then he will shift his capital elsewhere; thus the bourgeois capitalist is not tied by nature to any specific industry, but tends to invest (as it is called by the economists — exploit is what we say) indifferently in all possible industries. Let’s suppose, finally, that learning of some industrial incapacity or misfortune, he decides not to invest in any industry; well, he will buy stocks and annuities; and if the interest and dividends seem insufficient, then he will engage in some occupation, or shall we say, sell his labor for a time, but in conditions much more lucrative than he had offered to his own workers.
The capitalist then comes to the market in the capacity, if not of an absolutely free agent, at least that of an infinitely freer agent than the worker. What happens in the market is a meeting between a drive for lucre and starvation, between master and slave. Juridically they are both equal; but economically the worker is the serf of the capitalist, even before the market transaction has been concluded whereby the worker sells his person and his liberty for a given time. The worker is in the position of a serf because this terrible threat of starvation which daily hangs over his head and over his family, will force him to accept any conditions imposed by the gainful calculations of the capitalist, the industrialist, the employer.
And once the contract has been negotiated, the serfdom of the workers is doubly increased; or to put it better, before the contract has been negotiated, goaded by hunger, he is only potentially a serf; after it is negotiated he becomes a serf in fact. Because what merchandise has he sold to his employer? It is his labor, his personal services, the productive forces of his body, mind, and spirit that are found in him and are inseparable from his person — it is therefore himself. From then on, the employer will watch over him, either directly or by means of overseers; everyday during working hours and under controlled conditions, the employer will be the owner of his actions and movements. When he is told: “Do this,” the worker is obligated to do it; or he is told: “Go there,” he must go. Is this not what is called a serf?
M. Karl Marx, the illustrious leader of German Communism, justly observed in his magnificent work Das Kapital 2 that if the contract freely entered into by the vendors of money —in the form of wages — and the vendors of their own labor —that is, between the employer and the workers — were concluded not for a definite and limited term only, but for one’s whole life, it would constitute real slavery. Concluded for a term only and reserving to the worker the right to quit his employer, this contract constitutes a sort of voluntary and transitory serfdom. Yes, transitory and voluntary from the juridical point of view, but nowise from the point of view of economic possibility. The worker always has the right to leave his employer, but has he the means to do so? And if he does quit him, is it in order to lead a free existence, in which he will have no master but himself? No, he does it in order to sell himself to another employer. He is driven to it by the same hunger which forced him to sell himself to the first employer. Thus the worker’s liberty, so much exalted by the economists, jurists, and bourgeois republicans, is only a theoretical freedom, lacking any means for its possible realization, and consequently it is only a fictitious liberty, an utter falsehood. The truth is that the whole life of the worker is simply a continuous and dismaying succession of terms of serfdom — voluntary from the juridical point of view but compulsory in the economic sense — broken up by momentarily brief interludes of freedom accompanied by starvation; in other words, it is real slavery.
This slavery manifests itself daily in all kinds of ways. Apart from the vexations and oppressive conditions of the contract which turn the worker into a subordinate, a passive and obedient servant, and the employer into a nearly absolute master — apart from all that, it is well known that there is hardly an industrial enterprise wherein the owner, impelled on the one hand by the two-fold instinct of an unappeasable lust for profits and absolute power, and on the other hand, profiting by the economic dependence of the worker, does not set aside the terms stipulated in the contract and wring some additional concessions in his own favor. Now he will demand more hours of work, that is, over and above those stipulated in the contract; now he will cut down wages on some pretext; now he will impose arbitrary fines, or he will treat the workers harshly, rudely, and insolently.
But, one may say, in that case the worker can quit. Easier said than done. At times the worker receives part of his wages in advance, or his wife or children may be sick, or perhaps his work is poorly paid throughout this particular industry. Other employers may be paying even less than his own employer, and after quitting this job he may not even be able to find another one. And to remain without a job spells death for him and his family. In addition, there is an understanding among all employers, and all of them resemble one another. All are almost equally irritating, unjust, and harsh.
Is this calumny? No, it is in the nature of things, and in the logical necessity of the relationship existing between the employers and their workers.

Notes:
1. Not having to hand the works mentioned, I took these quotes from la Histoire de la Revolution de 1848, by Louis Blanc. Mr. Blanc continues with these words: “We have been well alerted. Now we know, without room for doubt, that according to all the doctrines of the old political economy, wages cannot have any other basis than the regulation between supply and demand, although the result is that the remuneration of labor is reduced to what is strictly necessary to not perish by starvation. Very well, and let us do no more than repeat the words inadvertently spoken in sincerity by Adam Smith, the head of this school: It is small consolation for individuals who have no other means for existence than their labor.” (Bakunin)
2. Das Kapital, Kritik der politischen Oekonomie, by Karl Marx; Erster Band. This work will need to be translated into French, because nothing, that I know of, contains an analysis so profound, so luminous, so scientific, so decisive, and if I can express it thus, so merciless an expose of the formation of bourgeois capital and the systematic and cruel exploitation that capital continues exercising over the work of the proletariat. The only defect of this work… positivist in direction, based on a profound study of economic works, without admitting any logic other than the logic of the facts — the only defect, say, is that it has been written, in part, but only in part, in a style excessively metaphysical and abstract… which makes it difficult to explain and nearly unapproachable for the majority of workers, and it is principally the workers who must read it nevertheless. The bourgeois will never read it or, if they read it, they will never want to comprehend it, and if they comprehend it they will never say anything about it; this work being nothing other than a sentence of death, scientifically motivated and irrevocably pronounced, not against them as individuals, but against their class. (Bakunin)

Welcome to Anarcho-Syndicalist Review

(from ASR 25)

Welcome to the first issue of the Anarcho-Syndicalist Review, continuing the Libertarian Labor Review. Founded by the late Sam Dolgoff (1902-1990) and three members of the present editorial collective, LLR began twice-yearly publication in 1986. The name change reflects our desire to avoid confusion with the laissez-faire capitalist Libertarian Party in the U.S., none of whose values we share, and to more clearly communicate our political tradition. The move to quarterly publication (February, May, August and November) reflects an increase in the amount of decent copy coming our way (but with additional material still needed, especially from overseas), along with a felt need for more timely analysis of current events. Other changes include a new format, a larger print run, and the gradual addition of corresponding editors to allow broader coverage. At $15 a year for four issues, including first-class postage, the subscription price remains a bargain, and is possible because with the exception of our (union) printer, no one involved in the publication is paid, and because we continue to receive much-needed and appreciated donations from our readers, acknowledged in each issue.

ASR remains a forum for non-sectarian, critical – and we hope, informed and constructive – discussion of anarcho-syndicalist theory and practice. We are not affiliated with, sponsored by, or the mouth-piece of, any organization. Our outlook is internationalist. We stand in solidarity with working people everywhere, and in particular with those who, rejecting both state capitalism and state socialism as proven threats to the health of people and planet alike, seek peace and justice for themselves and their fellow workers through international labor solidarity. At the local level, we support efforts by working people to improve the quality of our daily lives through education, mutual aid, direct action, and above all organizing – ultimately seeking to take control of our workplaces and communities in a world without bosses.

ASR welcomes articles, interviews, news items, and reviews — and readers’ responses to all of them – which examine significant moments in our movement’s history, propose and analyze libertarian solutions to wage slavery and other aspects of economic exploitation, and offer radical alternatives.

State capitalists and state socialists alike have done their best to write anarcho-syndicalist achievements out of history for most of this century. As a result, the immense, unstoppable power available to – and on numerous past occasions, successfully exercised by – working people organized in industrial unions is hard for many to appreciate today. It must be a responsibility of ASR to show how transport workers, education workers, agricultural workers, computer workers, construction workers, healthcare workers, and so on, acting together, can bring the current exploitative, dog-eat-dog system grinding to a halt, starting it up again in a form that replaces war with peace, competition with cooperation, scarcity with plenty, oppression with freedom, hatred with mutual understanding and respect. Without such mass-based syndicalist organizations, life in egalitarian, anarchist communities will remain but a dream for the many, and a realistic option only for the relatively privileged few – those able and willing to retreat to tiny anarchist enclaves amidst a sea of “free market” misery.

Pushed for concrete examples of our theories at work, anarcho-syndicalists typically point with pride to past successes of large revolutionary industrial unions in Europe and North America. Unfortunately, however, the notorious corruption endemic in so many (although not all) craft, or trade, unions, including their handsomely paid leaders’ frequent collaboration with the very governments and employers who oppress their members, plus the anti-union socialization experienced on a daily basis through state schooling and the corporate-owned mass media, have together conspired to make “union” a dirty word for many of the very people who need one most. Fundamental differences between trade/craft unions and industrial unions are unknown to them, as are the mechanisms by which unions can be made wholly accountable to the rank and file. One of our crucial missions is to help educate people in these areas.

Disagreements exist, even among anarchists, as to whether such “reformist” activities as taking part in the work of “business” unions, utilization of state-sanctioned legal remedies for unfair labor practices, or even participation in the state-sanctioned party political process, is ever justifiable, and if so, when and how? ASR will not shrink from discussion of such issues, and welcomes contributions on them from readers. The interview with Noam Chomsky in this issue (#25) explicitly focuses on several of them, and #26 will include commentaries from some members of the Editorial Collective, as well as, it is hoped, from readers.

Nor will ASR evade critical re-examination of anarcho-syndicalist theory and practice in general. What does anarcho-syndicalism have to offer for the third millennium as a vision of the kind of sustainable, cooperative society in which we would like to live and in which we would like future generations to be able to choose to live, and what does it offer as a means of getting from here to there? What are the fundamental principles, strategies and goals of anarcho-syndicalism, and of revolutionary industrial unionism in general? Which of those principles, strategies and goals are unique, and which shared by anarchists and/or by working people of any stripe? Which, if any, are in need of modification in light of changed, and rapidly changing, economic, social, and environmental conditions, when applied in agricultural, service, or manufacturing sectors, when adopted by men or women, by workers of differing religious beliefs or cultural practices, in urban or rural settings, or in first or third world societies? And to what extent are the practices of the current international revolutionary union movement congruent with those principles, strategies and goals?

In the years to come, we hope you will join us as we explore these and other issues, both as readers and writers, and importantly, too, as subscribers. Copies of ASR sold through bookstores barely cover the costs of printing them. If those copies were placed there by our paid bulk distributors, we actually lose money on each copy (though, of course, less than if they go unsold altogether). So if you like what you read in ASR, please consider taking out a regular subscription, and perhaps buying one for a friend, and if you have access, recommending it to your friendly neighborhood librarian.

In solidarity,
The ASR Editorial Collective
May 1, 1999

Site under (re)construction

Our original web site (syndicalist.org) has been hijacked, and our web hosting service’s hard drive was recently fried, destroying our web site. We are in the process of rebuilding this site. We are adding content day by day. Many links do not work. We are working on restoring functionality on these features, and will update this post as progress continues.

The Links page has now been updated, and all links should be fully functional. Please advise us if you find any problems. We would also welcome suggestions for additional sites that should be included.

The Shopping Cart should now be operational, allowing you to purchase the current issue or any back issue of ASR. The ASR Archives tab lists complete tables of contents for our back issues, dating back to 1986, though at present they load slowly from an external site. The “Browse Products” menu (under the shopping cart, on the right side of the screen) lists several books and other items available from us, which we believe are now activated for online ordering. We continue to work on improving this functionality.