Stephan objects to Kevin’s defense of the term “socialism.” “Words have meanings,” Stephan insists, and apparently the word “socialism” just means “centralized control of the means of production” – while “capitalism” likewise apparently just means “a system in which the means of production are privately owned.”
But there’s no simple fact of the matter as to what either of these much-contested terms means. As I’ve pointed out previously, many people – especially socialists, but often capitalists too – hear “private ownership of the means of production” as implying, by definition, “ownership of the means of production by someone other than the workers,” and take this to be definitive of capitalism; that’s not part of what Stephan means by the term, but it’s a widespread and longstanding use – as is the use of the word “socialism” (by the 19th-century individualist anarchists, for example) to mean worker control of industry, not necessarily in a centralised or collective or communal manner. The ownership-by-capitalists/ownership-by-workers way of understanding the capitalism/socialism distinction is at least as old and well pedigreed as the private/public way of understanding it.
To quote from one of my favourite authors (i.e. myself):
We’ve seen a number of anarchist thinkers – Hodgskin, Proudhon, Andrews, Spooner, Spencer – whose views are not easily classified as “socialist” or “capitalist,” since, in one way or another, they seek the putatively socialist goal of worker control of industry, via the putatively capitalist means of private ownership and market exchange. Part of the problem is that there are (at least) two distinct ways of understanding the contrast between capitalism and socialism. In the first meaning, socialism-1 favours control of the means of production by society (whether organised via the state or not), whereas capitalism-1 favours control of the means of production by private (albeit perhaps contractually associated) individuals. In the second meaning, socialism-2 favours control of the means of production by the workers themselves, while capitalism-2 favours control of the means of production by someone other than the workers – i.e., by capitalist owners.
These two meanings are often run together, with socialism entailing control by the workers in their social capacity (perhaps anarchically, perhaps via the state) and capitalism entailing control by capitalists in their private capacity. But that leaves open two harder-to-classify options – control by capitalists via the state, and control by workers via the market and laissez-faire; the aforementioned anarchist thinkers – to whose ranks Tucker also belongs – favour the latter option. (Thus when Tucker calls himself a “socialist,” he means socialism-2.) The following chart may be helpful:
Thus Hodgskin, Tucker, et al. would fall in the upper left quadrant, and Marx and Kropotkin in the upper right. The chart doesn’t accommodate everyone (Godwin and Bakunin seem to fall somewhere between the top two quadrants, for example), but it’s a start.
A further complication is that it’s a matter of dispute among the various parties whether existing capitalist society is closer to the bottom left or bottom right quadrant (and why). Also, both state-socialists and right-wing libertarians tend to regard capitalism-2 (capitalist control) as a natural result of capitalism-1 (private control) – though they disagree as to whether to cheer or boo about that result – while left-wing libertarians tend to regard capitalism-2 (capitalist control) as the pernicious result of socialism-1 (state intervention), and promote capitalism-1 (a genuine free market) in the expectation that it will eventuate in socialism-2 (worker control).
Thanks to the ambiguity of the terms “socialism” and “capitalism” I tend to avoid using them without some kind of qualifier – e.g. “state socialism,” “free-market socialism,” “corporatist capitalism,” “worker-controlled capitalism,” or the like – to prevent my being taken to mean something I don’t. (The common use of the term “capitalism” to apply to the existing social system is yet another reason to avoid using it without an explanatory qualifier as a term for what one is defending, lest one be taken for a defender of the status quo.)
Incidentally, Stephan uses Rand’s words to explain why he embraces the term “capitalism”: “For the reason that makes you afraid of it.” But this is a straight line if I ever heard one; it’s practically begging Kevin to make precisely the same response about “socialism.” The truth is, though, that there are good and bad reasons to be afraid of the term “capitalism,” just as there are good and bad reasons to be afraid of the term “socialism.” (And ditto, of course, for “selfishness,” the term Rand was defending in the passage Stephan quotes.) That is precisely why one needs to disambiguate, and to avoid assuming that everyone means and has always meant the same thing by terms like “capitalism” and “socialism,” or phrases like “private ownership of the means of production,” that one does oneself.
Tags: Anarchy, Conflation Debate, Labortarian, Lapsus Linguae, Left and Right, Left-Libertarian
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There’s a danger that Friedman has pointed out in his book TMoF; namely, we can’t just advocate systems of economics or politics that have never been tried and about which we know nothing, because humans are just too complicated to completely understand a priori. So a danger of advocating the upper left box is that Mises, Hayek, and all the rest of them have mainly argued using actually existing capitalism, i.e. the lower left box, as evidence. So if one bases a society on insights from Mises, Hayek, Rothbard, etc and the result has Wal-mart doing better than ever, instead of drying up and being outcompeted by small artisan production, would you change your stance to one of the right boxes?
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In my experience “socialism,” to most people means all the good things that people wanted various large scale socialist experiments to achieve, so anything that doesn’t achieve them is not really socialism, and anything that does is.
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Roderick, I responded to a similar issue here. I use anarcho-libertarian myself. I agree there are some ambiguities in these terms. I am skeptical of the tactical value of the semantical project of libertarian “socialists,” but more power to them.
As for substance, state ownership of capital–whatever you guys will allow us to call this, “state socialism” maybe–is unlibertarian. And that any libertarian society will have private ownership of capital, whatever you will allow us to call this–”non-vulgar capitalism,” perhaps. It is also my view that only Lockean-style private property rights are compatible with libertarian principles, whatever term the left-libs are comfortable with using to describe this system.
Maybe we just use numbers, like system1, system2, system3, and move on.
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Interesting point, Dr. Long. I wonder, though…to the extent that socialists have historically been concerned with ownership of the means of production by the laborers themselves, could this not be connected with the notion that non-worker-owned ventures are inherently exploitative? The reason I ask is this: could someone still coherently be considered a socialist if they a) did not believe that the means of production should be owned by a centralized authority representing “the people, and b) did not believe that non-worker-owned ventures were inherently exploitative?
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Danny & Dr. Long,
What do you think it means to “own” a venture (or “production function” or “productive opportunity” or “firm”). To me it seems that a venture or firm is simply something imputed from the nexus of a set of contracts and not something that can be owned. Do you see it differently?
I only say this because using the word ‘own’ here seems to rig the debate in favor of the capital owner (since ownership of the capital is often seen as being the same thing as “owning” the firm; and for workers to “own” the firm means they should fight to become capitalists jointly, thus bringing you right back to capitalism in some sense).
Why not instead argue for breaking out of that “who owns the means” paradigm all together and concentrate instead on the contractual nexus? What might be more vital for a socialist is to argue that only an asymmetrical view of the contract landscape is legitimately deduced from title-transfer contract theory: something like “you can rent things but not people”. I don’t mean arguing for not accepting money for doing labor but arguing for what it means to accept money for doing labor (i.e. it’s unilateral in terms of property rights). As you said, this could simply mean that the “boss-relationship gets attenuated to the point where the employee is more like an independent contractor” or alternatively, that employees are simply seen as active (and not necessarily equal) partners who never placed themselves outside the contract nexus by renting anything out (i.e. transferring control over a scarce asset).
I should add that I don’t think it makes sense to just reinterpret all employment relationships as IC and call it a day (and I don’t think that’s what you are implying either). I would expect that a common law system would look for significant levels of independence and self-direction on the part of the worker and other things that make the distinction meaningful. If such a distinction cannot be found, I think the challenge remaining for defenders of “standard” employment (as contrasted with either IC or full-on partnership status) is to show how contract alone could change the status of those remaining non-IC workers into anything but truly part of the firm in the same sense as the capital owners (after all they are “owners” of their bodies).
To put it another way, the anarchist market socialist could argue that all voluntary contractual working relationships (properly applied to scare, alienable resources only) are naturally either IC or partnership agreements and not some third thing called “employment” that strips both self-direction and equity/control out of the picture. This would lead to a network of IC relationships between nodes of worker “cooperatives” (or if that gives people the hives, “partnerships”).
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I should add (because my comment wasn’t long enough) for clarity that I very intentionally scare-quoted “cooperative” to disown the typical hippie-commune stereotype. I meant it to be a play on words: that all entities deserving of the title of “firm” or “venture” in the model above would simply become by definition a collection of cooperating people (the “social” in “socialism” if you will). I do not mean for my use of the term to imply anything about firm size, structure, organizational/management methods or the value of specialization and the division of labor.
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So instead of “who owns the means” we get to “who owns the product” – right now the provider of capital owns the product by default and pays off everybody else. From what I understand, You propose to make workers owners (or at least co-owners), as it is the fruit of their inalienable labour.
But just from a consequentialist standpoint – if we altogether ‘prohibit’ the former kind of agreement (how else to enforce it), we’d be barring a certain type of risk-transfer. Workers would have to shoulder more of the uncertainty of the market than they do today, without recourse to alternative modes of employment.
OTOH, this could have interesting results, such as a more equitable division of monopoly profits (in the neoclassical sense) – or we could even see capital owners’ unions
– although striking by withholding capital sounds more difficult to do. -
Neverfox, it seems to me that “owning” a firm involves having property rights in certain assets that, in some sense, constitute the firm itself. These are, it would seem, the “means of production” that people seem to have in mind when talking about alternatives to capitalistic material productive relationships.
I’m not entirely sure that I see the big deal about an “independent contractor” relationship as opposed to a normal “employment” relationship. Independent contractors certainly do have more freedom in running their own affairs, and so I can see why there might be spiritual benefits to having that sort of working arrangement. But I can also see why firms would gain from having their services conducted in-house — in large part specifically because they would have more power over the situation. It seems to me that sometimes, firms would be willing to pay more to have in-house employees. In other cases, independent contractors might be able to satisfy the needs of firms without being constantly at their beck and call. That seems like something for the market process to decide (though I recognize that the process may currently be biased against contractors by existing regulatory structures).
But the preceding point leaves out the characteristically socialist intuition that there’s something inherently worrisome about the imbalance of power that arises in an employment relationship. The subordination that inherently occurs in “employment” relationships; the profits that are drawn from others’ efforts by the owners of the means of production; the alienation which occurs when one does not directly possess an ownership stake in the products of one’s own labor; the “rankism” that so often accompanies hierarchical systems of organization — socialists generally don’t see these things as merely uneconomical; they are wrong.
That’s why I was trying to drive a wedge between the “uneconomical” argument and the (I think more clearly “socialist”) “unjust” argument. It seems to me that if on final analysis it turned out that capitalistically organized firms were not uneconomical, then the true socialists would come down in favor of doing away with them anyway for nonconsequentialist reasons. The sophisticated non-socialists, on the other hand, would shrug and suggest that people in those arrangements should at least be more sensitive and decent to each other, knowing that situations leading to feelings of alienation, self-repression, powerlessness, and subordination are really awful (and typically counterproductive) and should be mitigated if possible.
It seems to me that if my interpretation of the “sophisticated non-socialist” response is characterized as itself being a sort of “socialist” response, then in an important sense we would be suggesting that everyone should be a socialist. After all, who the heck approves of feelings of alienation, self-repression, powerlessness and subordination? It would seem like “non-socialism” in this case would be reduced to something like vulgar capitalistic apologetics. No?
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GGI,
David Ellerman develops that train of thought in his book, “Property and Contract in Economics,” available here: http://ellerman.org/Davids-Stuff/Books/p&c.htm
I found a link to it on Kevin Carson’s site when I started reading him, and it influenced my thinking substantially. -
istewart, yes, it is Ellerman. But the question that remains about his work is can it be reconciled with libertarianism. That’s a project I’ve taken head-on. I’m not sure where it will lead but my allegiance is to anarchism and libertarianism first. If you want to discuss it, drop by my blog. I’d love to know what you have managed to glean from reading P&C or his other research.
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Oh dude, you achieved something salient with this post.
And, Neverfox, I think you’re getting very close to a nice, neutral, non-biased understanding of pure libertarianism.
Historically, the IWW were trying to move to a model of “labor rents capital” when they were demolished by the Wilsonian state. I think a lot of agorist business can be done via this model, once someone makes enough money and understands the principles enough to work this way.
Perhaps we should be sending all the drug lords copies of the New Libertarian Manifesto?
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Rather than repeating them, I’d like to link to two contributions to the conversation (including my own):
http://polycentricorder.blogspot.com/2009/06/anarchist-and-socialist-semantics-and.html
http://liberalaw.blogspot.com/2009/06/socialism-revisited.html
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We obviously can advocate for brand new ways of doing things. It has happened, so it is possible. And it may be that some brand new way of doing things would be actually better than getting licenses from the state to use my own property to engage in private trade and commerce with others and then pay sales taxes and numerous other taxes for bureau-rats and politicians to get paid to find new ways to abuse me.
State socialism doesn’t work. It is associated with decades of slavery, abuse of power, murder, mayhem, war, destruction, death, torture, centralisation, bureaucracy, madness, and indecency. You can use the word socialism to mean chocolate ice cream, but your insistence on doing so isn’t going to cause people to forget about decades of mayhem and death, nor is it necessarily going to avoid confusion at ye olde ice cream shoppe.
Similarly you can use anarchism to mean market anarchism and enjoy the confusion and bafflement of your readers. Then distinguish yourself somehow from the anti-propertarian anarchists of yore, while being sure to go over the zero aggression principle so no one confuses you with the assassinating, bomb throwing sorts the Hearst corporation used to bash.
Personally, I don’t find it useful to use words that have been burdened with connotations. My political philosophy is libertarian, rather than authoritarian, but I don’t call myself “a libertarian” because there are so many neo-cons posing as libertarians in the LP these days. My economic preferences are for agorism and counter-economics, but I don’t call myself a market anarchist. Similarly, I find the idea of socialism to be so thoroughly tainted by state socialism that I would be insulted if someone called me a socialist. I prefer to call myself a sovereign individual.
And the imperial we works for us, we thank you.
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And to hold that current users of property–tenants, employees–are its owners contravenes the libertarian view of freedom of contract, whereby an owner could use an agent to homestead or maintain possession/occupancy of property on his behalf.
Ahhh, how interesting. In fact this is one of the main social anarchist criticisms of the homesteading concept. In short, large powerful firms like Wal-mart can hire an army of people to “homestead” for them, and individuals can homestead only by themselves. Ergo, under a Rothbardian system with this conception of homesteading there would still be Disneyland, corporate fiefdoms, etc, some of these places could declare themselves to be cities that are run by elected governments, and voila the state has returned, even if merely on a county-sized or arkansas-size level.
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Would you agree that a government sponsored (as opposed to government subsidized) health care plan would constitute upper left categorization? (assuming that the government only sponsored and never subsidized the plan) (and leaving aside whether or not that is a huge assumption)
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Some people react to “capitalism” with revultion and to “socialism” with interest (like the radical left), while others feel disgust when they hear “socialism”, whereas “capitalism” sounds reasonable (like people in East Germany). So maybe those of us specialising in preaching to the left or just like the term better can just settle on “socialism”, the others can go “capitalist” and we can all have ice cream or go abolish something.
One (though by far not the only) reason why I like “socialism” is that can be easily combined into something like “free-market socialism” which has immediate shock value and is hard to ignore or pigeonhole.
What I also find interesting is Stephan Kinsella’s vehement denial that private property and possession are matters of degree – which reminds me of the equally vehement insistence of db0, an @communist that Roderick linked to some time ago, that property and possession are qualitatively different. It seems boths extremes are still very eager to disassociate themselves from the other, even in the face of a compelling argument that they are not altogether dissimilar.
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GGI: I don’t deny that there are degrees in and community effects on standards such as abandonment, sufficiency of homesteading, and the like. What I deny is that you can characterize an occupancy requirement as one end of an abandonment rule. Abandonment rules are default rules that fill in when we are not sure. They never specify an owner has abandoned something if it is clear he hasn’t. Moreover, default abandonment rules do not prohibit the use of agents to possess on behalf of owners, which would flat-out prohibit the mutualist “occupancy” rule to hand over property to tenants and employees–they would rather be seen as agents of the owner. Adverse possession also cannot be twisted to yield this rule; an employee or lessee/tenant holds under color of the owner’s title and thus his use is *not* adverse to the owner’s ownership claim.
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SK: Sorry to split up my reply. If you haven’t seen it, I left some additional comments up above.
If I can be so bold, this group of comments seems to do a lot of question-begging and I say this as someone who is not looking to really argue for occ/use with any level of conviction. I just don’t think your objections can stand as stated.
They never specify an owner has abandoned something if it is clear he hasn’t.
Unless it’s clear he isn’t the occupant/user, that is. In either system “clear” will be system-dependent and the focus of dispute resolution. You are assuming a system that recognizes verbal or signage-type signs of ownership to argue in its favor.
Moreover, default abandonment rules do not prohibit the use of agents to possess on behalf of owners, which would flat-out prohibit the mutualist “occupancy” rule to hand over property to tenants and employees–they would rather be seen as agents of the owner.
Unless occupancy/use is seen as by definition limiting the degree to which agents can possess on behalf of owners while still providing the owner with a defensible claim. Again, you seem to presuppose aspects of your property theory to argue in its favor.
I suppose you could show that it collapses in on itself by granting that the agent ascends to owner status but that she could pre-contract to transfer it back to the owner when he was more able to occupy the land (for a fee). But that would see unlikely given that if the fee were anything smaller than the going rate on the land, the agent would be better served by paying contract breach damages (the fee) and pocketing the difference; if it’s anything more, the owner would be better of just selling his occupancy rights.
I will put out what I think is one good consequentialist argument against occ/use. That would be the case where a person was widely known to be in a situation where they were going to certainly be unable to maintain occupancy status. That would drive their ability to gain any value for abandonment to zero while another person who had the leisure to stay or go could extract a fee to “abandon” it. This is strange link between circumstance and ability to extract value is obviously not a concern in Lockean property systems. I haven’t thought about possible solutions much. But there it is: a freebie.
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I’ve done a lot of thinking on it, and I confess that that means little.
I can’t come up with a philosophically-grounded platform for occupancy requirements within a moral framework that recognizes the ability to homestead. It always comes down to arbitrary abrogation of property rights on consequentialist grounds. I don’t oppose the ends, necessarily, but the moral framework that insists on occ/use seems sort of… shaky.
I would feel much more comfortable with mutualists who argue for a foundation of Lockean property rights and a preference for the sort of voluntary constructs that Dr. Long mentions in his critique of Carson in the Journal of Libertarian Studies.
What I’d REALLY like to see is Dr. Long’s take on property rights, from the ground up. A critique of everything from the self-ownership principle to occ/use requirements. Maybe a cooperative effort with Mr. Carson, contrasting their two views and debating them – that’d be really cool. Great for a C4SS project, hint hint.
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Likewise, John. That’s why I’m basically in the same place as Dr. Long on property for the foreseeable future. I still like the challenge since it is part of the anarchist tradition and deserves some modern treatment and analysis even if it is, in the end, unable to find grounding. As for consequentialist arguments, again I’m with Dr. Long in thinking that consequentialist considerations are still part of any good deontological system for the purposes of providing otherwise indeterminate content. The question then becomes how much of the property meta-structure requires resorting to that.
“What I’d REALLY like to see is Dr. Long’s take on property rights, from the ground up.” Have you listened to his lecture on the subject? It seems to be exactly that. The whole series is excellent. Required listening.
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