Tuesday, February 20, 2018

Production for Use (1968)

From the January 1968 issue of the Socialist Standard

You’ll only catch Labour Ministers using the word 'Socialism’ in two situations. One is at the Party Conference when, hand on heart, they proclaim their “socialist faith”. The other is when they are talking about planning. For many others too Socialism and planning are the same. It is true that Socialism does involve planning in the sense of working out ways to achieve given aims. But it is a simple mistake of logic to argue that because Socialism involves planning therefore all planning is socialist.

Planning is only an organisational technique, a tool that can be used in any situation where set ends are to be achieved. Thus generals plan campaigns. Capitalists, too, plan within their factories how to produce a given output as cheaply as possible so as to get the greatest profit. In socialist society free men and women will plan production to meet their needs. Clearly it is useless to discuss planning without first asking: planning for what?

The aim of Socialism will be to provide for the many and various needs of all the members of the community. The satisfaction of human needs will be the guiding principle. So the aim of planning will be to provide what human beings want. The technical side of production will have to operate always within the framework of human welfare instead of as at present within that of profit.

As the means for producing wealth will belong to the community as a whole, Socialism will be a classless society. There will be no built-in conflicts of interest between different sections of society. Further Socialism will be thoroughly democratic since a society based on the rational co-operation of free men and women can only flourish if its members play an active part in running it. This means that the whole administrative structure for planning will be under democratic control. The planners will not be bureaucrats with the power to order people about but duly-chosen delegates carrying out a necessary function on behalf of the whole community. As all human beings will have free access to the wealth they need the conditions for the corruption of officials by material favours just will not exist. And, of course, the coercive apparatus, so necessary to capitalism, will long ago have been disbanded.

Planning in Socialism, then, will be the planned production of wealth for use. This is a huge organizational task but one which mankind, thanks to its experience of capitalism, is quite capable of performing. One of the basic contradictions of capitalism is that while outside the factory or firm it breeds chaos and competition, inside it introduces co-operation and planning. Again, today millions and millions of people the world over are linked in a network of technological productive relationships. Social co-operation to produce wealth is the rule. Social planning of the use of this wealth, like its social ownership, is not. These must await the coming of Socialism. In fact their achievement is the socialist revolution. But it is not difficult to see how capitalism paves the way for Socialism.

The first task that men and women in socialist society will face in providing for their needs is to decide what and how much they want. This is not difficult. It is a principle of statistics that though you cannot predict the needs and wants of individuals and small groups the more people involved in any survey the more reliable become the figures—as individual peculiarities even each other out. It is just a matter of research and statistics to work out how much, say, bread or shoes or houses will be needed over a given period. In fact these techniques are already used today by governments, universities and market researchers. And of course socialist society would lose nothing from planning to produce a little more than strictly it needed as a kind of insurance against disasters or even against faulty statistics. If too much were produced then the result would not be the disaster it would today, with factories closing and men thrown out of work. All that would happen is that stocks would be larger and people would know how to produce less next time. Similarly if too little were produced.

So, first, it is a question of using social research and statistical techniques to estimate future needs. Such estimates could he submitted for discussion and approval to the community. Naturally, the figures could be challenged and, if demanded, estimates based on different assumptions worked out in much the same way as now the Government Actuary will work out the implications of rival pension schemes submitted by management and unions in the state industries.

Once needs have been estimated and figures for various things agreed on the next problem is to decide how they should be produced—that is, where, under what conditions, with what techniques. Working and living conditions will be something that the planners will have to take as given. Minimum standards will have been agreed on previously, by the usual democratic methods, using human welfare and not technical efficiency as the criterion. For instance, from a technical point of view it might be better to set up a power station in some beauty spot. If the community decided that this place should not be spoiled then this would have to be taken into account by the planners. Similarly some production techniques may be ruled out because the community, or even the producers involved, judges them unsafe or unhealthy or degrading. Once the community has decided what working and living conditions it will not tolerate then, respecting these decisions, the planners can begin working out the best technical way to produce the wealth required. This is a complicated task, demanding the use of computing machines, since every branch of industry is dependent, in however indirect a way, on every other. A decision, for instance, to build more electric cars will mean that more steel, rubber and other things will he needed too. But once the basic ratios are known then the requirements of any combination of needs can be worked out. These ratios are governed mainly by technology which changes very slowly. This technique, associated with Wassily Leontief. is called input-output or inter industry analysis and should come into its own in the non-commercial society that Socialism will be.

Once produced the wealth must be got to the places where the people who want it are (strictly speaking, this is still part of the production process). As the means for producing wealth will belong to the community so, as soon as it is produced, will all new wealth. There is no question of trying to sell it since it was not produced for this purpose but to satisfy human needs—and also since of course buying and selling has no place in Socialism. There is just the technical question of getting the stuff to the distribution centres from where people can freely take what they need.

We have traced, in logical sequence, the process of planned production for use right from the decisions as to what is needed to the delivery of the goods to those who will use them. Note that this is just the logical sequence. There is no reason why the tasks of estimating what will be needed and how it can be provided could not be combined to get out a set of alternative plans to put before the community for choice.

We are not here drawing up any blueprint but merely trying to show that Socialism is technically feasible now. The technical basis for Socialism—a technology capable of providing plenty for all, skilled and adaptable working human beings, the statistical and planning techniques — has long existed. What is lacking is just the desire and will to establish it.
Adam Buick

What Plan? (1968)

From the January 1968 issue of the Socialist Standard

The National Plan was dreamed up by the Department of Economic Affairs back in the palmy days of 1965. At the time Harold Wilson described it as a “national crusade for higher productivity” and George Brown wrote that its embodied “all our hopes for maintaining full employment and raising our standards of living.” Not surprisingly the Labour Party has since then done its best to give the Plan a quiet burial.

In its aims the National Plan was beautifully simple. The overall objective was to increase national production by 25 per cent (i.e. £8,210 million) by 1970. It pointed out that the balance of payments had been in the red by £750 million in 1964 and that this had resulted in heavy loans from the International Monetary Fund. As a solution, the Plan envisaged a steady improvement in these figures: “we shall need to get back into balance during 1966 and then into surplus; by 1970 we shall need a surplus of about £250 million.” This was to be achieved largely by boosting exports which, during I he barren years of Conservative rule, had been expanding at an average rate of only 3 per cent a year. Now they were to be stepped up by “over 5 per cent a year up to 1970. No one can say that this target is crying for the moon(!)” On the other hand, imports were to be effectively controlled and, “taking everything into consideration”, these would grow by no more than 4 per cent a year. The trade deficit was in this way destined to be cut dramatically, from £534 million in 1964 to about £50 million in 1970.

The Plan also gave prominence to its schemes for expanding the labour force. “On industry's present plans 800,000 more workers will be needed if the 25 per cent increase in output is to be achieved”. The hundreds of thousands of new jobs in the manufacturing and construction industries were to more than compensate for any shake-out in mining, the railways and other declining areas of employment. Prices were going to be magically frozen and, since wages would be creeping up steadily by 3-3½ per cent a year on average, “our personal consumption . . . should rise by one-fifth by 1970.” “This is not a policy of restriction. It is intended to increase the value of what our pay packets will actually buy and get away from purely paper increases cancelled out by higher prices.”

The future was going to be rosy in other ways as well. Expenditure on health and welfare services was to rise from £1,238 million in 1964/65 to £1,529 million in 1969/70. To meet the housing shortage, half a million new homes were to be built each year by 1970 (as compared to 383,000 in 1964). But these were only details when compared to the underlying ambition. Once and for all the crises and upsets of capitalism were to be abolished—by the stroke of a bureaucrat’s pen! “We have had too many crises in the last ten years . . .  Sometimes the only quick way of dealing with these crises was by cuts and squeezes at home . . . The whole point of the Plan is to break out of this vicious circle once and for all." (their emphasis)

Although the working class in general greeted the plan with a healthy indifference, it fired the imagination of many economists. By the end of 1965, after the Plan had been in force for a grand total of four months, some of them were becoming quite enthusiastic.
   The Chancellor has every reason to feel encouraged by this ending to a year in which exports rose by 7 per cent and the average monthly trade deficit was halved. Even if he did not quite hit his target of halving the total balance of payments deficit during 1965, it is now clear that he cannot have fallen far short of it . . .  Mr. Callaghan is running to time towards his objective of eliminating the payments deficit by the end of 1966.  (Financial Times, 13/1 /66)
But 1966 was a great year for wrecking illusions. The pundits had a variety of hypotheses to account for the sorry state of the economy but they were united on one issue—all was not going according to plan. Perhaps Victor Morgan, Professor of Economics at Manchester University, spoke for them all when he said:
   The year 1966 should stand as an awful warning to those of us, both in official circles and outside, who indulge in the black arts of economic forecasting. At the end of 1965, the government was confidently looking forward, on the basis of existing policies, to a rapid improvement in the balance of payments, and this view was generally shared by academic and business economists. In fact, we have been subjected to another massive dose of deflation, and the current account deficit for the first three quarters, at £234 m., was £87 m. more than in the corresponding period of 1965.
   . . . the rate of growth of national output [is down] to an average of a little more than 1 per cent a year.
(Financial Times, 31/12/66)
Callaghan, however, remained optimistic. Nothing had gone fundamentally wrong, he argued. There had been setbacks, for a time economic recovery had even been halted, but dramatic improvements were just round the corner. A sign of this, he claimed, was that the government had “made a good start in repaying (the) debt to the Central Banks. Our reserves have been rising and we have resumed repayment of capital and interest on our North American loans.”

Contrast this to what has actually taken place. The final figures for 1967 will not be available for some weeks yet but even so we can see that the Plan is completely on the rocks. Far from being able to repay their debts to the International Monetary Fund and Central Banks, the British capitalist class have applied for further loans of $300 million. Despite the confident prediction that first 1966, and then 1967, would produce a positive balance of payments Callaghan has ruefully admitted that the capitalists still “need an improvement in our balance of payments of at least £500 million a year . . .” 

The Plan emphasised the importance of boosting exports by means of rebates to exporters and the need for heavy investment in the nationalised industries to provide the basic growth in fuel, transport and communications which would allow industrial production as a whole to increase. Yet now the government finds itself sabotaging its own plan. Among the economic reforms which followed the devaluation of the pound, two of the most important measures were to abolish refunds to exporters to the tune of £100 million and to reduce public spending (which includes capital investment in nationalised industries) by another £100 million. Apart from all this over half a million unemployed workers know that Labour’s brash predictions about creating more jobs have not worked out. And of those workers with jobs, how many now feel confident that their ‘‘personal consumption . . .  should rise by one-fifth by 1970”?

The failure to date of the National Plan is a blow to the efforts of the ruling class to strengthen the world standing of British capital. But, in the end, they can afford to take a philosophical view of it all. After all they are still the bosses and, however persistent the difficulties that face them, they can rely on the working class to keep on churning out the profits.—Or can they?
John Crump

The Fetishism of Money

The following piece, written by the late Pieter Lawrence, is the eleventh chapter of his 2006 work, 'Practical Socialism - Its Principles and Methods'.

Chapter 11

The Fetishism of Money

In Anthropology the word ‘fetish’ came to mean “an inanimate object worshipped on account of its supposed magical powers.”  This also defines the “fetishism of money.” In some tribal cultures fetish objects took the form of amulets, a practice that still continues.  In our more developed society this is dismissed as superstition.  However, despite our modern, technical culture ‘fetishism’ is a deeply entrenched part of the way we think: we worship the supposed magical powers of money.  Because our main political parties are wholly committed to the administration of the market economy the fetishism of money dominates political thought.

In Marxian theory the ‘fetishism of commodities’ is the illusion that in buying and selling the values being exchanged are part of the physical make up of the commodities themselves.   If this were true it would mean that buying and selling and the economic tyrannies of the profit system could never be removed.   In fact, the values of commodities result from particular economic relationships and in no way are they part of the goods themselves.  Beyond the relationships of wage labour/capital and the market system, in a society based on co-operation, the commodity form of goods together with their exchange values will disappear.  

Similarly, fetishism is a strong element in religion. Gods in all their great variety are products of the human imagination endowed with superior powers. This again diminishes our human powers and was well expressed by Karl Marx in the preface to “The German Ideology.”   “The phantoms of their brains have got out of their hands.   They, the creators, have bowed down before their creations.   Let us liberate them from the chimeras, the ideas, dogmas, imaginary beings under the yoke of which they are pining away.”  

But fetishism does not end with imagined Gods.  In our more secular society we have tended to replace gods with the fetishism of money. This also attributes powers to an alien force that dominates our lives.   The fetishism of money is the illusion that money brings happiness, fulfilment, has its own productive powers and has an existence independent of human beings that is able to get things done.   Particularly in politics money is given the power to solve problems.   This illusion is so strong that it is commonly thought that without money we have no powers of social action. This leaves us alienated from our real human powers, from each other, and is the basis of much social neurosis. The idea that we should be liberated from such self destructive illusions has a very modern ring.

How often do we hear it said, “we do not have the resources” when what is meant by resources is always “money”.  Every day politicians give lack of money as a reason why we cannot provide better health care, or the many other public services that are in urgent need of improvement.   Not just in Whitehall and  Westminster but in Borough, District and Parish Councils throughout the country the same mantra is chanted week in and week out, year after year,  “if only we had more money something could be done”.   This ignores the fact that productive resources are materials, industry, manufacture, transport, energy, communications, in other words, all the things through which goods and services are produced and distributed.  In turn all these resources depend on one single resource which is labour.   These are the real resources on which the lives of communities depend.   The idea that our   “resources” are inadequate is entirely false. In fact we have is an abundance of talents, skills and labour to provide for needs. 

At times throughout the world there may be many millions of unemployed people, factories standing idle, goods and unused materials being stockpiled but politicians still repeat, “we do not have the resources.”   They are unable to see the availability of real resources because their minds remain trapped within the illusion that only money resources count.   They imagine that real resources can only be brought into use by money.   They imagine that human beings can only function as economic automatons which can only be activated by injections of money.   The opposite is the truth.   The powers of the community to solve problems can only be fully released with the relationships of co-operation and the abolition of money relationships.

As part of the dogma of market economics the imagined powers of money run through every social problem.  For example, in the past two general elections the Labour Party made a commitment to reduce child poverty.  For this, they hope to use money.  “The chosen means is also clear:  a new form of child support which starts in 2003.   But it will be costly, as the budget will reveal for the first time”.  (Economist 23 Feb 2003).

“Poor children are defined as those living in households whose income, after housing costs, is below 60% of the median – the income in the exact middle of the income distribution.”  Poverty is of course relative and this degree of poverty in Britain is not as severe as the poverty of children in undeveloped countries where 40,000 children die in poverty every day.   In Britain, child poverty generally means substandard housing, poor conditions in the home, cultural deprivation, exclusion from benefits enjoyed by better off contemporaries, and poor diets (fats, sugar and carbohydrates).

That any kind of child poverty exists is a disgrace and would be easily removed in a sane society.  According to the Economist, under the Labour Government’s market system, “Progress has so far been slow.  In 1996/7, the year before Labour took office, the number of children living in poverty was 4.4 million.   By 1999/2000, this had declined only to 4.1 million. A more substantial decline to 3.5 million is expected for 2001/2 as reforms such as the working families tax credit (WFTC), introduced in October 1999, take full effect.  But this will still mean that the Government has failed to meet its earlier pledge to remove more than a million children out of poverty in Labour’s first term.   To cut the number of poor children by around a million would cost as much as £6.1billion. The pledge to remove child poverty is proving to be an expensive one”.

Clearly, the pledge is not just expensive.  Because the money available to Governments in the form of various taxes depends on the state of buying and selling, which is at best unpredictable and incapable of being rationally directed, going by experience, the hope of any Government ending child poverty is to say the least uncertain.  Reforming governments have been making this pledge for over a century and they have all failed.

Over any period, throughout the country both nationally and locally, arguments about the state of our social services are reported in the media.   What we find is that these arguments are almost entirely about money.   For example a selection of local newspaper reports from the Croydon (South London) on health services in the the late 1990’s is typical.

“As well as putting views on meetings residents get two chances to vote:  *On which patients should face cuts in services: a straight Yes or No vote on whether there should be cuts in each of the four areas of care: acute services (at Mayday and similar hospitals), mental illness, mental handicap and community health services.  Savings in the four areas adding up to almost £1 million are needed to meet a shortfall between what must be done and what there is money for.”  Croydon Advertiser 2 Jan 1998.

“The spokesman continued:  “The health authority is saying it needs to save money to balance the books and this was one of the only areas it felt it could make cut backs.   And although it is not saying there won’t be consequences it is the least harmful option.  Cutting community health services is seen as the lesser of several evils.”

“Last month it emerged that Croydon Health Authority was reducing its community health funding by four per cent despite its best efforts to keep the budget cuts at a minimum.   The cash crisis has arisen despite Croydon receiving a one off £1 million payment to help it cope with emergence admissions this winter.”  Croydon Guardian 14 Jan 1998.

“Tears for children in need and jeers for National Health Service managers in receipt of large salaries dominated the agenda when 120 residents crammed into a meeting to hear Croydon health bosses present a £2million NHS cuts package.” Croydon Advertiser 23 Jan 98.

“Outraged parents will descend on Croydon Health Authority’s (CHA) offices on Monday to protest against possible cuts to “vital” children’s health services.”  …  “Health watchdog (which monitors) the Community Health Council has already branded the proposals short sighted and warned of the serious long term consequences of cuts in preventative community services.   At the same time it recognises the CHA’s predicament and described any efforts to meet the £500,000 cash shortfall as a ‘damage limitation exercise’”.   Croydon Guardian 21 Jan 98.

Under the headline, “Five health centres face axe in bid to save £1.4million,”  the Croydon Advertiser (6 Feb 98) reported, “The trust is even looking at selling its own headquarters to reduce its £1.4ml overheads.   Over and above the threat to the five centres, the trust has also been told it must save £300,000 on services because of proposed cut backs in Croydon Heath Authority.”

A sub heading in the Croydon Advertiser  (2 Oct 98) reported, “Immediate cuts mean school nurses must reduce the services they offer to youngsters.”   This was followed a few weeks later by a report (CA 13 Nov 98) “More than half of Croydon’s school nurses have quit in protest about cuts but the health trust insists there is money available to replace them.”

A few months later the Croydon Guardian (17 Mar 99) reported, “After months of consultation and horse trading, Croydon Health Authority has finally settled on its list of haves and have-nots for this year’s funding priorities  - leaving health watch dogs and children’s campaigners ‘bitterly disappointed’.   Of the 39 schemes considered for funding, only 20 have been guaranteed a slice of the £8.5million cake – leaving the have-nots needing a miracle windfall of new money if their services are to be funded this year.”

A year later it appeared that the Government was willing to provide more money.  The Croydon Guardian (6 April 2000) reported, “Good news for patients as Croydon gets $4.4million.”   “Health services are in line for a major shot in the arm after the Government announced that £4.4million would be flowing into the borough”.   “This is absolutely brilliant news – beyond our wildest expectations,” said the chief officer of Croydon’s patient’s watchdog, the Croydon Community Health Council.   “Patients have had to put up with some real shortages in Croydon with some services being cut to the bone. There is now no excuse for not plugging these gaps.”

But it appears that the sense of relief was short lived. Soon after the news of more money the Health Authority was again criticised for lack of investment.  The same spokesperson was reported as saying, “There was tremendous good news in the March budget of huge extra funding for Croydon.  But there is growing frustration that in spite of this, no decisions have yet been made about addressing even the most glaring of Croydon’s gaps and shortfalls.   In terms of what really matters – the services which local people get from their National Health Service – it is a mixed story of good overall progress marred by significant shortfalls.”  Services that needed urgent improvement were the Accident and Emergency Department of Croydon’s main hospital, outpatient services, diagnostic testing and neurology, children’s health services and health care provision for old people.  It was also pointed out that some 2,000 adults suffered when a physiotherapy service was suspended.

According to “Croydon’s Health Improvement Programme 2000/3” for the year 2000/1, its Health Authority planned to spend £211million on its health services.  It said that Croydon  “… expects to continue to be able to maintain financial balance, with small levels of growth available from the Comprehensive Spending Review.   However, the position will remain tight and hard choices will need to be made.   A number of priority areas are being considered for the use of Health Authority development funds.  These are: *Improving mental health.   *Modernising community nursing services for children.   *Urgent hospital and community health care.   *Tackling health inequalities.   *Improving services for people with cancer.   *Improving services for people with diabetes.  *Drugs and youth offending.   *Coronary heart disease.”

The choices that doctors and local Health Authorities must sometimes make are about priorities of care based on available money. This means having to decide that one patient may benefit from a particular treatment but, depending on costs, another patient may be denied a treatment. This is when doctors and surgeons see themselves as “acting as god.”

Whilst there is no gain in repeating examples we should note that whilst the Croydon Health Authority was battling with its tight money constraints the same battle was taking place in education.   The front page headline of the Croydon Advertiser for 23 May 2003 was, “CASH CRISIS: NOW PUPILS SUFFER”.     “Sad day; Edenham High School’s headteacher tells the media on Wednesday how a desperate shortage of money forced him to send children home.”    “More than 700 pupils were sent home from school as Croydon’s funding crisis reached new heights – and more closures are set to follow.”   “Edenham’s £500,000 funding gap is one of the biggest faced by a Croydon school.”   

In calling for the resignation of the Government Minister (a futile gesture), the editorial said, “Resign now, minister.  Enough is enough.   The Government can no longer pass the buck over the cash shortage that is throttling the life out of the borough’s schools.   The news that 720 Edenham High School pupils had to be sent home on Wednesday because there was no one available to teach them comes as a sickening confirmation of all our worst fears.  Edenham may be the first forced to take such action.   But it is unlikely to be the last.” 

Given that these reports are typical nationwide, they show how the debate that is ongoing in every locality on health, education and other services is focussed almost entirely on the provision of money.   From this, it is perhaps understandable that we are seduced into thinking that it is money that actually provides our vital services.  This illusion then becomes fixed in our minds as the only way to address our problems. One result is that we are separated from the real powers we have to provide for our needs. In reality it is people that provide health care, education and our important services, not money.

The magical powers of money to solve problems dominates the thinking of not just the world of reformist politics, it also rules the thinking of the many charities that constantly appeal for money.   A recent example is an appeal run by Oxfam on TV:  “What do we dream for our children?  Health, happiness, success?  A safe place to sleep at night? A drink of water that won’t kill them?  Never to be hungry again?  We all want the best for our children.  For some people that starts with such simple things.  All they want is a better world for them to grow up in.  It’s not much to ask and all we are asking of you is £2 a month.”

“In over 70 countries Oxfam is helping people to work themselves out of poverty.   They never give up and neither do we.  Will you stand alongside us too?  With your £2 a month we can help them with seeds, tools – help them build wells with clean, safe water, give children an education so that they can have a chance of having a real future free from hunger and pain. All people want is a better life for their children.  Please do something remarkable today and help make a dream a reality.  Telephone Oxfam today and give £2 a month”.

It is not intended here to criticise those who wish to help others in desperate need. Such willingness to help is admirable and provides hope for the future.  At the same time, the brutal facts have to be faced that during the past 25 years, during which time Oxfam and similar organisations have been appealing for money to solve problems, the numbers of seriously under nourished people has, according to the Food and Agricultural Organisation of the United Nations (FAO) almost doubled from 435 million in 1974/5 to over 800 million in 2000.   In view of this it is right to point out that when Oxfam claim to be in over 70 countries “helping people to work themselves out of poverty,” so far as the general problem is concerned the statement is misleading.   If the members of Oxfam and its supporters were to also work for a system in which we all cooperate to provide directly for the needs of people this would be a significant step forward.  Surely this is what they claim to want.

Following the volcanic eruption of Mt. Nyiragongo in Congo the Disasters Emergency Committee broadcast its Goma Crisis Appeal (25 January 2002).  This included what given amounts of money could do.  For example, “£30 will treat 18 people for severe malaria - £100 will provide clean water to 4,000 people for a week.

We may not go as far as Oscar Wilde when he wrote, “It is immoral to use private property in order to alleviate the horrible evils that result from the institution of private property.”  But it does remain true that appeals for money to alleviate suffering tend to perpetuate the system that causes the suffering.  Moreover, the idea that such suffering results from natural causes is not always the case. The main reason why communities suffer from extreme natural events is economic. For example, cheaply constructed buildings that cannot withstand earthquakes. Most dangers are known and a sane society would not need to leave communities exposed to them. This would avoid many disasters.  Where they do happen contingency plans using instant response team could exist throughout the regions and at a world level for the relief of any catastrophe.  Emergency supplies such as food, clean water and medical supplies would be maintained at strategic points whilst machinery, equipment and helpers could move quickly to any area of crisis. Appeals for money are a sad and wholly inadequate substitute for the availability of real resources and the freedom of communities to make free use of them.

Nationally, the archpriest who presides over this all pervasive fetishism of money is the Chancellor of the Exchequer, who does so from his Temple of Money, HM Treasury. It is in the budget that “money” is equated with “powers of action” which are set out in money terms. In the 2003 budget the Government expected to spend a total of £456billion.   Regardless of our real human resources, this amount of money set the limits on what we could do as a country. What we could do for housing and the environment was set at £20billion; what we could do for education was set at £59billion; what we could do for transport was set at £15billion; what we could do for national health care was set at £72billion; what we could do for personal and social services was set at $17billion, and so on.

This parliamentary ritual called “the budget” has its own liturgy expressed as incantations of faith that the market economy with well managed public finances can solve our problems and deliver the promised land.  This is the endless pursuit of a holy grail, the perfect capitalist system. The language of the budget is illusory.  Under the heading, “Building a fairer society” the Government’s 2003 budget leaflet said, “A flexible and dynamic economy must go hand in hand with a fairer society so that everyone has chance to fulfil their potential. The Government is committed to eradicating child poverty and tackling pensioner poverty, providing support for families with children and ensuring security for all in old age.   It is also creating a modern and fair tax system which raises sufficient revenue for public services and ensures that everyone pays their fair share of tax.”  

Perhaps we should trust that chancellors are sincere people, in which case such lessons are delivered whilst sublimely unaware that the work they do is opposite to their moral intentions.   When a chancellor administers a tax system and distributes money to public services this is nothing less than the imposition of an economic straightjacket on all our abilities to provide for each other’s needs.  It happens in a system that is founded on putting money and profit before the welfare of the whole community. 

The fetishism of money is part of the ideology of the market system which claims uncountable victims across the world.  In the pre Colombian societies of South America, in homage to their gods, human sacrifice was widely practised.  For example, this was a cruel and gruesome ritual amongst the Aztec people in what is now Mexico. “In the heart of Tenochtitlan the pyramid rose as an architectural fetish, charged with the powers of all the offerings, and the blood from thousands of sacrificed human beings.   The structure was the terrifying centre of the Aztec world.”  (‘The Aztecs’, Richard Townsend).

Many of the sacrificial victims were children and we think of this as barbaric.  Perhaps for this reason we now prefer to keep out of our minds that because of the constraints of the market system, on a world scale we sacrifice many more children’s lives than the Aztecs could ever manage.  We sacrifice them to the god of money, on the altar of the capitalist system.
Pieter Lawrence

Advantages of Production Solely For Use

The following piece, written by the late Pieter Lawrence, is the tenth chapter of his 2006 work, 'Practical Socialism - Its Principles and Methods'.

Chapter 10

Advantages of Production Solely For Use

Change in the Social Form of Labour
It is important to refer to production in socialism as being “solely” for use.   This is for the obvious reason that in all societies, be they bread, bricks or bombs, things are produced for a use of one kind or another. But in the market system, commodities are also produced for sale. Goods for sale have a twin identity in that they exist in both an economic and useful form. The same is true of the labour that produces them.  In employment, the wide range of different skills have one thing in common, they have economic value. Labour as a commodity is bought and sold on the labour markets. In the production, distribution and consumption of commodities the ability of consumers to use goods depends upon their ability to first pay for them. This is because the primary motive of capitalist production is profit and the accumulation of capital. In socialism this profit motive would not exist with the result that goods would be produced “solely for use.”

Capitalist production begins with investment of capital in labour, factories, plant, machinery and materials: goods are then worked up and sold on to the place of final assembly.  Of all the values involved in commodity production the value of labour has the unique ability to create values over and above its own value.   This is the source of surplus value from which profit is derived and which is realised through sales.   The realisation of surplus value through sales allows for capital to be accumulated.  This accumulation of capital is then available for re-circulation after further investment in production. As a consequence the use of labour remains locked into a circular economic system.  

In a socialist society the present two fold character of labour, that is, its combined useful and economic form will be dissolved.   In capitalism, labour, in its economic form is activated by a prospect of sales/profits:  in a socialist system, only labour in its useful form would be activated solely by needs.  This requires that the present economic relationship of capital and wage labour be replaced by a direct relationship of cooperation between the producers themselves.
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Communities in socialism, having democratically decided their needs both in terms of quantity and quality, within the limits of practicality, would be free organise production in line with their decisions. Labour will find its freedom outside the present enclosed, circular system of exchange. All the advantages of production solely for use will flow from this liberation of labour. In Socialism, resources of labour and materials will at last be freely applied in whatever ways the community may decide.

Greater Use of Production Methods
In any society there are absolute limits to production.  However, the limitations on production in a capitalist system are not generally caused by lack of labour or material resources, nor by any practical problems of production. Limitations on production are mainly due to economic not practical causes. The use of labour is a means to an economic end and is not therefore simply a source of wealth production. Capitalism is not a rational system for the production, distribution and use of goods, it is primarily a system for making profit and accumulating capital and both these depend ultimately on market capacity for sales.  It is market capacity that determines the distribution of goods and this determines the structure of production.  It also places economic limits on the selection and use of production methods.  Without these crippling constraints communities in socialism would be free to make much greater use of production methods.

We have already established that with  the redundancy of  useless occupations,  the availability of the once unemployed, the social inclusion of the culturally deprived and the bringing to well-being of millions of undernourished and demoralised people, Socialism would be able to at least double the numbers of people available for the production of useful wealth.   As well as this, what are the prospects for increasing the productivity of labour and making greater use of production methods.

The rate of productivity is easily exaggerated.  For example, a company may invest in technology which displaces some of its workers. If this results in half the number of workers in that work place it might be assumed that productivity has been increased by 100%.  In fact, the capital values of the new technology represent the labour of workers in other sectors of industry and in allowing for this the figure of 100% has to be reduced.

For example, there are far fewer workers employed in British agriculture today compared with 100 years ago but outputs have increased. But increases in the productivity of agricultural labour cannot be calculated from a simple comparison between the numbers of workers employed on farms and output. Agriculture has become capital intensive and as well as machinery, inputs such as fertilizers, pesticides, etc., have increased. This has resulted in changes in the structure of the work force whereby labour in the manufacturing and chemical sectors has been brought into agriculture. When these factors are taken into account, the real gains in productivity are far lower than is apparent.  What we can say is that there are some factors which limit productivity in Capitalism which would not be present in a socialist system.

In capitalism, the work place, especially in industry and manufacture, is a scene of rival interests which may be sometimes quiescent but is often a battle ground. As part of the wage labour/capital relationship working people are not in direct cooperation with each other, they work within a relationship of economic exchange of wages for labour time.  Inherent in this exchange is the determination of employers to extract as much output from workers as possible.  On the other side of the division working people strive to gain as much payment whilst limiting output.   This often breaks out into open industrial strife with, over time, countless millions of work days lost through strike action.  This is a further feature of waste that subtracts from the overall productivity of labour.

Conflicting interests can also result in a range of subtly organised restrictive practices with workers limiting their output to implicitly agreed productive norms.  This can sometimes involve a subterfuge of wasted time. A worker new to an established work situation learns from the existing practice what the appropriate intensity of labour should be and is soon able to conform.  So, from the workers there is a tendency to reduce work effort whilst from the employers side there is a constant pressure to increase it.  Automated machinery may be designed to prevent workers deciding their pace of work. The relative strengths of each side may be altered by movements in the trade cycle.  In times of high unemployment the position of workers is weakened.  

From time to time companies are compelled to set up new production methods or introduce labour saving machinery.  This causes some workers to lose their jobs.   Having invested in a production process a company would prefer things to stay as they are at least until they have used up their costs of machinery, plant etc., in the production of new values which have been realised through sales as profits. If, in the inter-play of competition, a similar company producing for a similar market sets up a more efficient process whereby they can be cheaper but just as profitable the first enterprise is faced with the choice of either reducing their prices in line and making less profit, or writing off their existing investments and  investing in a different process.

A new process might involve a higher initial investment in new machinery, and whilst there may be gains in terms of a reduced work force, the ¬workers may not be willing to go; this raises the prospect of dislocation through more industrial strife. In the long run there may be little that workers can do to keep their jobs, nevertheless, these conflicts intensify the atmosphere of worker disaffection and cynicism which pervades the work process. This practice of wage labour is in sharp contrast to the spirit in which people could cooperate with each other in a work place where the work is in their direct interests, is under their control and unrelated to any economic time factor.

Company decisions on investment programmes are made against projections of market sales which are inherently unpredictable. Inevitably, market capacity fluctuates with the trade cycle. In times of deep recession, not just labour but transport, plant and machinery fall idle in every sector of production. In many cases the capital values of machinery are written off through bankruptcy. Idle or written off machinery represents labour congealed in useful capacity that has not been used. These are further examples of waste which subtract from the overall productiveness of labour in a market system.

Whatever figure is given for increased productivity of labour it is one that is reduced by economic limitations on the community’s powers of production.  These are mainly the inability of the capitalist system to freely adapt and apply productive technique, the limits of market capacity and the limits of capital investment.   Other dislocating effects may be strike action or other forms of worker resistance to any re-organisation of production and the adoption of new methods.

Productive Technique
For most of history working methods have depended on the use of hand tools. The industrial revolution introduced machinery and new means of energy. In the late nineteenth century this led to conveyor belt systems and eventually to automation and robots. Machinery works up the component parts of goods: conveyor belt systems provide for hand assembly as a repetitive process: automated systems can both work up component parts and assemble, but are dedicated to specialised operations: robot systems are a further development of automation. Standardised, electronically controlled robots can be adapted to a range of different automated processes.

There are generally three ways of increasing production: 1 - increas¬ing the intensity of production: 2 – increasing the time of output: 3 - reorganising the work process with labour saving methods. A socialist system would be free to set up manufacturing processes which could combine these ways of increasing production simultaneously.

With a community working in cooperation and with a direct relationship of work activity to needs, people in socialism could set up automated methods of manufacture that could produce goods whilst minimising labour. The use of programmable robots adapted to different operations means that these could also be produced in quantity. This suggests the technical possibility that automated systems of manufacture which would be flexible in use could themselves be produced where extra means of production are required. These automated systems, using programmable robots would provide for high volume, quality production, around the clock.

Thus, intensity of production plus optimum production times, adding up to high productivity would be realised through these methods. When these technical factors are taken together with the increased numbers of people who will become available for useful production, the range of skills included in these numbers; when it is considered that the setting up of these systems will be free from industrial strife and the constraints of capital investment; that their intensity and duration of use will be free from the limits of market capacities, and when it is further considered that such means  of production could be set up in a most economical way and  without duplication, it can be seen that a socialist system could combine enormously increased powers of production.

This is not to suggest that the aims of a socialist society would be concerned solely with the production of more and more consumer goods.  On the contrary, we may anticipate that very different values will shape the quality of life in socialism.  However, in its early days its great productive advantages would need to be applied to world problems.  It is for this purpose that the liberation of labour resources would be important.

Wider Selection of Production Methods
Having emphasised that labour resources and productivity could be increased in socialism; it is also true that production methods would not necessarily depend on being the most labour efficient.  Market pressure to minimise labour time in order to keep down costs and gain competitive edge could give way to other, more socially desirable reasons for deciding methods of production.

The concept of needs is not solely about material things.  The quality of work itself is an important human need.   Care of the environment and conservation are also important needs.  After the exploitation of the earth by the ruthless economic forces of capitalism it is vital that we pay full attention to the care of our 'home in space'. Safety and animal welfare are also criteria which would influence the selection of production methods. All these criteria would be different in operation to the main reasons for selecting production methods in a capitalist system; these are methods which require least inputs of labour in relation to maximum outputs and cheapness.

At present, under the pressure of competition and exploit¬ation, manufacture is broken down into a few repetitive movements aimed at maximising output whilst regimenting the work force.  Socialism would avoid this. The release of pollutants into the atmosphere may be part of the cheapest way of converting fossil fuels into electricity, but Socialism would not continue this. Socialism would not need to take the risks involved in the construction and use of fast breeder nuclear reactors. The cruelty of confining animals in the dark in cramped spaces may be part of the most 'efficient' method of converting cereal inputs into animal protein, but Socialism would not do it.

Communities in socialism would be free to select production methods that would be concerned with quality of life and would express values different to those which see consumption as life’s sole objective.  It is true that socialist society will face a considerable task in raising the living standards of  many people,  but a sole emphasis on material  'abundance' can borrow too much from the values of ‘consumerism'.  Socialism would need to exercise great care in the ways in which it could use its vastly increased powers of production. 

Conservation Production
The change from capitalism to socialism will bring a change in productive relationships from wage working to cooperation. In turn this will bring a change in the relationship of society to nature.  These go together.  Capitalism is not sim¬ply based on the economic exploitation of labour; it exploits anything in nature it can get its hands on. This means that before society can control its impact on the natural world it must first have social control over its own actions.   Before society can organise itself in harmony with natural systems, society must first be able to co-operate within itself.

As human beings we are, of course, a part of nature, but we tend also to view nature as something separate from ourselves in that it provides us with our means of life.  We may see land, seas, forests, river valleys and deserts as beautiful, spectacular landscapes and we may also be aware that they contain useful resources such as coal, oil, natural gas, various metals such as iron ore, copper, tin and many other materials.  In a capitalist system such natural wealth, like labour and useful goods, also exists in an economic form.

Land can be a useful resource for the produc¬tion of food but in the eyes of agribusiness, land is a capital asset to be used for profit.  Timber, oil or mining companies do not view forests, oil reserves or iron ore deposits simply as useful features of the natural environment. Companies view them as things to be exploited for private money gain.

As capitalism has spread across the world to become the dominant world system, almost the entire planet has come to exist in an economic form in which labour works on natural resources for the profits of companies.  We see this now in the growth of multi-national corporations.  This exploitation of the natural world is driven by markets and the pursuit of profit in ways that cannot be democratically, or even rationally, controlled.

The consequences are well known but we seem powerless to stop them.  Every year millions of tonnes of sulphur dioxide are released into the atmosphere; radioactivity is increased; land is saturated with industrial chemicals; forests are destroyed whilst deserts are created and seas are polluted.  We live with a real danger that natural systems such as those of the biosphere are being damaged on a scale which threatens their self recovery.  These are the vital systems on which human life depends. 

Care of the environment is not primarily a technical problem. Our destructive use of the planet is caused by the motives, limitations and economic relationships of the capitalist system. By freeing labour from its economic exploitation by capital, socialism will also free the natural world   from this same exploitation. With people cooperating to produce directly for needs a socialist system would be free to use methods which could ensure care of the environment. The fact that such methods might involve the use of more labour will not mat-ter. Socialism will have an abundance of labour and will not be constrained by the profit motive and competition to use the least amounts of labour in production. The aim would be to organise produc¬tion in ways which would minimise any negative affects on the environment.

Socialism would have no difficulty in adopting a practice which is impossible under capitalism. This would be the practice of "conservation production". In a socialist system we could protect the balance of natural systems and would also con¬serve natural materials. The profit motive involves a plundering of natural re¬sources against a background of market pressure to constantly renew capac¬ity for sales. Cheap, shoddy articles and "throw-away" goods involve a mas¬sive loss of materials. Design for "built in obsolescence" is deliberately aimed at a short time of use. The rotting hulks of million of cars and other consump¬tion goods are the ugly evidence of massive waste. No sane society would burn millions of tonnes of oil and coal in power stations without considering the alternative technology which already exists to produce electricity.

Socialism could avoid the loss and destruction of resources. Production facilities could be designed and produced in a way which would be conserve materials. Such design could aim at a minimum of wearing parts, which, with simple maintenance, could be easily replaced.  The parts not subject to wear could be made from durable materials, and if for some reason equipment or goods became redundant, these would be available for other uses. The materials lost from wear¬ing parts would be a small fraction of the total materials in use. This practice of conservation production would mean that once materials became socially available after extraction and processing, they would be permanently avail¬able for use in one form or another. A useful analogy is with gold. A small amount may be lost through accident, but because it is a precious metal most of the gold that has ever been mined throughout history still exists. For this reason it is said that gold mined by the early Egyptians is still in use.

Conservation production would mean the bringing into use of means of pro¬duction of all kinds, permanent installation and structures, durable consumer goods, all designed and produced to last for a long time and, even when redundant, capable of being re-cycled for other uses. In this way, materials would be available as a lasting resource.


The World as One Productive Unit
Whilst we, as humanity, remain divided by rival capitalist states, it is be impossible to organise our use of the world in careful and sensitive ways that would be in the mutual interests of all people.  Instead, we have economic exploitation, waste, war and destruction.   Although we mostly think of the market system in terms of private corporations or state enterprises, it is also true that each nation is a “national business.”   A national economy must do its budgeting and keep its accounts as an autonomous trading nation. Governments must maintain national security.  This is the protection and enforcement of national interests both within the state and between states.  Externally, national security involves diplomacy, negotiated agreements and the formation of alliances which in turn can be backed up by networks of spies and where necessary the threat or use of armed force. The strategic aim is the ability to trade at the best advantage.

As caretakers of national economic strategy, governments aim to promote national advantage whilst reducing vulnerability.   For example, energy supply is of vital concern to all governments but the world distribution of energy sources, oil, gas, coal etc., is uneven between nations. One reason why the Middle East has been an ongoing theatre of war for many years is that it holds the world’s biggest reserves of oil.   In the past, with the Suez Canal, it was also a vital trade route. 

At the time of writing the war in Iraq is over its oil resources.   In the past Britain was the strongest power involved in Middle East conflicts, a position now held by America with Britain a junior partner.   During the build up to the invasion of Iraq, countries such as France and Germany opposed the actions of Britain and America but not for any moral reasons.  The Governments of France and Germany foresaw a situation where America and to a lesser extent Britain, would enjoy the great advantage of control over the world’s second largest oil reserves.

The solution is to replace corporate or state ownership for money gain with common ownership by all people. Instead of nation states all people could be part of a world held in common.   This would bring the great advantage of being able to organise the world as one productive unit. Being united around a common interest people in socialism could organise and develop their productive activity in relation to the natural advantages of the earth in whatever appropriate geographical location and with a use of production methods which safeguard the world environment. 

Without national barriers it would be possible to use large scale production in appropriate areas to make available world stocks of materials for manufacture, basic foods such as cereals and world energy supply. From this basis of world production, smaller scale diversified production could be carried on throughout regional and local communities in line with local work preferences and local needs.

In these circumstances instead of rival nations fighting over oil reserves, as mentioned, the production of energy could be co-ordinated by a specialised world agency working as part of the United Nations Organisation.  The long term objective could be to achieve sufficient world energy supplies from ecologically benign sources.   The possibility of a world organised as one productive unit adds to the wide range of advantages that people in socialism would enjoy.  

With the world shared between all people an early priority would be to remove the differences that at present exist throughout the various regions.  In practical terms this would require a concentration of world activity in favour of those regions where poor facilities for local production, storage, transport, irrigation, energy supply, communications, buildings and services such as medical care, etc., would need to be improved. This would call upon the efforts of people in the more developed regions.

It might be asked, “Why should someone in a more developed community in Britain, America or France, work without money incentive, to provide equipment and machinery for people in less developed regions?”   The candid answer is – self interest!  This is not to deny the abundant evidence there is  that we can gain satisfaction and pleasure from helping people in need but the added reason why we all have an interest in cooperating with others is that the benefits are mutual.  Up to a point, the more people producing and the greater range of skills that are used, increases not only productivity of labour but also the range of products that can be produced. Stranded on a desert island, on our own, we would be reduced to surviving on the barest necessities. Since stone age times, our increased powers of production have depended on our diversity of skills.

In the wheat belt of South West Australia a farmer might be supplying cereals for distribution throughout the world.  It is likely that the eventual consumers of this wheat will never know the identity of the person who helped produce it. This does not matter.  The farmer would do his job in the knowledge that in distant locations others were working to supply not just  the whole range of foods  he enjoys but also the  refrigerator, television, computer, hi fi system, etc., that make his life style possible. In socialism our participation in a world wide division of labour would involve us in much more than technical factors of production, it would include us in the work of a true world community.

Strategy for Development 
For some years there has been growing concern over the impact of human activity on the world environment.  This is felt in the scientific community where, for example, the evidence for global warming is gathering strength.   Concern is also expressed by ecology groups and the parties that make up the green movement.  There has been pressure to reduce carbon emissions but across the world, these pollutants have increased.   The various international conferences at Rio, Kyoto and The Hague have failed to make progress and in some cases have broken down in acrimony and disagreement.  

To repeat an important point, any idea that problems of pollution are technical problems is wrong.    Although The Hague Conference of 2000 was attended by hundreds of technical experts, the main arguments about what can or cannot be done were about money and costs. The arguments were about the strategies of the participating states in defence of their economic interests.  This was reported in The Economist (Nov 18 2000)   “… the big oil producing countries are, in a flight of fancy, demanding compensation for the harm they will suffer from lost oil sales;  they are trying to block the Kyoto process as a conspiracy to damage their economies.”

The Kyoto accord of 1997 was, on the face of it, an agreement amongst the developed nations to cut the release of greenhouse gases by 5% below 1990 levels by 2008/12.   Since then most countries have increased their pollutants and in America these have soared.   The parties to the Kyoto accord also,  “… agreed that cutting emissions might be so expensive that the treaty should allow countries innovative, flexible approaches to reduce compliance costs.”   It was language such as “innovative, flexible approaches,” that was described as evasive, and even a “con trick.”   It was the difficulties arising from the economics of the problem that made the Kyoto, Rio and The Hague conferences incompetent to deal with it.

The Green Movement blames reckless governments and the rapaciousness of multi national corporations for world pollution.   Whilst there is truth in what they say to concentrate on this argument is to evade the more basic cause.   Built into the market system is an irresistible pressure to constantly renew its capacity for sales.   Any significant increase in energy costs could risk disturbing the fragile balance of costs, sales, profits and employment.  This could pitch an economy into recession with the further risk of deeper slump. For example, a similar conference on global pollution held in London in 1993 had broken down for exactly these reasons.   Since the 1980’s the government in Britain had been under strong pressure from Scandinavian countries, which were afflicted by “acid rain”, to reduce carbon emissions from its power stations by 30%.   One way to achieve this would have been to install flue gas desulphurisation equipment to coal burning power stations.   The reduction of 30% sulphur emissions would have cost £1bn. In the 1980’s the British Government was struggling to get out of a deep recession in which there were at times over 4 million unemployed.  It was not in a position to add £1bn to its energy costs.   A “Green Government” would have faced the same difficulties.  In refusing to sign up to the Kyoto Accord, President Bush said that his first priority was to “save American jobs.”

In demonising oil companies, other multinational corporations and reckless governments the Green movement appears not to appreciate the depth of the problem.   This is also indicated by its insistence that market economies should level out into a “zero growth” mode.  It is possible that zero growth may be a desirable aim but to suggest that it could be achieved by a market economy ignores its basic drive to constantly renew its market capacity for sales.  However, a state of zero growth would be possible in a socialist society.

This is not to predict the future, nor to anticipate any policy decisions that would be made in socialism.   The point is to simply set out what would be practical and possible, given all the advantages that a system of cooperation and production directly for needs would be able to work with.  What we can envisage is a strategy of development aimed at zero growth that could be achieved in possibly three stages.

1 Emergency action to stop people dying of malnutrition and disease.  This could be an initial        period of growth beginning from a position of scarcity and focussed on food production, health services and relief of desperate conditions of poverty.

2 Having achieved this first objective, using the methods of conservation production, communities in socialism could create durable production facilities and public utilities that would be available for use for a long time.   Even with the removal of waste and the adaptation of the sectors of industry and manufacture at present used for arms production it is likely that new means of production would have to be set up.   Probably the biggest task would be to create the means of producing the materials for housing and the services and infrastructures to go with it. A further priority would be to increase agricultural machinery and all means of increasing food production.   These projects would include agriculture, housing, a safe world energy system, and infrastructures such as irrigation schemes, sewage and drainage, clean water, roads, bridges, transport, com¬munications systems, leisure facilities, etc.

3 The achievement of stage 2 would call for a high peak of initial activity but when sufficient  means of production, together with a safe world energy system and infrastructures are in place  they would be available for use for a long time and would not need to be constantly produced.   With maintenance, well built houses and such structures as bridges will last for hundreds of years.   This means that after they have been brought into use total production could fall.






A state of zero growth would be a position where communities need only concern themselves with the day to day production of goods for consumption, particularly those such as food which have a limited shelf life. Also necessary would be the running of services and maintenance.   In socialism the achievement of zero growth would mean stable levels of production for stable levels of consumption using production facilities which would be in use for long periods.

This outline of a possible way forward to a state of zero growth assumes that people would be content with a constant level of sufficient consumption; that production facilities would not be subject to constant innovation, and that population numbers would not go on increasing.

The projects necessary to get to a state of zero growth would call for both world cooperation and world organisation, particularly in the supply of information, planning and decision-mak-ing.  It follows that when accomplished, not only would production levels fall but the need for information, planning and decision-making would also be reduced.  This anticipates that centres of organisation at the world and regional levels, could give way to more locally organised production   for the work of providing for daily needs, the running of services and maintenance.

What is possible here is a self-regulating society with work activity in balance with daily needs and in balance with the environment. What this could mean is that providing for the necessities of daily life would be more under local con¬trol involving less allocations of social labour. This could create vigorous communities  with wide scope for individual development and diversity of expression.

Past discussions about the methods of production that Socialism would use have centred on simple and somewhat unrealistic preferences for either high technology or hand craft methods. In fact, a socialist system could combine a diversity of methods. Where necessary and appropriate, high technology methods involving labour diffused throughout world production could be combined with more simple local production.  This could include the use of local hand craft methods for making clothes, furniture and the supply of local food for local consumption where this might be a chosen life style

Would a sensible society, conscious of its need to limit productive activity and keep it in balance with care of the environment, really want to continually develop new production facilities?  How much of the innovation that goes on represents real gain, and how much of it is part of changes in fashion to do with consumerist values and attempts by corporations and their advertisers to increase sales?  We can surely assume that people in socialism would not go on and on with the increased production of goods and services for the sake of it. This would be a self-imposed treadmill. Would a socialist system really want to follow the example of capitalism where life’s objectives are focussed on the acquisition and consumption of material things?  It will of course be important that needs are satisfied but the concept of needs will no longer be based on the idea that increased happiness comes with increased consumption and possessions.   Such an illusion, expressing the consumerist values of a market system could give way to a responsible, self determined appraisal of needs which would reflect the enjoyment of more meaningful community relationships. 
Pieter Lawrence

Link to Chapter 11.



Monday, February 19, 2018

Philip Snowden, M.P. (1910)

Philip Snowden
From the November 1910 issue of the Socialist Standard

Mr. Philip Snowden. M.P., has, we understand, sailed for a three-months' trip to the United States and Canada, chiefly with the idea of forming a Labour Party in the latter country. As we should not like our Canadian fellow-workers to fall into Mr. Snowden's trap we give the following details of his political career.

Mr. Snowden, as most people are aware, is a strong opponent of the “drink traffic." In common with most temperance fanatics, his language — as the following quotation shows — is almost puerile in its violence and intemperance. At a meeting of the Bradford Band of Hope Union he said:
  If we had not a drink-sodden democracy we should have an intelligent democracy; and an intelligent democracy would very soon solve its industrial and social problems. (Yorkshire Observer, March 10, '09.)
The absurdity of the lying statement which serves to express Mr. Snowden’s contempt for the class on whose backs he has climbed to his present eminence, is only equalled by the gratuitous insult offered to the very men he is, as Labour 1LP., ostensibly representing.

Mr. Snowden in 1908 appeared to have a touching faith in the good intentions of the leader of the Liberal party. Writing in the Christian Commonwealth in December of that year he said:
   There is nothing of the hypocrite in Asquith. He never prevaricates, as most of his ministers do, to escape from declaring the fulness of an unpopular truth . . . I do not believe there is a more honest man in politics today than the present Prime Minister. 
Does Mr. Snowden still think there is no hypocrisy, no prevaricating on the part of Asquith over the "Lords" question? Perhaps, however, there is more underlying this fulsome flattery than meets the eye. It will be remembered how John Burns defended the action of Asquith in using the military to shoot down the miners at Featherstone, and how he was subsequently rewarded for this and other services rendered to the Liberal party with a seat in the Cabinet. Mr. Snowden, taking a leaf out of Burns' book, has also defended the methods adopted by the Liberals at Featherstone and Belfast. Writing in the Sheffield Guardian, Aug. 23, '07 he said :
   Therefore, in any case, in the Belfast case for instance, the employment of the military must be justified on the circumstances of the case . .  . There is one lesson of this tragic affair which the workers should learn. We are hearing from some quarters the usual violent denunciation of the Government and the capitalists as murderers. Mr. Birrell is being put in the same chamber of horrors as Mr. Asquith, who happened to be the Home Secretary at the time of the Featherstone riots. The Labour and Socialist movement has got beyond such wild, irresponsible talk as this.
The last General Election gives irrefutable evidence of the same devious methods on the part of the member for Blackburn. The following was written by him a few months previous to the election.
   The action of the Labour Party in Parliament on the Budget has not tended to mark off that party as something essentially distinct from the Liberal Party. Unless the Labour Party has a distinct point of view on all public questions, unless it can show that it is anxious to go further than, or in a different way to, the Liberals, there is no reason for its existence as a separate party. (Christian Commonwealth, November 3, 1909).
This extract, taken in conjunction with the following item relating to the election at Blackburn, condemns both Snowden and the Labour Party out of his own mouth.
   On Jan 4th Mr. Snowden and Sir Thomas Barclay (the Liberal candidate) addressed a great anti-Lords demonstration, two halls being used simultaneously, the speakers crossing over from one to the other. At this demonstration  Mr. Bond, president of the trades council, ‘appealed to the electors of Blackburn to send two Progressives to Parliament” (see Northern Daily Telegraph, 5. 1.10.)
On other occasions (sec Blackburn Weekly Telegraph, 8.1.10, Mr. Snowden urged that the second vote be given to Sir Thomas Barclay, and he boasted in the Labour Leader of 21.1.10. that the advice had been "generally followed" and had resulted in 11,238 "splits" between himself and the Liberal.

Snowden's snobbish appeal for special treatment for imprisoned suffragists on the ground that they were middle class women may be cited finally as showing how anti working class he is.

Reflections on the Cotton Lock-out. (1910)

From the December 1910 issue of the Socialist Standard

The cotton lock-out has been ‘‘settled," accompanied by the tedious Te Deums of our sycophantic clergy, the benedictions of our prosperous trade union organisers, and the “we are glad both sides are reasonable” sermons of our Liberal newspapers. To-day every strike and lock-out gives clear proof of the bankruptcy of trade unionism, of its utter inability to permanently raise the standard of the workers’ existence. In Lancashire the big unions are monsters of indifference, organisations bossed by mediocre bureaucrats, with a rank and file taking little interest in the working of the union, save when the mill “breaks down,” and they become entitled to a few week’s "break-down pay.”

Some of these unions resemble the mediaeval guilds; jobs are handed down from father to son ; it is sure that one must possess family influence, either lineal or collateral, to be able to enter the union and learn the trade. At their best these unions are looked upon as attempts to preserve the status quo to try to preserve, if possible, even the present "heavy and varied condition of the operatives' breakfast table.”

The boisterous crowds whom we read of as patrolling the streets of Oldham during the first day of the lock-out were not enthused and noisily happy because of a coming fight on some vital question with their bosses, but simply because they were confident of the "give and take” policy of their leaders bringing the lock-out to a speedy end.

Their leaders! What an array of altruistic capacity passes before our vision when we think of the men who “led” the workers during the lock-out! Working-men J.P.s ! Is there anywhere such another anomaly ? In Lancashire they flourish abundantly. These leaders conceive it to be their duty to punish the small, petty, found-out thieves who are the natural product of capitalism. "Justice of the Peace” is almost a synonym for "labour leader" in Lancashire. If the workers put their trust in such mental small fry, what wonder that their condition shows no sign of alleviation!

In the Manchester Guardian of Oct. 5 1908, referring to meeting of "Oddfellows” at Nelson, Mr. Shackleton's constituency, that gentleman in the course of speech is thus reported:
  “Alluding to the presence on the platform of Mr. Wilkinson Hartley, chairman of the Nelson Cotton Manufacturers Association, Mr. Shackleton said that he and Mr. Hartley had often met before, and had had some tough battles. That night they could shake hands and welcome each other as brothers desirous of furthering a great movement. As long as they could get on with men like Mr. Hartley, there was security for the peace and well-being of Lancashire, and its principle trade might be carried on to the best advantage of the community.”
In the same paper of Dec. 28, 1908 a photograph was published of Mr. Shackleton occupying the position of chairman at a meeting of the Labour Co-partnership Association, with Mr. A. J. Balfour and Sir. C. Furness on his right and Mr. Henry Vivian and similar "men of thought who waged contention with their times decay” on his left. One understands Mr. P. Snowden’s remark, in a speech to his constituents during the lock-out, that "He had followed this dispute, and he could not call to mind any form of industrial dispute in which one side had showed a disposition to be reasonable, to compromise and to make sacrifices in order to avoid a stoppage of work to the extent that the operative leaders had.” (Manchester Guardian, 10.4.10.)

The results obtainable from the capers of these leaders of the Lancashire operatives are manifested in that speech of Mr. Snowden’s. Continued penury exists in spite of Labour M.P.’s teetotal sermonising; an inability to improve their economic position to even the least extent is inevitable when the workers’ leaders fraternise with their enemies the bosses on so-called neutral platforms, and truckle and accept defeat when any dispute is in "progress.” Strange that a Socialist platform never becomes a "neutral ” one !

Let the labour leaders learn from a bourgeois historian. "The warfare of capital and labour in England has been more prolonged than any other historical struggle. Dynastic wars, wars of religion, wars on behalf of balance of power, wars for supremacy in commerce have been waged in Europe for lengthened periods. But none has been so lasting as that between employer and labourer. The history of the contest is to be extracted from the Statute Book in laws long since repealed or modified, or become obsolete.” (Prof. T. Rogers, “ Economic Interpretation of History". Vol. 1.. p 23)

After such an admission by a Liberal of the type of Thorold Rogers we reach the limits of inanity when it is seriously contended that our labour leaders are on the road to Socialism! There is no class struggle! say those gentlemen. Well then, we may ask. what has your class fraternity led to but the tighter grip of the capitalist on the means of life?

Other lines of thought are stimulated by this lock-out. Our "Industrial Unionist" friends seem to expert miraculous results from a “unified” working class bound together in a few large trade unions. I ask, what if these unions continue to be collared by leaders whose only qualification is their safe mediocrity and the extraordinary vitality of their tongues? What if the working class is still non-Socialist ? Given a non-Socialist proletariat we can bind them, or they can bind themselves, into either a dozen large unions or a thousand miniature ones, but the leaders would still be Shackletons, Snowdens and Gills, and the promised land would still be afar off, for not even Industrial Unionism can make bricks without straw, or create the Socialist Commonwealth without Socialists.
John A. Dawson