Article Title : Theoretical economic systems Subject : Anarchist economics Classical theorectical economic systems In a chronological and theoretical sense, there are classical—those created throughout the 19th century—and post-classical anarchist schools—those created since the mid-20th century and after. Mutualism Mutualism is an anarchist school of thought which can be traced to the writings of Pierre-Joseph Proudhon, who envisioned a society where each person might possess a means of production, either individually or collectively, with trade representing equivalent amounts of labor in the free market.[24] Integral to the scheme was the establishment of a mutual-credit bank which would lend to producers at a minimal interest rate only high enough to cover the costs of administration. Mutualism is based on a labor theory of value which holds that when labor or its product is sold, in exchange, it ought to receive goods or services embodying the amount of labor necessary to produce an article of exactly similar and equal utility. Some mutualists believe that if the state did not intervene, as a result of increased competition in the marketplace, individuals would receive no more income than that in proportion to the amount of labor they exert. Mutualists oppose the idea of individuals receiving an income through loans, investments, and rent, as they believe these individuals are not laboring. Some of them argue that if state intervention ceased, these types of incomes would disappear due to increased competition in capital. Though Proudhon opposed this type of income, he expressed: ... I never meant to ... forbid or suppress, by sovereign decree, ground rent and interest on capital. I believe that all these forms of human activity should remain free and optional for all. Insofar as they ensure the workers right to the full product of their labor, mutualists support marketsand private property in the product of labor. However, they argue for conditional titles to land, whose private ownership is legitimate only so long as it remains in use or occupation (which Proudhon called possession.) Proudhons Mutualism supports labor-owned cooperative firms and associations for we need not hesitate, for we have no choice. . . it is necessary to form an ASSOCIATION among workers . . . because without that, they would remain related as subordinates and superiors, and there would ensue two . . . castes of masters and wage-workers, which is repugnant to a free and democratic society and so it becomes necessary for the workers to form themselves into democratic societies, with equal conditions for all members, on pain of a relapse into feudalism. As for capital goods (man-made, non-land, means of production), mutualist opinion differs on whether these should be commonly managed public assets or private property.
Posted on: Thu, 11 Dec 2014 08:57:41 +0000
Recently Viewed Topics
© 2015