Sunday, August 6, 2023

A World Without Money (1974)

From the Special 300th issue of The Western Socialist

Time was, when the idea of a social system operating without a medium of exchange was held only by a relative handful of scientific socialists Today, one hears the concept kicked around a bit more on talk shows and by people who do not necessarily consider themselves revolutionary in the sense of the World Socialist concept of revolution. But one gets the impression that there is not too much understanding of the economics of the question even among many of those who favor a moneyless society. They do openly disagree with the popular notion that no social order could operate without money of some sort but they seem to believe that it is going to be a case of a government of one sort or another proclaiming the abolition of money.

In order to understand why such an act will be not only unnecessary, but impossible, it is all important to comprehend why a medium of exchange, money, is necessary within the present system. Production, under capitalism, is carried on primarily for the purpose of sale on a market with view to profit and, as a result, we have an exchange or a circulation of commodities. Now it stands to reason that if eggs, shoes, whisky, houses, automobiles and all the other commodities exchange on a market in certain proportions there has to be a medium for effecting the circulation. This medium must be, itself, a commodity and one that is universally acceptable as an equivalent of the values of all commodities. So we have the commodity gold acting as the universal equivalent behind the various nominal monies of the world. And unless some other commodity with the necessary properties and the universal acceptance of gold comes along, gold will continue to act as real money.

Besides acting as a medium of circulation, money must exist, then, as a means of payment and as a measure of the values of commodities. Much of this may even be learned in a college economics course.

But the system, today, in the whole world is one of production for sale on a market with view to profit whereas the system advocated by socialists is something quite different. In a socialist world there will be no production of commodities. Goods and services will be produced only for the purpose of satisfying the needs and wants of the population. Eggs, shoes, whiskey, houses, automobiles and whatever else is wanted by society will be produced only because these things are wanted and not to sell. There will be no buying and selling at all and in such a situation there could be no need for anything to act as money.

Two questions might immediately leap to mind. First: do socialists advocate a return to simple barter? and Secondly: when has a moneyless system ever existed, at least in recorded history. The answer to the first question is “No” and to the second. “Never!” But with a but.

Obviously, barter could not exist under socialism any more than could money exist. There is just no need to exchange goods. We produce and we consume and the only difference that would be really noticeable from what takes place today would be the absence of cash registers and private or state ownership of the means of production. Should production of a particular item be inadequate to satiety the needs of the population, production of the item would be increased. If more than enough, it would be decreased.

As for the point that money always existed throughout recorded history: Yes, but not for most of the population. In previous social systems most people never had occasion to require money. Production was mainly geared to the needs of a slave or serf population and their masters. Money appeared only among a minority of the population, in trade.

And NO! We do not advocate a return to slavery or serfdom. We urge the abolition of all slavery, the end of wage slavery, the establishment of world socialism — a system in which the need for money will vanish.

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