Doing Away With Money

"Paper coin, that forgery
Of the title-deeds which we
Hold to something of the worth
Of the inheritance of earth."
Shelley 

Do we need money and wages? It sounds like a silly question, doesn’t it? Of course we need money and wages: we need it to pay our rent or mortgage and to buy food and clothes.

No point in the socialist case arouses such controversy as that of the abolition of money and wages. Marx identified money as one of the two main manifestations of human alienation (the other was the state) and looked forward to its abolition in a communist society where human values would apply: where the standard by which something would be considered ‘valuable’ would be human welfare. Marx also fully endorsed the slogan “Abolition of the Wages System!” a system which he regarded as a form of slavery. Money is just a means of saying ‘This is mine, not yours’

Money in various limited forms existed for hundreds of years before the advent of capitalism but because it is an indispensable element in the workings of capitalism its general usage expanded universally with the development of that system. For a start, it is the device whereby capitalism separates the worker from the fruits of his or her labour; an indispensable part of the process whereby a minority class of capitalists ration the consumption of the great majority who as workers of one sort or another produce all the real wealth of society.

Marx saw money as having two basic functions: (1) a medium of exchange or circulation, i.e. the means through which articles produced for sale get bought and sold; and (2) a measure of value, i.e. a common unit in which the value of articles produced for sale can be expressed as a price, and is thus a standard by which they can be compared. Marx also identified two kinds of paper token money: tokens that were convertible on demand into a fixed amount of the money-commodity and tokens which were not. The former created no problem. The latter, however, could create a problem if they were issued in a greater amount than the amount of the money-commodity that would otherwise circulate. In this case, if they circulated alongside gold or silver, the value of the tokens would depreciate, i.e. they would buy less than their face-value. If they were the only currency (as is the case today) this would result in a rise in the general price level, i.e. in a change in the standard of price. An inconvertible paper currency has to be managed by the government or some state institution such as a central bank which, to avoid depreciation or inflation, has to calculate the correct amount to issue. In Marx’s day the case where the only currency was paper token money was a hypothetical one which he only discussed in passing.

Marx in an early essay on the subject said, "That which exists for me through the medium of money, that which I can pay for, i.e. which money can buy, that am I, the possessor of money… If money is the bond that ties me to human life and society to me, which links me to nature and to man, is money not the bond of all bonds?" [his emphasis]

Money is at the core of human activity from the cradle to the grave. It dominates all of our lives. How often do we hear it said, “we do not have the resources”? What is meant by resources is always money. Every day politicians give lack of money as a reason why we cannot provide better health care or safe reliable trains or the many other public services that are in urgent need of improvement. This ignores the fact that productive resources are materials, means of production, transport, energy, communications and networks of infrastructure through which goods and services are produced. And all these depend on one single resource which is labour. These are the real resources on which the lives of communities depend and there is an abundance of labour to provide for needs.  Capitalist politicians  repeat their mantra “We do not have the resources” yet they are unable to see the availability of real resources because their minds are pre-occupied by the illusion that only money resources count. They imagine that real resources can only be brought into use by money, whereas the opposite is the truth. The powers of the community to solve problems can on be fully released with socialism and the abolition of money. Reliance on the imagined powers of money runs through every social problem.

To say that we cannot do without wages and the wages system is to say something which is absurd. Though it is true that wages are the means by which the workers live, it is equally true that wages are the means whereby the workers are robbed. The wage serves no other function than to render possible this robbery. It does not even record the fact that its possessor has performed his share of the world's work, for wages have a fleeting identity, and there is nothing to show how the coins they consist of are come by. Money means rationing. It is only useful when there are shortages to be rationed. No one can buy or sell air: it's free because there is plenty of it around. Food, clothing, shelter and entertainment should be free as air. But the means of rationing scarcity themselves keep the scarcity in existence. The only excuse for money is that there is not enough wealth to go round but it is the money system which makes sure there cannot be enough to go round. By abolishing money we create the conditions where money is unnecessary.

With the abolition of private property, wages, and money, it will be very easy to assure that each person shall perform his or her share of the necessary labour of production, and the "problem" of distribution then would be no problem at all.  Imagine that the world was run differently, that everything was free. Suppose you could go to the supermarket, collect the food you wanted for yourself and your family, and then just leave without having to queue at the checkouts. You’d probably choose the best-quality food without having to worry about its cost. In fact, since nobody would have to buy cheap and nasty food, all the food available would be top quality. There’d be no point in taking more than you needed, because you’d always be able to go back and get more if you ran out, and it’s just wasteful  to take lots of milk and bread, say, if you know you won’t be able to use them. This probably sounds like quite a good idea, but would this same principle work with clothes rather then food? Wouldn’t people just want masses of clothes, and always from the top designers and brand names? Quite probably people will still want to look smart and attractive, but this won’t be by wearing clothes that ‘cost a fortune’. And like food, there would be no point in having lots of clothes lying around in a wardrobe gathering dust: people would just take from the shops or warehouses what they wanted for their personal use, not what would be intended to impress others. Also, since nobody would profit from selling more clothes, there would be no relentless pushing of new fashions each year. So it’s not difficult to imagine a world without money, a world where what people consumed and enjoyed would not be limited by the size of their wage packet, where everyone could gain access to the best of everything.

 But then again, would people work in a world where there was no money and they were not getting paid? Yes, they would. The alternative, after all, would be a life of idleness, which may be great for a two-week holiday period every summer but soon becomes very boring. Work, too, would be made as enjoyable as possible, which means it would be safe, satisfying and fun. People would enjoy working with each other, never doing one kind of work for too long but appreciating the variety that can be provided. Producing useful things is pleasant in itself as evidenced by every hobbyist. In society which can land men on the moon and fire missiles across the face of the earth to within inches of a target, the technology certainly exists to do away with much of the unpleasant labour of society. Instead of research into more and more sophisticated killing machines socialism will devote resources to improving productive efficiency from the point of view of both the wealth producer and the wealth consumer. Work in socialism will be based upon voluntary co-operation and not the coercion of the wages system. The division between work (enforced drudgery) and leisure (when your time is your own) will be ended by socialism.

Are we suggesting that we should do away with money and revert to barter? No, we are not. Both money and barter are forms of exchange. Exchange is only possible when there is private property. In a society in which all wealth is owned in common there will be no property to exchange and there will therefore be no need for money or barter. The world is abundant in resources, yet poverty is the lot of the majority. The buying and selling system, based on production for profit, is economically inefficient from the point of view of those who produce the wealth. Socialism means free access to all wealth and production solely for need. This will mean that in a socialist society bread will be produced simply so that people may eat it, and not for sale on the market with a view to profit. The money and wages system is obsolete and anti-human. We cannot go back to being peasants and we should not want to. Keeping millions of people alive and well  on this planet necessitates technology. Only by intricate organization and large-scale productive techniques can we maintain abundance. Do not be afraid of machines. It is not machines which enslave, but capitalism, in whose service machines are employed. There is similarly a commonly held view that computers and automation is going to solve all our worries, that money will expire automatically as part of a "natural process of evolution". This is quite wrong. This society only new technology to increase profits and for no other reason. Employers even take machines out and put workers back in if they find that labour-power is cheaper.

 The abolition of money and wage will represent the liberation of slaves,  the dispossession of masters, i.e. the employing class and when we do away with money and wages we destroy the basis of the power of our rulers. Actually, socialists don’t just want to “abolish” money. Life without money under capitalism, where most things have to be bought, is pretty austere.What we want is to see established a system of society where money would become redundant, as it would in a society based on the common ownership and democratic control of the means for producing wealth. In such a society the principle “from each according to their ability, to each according to their needs” could apply. People would cooperate to produce what was needed to live and enjoy life and then have free access to this. The only way to live without money is to be part of genuine cooperating community where the links between people would be human not commercial,  a society-wide change not an individual lifestyle choice.