January 30, 2013
In his recent essay on Jacobin, Seth Ackerman makes a number of common arguments in favor of some form of market socialism over and against central planning as well as other designs for non-market, non-capitalist economies. The essay contains much that most socialists could agree with. He rightly cites the failure of the neoclassical argument for general equilibrium to apply in real-world situations under the devastating theoretical impact of the Cambridge capital critique and the so-called ‘theory of the second-best’, and the lack of statistical evidence proving the superior efficiency of market capitalist societies over those of the former Soviet bloc. The historical record of capitalism to achieve general efficiency, equity, and democracy is, in short, atrocious, and neoclassical economics always serves first and foremost as apologetics for this system – we probably need not go into this further.
Also understandable is Ackerman’s negative response to models of a post-capitalist economy along the lines of some form of direct democracy, such as Albert and Hahnel’s “Parecon” approach. For Albert and Hahnel, democratic councils would gather data from individuals regarding their preferences, debate these according to socialist and ecological norms, and process them into a planning system, which would regularly update its information according to the same political processes; all this in order to regulate production for human need. Ackerman is justifiably skeptical of the workability of this proposal, as it would require millions of political debates about millions of input-output processes from wildly divergent sources and for wildly divergent ends. If every aspect of the planning system would have to be truly democratic – in the sense of being up for immediate political input ‘from below’ – any system with more than a rudimentary division of labor would quickly come to a shuddering halt.
For Ackerman, this is proof of the validity of the so-called calculation problem, an old argument from liberal critics of Marxism (in particular the Austrian school of economics), alleging that it is a priori impossible for centrally planned economies of any kind to operate: only prices, the argument runs, are accurately able to convey the necessary decentralized and distributed information that makes up the relative exchange value of goods. Therefore, in any system seeking to replace prices (and by implication, profits) with some form of central management, there necessarily follows a shortage of information in the decision-making process in production and exchange, with the familiar results of shortages, gluts, famines, and failures of supply. Read the rest of this entry »
January 3, 2013
Book Review: Zak Cope, “Divided World, Divided Class: Global Political Economy and the Stratification of Labour Under Capitalism”
Posted in Book Review, Class Struggle, Economics, History, Imperialism, Politics, Social-Democracy, Theory, Trade tagged Book Review, Fascism, Imperialism, Labor Aristocracy, Social-Democracy, Third Worldism, Trade, Zak Cope at 02:16 by Matthijs Krul
There are times when one encounters a book that is frustrating in a way particular to the intellectual life: that is to say, when one encounters a book that is precisely the book one wanted to write. Given the relative obscurity of my interests, this does not happen often to me, but Zak Cope’s Divided World, Divided Class is precisely one of these. I have harboured plans for the longer term to write a book on the history of the labour aristocracy and its interrelationship with the rise of social-democracy as the political expression of the imperialist rent required for the maintenance of that class, with all the necessary economic and historical detail; in fact, I almost undertook this as my PhD subject. If I had done so, I might well have been embarrassed. Cope has done just this, even up to much of the same bibliography I had had in mind! Be that as it may; these reflections are not to make myself seem important, but to underline the value I think this book has, being the only one of its kind and a real historical contribution to the critique of political economy under capitalism. Read the rest of this entry »