Monthly Archive for May, 2009

Economics of the alternative

Marxists are often accused of doing a lousy job of explaining how socialism would do consciously what the capitalist market system can do without anyone being all that aware of what is going on.

But that’s OK, because the efforts of bourgeois economists more than make up for this. Their mission has been to show how capitalism is good at allocating resources efficiently (if sometimes with a bit of restrained government tweaking). But in the process they have had to explain what this means and the role of a price system in achieving¬† it. Thank you chaps. The revolution will be forever grateful.

We just need to drive home how a system of social ownership will be able to avail itself of this unintentionally provided wisdom. Making the case is fairly easy. Debunking the “calculation debate” is particularly easy. (More on that in a few months but in the meantime see here.)

The hard job for people like me will be (1) convincing ourselves and others that we really can transcend the profit motive and rely instead mainly on intrinsic motivation and (2) developing a transitional program given that it will take time for people to take on the abilities, habits and inclinations needed to make social ownership viable.

By the way, I now find it easier to tell people what I am working on without being put on the defensive. I usually say something to the effect that it’s been a bit unfashionable for quite a long time but now that capitalism is collapsing all around us I am expecting a bit more interest. This is generally greeted with a nod.

I’ve just revised the sections on investment, money and public goods in the main article at my Economics of Social Ownership website. I have cleared out all mention of quasi-public goods and removed all the murky speculation from the money section. The old versions of these sections are stored here purely for reference.