THE EMERGENCE OF COMMUNISM WITHIN CAPITALISM 

James Lawler

 

The Soviet model of state command socialism.

In many recent commentaries in connection with the 150th anniversary of the
Communist Manifesto, we are told that Marx had profound insight into the
problems of capitalism. His main failing, however, was his proposed solution
to these problems, "state command socialism." This is the idea that the
workers' state was to plan the operation of an entire national economy. The
collapse of socialism in the Soviet Union is taken to mean the practical
refutation of Marx's alleged solution to the problems of capitalism. 

But was this really the conception of socialism, or communism, that Marx
proposed? We have perhaps been understanding Marx for too long in the light
of the later Soviet experience, the command system installed by Stalin
beginning in 1929 and continuing until Gorbachev began the process of
perestroika in 1985.

 

State market socialism market socialism

What kind of socialism is possible if it is not state socialism in the sense
of a centrally controlled and planed economy? Clearly, another possibility
is the state market socialism characteristic of the early Soviet period of
the New Economic Policy, established by Lenin in 1921. This was also the
form of socialism proposed by Marx and Engels in the Communist Manifesto.

The nature of state market socialism becomes quite clear if we read the
Manifesto in the light of Engels' earlier draft, "The Principles of
Communism". One of the planks of the program of the Communist Party is:
"Gradual expropriation of landed proprietors, factory owners, railway and
shipping magnates, partly through competition on the part of the state
industry and partly directly through compensation in the form of bonds." (1)
Two ways of acquiring property are mentioned. 1) The proletarian state will
buy out some, but not all, capitalist enterprises. 2) The proletarian state
will also acquire property through competition with capitalist enterprises.
This implies that socialist state property will be more efficient than
capitalist property and will win in a fairly structured market-place
competition. In all this, a market context is simply presupposed. An
economic logic, respectful of market production, is observed and perhaps
even improved upon. 

Such state market socialism does not however operate on capitalist
principles. Substantial modification of the capitalist environment is
implied in the fourth measure of the "Principles": "Organization of the
labour or employment of the proletarians on national estates, in national
factories and workshops, thereby putting an end to competition among the
workers themselves and compelling the factory owners, as long as they still
exist, to pay the same increased wages as the State." (2)

The immediate goal of the proletarian government is not the elimination of
competition per se. It is the elimination of competition between workers
over the price of their labor. While market relations in the production of
goods for sale continues after the communist revolution, what is ended, or
is in the process of ending, is the labor market, the market in human time,
energy and skill. By becoming owners of their own means of production,
workers no longer sell their ability to work as a commodity, subject to
pressures of market forces, especially to the pressures arising from
competition with other workers.

Consequently the kind of market that is initiated by the proletarian state
is no longer a capitalist market. Thanks to conscious management by the
proletarian state the market begins to work against the bourgeoisie and for
the proletariat. It is no longer the blind elemental force in which the
interaction of isolated producers takes place as if it were an external
power of nature. The rational or conscious element or "planning" transforms
market production, rather than simply replacing it. 

 

>From 1848 to 1864

Marx's conception of the nature of socialism underwent further evolution
after 1848. The crucial text for understanding this evolution is Marx's
"Inaugural Address of the Working Men's International Association" of 1864.
In his address, Marx says that he is assessing "the experience of the period
from 1848 to 1864". There he writes of "the victories of the working class
movement in the great contest between the blind rule of the supply and
demand laws which form the political economy of the middle class, and social
production controlled by social foresight, which forms the political economy
of the working class." Here are the two main opposites of Marxist thought:
the unfettered rule of money, on the one hand, and the rule of free human
beings, on the other. 

How do we go from the one to the other? Is it by eliminating the first,
outlawing it, burying it or abolishing it, so as to allow the second to be
created in its stead? This sort of approach is characteristic of what I call
"nihilistic socialism" which takes a fundamentally negative attitude to the
old society. Nihilistic socialism fails to recognize the core idea of
"dialectical socialism" according to which the old society gives rise to the
new as part of its internal development. What is central is to see how the
new society grows up out of the old, and to show the transition from the one
to the other, the intermediary links that connect the opposites. 

In the great contest between these two principles, Marx sees the first major
victory of the political economy of the working class against the blind rule
of supply and demand in the Ten Hours Bill, part of a series of Factory
Acts. This Bill simply restricted the working day of women and children to
ten hours. Marx writes of the world-historic significance of this
legislation: "it was the first time that in broad daylight the political
economy of the middle class succumbed to the political economy of the
working class." (3)

Recognition of the deep significance of the Ten Hours Bill was a major
development in the thought of Marx and Engels about the development of the
Communist mode of production. Engels had previously analyzed this bill in
March of 1850, just after a court had acquitted a particular manufacturer of
violating the Bill. Overgeneralizing from this momentary setback, Engels
argued that there could be no significant victories over capitalism short of
the revolutionary overthrow of capitalism itself. He regarded the momentary
defeat of the Ten Hours Bill as an indication of the impossibility of real
reform under capitalism. However, support for the Bill was in fact
strengthened after this particular backward step. This led Marx and Engels
to draw the important conclusion that the new society can make major strides
even inside the old one.

In Capital, Marx repeated his interpretation of the significance of these
acts, calling them "that first conscious and methodical reaction of society
against the spontaneously developed form of the process of production". (4)
These initiatives of the conscious regulation of society, or "planning", are
not antithetical to the existence of the market, but only to the unfettered
free market that is continually demanded by capitalism. 

 

Cooperative Market Socialism

In his speech of 1864, Marx recognizes a second major advance of the
political economy of the working class in its struggle with the political
economy of capital, "the co-operative movement, especially the co-operative
factories raised by the unassisted efforts of a few bold hands. The value of
these great social experiments cannot be over-rated." Marx calls these
co-operative factories the practical upshot of the theories proclaimed in
1848.

In Capital Marx stresses this significance of cooperatives. In Volume III,
in the context of a discussion of credit, Marx writes: "The co-operative
factories of the labourers themselves represent within the old form the
first sprouts of the new . . ." The development of capitalist credit has
supplied workers with the economic means of buying up their own factories. 

This analysis shows a deepening of the processes examined in the Communist
Manifesto, where it was the workers state that would have to buy out some
capitalists in order create enterprises that would be non-exploitative. Marx
argues that the principles proclaimed in 1848 have born practical fruit in
the worker controlled cooperatives. The essential principle of communism is
that of the free association of producers. In the cooperative factories we
already see this principle at work, "associated labour plying its toil with
a willing hand, a ready mind, and a joyous heart." Communism is not a
distant society that will be established in the future, but a reality
developing in the present society, in capitalism itself. In his 1864 address
and again in Capital, Marx traces the success of the principles of communism
sketched in 1848. 

The deepening of the processes discerned in 1848 might be described as a
shift from State Market Socialism to Cooperative Market Socialism. The
workers state is no longer the primary instrument of economic
transformation, although it remains central in terms of political
requirements. Workers themselves, in their cooperatives, are able to do what
in 1848 Marx postulated as the task for the workers state: to create
enterprises that would essentially function as workers enterprises, and
consequently to transform the capitalist private market into a workers
social market.

Consequently, the essential principle of the idea of communism in the
Manifesto of 1848 is seen to be a reality coming into existence in the
transformations occurring in the following sixteen years. Marx argues that
the achievement of historical materialism is not merely to have shown the
problems of capitalism, but to have identified the solution to those
problems in the growing working class movement and the social, legal,
political and economic results of that movement. Marx did not see the
emergence and development of "cooperative market socialism" as the endpoint
of this process, but as a necessary "intermediary link" in the dynamic
connection between capitalism and fully developed communism. (5)

In the hindsight of 150 years we should be able to see that communism has
developed even further. Globalized capitalism is an expression of the
inherent essence of capitalism, reverting to its laissez-faire or free
market essence. But it is also an occasion for further advances of the
political economy of working people to preserve the essentially communist
achievements of 150 years and to advance these achievements on the
international stage. The maxim of communism, theoretically proclaimed in
1848, has never been more practical than today: Workers of the world, unite!

 

Notes

1. Marx, Engels, Collected Works (MECW) Volume 6, 350

2. Ibid.

3. MECW, vol. 20, 11.

4. Capital, op. cit., 480.

5. See James Lawler, "Marx as Market Socialist", in Bertell Ollman, ed.,
Market Socialism: The Debate Among Socialists (Routledge, 1998). In this
article I distinguish six stages in the development of communism in Marx's
thought.

 
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