Sunday, May 24, 2020

Understanding how socialism will operate

The members of the Socialist Party pride ourselves upon being an organisation of equals without a political leadership. We do not possess an executive committee which can impose its will on policy and it even lacks the authority to submit motions to conference. It has a simple housekeeping administrative function. Decisions are made by branches and conferences ratified by a full-membership referenda. All EC minutes are there to be read at our website, in full keeping with our practice of democracy and openness. We have existed as an organisation since 1904. Over these years we have had charismatic orators, skilled writers and knowledgeable theoreticians but never have these members ever form a hierarchy within the organisation. The longevity of the Socialist Party as a political organisation based on agreed goals, methods and organisational principles which has produced without interruption a monthly magazine through two world wars is an achievement that most other organisations can only aspire towards.

Many on the Left critique the practical workings (the general mechanics of it) of the free access model advocated by the Socialist Party which claims "from each according to ability, to each according to need" is a very feasible idea and that it is the necessary pre-requisite for human liberation. Most disagreement is the simplistic “human nature” argument that socialism won't work because people just ain't like that. We say people behave differently depending upon the conditions that they live in. Human behaviour reflects society.

In a society such as capitalism, people's needs are not met and reasonable people feel insecure. People tend to acquire and hoard goods because possession provides some security. People have a tendency to distrust others because the world is organised in such a dog-eat-dog manner.

If people didn't work society would obviously fall apart. To establish socialism the vast majority must consciously decide that they want socialism and that they are prepared to work in socialist society.


If people want too much? In a socialist society "too much" can only mean "more than is sustainably produced."


If people decide that they (individually and as a society) need to over-consume then socialism cannot possibly work. Under capitalism, there is a very large industry devoted to creating needs. Capitalism requires consumption, whether it improves our lives or not, and drives us to consume up to, and past, our ability to pay for that consumption. In a system of capitalist competition, there is a built-in tendency to stimulate demand to a maximum extent. Firms, for example, need to persuade customers to buy their products or they go out of business. They would not otherwise spend the vast amounts they do spend on advertising. There is also in capitalist society a tendency for individuals to seek to validate their sense of worth through the accumulation of possessions. As Marx contended, the prevailing ideas of society are those of its ruling class then we can understand why, when the wealth of that class so preoccupies the minds of its members, such a notion of status should be so deep-rooted. It is this which helps to underpin the myth of infinite demand. In socialism, status based upon the material wealth at one's command, would be a meaningless concept. Why take more than you need when you can freely take what you need? In socialism the only way in which individuals can command the esteem of others is through their contribution to society, and the more the movement for socialism grows the more will it subvert the prevailing capitalist ethos, in general, and its anachronistic notion of status, in particular.

For socialism to be established, there are two fundamental preconditions that must be met.

Firstly, the productive potential of society must have been developed to the point where, generally speaking, we can produce enough for all. This is not now a problem as we have long since reached this point. However, this does require that we appreciate what is meant by "enough" and that we do not project on to socialism the insatiable consumerism of capitalism.

Secondly, the establishment of socialism presupposes the existence of a mass socialist movement and a profound change in social outlook. It is simply not reasonable to suppose that the desire for socialism on such a large scale, and the conscious understanding of what it entails on the part of all concerned, would not influence the way people behaved in socialism and towards each other. Would they want to jeopardise the new society they had helped create? Of course not.

The first and most important point is that we are not starting from the beginning. Its not a blank sheet. We are taking over and inheriting an already existing economic system which has in place various means of determining allocations and trade-offs.


There are countless professional and trade associations and marketing boards and government departments which have the research and diagnostic tools available, not just the trade union movement of the syndicalists. All those bodies may be at present based on commerce but can be quite easily democratised, socialised and integrated organisationally.


Planning is indeed central to the idea of socialism, but socialism is the planned (consciously coordinated and not to be confused with central planning concept) production of useful things to satisfy human needs precisely instead of the production, planned or otherwise, of wealth as exchange value, commodities and capital. In socialism wealth would have simply a specific use value (which would be different under different conditions and for different individuals and groups of individuals) but it would not have any exchange, or economic, value.

Socialism does presuppose that productive resources (materials, instruments of production, sources of energy) and technological knowledge are sufficient to allow the population of the world to produce enough food, clothing, shelter and other useful things, to satisfy all their material needs.

Conventional economics deny that the potential for such a state of abundance exists.

Another important point not to overlook is that we are seeking a 'steady-state economy' which corresponds to what Marx called 'simple reproduction' - a situation where human needs were in balance with the resources needed to satisfy them. Such a society would already have decided, according to its own criteria and through its own decision-making processes, on the most appropriate way to allocate resources to meet the needs of its members. This having been done, it would only need to go on repeating this continuously from production period to production period. Production would not be ever-increasing but would be stabilised at the level required to satisfy needs. All that would be produced would be products for consumption and the products needed to replace and repair the raw materials and instruments of production used up in producing these consumer goods.


 The point about such a situation is that there will no longer be any imperative need to develop productivity, i.e. to cut costs in the sense of using less resources; nor will there be the blind pressure to do so that is exerted under capitalism through the market. Of course, technical research would continue and this would no doubt result in costs being able to be saved, but there would be no external pressure to do so or even any need to apply all new productivity enhancing techniques. Given that socialism will still need to concern itself with the efficient allocation of resources this will be achieved mostly through calculation in kind. Decentralised production entails a self-regulating system of stock control. Stocks of goods held at distribution points would be monitored, their rate of depletion providing vital information about the future demand for such goods, information which will be conveyed to the units producing these goods. The units would in turn draw upon the relevant factors of production and the depletion of these would activate yet other production units further back along the production chain. There would thus be a marked degree of automaticity in the way the system operated. The maintenance of surplus stocks would provide a buffer against unforeseen fluctuations in demand .


No comments: