Saturday 11 December 2021

Moneyless

Socialism means a world society based on production solely for use, not profit.

It will be a classless society, in which everyone will be able to participate democratically in decisions about the use of the world's resources, each producing according to their ability and each taking from the common store according to their needs.

In such a society there can be no money

--or, more precisely, no need for money. Money is only needed when people possess and most do not.

Imagine that all the things you need are owned and held in common.

There is no need to buy food from anyone--it is common property. There are no rent or mortgages to pay because land and buildings belong to all of us. There is no need to buy anything from any other person because society has done away with the absurd division between the owning minority (the capitalists) and the non-owning majority (the workers).

In a socialist world monetary calculation won't be necessary.

The alternative to monetary calculation based on exchange-value is calculation based on use values. Decisions, apart from purely personal ones of preferences or interest, will be made after weighing the real advantages and disadvantages and real costs of alternatives in particular circumstances.

The ending of the profit system

will mean at the same time the ending of war, economic crises, unemployment, poverty and persecution--all of which are consequences of that system.

The revolutionary change that is needed

is not possible unless a majority of people understand and want it. We do not imagine all humankind's problems can be solved at a stroke.

Reforms of the present system fail because making profits must always be given priority over meeting needs, so the problems keep on recurring and ever multiplying.

It will take time to eliminate hunger, malnutrition, disease and ignorance from the world. But the enormous liberation of mental and physical energies from the shackles of the profit system will ensure

that real human progress is made.

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The rise and fall of money

Many people mistakenly believe that money has always existed and that it therefore always will.
 We explain why money is out of date.

 Many people think that money has always existed and therefore it always will. Wrong.

 Human beings have lived on this planet for hundreds of thousands of years without using money. When they were hungry, they ate. When they were thirsty, they drank. Whatever was available to anyone was available to everyone.

 It wasn't paradise, because food was scarce, and growing communities were eventually forced by this scarcity into a competitive struggle for life.

 First came the invention of agriculture, and the consequent need to defend the land, or property, on which crops were grown.

 Although this gave communities more stability and growth, agriculture and animal husbandry could not by themselves supply everything which they needed to develop as cultures. For this they needed to associate with other communities and pool their resources. But in the new culture of property there was never again to be such freedom to take whatever was available.

 And so began the exchange of products known as trade. And although some quite advanced bronze age societies managed to trade very well by using barter (e.g. the Egyptians), it was a supremely awkward way to conduct transactions. With the advent of the Iron Age, cheap metal was for the first time plentiful, and coinage was slowly introduced to facilitate the trading process.

 Civilisation has since grown up on the back of this trade, whose sophistication was made possible by the invention of money. To the modern mind therefore, civilisation relies on money. This is a misunderstanding. In fact, it is only trade which relies on money.

 Civilisation relies on distribution of material goods certainly, but distribution is not the same thing as trade, just as give is not the same thing as sell. Modern industrial society has given us the means to free ourselves forever from that scarcity which has always dogged our forebears. Money is no longer a necessity or logical feature of society, and only a tiny minority benefit from its presence.

 In history, many things become out of date, like the steam engine or quill pens. Money is about to join them.

 Money today

 
Money is indispensable to the capitalist system, but this system is not indispensable to human society. Money as a universal means of exchange represents capital. The possessing of money enables the buyer to acquire goods and services (commodities) and the seller to dispose of goods and services. The key resource that is bought and sold is human labour power—the ability to transform initial wealth (resources, raw material, etc) into more wealth.

 We live in a society where almost everything is bought and sold. That which you need to live is a commodity, you must buy it from someone who will make (or at least expect) a profit out of selling to you. It is our passport to existence in capitalism. Not only does the movement of products from producer to consumer come to be mediated by money, but the value of a product comes to be judged not in human terms but in terms of a sum of money.

 The key to the rise of continuation of the capitalist system is the ability of members of the capitalist class (owners of means of wealth production and distribution) to buy the working abilities of members of the working class. They combine that labour with capital resulting in commodities that can be sold for more than it costs in total to produce them.

 A high proportion of employment in capitalism consists of handling money in some way. There are hundreds of occupations that would not exist in a society that had no need for money: they range from accountants, bank and insurance staff, salespeople, wages clerks to name only some of the more numerous occupations. Tangible products needed only in a money system include bank notes and coins, account books and invoices, meters, safes and many others.

 Capitalism as a market system means that the normal method of getting what you need is to pay for it. The normal way for members of the capitalist class to get money is to invest their capital to produce rent, interest, dividends or profit. The normal way for workers to get money is to sell their labour power for wages, salaries, commission or fees. If they are unable to find employment they depend on state or other handouts. The result is poverty in the midst of potential plenty—actual plenty only for the privileged minority.

 Socialism: a moneyless society

 
Socialism means a world society based on production solely for use, not profit. It will be a classless society, in which everyone will be able to participate democratically in decisions about the use of the world's resources, each producing according to their ability and each taking from the common store according to their needs.

 In such a society there can be no money—or, more precisely, no need for money. Money is only needed when people possess, and most do not.

 Imagine that all the things you need are owned and held in common. There is no need to buy food from anyone—it is common property. There are no rent or mortgages to pay because land and buildings belong to all of us. There is no need to buy anything from any other person because society has done away with the absurd division between the owning minority (the capitalists) and the non-owning majority (the workers).

 In a socialist world monetary calculation won't be necessary. The alternative to monetary calculation based on exchange-value is calculation based on use values. Decisions apart from purely personal ones of preference or interest will be made after weighing the real advantages and disadvantages and real costs of alternatives in particular circumstances.

 The ending of the money system will mean at the same time the ending of war, economic crises, unemployment, poverty and persecution—all of which are consequences of that system.

 The revolutionary change that is needed is not possible unless a majority of people understand and want it. We do not imagine all humankind's problems can be solved at a stroke.

 Reforms of the present system fail because the problems multiply and recur. It will take time to eliminate hunger, malnutrition, disease and ignorance from the world.

 But the enormous liberation of mental and physical energies from the shackles of the money system will ensure that real human progress is made. 

 STAN PARKER

From The Socialist Standard September 2000

 

Smash Cash

Smash Cash



(Article by a then Socialist Party member that was published in 1968 in issue 17 of the sixties counter-culture magazine OZ.)

400BC: Hey all you thirsty people, though you’ve got no money,come to the water. Buy corn without money and eat.
Buy wine without money and milk without price. (Isaiah).

1652: There shall be no buying and selling . . . If any man or family want grain or other provisions, they may go to the
storehouse and fetch without money. (Gerrard Winstantley).

1968: The Abolition of Money. The abolition of pay housing, pay media, pay transportation, pay food, pay education, pay clothing, pay medical help and pay toilets. A society which works towards and actively promotes the concept of “full unemployment” . . .(Yippie election leaflet).

Abolition of Money!

Down through the ages this wild and visionary slogan has been whispered by a subversive few.
Ever since human beings discovered cash, they have hated it and tried to rid themselves of it – whilst their own actions have kept it alive. In this respect, money is like syphilis.

Today the whisper has become a shout – though still the shout of a tiny minority. Tomorrow it will be the roar of the crowd, the major topic of discussion in every pub and coffee house, factory and office.

The abolition of money is an ancient dream, the most radical demand of every social revolution for centuries past. We must not suppose that it is therefore destined to remain a Utopia, that the wheel will simply turn full circle once more. Today there is an entirely new element in the situation: Plenty.

All previous societies have been rationed societies, based on scarcity of food, clothing and shelter. The modern world is also a society of scarcity, but with a difference.

 Today’s shortages are unnecessary; today’s scarcity is artificial. More than that: scarcity achieved at the expense of strenuous effort, ingenious organization and the most sophisticated planning.

The world is haunted by a spectre – the spectre of Abundance. Only by planned waste and destruction on a colossal scale can the terrifying threat of Plenty be averted.

 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.

If we made a list of all those occupations which would be unnecessary in a Moneyless World, jobs people now have to do which are entirely useless from a human point of view, we might begin as follows:
 Customs officer, Security guard, Locksmith, Wages clerk, Tax assessor, Advertising man, Stockbroker, Insurance agent, Ticket puncher, Salesman, Accountant, Slot machine emptier, Industrial spy, Bank manager, before we realized the magnitude of what was involved. And these are merely the jobs which are wholly and utterly useless.

 Nearly all occupations involve something to do with costing or selling. Now we should see that the phrase “Abolition of Money” is just shorthand for immense, sweeping, root and branch changes in society.

The abolition of money means the abolition of wages and profits, nations and frontiers, armies and prisons. It means that all work will be entirely voluntary.

Of course, the itemizing of those jobs which are financial does not end the catalogue of waste. Apart from astronomical sums spent on the Space Race, and the well known scandal of huge arms production, we have to realise that all production is carried on purely for profit. The profit motive often runs completely counter to human need. ‘Built-in obsolescence’ (planned shoddiness), the restrictive effects of the patents system, the waste of effort through duplication of activities by competing firms or nations –these are just a few of the ways in which profits cause waste.

What this amounts to is that ninety per cent (a conservative estimate) of effort expended by human beings today is entirely pointless, does not the slightest bit of good to anybody. So it is quite ridiculous to talk about “how to make sure people work if they’re not paid for it”. If less than ten per cent of the population worked, and the other ninety per cent stayed at home watching telly, we’d be no worse off than we are now.

But there would be no need for them to watch telly all the time, because without the profit system work could be made enjoyable. Playing tennis, writing poems or climbing mountains are not essentially any more enjoyable than building houses, growing food or programming computors.

The only reason we think of some things as ‘leisure’ and others as ‘work’ is because we get used to doing some things because we want to and others because we have to.

Prostitutes despise love. We are all prostitutes. In a Moneyless World work would be recreation and art. That work which is unavoidably unhealthy or unpleasant, such as coalmining, would be automated immediately. Needless to say, the only reason these things aren’t done by machines at present is because it is considered more important to lower the costs of the employer than to lower the unhappiness of his slaves.

The money system is obsolete and antihuman. So what should we do about it? In years to come, with the increasing education and increasing misery of modern life, together with growing plenty, we can expect the Abolition of Money to be treated more and more as a serious issue, to be inserted into more and more heads. The great mass of individuals will first ridicule, then dare to imagine (Fantasy is the first act of rebellion – Freud), then overthrow.

 In the meantime, as well as propagating the notion of a Moneyless World, those of us who see its necessity have a responsibility to sort our own ideas out, in order that we may present an intelligible and principled case. We must stop thinking of the Moneyless World as an ‘ultimate aim’ with no effect upon our actions now. We must realise that the Abolition of Money is THE immediate demand. A practical proposition and an urgent necessity – not something to be vaguely ‘worked towards’.

Unfortunately those who want the Moneyless World frequently wade in a mire of mystification. Above all it is necessary to understand the workings of this society, capitalist society (Moscow, Washington and Peking are all in the same boat) if we are to know how to destroy it.

For example there is a commonly held view that Automation is going to settle all our worries, that money will expire automatically as part of a “natural process of evolution”. This is quite wrong. As pointed out above, this society only automates 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.

Any gain from automation these days is more than cancelled out by the waste explosion. Do not imagine that the slight increases in living standards of the last twenty years are the beginning of a smooth transition to Abundance. Another huge world slump is approaching. A different illusion, also popular, is that cash can be abolished by example, by opening giveaway shops or by starting small moneyless communities which are parasitical upon the main body of society.

 These experiments accomplish little. Those people, for instance, who open stores to give and receive books without payment, face a predictable result: a large stock of lousy books.

These projects stem partly from a belief that we need to prove something. Relax. We don’t need to prove anything. The  defenders of this insane society, it is they who stand accused, they who have to supply the arguments – arguments for poverty and enslavement in a world of Plethora!

All theoretical constructions which relate to wages, prices, profits and taxes are ghosts from the past, as absurdly outdated as the quibbles about how many angels could dance on the point of a needle. ‘Incomes policy’ is irrelevant – we want the abolition of incomes. “Fighting crime” is irrelevant – we want the abolition of the law. ‘Workers’ control’ is irrelevant – we want the abolition of ‘workers’. ‘Black Power’ is irrelevant – we want the abolition of power over people. ‘The national interest’ is irrelevant—we want the abolition of nations.

And let no one raise the banal cry: what are you going to put in their place? As though we would say to a research scientist: “And when you’ve cured Cancer, what are you going to put in its place?”

Then there is the myth of the small-scale. We cannot go back to being peasants and we should not want to. Keeping several thousand million people alive on this planet necessitates railways, oil wells, steel mills. Only by intricate organization and large-scale productive techniques can we maintain our Abundance.

 Do not be afraid of machines. It is not machines which enslave, but Capital, in whose service machines are employed. McLuhan represents the beginning of the New Consciousness of man-made artifacts. Computors are warm and cuddly creatures. We
will have a beautiful time with them.

  Many of the worst errors which retard the development of the New Consciousness, the Consciousness of Plenty, are to be found in Herbert Lomas’ piece on “The Workless Society” in International Times 43. This at least has the merit that someone is putting forward a case for the removal of money in specific terms. Unfortunately, they are specific non-starters.

According to Herbert Lomas, a political party is to be formed which will take power and proceed as follows.

 Useless workers in industry will be gradually be laid off and paid for not working. The process will be extended until money can be abolished. In the meantime, those being paid for doing nothing will do what they like. To begin with many of them might play Bingo; eventually more and more would aim at higher things.

  What is wrong with this projection? Many things, but chiefly two. First, it fails to take account of the systematic nature of society. Second, it assumes that present-day society exhibits a harmony of interests. In the first place, Lomas says: “Why are these people working? They are not working for the sake of production, for the truth is that if they were removed production could be increased beyond measure”. He concludes that they are working because of their attitudes, the attitudes of their employers, the attitudes of the rest of society.

 But the fact of the matter is that these workers are working for the sake of production – not the production of goods but the production of profits. The reason why things are “made with great ingenuity to wear out” is not because of the attitudes of the people involved. The management may think it’s criminal but they are paid to optimize profits. If they produced razor blades to last for centuries, the firm would go broke. It is not the attitudes which are crucial, but economic interests. If a teetotaller owns shares in a brewery, it does not make booze less potent.

  Which brings us to the second point. Today’s world is a jungle of conflicting vested interests. The Abolition of Money will represent the liberation of slaves, yes – but also the dispossession of  masters, i.e. the employing class. We cannot view the government as an impartial panel which looks after the best interests of everybody; it is an instrument used by one set of people to oppress another.

  On one point Herbert Lomas is correct. The movement for the Abolition of Money must be political, because when we destroy money we destroy the basis of the power of our rulers. They are unlikely to take kindly to this, so we must organize politically to remove them.

  For the moment though, what is needed is more discussion and more understanding. We must be confident that the movement will grow. We must think, argue, and think again – but never lose consciousness of the one, simple, astounding fact: Plenty is here.

  The Moneyless World is not an ultimate millennium. We need it now.

DAVID RAMSAY STEELE, OZ, 1968.

 

Why we don't need money

Why we don't need money

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In recent years, with the revival of the ideological Right as a reaction to the failure of the wishy-washy middle-of-the-road social reformism that had been in vogue since the war, we in the Socialist Party have been singled out for special attention by those partisans of unbridled capitalism who call themselves "libertarians" and "anarcho-capitalists". This is probably because we are the only group calling itself socialist to put forward a coherent definition of what socialism is and prepared to go into the details of how we think a classless, stateless and in particular moneyless society might work.

The point these ideological defenders of capitalism love to attack us on is the idea of abolishing markets, prices, money and all other aspects of buying and selling. This they say would be impossible, as demonstrated by a certain Ludwig von Mises in an article on "Economic Calculation in the Socialist Commonwealth" published in German in 1920 (and first published in English in 1935 in Collectivist Economic Planning edited by Hayek).

Von Mises, they claim, showed that a socialist society was impossible because it would be unable to calculate rationally which productive methods to adopt. This they call "the economic calculation argument". According to von Mises, rational economic calculation is only possible on the basis of prices fixed by the free play of market forces. In other words, the only form of rational calculation that can be applied to the production of wealth is monetary calculation.

Although money, and so monetary calculation, will disappear in socialism this does not mean that there will no longer be any need to make choices, evaluations and calculations. Our argument is that these evaluations and calculations, including those conceding the non-monetary "cost" of objects in terms of the effort and materials used to produce them, will be done directly in kind, without any general unit of account or measurement, neither money nor labour-time.

This follows from the very nature of socialism as a society geared to producing wealth directly to satisfy human needs. Wealth will be produced and distributed in its natural form of useful things, of objects that can serve to satisfy some human need or other. Not being produced for sale on a market, items of wealth will not acquire an exchange-value in addition to their use value.

In socialism their value, in the normal non-economic sense of the word, will not be their selling price nor the time needed to produce them but their usefulness. It is for this that they will be appreciated, evaluated, wanted… and produced. So estimates of what is likely to be needed over a given period will be expressed as physical quantities of definite types and sorts of objects. Nobody, not even von Mises has denied that this could be done without problems:

calculation in natura in an economy without exchange can embrace consumption-goods only (von Mises, p. 104)

Von Mises' argument was that the next step—working out which productive methods to employ—would not be possible, or at least would not be able to be done "rationally" avoiding waste and inefficiency without "economic calculation" - monetary calculation based on market prices. Our answer is that the choice of which productive methods to employ, will like working out what consumer goods are needed, be based on estimations and calculations in kind.

A monetary economy gives rise to the illusion that the "cost" of producing something is merely financial; indeed so associated is the word cost with financial and monetary calculation that we are obliged to put it in inverted commas when we want to talk about it in a non-monetary sense. But the real cost of the pencil I'm using to write this article is not 10 pence, but the amount of wood, slate, labour, electricity, wear and tear of machines, used up in producing it. This will continue to be the case in socialism. Goods will not grow on trees, but will still require expenditure of effort and materials to produce them.

The point is that in socialism this expenditure of effort and materials will be estimated and calculated exclusively in kind, directly in terms of wood, slate, machinery wear and tear, electricity, and so on (including working time, but as this will be a special case we'll come back to it later). Since socialism will be concerned with conserving resources it will want to adopt those productive methods which, other things being equal, use less rather than more materials and energy and this will be one, but only one, of the factors to be taken into account in deciding which technical method of production to adopt.

Monetary calculation, whether to discover which productive method is the most profitable (as imposed by capitalism and praised by the followers of von Mises) or for any other purpose (as proposed by various partisans of state capitalism and other unrealistic would-be reformers of capitalism), is a very peculiar sort of calculation since it involves reducing all use-values to an abstract common denominator. Use-values can indeed be compared but only in concrete situations since the same object can have a different use-value at different times and under different circumstances.

Monetary calculation, however, seeks to compare all objects in terms of an objective standard applicable in all circumstances; to do this it needs to identify a feature common to all objects. Such a common feature can indeed be found: that a certain "cost" in terms of materials, energy and labour expended has had to be incurred to produce them (ultimately the labour-time required to produce them from start to finish, and—this is the basis of the labour theory of value—the materials and energy expended, being produced by labour, can also be reduced to given amounts of necessary labour-time). It is this cost that is supposed to be measured by money.

Money, then is the universal unit of measurement, the "general equivalent" that allows everything to be compared with everything else under all circumstances—but, and this is what the partisans of monetary calculation forget, only in terms of their labour-time cost or the total time needed on average to produce them from start to finish.

To make this the only consideration that counts (as is imposed by the economic laws of capitalism) is an absurd aberration. It is like making volume the most important thing about bottles containing different liquids and then concluding that a litre bottle of water has the same significance as a litre bottle of wine or of oil or of sulphuric acid or whatever. But we are doing exactly the same if we say, or if we believe that different goods selling at the same price have the same "value", or are "worth" the same, in terms of their real usefulness to people.

Market Values or Human Values?

So the argument between monetary calculation and calculation in kind is much broader than it first seems. It is not merely a technical argument about how to calculate and what units to use for this, but is an argument about the real meaning of words like "value" and "worth". Socialists, as opponents of monetary calculation, say that it is not monetary or market values, in the end total average production time, that is the most important thing about a good but its usefulness in satisfying some human need; that the real values are use-values, human values. We are saying that these are the factors that should be taken into account when making choices and calculations about production, not simply production time.

This presupposes that calculations concerning production can be carried out without money or without some money-substitutes some other general unit such as labour-time. Such non-monetary calculation of course already happens, on the technical level, under capitalism. Once the choice of productive method has been made (according to expected profitability as revealed by monetary calculation) then the real calculations in kind of what is needed to produce a specific good commence so much raw materials, so much energy, so much labour…

In socialism it is not the case that the choice of productive method will become a technical choice that can be left to engineers, as is sometimes misunderstood by our critics, but that this choice too will be made in real terms, in terms of the real advantages and disadvantages of alternative methods and in terms of, on the one hand, the utility of some good or some project in a particular circumstance at a particular time and, on the other hand, of the real "costs" in the same circumstances and at the same time of the required materials, energy and productive effort.

To advocate monetary calculation, then, is to advocate that only one consideration—the total average production time needed to produce goods—should be taken into account when making decisions about which productive methods to employ. This is patently absurd but it is what is imposed by capitalism. Naturally, it leads to all sorts of aberrations from the point of view of human interests. In particular it rules out a rational, long-term attitude towards conserving resources and it imposes intolerable conditions on the actual producers (speed-up, pain, stress, boredom, long hours, night work, shiftwork, accidents).

Socialism, because it will calculate directly it kind, will be able to take these other, more important, factors than production time into account. This will naturally lead to different, in many cases quite different, productive methods being adopted than now under capitalism. If the health, comfort and enjoyment of those who actually manipulate the materials, or who supervise the machines which do this, to transform them into useful objects is to be paramount, certain methods are going to be ruled out altogether. The fast moving production lines associated with the manufacture of cars would be stopped for ever (except perhaps in a museum of the horrors of capitalism); night work would be reduced to the strict minimum; particularly dangerous or unhealthy jobs would be automated (or completely abandoned).

Work can, in fact must, become enjoyable. But to the extent that work becomes enjoyable, measurement by minimum average working time would be completely meaningless, since people would not be seeking to minimize or rush such work.

However there will still be some kinds of work that socialist society will want to minimize. For instance, dangerous or repetitive work. Once again, this would be one of the real factors that will have to be taken into account when decisions are made as to what productive methods to adopt. Other factors would be conserving resources (so out would go "planned obsolescence" and in would come solid goods made to last), saving energy, avoiding pollution and generally maintaining a sustainable ecological balance with the rest of nature.

As a matter of fact, even under capitalism, enterprise managers do not just base their decisions on market prices, long-term or short-term. They are obliged by law (and also by trade union pressure) to take into account a whole series of other factors such as safety, anti-pollution and planning permission. The over-riding consideration remains of course expected profits (the difference between anticipated sales receipts and monetary cost of production). This means that these factors are of minor importance and only reflect the minimum standards that are not incompatible with profitmaking and, being imposed from outside against the logic of short-term profit-making are always being broken. But they do, however marginally, enter into productive decisions, thus showing that it is possible to take into account other considerations than minimum production time.

The Priorities in Socialism

In socialism the situation will be quite different: these factors will be automatically taken into account in the decision-making process and will not have to be imposed from outside as a sort of after-thought, since among the highest priorities of production will be the health and welfare of the producers. We can imagine the decisions as to choice of productive methods being made by a council elected by the work force, or by a technical subcommittee of such a democratically-elected council. In making their choice they will first take into account, not minimizing average total production time as the economic laws of capitalism enforce today, but the health, comfort and enjoyment of the work force, the protection of the environment and the conservation of materials and energy.

Since materials and energy, and work to the extent that it is not interesting and creative but only routine, are real "costs" the aim will be to minimize them. As there will be these clearly defined objectives and constraints, mathematical aids to decision-making such as operational research and linear programming, at present prostituted to the end of maximizing profits, can be used to find the optimum productive methods.

Another point that must be understood is that socialism will not have to start from scratch. It will inherit from capitalism a going technical system of production which it will be able to adapt to production for use. Some methods will have to be stopped straight away or as soon as possible but others will only need modifying to a greater or lesser extent. Again, when socialism will have cleared up the mess inherited from capitalism, it will become a society in which methods of production too will only change slowly. This will make decision-making about production much simpler.

We add straight away to avoid any misunderstanding that, even in the period at the beginning of socialism when production will be clearing up the mess in terms of deprivation and poverty left by capitalism, monetary calculation won't be necessary. The necessary expansion of production can be planned and executed in real terms.

So, the so-called "economic calculation argument" against socialism collapses in the face of detailed analysis. The alternative to monetary calculation in terms of exchange value is calculation in kind in terms of use values, of the real advantages and real costs of particular real alternatives in particular real circumstances.

From the World Socialist Movement website

 

Ten benefits of not having money

Removing money from the current economic equation would strike most people as impossible, unthinkable, absolutely imponderable. Everything we do, every transaction we make, from a simple cup of tea to sending a space probe to Mars, from birth to death and at every step in between, money has become a necessary part of getting what we require. It has become an accepted, entrenched method of acquiring anything and everything but it wasn't always so and in a genuine socialist system money will be shown to have been an unnecessary, wasteful and divisive way of ordering world communities.


When initially presented with the notion of a world without money the first imperative is the willingness to contemplate a huge paradigm shift, to put aside all familiar long-held views and preconceived notions and to enter into an adventure of discovery that there is a place for all at the table, that it doesn't entail regression to the Dark Ages and that the welfare and progress of people doesn't have to come at cost to the environment.


1. Work

It is well recognised by experts in the health arena that work is one of the most stressful areas of life for reasons such as long hours, extended travelling time to and from place of employment, risk of job loss, lack of security of tenure including competition both within and without, inflexible working practices, difficulty getting release for major personal events such as bereavement, long-term illness of a spouse or partner, or even short-term care of a sick child. Loss of employment can put stress on the whole family, sinking it into debt, causing day-to-day difficulties with the budget and in many cases leading to loss of the home.


When money is not required in exchange for work and when, instead, all contribute their skills, expertise and/or manpower in return for open access to the requirements of life then we can begin to see a different motivation enter the whole concept of the “work” scenario. A moneyless world will free up millions of workers now tied to some very stressful occupations dealing only in (other people's) money – banking, mortgage brokering, insurance; those occupied in the collection of rates, taxes and utility payments; those in security work such as guards and armoured truck staff engaged only in protecting and moving money and other “valuables” – millions of workers who, when considered logically, currently fulfil no useful function and contribute nothing to society that improves that society.


Right now, worldwide, are millions of would-be workers who are sidelined in one way or another, without employment or scratching on the edges of a black economy and in some of the more “developed” countries we find some termed “scroungers” in current-day parlance.


Within the capitalist system there has to be a pool of workers unable to find work in order to keep the bargaining power in favour of the employers who strive to keep wage levels down, whereas if there is a shortage of suitable labour the bargaining power switches to the employees who try to force wage levels up. The fact that a few “developed” countries have systems which pay a percentage of workers to remain unemployed (receive benefits) is a price the capitalists are prepared to pay to maintain the tensions in society. Encouraging the employed to think that they are the ones subsidising the benefits system maintains one fissure within the working class. Also, allowing a large number of unemployed to be without benefits would cause too many problems for the capitalists with possibilities of mass looting, rioting and damage to their property


When all work is seen as legitimate and deserving of recognition, from the humblest occupations – collecting and sorting waste, stacking shelves in our stores, keeping the utilities working even in the worst weather, repairing our shoes – to those which are perceived as more elite – heart surgeons, ground-breaking scientists or cutting-edge technicians; when all are respected for their contribution simply by having the same right of access to the commonly produced goods, humankind will have truly developed to a higher level. This change in emphasis regarding human worth would, as a matter of course, give all the opportunity for further personal development in areas of individual choice which leads to the second topic for consideration. 

2. Increased Leisure Time

With so many extra hands on deck working hours will be able to be considerably reduced which, with the knowledge that one's work is not tied to the ability to feed and clothe the family, to house them and provide all the other requirements of life, is to remove the stress at a stroke.


Decreased time, but working for the common good rather than increased time working only for personal remuneration. Less working time was the oft-repeated refrain in the early days of the technology era. Workers were to benefit from machine-operated production systems, computers would be able to handle many of the mundane operations previously done manually, the working week would be much reduced, maybe even leading to job-sharing and part-time employment. In fact this state of affairs never materialised and more employees found longer working hours became part of their conditions of employment, earlier agreements having been gradually eroded to the benefit of the employers.


In socialism, with millions released from wage slavery in the then redundant financial sector free to be a part of the production, distribution and services sectors, with the black economy and “illegals” no longer threatening paid workers (pay being redundant) there will be a huge reduction in individual necessary work time. When there is no profit incentive the emphasis will be on the production of quality goods from quality materials and no one need choose an inferior item based on cost. Providers of utilities such as electricity and gas, water and communications will be able to have sufficient workers to install, service, repair and develop their installations more efficiently and effectively. If there is work that no one is prepared to undertake then an alternative will need to be found democratically.


Without the constraints that we have today the workplace will become a different place, one of cooperation not competition, where we work for the benefit of all, not for the profit of a few. The lines between work and leisure may well be much more blurred than in today's scenario. People will have time, time to be creative, to learn different and multiple skills and to enjoy the time they spend working. Leisure activities seen as hobbies now – vehicle maintenance, gardening, DIY home improvements, baking, the making of all kinds of hand-made items, giving or receiving educational and training courses – could well form part of one's service to the community, bringing a greater satisfaction and contributing to individual development generally, one of the aims of socialism. With more leisure time available it is also highly likely that more 'work' would be created in the leisure area, whether sports complexes, theatrical and music productions and educational courses in the widest sense and with unlimited opportunities for the active participation of those who choose it.


3. Housing

Adequate shelter, a “right” for all enshrined in the United Nations Charter, is still unavailable to millions (billions, probably). There is absolutely no automatic right to housing within the capitalist system. All must pay. To pay, all must work. It is no matter that you work long and hard and that your children work long and hard and don't go to school. All that matters is that you have enough to buy or rent or build. Maybe you did have enough before the housing market bubble burst and the “worth” of your house went down while the interest rates went up. Well, tough! Look around you. See the empty houses and FOR SALE and foreclosure signs. These people must be living somewhere now. There is always housing stock available – if you can pay the going rate.


This is one very obvious benefit of not having money. The recent economic crisis has focussed many home-owners' minds. Why should anyone be secure one month and the next find themselves in queer street? Can anybody justify one individual's multiple home ownership while others live in slums, in cars, in cardboard boxes on the streets? Please! When the majority of us have eventually decided that this scenario is unacceptably obscene we can at last begin to move to a humanitarian way of ordering our societies. Housing for all. Decent housing for all. Materials that are free and belong to all of us. Our architects, builders, plumbers, plasterers, electricians, etc. etc. will all work for free – they also need homes to live in. New housing can be built to the best specifications using appropriate materials, incorporating adequate insulation and services with regard to environmental protection and best use of alternative energy.


Respect for people and respect for the environment. Decisions made democratically as to best use of urban space vacated by the money businesses; by communities wanting to refurbish or upgrade their older stock. The balance between urban and rural will no doubt change. In some parts of the world there will be a mass exodus back to productive farmland, reclaimed for local use and consumption rather than continuing to grow cash crops for export. Decisions will be taken based on the well-being of communities and determined by the requirements of those communities and there will be no constraints or limitations linked to profit for a third party.



4. Health care

As a result of huge stress reduction, no more worrying about salary or wages from the job, no more worrying about keeping up the payments on the house, increased leisure time – all these various factors will surely result in improved relationships all round and, quite soon, a healthier workforce.


At present there are huge variations in standards of health care around the world and also massive discrepancies in availability and monetary cost to the recipients, Universal health care simply dos not exist. Again it is tied in to the ability to pay. Let's remove this barrier to good health and care of the sick by removing the money element and offer all services, treatments, drugs and medicines free of charge. Hospitals and clinics then will be free of top-heavy budget management and will be able to access resources, whether manpower, equipment or drugs, according to their requirements and not limited by financial constraints. Medical researchers, now mostly tied to global corporations and limited by them in the areas of their research, will be able to concentrate on eradicating disease and providing the best remedies for all comers, not just those with insurance. World diseases such as malaria, tuberculosis and polio will soon be a thing of the past when money, too, is history.


Work and training in one of the many varied avenues of health care will be open to those from the pool of post-money redundant sectors. With the shift from a market economy to societies geared to fulfilling human needs there will probably be more priority given to preventive medicine and appropriate information on suitable diet and healthy living, which leads us to consider the topic of food.


5. Food

Currently the growing, processing and distribution of food is largely dominated by transnational corporations solely in the pursuit of profit. The consumer appears to have a huge choice of goods and numerous decisions to make at each aisle of the supermarket but often the choices are superficial, not actually the choices being sought. For instance, notice the difficulty of buying a processed food which doesn't contain soya. The soya has probably been genetically modified and the labelling could be unhelpful. The choice becomes buy in ignorance or acceptance, or do without.


It's well known that products are laced with added sugar, salt, monosodium glutamate etc. to create a certain dependency and craving for more. Last year's problems of melamine-laced pet foods which caused animal deaths in the importing countries were followed this year by melamine-laced milk products causing infant deaths and multiple illnesses in China, spreading fear to importing countries. There can be only one reason for food to be contaminated deliberately (apart from a mass assassination attempt or the desire to spread fear among the population) and that is in the pursuit of greater profit.


Africa, a net exporter of food until the post-colonial days of the 1960s, became a victim again, indebted to the World Bank and IMF. Recipient of highly subsidised dumping of food from rich countries (US and Europe) the result has been that the countries there have to grow cash crops for export in order to pay off some of the growing debt creating food shortages for the domestic population, many of whom had been forced off ancestral lands (for the growing of cash crops) and who were then without the means of subsistence. There have been a number of studies which reveal there is no problem feeding a world population considerably larger than today's. There is an enormous wastage of food in the rich world. The major problem for the hungry in the poorest countries is lack of cash.


Food, if regarded simply as fuel for the body, should be clean – free from contaminants, chemicals and the like; fresh – the more local the better; and nutritious. Free food for all would come with the bonus of knowing there would no longer be any incentive to adulterate ingredients. The question of “FAIR TRADE” wouldn't arise as all along the line farmers, producers, pickers, packers and distributors would have the same motivation to provide good clean food knowing they have the same access as the consumers. This has to be a win-win situation. Another winner in this scenario would be the environment.



6. Environment

Bear in mind the aim here is an excursion into the benefits of money totally disappearing from our lives; for all to have access to the necessities of life and in return to contribute their effort for the common good. Havoc has been wreaked on the environment by corporations and others with the full consent of successive governments around the world – for the acquisition of necessary resources but using unnecessarily harmful methods. Peak oil and climate change are terms on everyone's lips and the general consensus from Joe Public is that something needs to be done – and fast.

If we remove the agents for profit (corporations and governments of the capitalist system) and engage in honest democracy of the people, by the people and for the people decisions can be made to halt damaging practices and implement methods of farming, fishing, mining, extraction, energy production, manufacturing etc. that do no harm to either man or environment. Safe working practices will be the norm. Resources can be protected and used carefully when incentive for their rape and pillage is gone. Energy usage can be reduced drastically in 1001 ways using alternative energies, building using integral insulation and energy conservation techniques, vastly reducing transport as work and societal practices change, stopping air freight of “luxury” and unnecessary goods, producing and manufacturing locally wherever feasible, etc.

Local communities could have the final say on resources in their area with the possibility that sometimes the resource will be deemed off-limits and so remain untouched, and if no one is prepared to work mining or tunnelling to extract a particular resource then an alternative will need to be found. With a system of no money there can be no forced labour or unacceptable working practices. Resources will be valued for what they are, not what price they can be sold for, and protection of the environment can be put firmly on the agenda as demanded by the world's majority.

7. War and Conflict

Envisaging this newly emerging moneyless world, it is apparent that cooperation rather than competition will be the driving force to its development and the glue that will bind communities. Having removed the profit incentive and made access to resources free, production will be for use only. There are no losers in this scenario, all are to benefit from the new world order. It's just that a tiny minority might have difficulty in coming round to see it that way. As a consequence of this totally different emphasis – freedom of access and no monetary element – it isn't difficult to accept that military forces will become redundant.

Wars have always been about control of territory for resources and are usually promoted in the name of democracy, expansion abroad or protection of the domestic population from threat of real or manufactured enemies but which always utilise armies recruited from the mass of the population and sacrifice workers in the service of the capitalist cause. Internal conflicts involving government backed forces against “insurgents”/“freedom fighters”, breakaway independence groups/terrorists – when looked at rationally are (a) about lack of rights for certain sections of the community, groups deprived of their own self-determination; tensions deliberately fostered betweens sections of society so the elites can keep control (divide and rule) and (b) only temporarily dealt with (if at all) through force. If the causes aren't dealt with the effects are sure to reappear. Dealing with the causes, injustices, lack of access, etc. needs the pawns in the game to recognise that that is what they are and to join forces against those controlling them, putting the power of decision making into the hands of the majority and ending the reasons for future conflict.

No need for ownership or use of war material will render a massive service to the environment, saving resources on a huge scale and stopping pollution of the planet from the harmful waste created in both their production and deployment besides avoiding millions of deaths. Saving lives could become the new unarmed forces raison d’ĂȘtre. Bodies of fit, well-trained, well-resourced, motivated men and women available to deal with the effects of natural disasters and unexpected calamities would be one of a number of ways to deploy the willing volunteers, a civil action force for true humanitarian intervention.

 8. Media and Advertising

Media without money? In today's system we buy newspapers and magazines, a licence to watch television plus payments to a provider for umpteen other channels and subscribe to internet providers for access to the world wide web. If something arrives at your house for free, it has been paid for by advertising and advertising gets its money from services provided to businesses, and businesses get their money from customers buying the products and services.

Without the profit motive it would be possible to watch a film or interesting documentary uninterrupted by advertisements that always intrude at a higher level of decibels. Junk mail would be redundant; another positive for the environment. Ugly advertising hoardings crowding town spaces and roadsides would give way to more thoughtful and aesthetically pleasing additions to our visual surroundings. Many talented artists would be freed up to turn their expertise in more socially acceptable and useful directions. Media, in general, could become what the people want, not what they're told they want. Real choice, real variety, true information and not warped by an individual proprietor's view. This could be such an exciting area with much more community involvement from planning to production. Released from wage slavery and with the intellect free from worry about unemployment, housing, health care etc. etc. the capacity for individual personal development will expand considerably.

9. Education

In its broadest sense education is just that – individual personal development. The most fulfilled individuals are those who can reach the end of their lives knowing they have spent their time exploring to the limits the areas that most interest and motivate them. These individuals are not satisfied by or limited to an eight-hour day, they continue willingly for extended hours because they enjoy and are motivated by what it is they are doing. Conversely, of the various officially recognised systems of education available in the world today none come close to encouraging youngsters to pursue their own individually chosen path in life. Institutional education is about fitting young children to become compliant teenage students who can then be steered in one of the very limited directions on offer. This is called choice. The best time to learn anything is when the individual is motivated to do so at whatever age. The best way to learn is usually by doing – a combination of observation and practice. Sitting at a desk in a room with 20, 30, 50 or so others for several hours a day is not conducive to good learning and not conducive to producing free thinking adults, but it is a good preconditioning for adult life in a money-oriented world which requires both a compliant workforce and passive unemployed.

To hear a nine-year old's response when asked what he would like to do when he leaves school, “Well, I'll go and get my Giro” is a shocking indictment of a system which by its very nature excludes many people. Whether in the examination system or later in the work situation, a certain percentage every year must be expected to fail. How humiliating and degrading is that? But that is how this system works; there is only room for so many to achieve.

When the work situation changes so that all are contributing regularly to the common good by the work they perform and all are freely taking their daily needs from the common store youngsters will experience a totally different example from today's. Education will be embraced as offering ongoing opportunities for all to succeed in their chosen areas in societies which value all members regardless of their so-called IQ.

10. Quality of Life

In a world of money “quality” is equated with cost. A quality item costs more than a shoddy or mass produced one, e.g. Rolls Royce v a standard Ford. “Quality” chocolate costs the consumer more but doesn't give more to the grower. Quality is a term used to convey superiority and status, something better than the rest, better than the others. Unfortunately when coupled with time most families have little of it and the cost can be great. Quality of life is talked about as something desirable, to be aspired to and implies a certain level of income but, in fact, everyone has a quality of life, a comparative quality which could be measured against many different yardsticks. Most people would admit they are looking for ways to improve their own.

In order to achieve the positive changes to be gained by the disappearance of money, power has to be taken away from the elites and placed firmly in the hands of the people. None of the proposals posed above could become reality without the will of the majority – but what is the will of the majority, the popular perception of the “system” today? Active consent for the system is generally lacking and people have allowed themselves to become resigned to it instead of opposing it, believing that there is no alternative. Surely it is within the capacity of this miracle of evolution to reason its way back from the headlong rush to condemn billions of its own to degradation and misery, whilst destroying its own habitat with the philosophy that money can solve all problems? With money gone the generally accepted meaning of “quality of life” can become a reality for all to contemplate and world citizens will be free to aspire to achieving goals worthy of humankind.

JANET SURMAN

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From an original series in the Socialist Standard  December 2008 and January 2009



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| Why we don't need money read | Smash Cash read| The Rise and Fall of Money read | Moneyless read |
 |Fetishism of money read | Why should we pay? read | Socialism and calculation (PDF) read |
| Money must go read| Could we organise things without money? read | A Time for Evolution read |
| 10 Benefits of Not Having Money read
| Heads or Tails: The Poetics of Money ( Book Review Philosophy) read. |
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"from each according to their abilities, to each according to their needs"


 

What is Socialism?

Socialism/communism, properly understood, it means the same in the classical Marxian, pre-Leninist sense, will be an advanced , post-capitalist society, run by us all, locally, regionally, globally, in cooperative, administration over resources and not a government over people.

It will be a market -free, money -free, production for use (not for sale), free access (not rationed access) commonly owned,(not private, corporate or state owned) revolutionary permanent break with the present capitalist one.

It has never existed anywhere.

It is not a ‘reformist’ nor a ‘statist’ version of capitalism which retains wage slavery in any form.

It will be the mature, politically conscious task of the immense majority to make it happen and not the minority vanguardist led actions of pseudo-revolutionaries. The organising tenet will be, 


"From each according to their abilities, to each according to their needs.”

Only a commonly owned production for use society of true social equals to the means of production and distribution can ever do this.

If there are wages and salaries, it is not socialism/communism.
State ownership is not socialism/communism.
Social programs are not socialism/communism.
Socialism/communism means democracy at all levels of society, including the workplace.
Socialism/communism means a wageless, moneyless society.
Socialism/communism means voluntary labour.
Socialism/communism means free access to the goods produced by society.

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" The emancipation of the working classes must be conquered by the working classes themselves. We cannot, therefore, co-operate with people who openly state that the workers are too uneducated to emancipate themselves and must be freed from above by philanthropic big bourgeois and petty bourgeois."

(1879 Marx and Engels )

Moneyless

Socialism means a world society based on production solely for use, not profit. It will b...