disinformation | participatory economics

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participatory economics
by Nick Mamatas (nillo@agoron.com) - July 28, 2002

Oh sure, Socialism sounds great in theory, but who is going to take out the garbage? has two answers. One is the very appealing "You will, smart-ass!" and the other is the egalitarian "I will." According to the principles of Participatory Economics, both answers are right.

The market seems inescapable, especially after the collapse of the Command economies of the Soviet Union and the Eastern Bloc, and China's embrace of Mercantile Capitalism (well at least for Capitalists, everyone else still gets a third-full rice bowl full of socialism). Neo-classical economics insist that market exchange is the only effective way to distribute goods and services. The economic crises of Capitalism and the billion starving people on planet Earth are swept under the rug: crises happen for either no reason at all, or only because any state intervention in the marketplace leads to distortions. The poor are poor because they choose 'leisure' over work. The rich are rich because they don't spend all their money, but wait to invest it.

Participatory Economics not only critiques the standard capitalist apologia, but works to design an alternative. Based on the experiences of Anarchists, Council Communists and the millions of non-market transactions people make every day (how much did you pay your mother to pick up your socks this morning, slacker?), Michael Albert and Robin Hahnel have developed what they think is a workable, fair and productive model of a non-market, but still free economy.

The economy would be democratic and based on the votes and needs of the producers (workers in this case, including workers who are not directly involved) and work will be divvied up so that everyone has an opportunity (?) to clean a few toilets once in a while.

Is the economy too complex to plan this way? Albert points out that the planning is already done. Within a firm, the economy is planned and not influenced by market pressures, as can be seen by the fact that employees don't have to bid against one another for Post-it notes, electricity or computer time. While more people would have to spend time in meetings under Participatory Economics, they would at least have a say about what is produced in the world, rather than blindly hammering out dildos and choking on florescent pink dye dust for thirty years in some Indonesian factory.

Albert and Hahnel aren't all sunshine and red flags though. They do mean to keep people from consuming more than the sacrifices they make for the collective, and all the 'job complexes' people will work in will be vaguely unpleasant, since increases in pleasure of work may create a pleasant work shortage elsewhere. Even other Socialists and Anarchists have criticized their model for being heavy on dreariness and light on human liberation.

Finally, there is no mechanism to getting from here to there. Marx claimed that the working class would be brought to revolution by Capitalism itself, since it shoved them all together and made the create the world. Anarchists believed that direct action would inspire people to break the state and capital on their own. Albert and Hahnel's hope seems to be that enough people will buy their books, which include Looking Forward: Participatory Economics in the Twenty First Century (Boston, MA: South End Press, 1991) and The Political Economy of Participatory Economics (Princeton University Press, 1991).

Of course, the average minimum wage worker will have to spend three hours cleaning out toilets in order to do so.

The views expressed above represent the writer and not necessarily those of The Disinformation Company Ltd.

The Participatory Economics Project
"Participatory economics (or parecon for short) is the name of a type of economy proposed as a desirable alternative to contemporary capitalism. The "authors" of this vision are Michael Albert and Robin Hahnel. The underlying values that parecon seeks to implement are: equity, solidarity, diversity, and participatory self management. The main institutional vehicles to attain these ends are council democracy, balanced job complexes, remuneration according to effort and sacrifice, and participatory planning."

Participatory Economics
This article, written by Michael Albert, defends his model from a variety of criticisms, including old bromides about initiative; the number of boring meetings; the terror of scrubbing one's own toilet and the potential dynamism of a non-market economy. A good thumbnail about the issues involved in the debate about Market Socialism.

Biography of F.A. Hayek
One of the most compelling arguments against socialist economies is the so-called Calculation Problem. Developed by Hayek and the other members of the Austrian school of economics, the calculation problem, stated simply, is: "Prices are information. Prices are best determined by the market. Non-market procedures end up leading to wildly inaccurate uses of economics inputs and distributions of goods, because the people in charge just cannot calculate where every wingnut and breadcrumb needs to be." Online, many libertarians know this argument by heart, even if they know little us. One fellow even took to typing in "Hayek Hayek Hayek! Mises Mises Mises!" whenever someone on a newsgroup mentioned possible Socialist scenarios.

Thoughts About . . . Participatory Economics
This informative article, by Carol Hodgson, considers some key practical applications of Participatory Economics, and also considers the potential problems.

Information and Economics: A Critique of Hayek
The "Mises Mises Mises!" guy aside, the Calculation Problem is not without problems of its own. The amount of information that has to be transmitted, rather than just stored, is actually less in a Democratic Socialist economy, according to these two Marxian economists. The pair also point out significant flaws in the implications of Hayek's insistence that prices are a form of information.

What Would The Economics Structure of an Anarchist Society Look Like?
Part of Spunk's extensive series of essays and FAQs on Anarchism, this article examines both the theory and history of workers councils, from an Anarcho-syndicalist point of view. The article also deflates worker ownership within Capitalism and the state-run economies of the Soviet Union and Eastern Europe. Interestingly, this model allows for competition between syndicates and allows for individuals to improve their lot in life. Firebrands for freedom or petit-bourgeois weenies wanting to fuck shit up? You decide!

Encyclopedia Britannica: Mikhail Bakunin
The Encyclopedia Britannica entry for Mikhail Bakunin reveals his transformation from Young Hegelian to Anarchist philosopher-superstar.

Encyclopedia Britannica: Pierre-Joseph Proudhon
The Encyclopedia Britannica entry on Pierre-Joseph Proudhon, a key theorist in radical and anarchist circles.

Encyclopedia Britannica: Karl Marx
The Encyclopedia Britannica entry for Karl Marx, perhaps the most important philosopher, historian and economist in the socialist tradition.

Encyclopedia Britannica: Peter Kropotkin
The Encyclopedia Britannica entry for Peter Kropotkin, judged to be the formemost think of the anarchist movement.

Encyclopedia Britannica: Friedrich von Hayek
The Encyclopedia Britannica entry for Friedrich von Hayek, the most important thinker from the Austrian school of economics.

The Anarchist Commune
Now in capital letters! This Web based discussion board is attractive and has managed to avoid being over-run by libertarians chanting "Mises Mises Mises!" like crazed little Pokemon. The Freespeech.org site is an excellent resource for streaming video and audio. After you've had a plate full of theory, scroll backwards and watch Seattle burn in practice.

Anarchy Archives
"Extensive compilation of materials, commentary, and bibliographical information about anarchist movements worldwide. Provides historical information about the Haymarket Massacre, the Paris Commune, the First International, and the Spanish Civil War."

Marxist Economics
Marx did not design a model of Socialism. He critiqued Capitalism and Classical Economics. Really. Do not email me saying any different. Read this Web page for the basics. It is easier for you to read this web-page than it is to spend a week arguing with me, pretending than you know more than I do about this. Fun fact: this sympathetic portrayal of Marxist economics comes from a business school Web site.

Human Society and The Global Economy
An online textbook on economics, one written from a post-Keynesian point of view. Since it actually mentions Marx, Sraffa and others without ritually denouncing them, it is just not publishable. Good for the dedicated student of economics.

Disinformation Dossier on Noam Chomsky
Check out the Disinformation dossier on Noam Chomsky.

Disinformation Dossier on the Situationist Internationale
Check out the Disinformation dossier on the Situationist Internationale.

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