Socialism, Part Five: What It May Look Like, or Visions of a Better Kind of Society Without Employers

The following is a continuation of previous posts on the possible nature of socialism that excludes the power of employers as a class.

In the following, Tony Smith elaborates on the right of use by workers of the places, machinery and so forth where they work, but with the local community being the owner of local resources (and regional and national communities being the owners of regional and national enterprises of regional or national scope). From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 304:

(iv) Workers in enterprises are granted use rights to facilities and other
means of production. But ultimate ownership rights remain with the local
community. Workers cannot use their enterprise as a cash cow and then walk
away; they have a legal duty to maintain the value of the community’s
investments. If sufficient depreciation funds cannot be appropriated from
revenues to maintain the value of these investments, it is the responsibility
of community banks to shut down an enterprise. Once depreciated funds
have been deducted, the remainder of the revenues from public allocations
or sales in consumer/producer markets (apart from the taxes to be considered
below) are then distributed among the members of the collective according
to formulae set by the democratically accountable management

Since the workers are the trustees of the workplaces and not their owners, each year, the workers in the sector that produces either consumer goods for the market or the raw material, machines and so forth required to produce both themselves and consumer goods, have to set aside a certain amount of the proceeds from sales to purchase worn out means of production. The workers must also include in that depreciation fund a fund for repairs.

Workers have a responsibility to the present community and to future communities to maintain the general conditions for the continued livelihood of the community. This means that any cooperative that fails to maintain the value of the means of production must be closed down, and workers in such cooperatives must find work in another, more viable cooperative.

The sales revenue will be distributed generally into three parts: (1) the depreciation fund, (2) a tax on capital assets (which will be explained in another post), and a residual of what is called profits, to be distributed to the members of the cooperative as their personal income according to distribution rules created by themselves. (There also may be income tax and consumption tax, but I will not address that).


Socialism, Part Four: What It May Look Like, or Visions of a Better Kind of Society Without Employers

The following is a continuation of previous posts on the possible nature of socialism that excludes the power of employers as a class.

In the following, Tony Smith elaborates on the democratic nature of the workplace, which is subject to control not only by the workers at the particular workplace electing managers but also by certain community organizations that represent specific community interests. From Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 303:

(iii) Worker collectives produce public goods, inputs into the production process, or final consumption goods. Funds for the first are directly allocated to collectives by the relevant planning agencies (see below). The latter two categories of products are offered for sale in producer and consumer markets. In Schweickart’s view, attempts to centrally plan all inputs and outputs in a top-down fashion are simply not feasible, at least not in a complex and dynamic economy. But it does not follow that capitalist market societies are the only acceptable forms of economic organisation. It is possible to imagine a feasible and normatively attractive society combining markets with the socialisation of the means of production, that is, a society making use of producer and consumer markets after abolishing both capital markets and
labour markets.

In addition to the elimination of a market for workers and management of work enterprises being accountable to work councils and community councils, capital markets in the sense of an investment process owned by a minority would no longer exist. There would, nonetheless, be markets that produced means of production and markets that produced consumption goods. For example, at the brewery where I worked, the workers who produced the soaker or the filler that the brewery workers used would be subject to competition from other workers who produce soakers or fillers. Workers in the brewery would be subject to competition from workers in other breweries.

Unfortunately, Smith does not elaborate much on what he means by the abolition of capital markets. His reference to David Schweickart’s work Against Capitalism, however, gives a clue to what he means. Schweikart has the following to say (page 172):

First, we issue a decree abolishing all enterprise obligations to pay interest or stock dividends to private individuals or private institutions.

This decree will need no enforcement, since enterprises are not going to insist on paying what they are no longer legally obligated to pay.

But Schweickart sees a flaw in the abolition of all capital markets, at least immediately (page 173):

6.3.2 Once More, This Time with Feeling (for the Stockholders)

Too Simple? Of course. The above is not meant to be a realistic scenario. Above all, it fails to take into account the fact that millions of ordinary citizens (not only capitalists) have resources tied up in the financial markets. People with savings accounts or holdings in stocks and bonds have been counting on their dividend and interest checks. (Nearly half of all American households have direct or indirect holdings in the stock market, mostly in pension plans.) Eliminating all dividend and interest income-which is what Radical Quick does-will not strike these fellow citizens as a welcome reform. Let us run through our story again, this time complicating it to take into account their legitimate concerns.

Schweickart, realistically, recognizes that workers have investments in capital markets and hence are in some ways tied to such markets. His solution is to imagine a situation where at least the key corporations, due to the circumstances of a crisis, would be subject to elimination from capital markets (pages 173-174):

Let me first set the stage a little more fully than I did with Radical Quick. Let us suppose that a genuine counterproject to capitalism has developed, and that, gradually gaining in strength, it has been able to elect a leftist government that has put most of the reforms outlined earlier in this chapter on the table and has secured the passage of some of them. Suppose investors decide they’ve had enough and begin cashing in their stock holdings. A stock-market crash ensues. In reaction, the citizenry decide that they too have had enough-and give their leftist government an even stronger mandate to take full responsibility for an economy now tumbling into crisis.

Our new government declares a bank holiday, pending reorganization (as Roosevelt did following his election in 1932). All publicly traded corporations are declared to be worker-controlled. Note: This control extends only to corporations, not to small businesses or even to privately held capitalist firms. It is decided that it will be sufficient  to redefine property rights only in those firms for which ownership has already been largely separated from management. (With the “commanding heights” of the economy now democratized, most other firms can be expected to come under increased pressure from their own workers, over time, to follow suit.)

The exact way in which capital markets would be reduced and eventually abolished would vary across time and place, depending on circumstances.

As I have emphasized throughout this blog, though, it is much less likely that workers will be receptive to a call for the elimination of capital markets and markets for workers unless they find the situation to be unfair. The ideology of the social-reformist left consistently makes reference to fairness within the limits of the employer-employee relation. We need to break with such ideology if we are to initiate such a process without having to respond erratically when a crisis hits.

Or are there alternatives? What do you think?

 

Socialism, Part Three: What It May Look Like, or Visions of a Better Kind of Society Without Employers

The following is a continuation of an earlier post (Socialism, Part Two: What It May Look Like) about the nature of socialism–which is a solution to problems that capitalism, characterized by the domination of a class of employers, cannot solve. Socialism is not something that emerges from a utopian view independently of the nature of capitalism but requires a critical approach to capitalism.

In the following, Michael Perelman contrasts what many people experience in their lives: their own contrast between an activity which they enjoy doing and their experience working for an employer, which they often enough find to be draining.

From Michael Perelman, The Invisible Handcuffs of Capitalism: How Market Tyranny Stifles the Economy by Stunting Workers (New York: Monthly Review Press, 2011),

Just What Is Work?

To understand the potential for transforming the economy, consider a simple example that does not require much of a stretch of the imagination. Just think of the enormous contrast between farm work for wages and gardening as a hobby. Farm work is considered to be so abhorrent in the United States that we regularly hear that only foreign-born workers are willing to perform it. Supposedly, upstanding citizens of the United States would never subject themselves to the life of a farm worker for poverty wages.

While farm labor may be among the hardest, most dangerous work in our society, many people regard gardening as a pleasant diversion. While the United Farm Workers Union represents mostly downtrodden workers, a good number of wealthy people are proud affiliates of their blue-blood garden clubs. Over and above the time they spend in their gardens, many gardeners enthusiastically devote considerable leisure time to conversing or reading in order to become better gardeners. In addition, many gardeners also willingly spend substantial sums for equipment and supplies to use in their gardens.

What, then, is the underlying difference between farm work and gardening? Farm work typically entails hard physical labor, but many gardeners also exert themselves in their gardens. The difference lies in the context of gardening. Gardeners, unlike farm workers, freely choose to be gardeners. During the time they work in their gardens, they want to be gardening. Nobody tells them what to do. Gardeners are producing for themselves rather than for someone else who will benefit from their work.

As the psychologist John Neulinger says: “Everyone knows the difference between doing something because one has to and doing something because one wants to.”43 We should also keep in mind that society respects gardeners. Our newspapers regularly print features of interest to gardeners. Some even have special sections to appeal to their affluent gardening readers. All the while, the lives of farm workers pass virtually unnoticed. In our society, farm work is never “respectable” work; well-to-do families would not approve of their children becoming farm workers.
Of course, gardeners are not entirely free to follow their whims. The rhythms of the seasons and the sudden shifts in the weather dictate some of what the gardeners do, but gardeners generally accept these demands beforehand. …

As suggested earlier, the key to the Procrustean trap is not the threat of physical force but rather the inability to imagine anything outside of the constrained present circumstances. The willingness to take seriously Margaret Thatcher’s preposterous claim—“There is no alternative”—perfectly sums up this state of mind.

A writer for Bloomberg.com reminisced about Thatcher’s Procrustean destructive success:

Of course, it’s possible to change a society and to drag it into the global economic monoculture. Mrs. Thatcher showed how: Break up collectives and make people feel a little bit more alone in the world. Cut a few holes in the social safety net. Raise the status of money-making, and lower the status of every other activity. Stop giving knighthoods to artists and start giving them to department-store moguls. Stop listening to intellectuals and start listening to entrepreneurs and financiers.
Stick to the plan long enough and the people who are good at making money acquire huge sums and, along with them, power. In time, they become the culture’s dominant voice. And they love you for it.46

Thatcher’s scheme actually worked. Her acolytes were so convinced that the mere utterance of Thatcher’s acronym TINA seemed sufficient to cut off any debate with skeptics.

The social-democratic or social-reformist left in Toronto certainly has reinforced the TINA principle. The so-called radical left, by keeping silent out of fear of becoming isolated, themselves becomes part of the social-democratic left. They, like the social-reformist left, provide no real alternative vision to the oppressive and exploitative nature of work characteristic of the power of employers as a class.

In fact, through their silence and their lack of criticism, they contribute to the perpetuation of class rule. They are, practically, social reformists who will never go beyond the existing class system despite their rhetoric of class struggle and struggle from below.

 

 

Socialism, Part Two: What It May Look Like

The following is a continuation of an earlier post (Socialism, Part One: What It May Look Like) about the nature of socialism–which is a solution to problems that capitalism, characterized by the domination of a class of employers, cannot solve. Socialism is not something that emerges from a utopian view independently of the nature of capitalism but requires a critical approach to capitalism.

In the following, Tony Smith elaborates on the democratic nature of the workplace, which is subject to control not only by the workers at the particular workplace electing managers but also by certain community organizations that represent specific community interests. From  Globalisation: A Systematic Marxian Account (2006. Boston: Brill), page 303:

(ii) Managers of worker collectives are democratically accountable to those
over whom they exercise authority, either through direct elections or through
appointment by a workers’ council that is itself directly elected. These
enterprises are required to have representatives from a range of social
movements (environmental groups, consumer groups, feminist groups, and
so on) on their boards of directors, accountable to those movements.

What do you think of such proposals? How do they relate to democracy? To the lack of democracy in your life? Do you think that such proposals are worth fighting for?

 

 

The Educational Needs of the Labour Movement: A Radical Imagination

The radical left in Toronto (and probably elsewhere) has failed to engage in the radical imagination. When I participated as a facilitator in a few educational workshops for some workers and worker representatives at the Greater Toronto Airport Authority (GTAA), two other leftists  and I created a program that included three sections on capitalism. The first section dealt with the capitalist class (a part of the class of employers), the second section with the working class and the third section with the capitalist state (or capitalist government). It was a two-day session.

The next session, however, was reduced to only one day. The sections on the capitalist class, the working class and the capitalist state or government were omitted. I went along with such an omission–and regretted it afterwards. I should have been more vigorous in my objections.

For over two years, we waited again to give another course!

Finally, this year, the two men gave another course (I had withdrawn from the organization to which they belonged). It would be interesting to find out whether their course focused exclusively on worker activism at the local level and excluded the more general context of an economy dominated by a class of employers and the related social structures that accompany such domination. Did they include content that involved the radical imagination?

Below is a quote from Stanley Aronowitz’s book The Death and Life of American Labor: Toward a New Workers’ Movement. London: Verso, 2014,

near the end of chapter 6 (no page number):

Today, labor education has suffered sharp decline. After World War II, some unions relied primarily on university-based union leadership programs to train their shop-level stewards and officers in contract administration, labor law, and political action; others sent their full-time organizing and service staff to short-term education and training sessions offered by the universities. In the 1970s, worker education entered a new phase when some universities began offering degree programs to union members and their families. There is intellectual training available through the unions today. But it is not radical intellectual training. What has disappeared is the radical imagination.

The times require a radical imagination that goes beyond the clichés that the social-reformist left dish out–like “decent or good jobs,” “fair wages,” “economic justice” and “social justice.” We need labour education that incorporates a different vision of life–a humanized life, a life that respects human life. Such a life is impossible given the power of employers, and hence such a vision requires a vision that seeks to challenge and to go beyond such power. What is needed is a socialist vision.

 

 

 

Socialism, Part One: What It May Look Like

My wife asked me what other kind of society could we live than the one we are living now. I suspect that most people have the same kind of question. It is difficult to imagine another kind of life than the life that we have experienced all our lives.

There are, of course, no magic answers. The answers will be experimental, with some failures and some successes, and not in ideal circumstances, of course.

However, some ideas can still be provided about some possible ways of living that provide an alternative vision–a vision so obviously lacking among the so-called left these days.

Tony Smith, in his book Globalisation: A Systematic Marxian Account (2006. Boston: Brill), provides a description of some aspects of a possible future kind of society. He borrows his model largely from David Schweichart’s model of economic democracy in After Capitalism (2002) (which I have not read). He adds three modifications of his own.

I will cut and paste short pieces from this work. He paints various aspects of a socialist society that need to be incorporated into a socialist society. There are undoubtedly other aspects, and his own account may have to be modified.

I will not pursue the topic week after week after week until the topic is exhausted since there are other topics which I consider relevant–above all a critique of the power of the class of employers, but also a critique of the social-reformist left and the so-called radical left that do not question the power of employers as a class.

From Smith’s book, page 303:

The model Schweickart defends has the following essential elements:

(i) Production and distribution are primarily undertaken within worker
collectives. Workers are not hired as wage-labourers by capital; they instead
join worker collectives as fellow members. There is a basic right to employment,
with state enterprises providing jobs for those unable to find positions in
collectives.

This condition is to initiate a reduction in economic coercion as an essential move towards an increase in economic and individual freedom.

There is, of course, a possible problem of increased inefficiency, but Smith addresses this issue in further democratic socialist measures.