So i just i read the "Communism in wonderland" chapter in the book and here's some highlights
Top-down planning stifled initiative throughout the system. Stagnation was evident in the failure of the Soviet industrial establishment to apply the innovations of the scientific-technological revolution of the 1970s and 1980s, including the use of computer technology. Though the Soviets produced many of the world's best mathematicians, physicists, and other scientists, little of their work found actual application
or more specifically:
- Managers were little inclined to pursue technological paths that might lead to their own obsolescence. Many of them were not competent in the new technologies and should have been replaced.
- Managers received no rewards for taking risks. They maintained their positions regardless of whether innovative technology was developed, as was true of their superiors and central planners.
- Supplies needed for technological change were not readily available. Since inputs were fixed by the plan and all materials and labor were fully committed, it was difficult to divert resources to innovative production. In addition, experimentation increased the risks of failing to meet one's quotas.
- There was no incentive to produce better machines for other enterprises since that brought no rewards to one's own firm. Quite the contrary, under the pressure to get quantitative results, managers often cut corners on quality.
- There was a scarcity of replacement parts both for industrial production and for durable-use consumer goods. Because top planners set such artificially low prices for spare parts, it was seldom costefficient for factories to produce them.
- Because producers did not pay real-value prices for raw materials, fuel, and other things, enterprises often used them inefficiently.
- Productive capacity was under-utilized. Problems of distribution led to excessive unused inventory. Because of irregular shipments, there was a tendency to hoard more than could be put into production, further adding to shortages.
- Improvements in production would lead only to an increase in one's production quota. In effect, well-run factories were punished with greater work loads. Poor performing ones were rewarded with lower quotas and state subsidies.
Particularly 1,4 and 8. I'm interested in available solutions cause tbh nothing comes to my mind and the book wasn't about that.
I suggest reading Paul Cockshott's book Towards a New Socialism where he talks about how to solve these problems in a planned economy.
Basically the problems in the USSR(and even today's Cuba and NK) arise because of the following reasons :
-
Prices are not calculated based on labor content(i.e the law of value) but there are many political factors that go into the setting of prices. You can see this in something called cheap food populism, where the prices of food are kept below their labor content in order to make it cheap, but it only results in shortages as people have more money to buy food than they would have if prices reflected labor content.
-
Lack of accurate price calculation also makes it difficult to consistently implement policies. For example, regarding innovation, those enterprises that innovate (i.e implement new labor-saving tech) can be temporarily subsidized, like they were under Stalin.
-
Firms shouldn't be run like capitalist firms like they were in the USSR, i.e there shouldn't be any profit motive and incentive. In the early stage of socialism, the incentive should be the wages of the workers themselves i.e, workers are paid according to the socially necessary labor time they contribute to society, and instead of money, it is much better to use labor-tokens instead . Labor-tokens can be used to buy stuff, but once they are exchanged they are destroyed, so it not a circulatory object, i.e it is not money. This will prevent the resurgence of capitalist relations like black markets etc. This was the problem with USSR, they used money(rubles) and they engaged in commodity-production i.e the reason for production was for selling for money, rather than for consumption. Eliminating commodity production requires the abolition of money, profit, interest, rent etc.
-
Profit is simply that part of the SNLT that is not used up for paying wages, replacing the used-up capital etc. When you eliminate the profit motive, it must be replaced by something else, and that is the conscious planning. However, planning requires objective metrics to determine its efficiency and rationality, this is why it's so important to calculate prices according to the law of value.
-
Innovation can be encouraged by subsidizing labor-saving technology, by setting planning targets using metrics like labor-productivity and quality instead of just bulk revenue targets.
I recommend watching these videos, they explain what I'm saying in a clear manner -
-
Why USSR collapsed - https://www.youtube.com/watch?v=EE-kCZnlGZU
-
What a modern communist society could look like - https://www.youtube.com/watch?v=ZgkWnODtS6g and https://www.youtube.com/watch?v=cI01-5zhwdA
:maduro-salute: to a fellow Cockshott poster. I was going to recommend him but you have a great summary here.
Thanks for the recommendation! All these sound interesting but number 3 in particular sounds confusing and scary? Was this system ever tried before? It sounds impossible to implement without paperless money, which is meh to me as someone living in a barely industrialised third world country.
Say my co-op sells dresses to other workers, how exactly does this exchange go? I receive their labour-tokens then destroy it? But I also receive labour tokens for making the dress from the state? Am I understanding it right?
I'll be watching the videos as soon as have WiFi. Thanks a lot for the suggestions!
It hasn't been implemented before. It doesn't necessarily require paperless tokens, they can simply be pieces of paper like 10 labour-hour notes or 100 labour-hours etc.
Now this is all hypothetical, since actual socialist countries used money instead of labour tokens. But it would work quite similar to what you're describing.
-
It's just like Parenti said, computers and the democratization of production were the necessary steps to correct these deficiencies
That still wouldn't solve the problems of managers refusing to create innovations that would make them obsolete
Yes it would, workers would just vote the mangers out if they got in the way of increased production, individual self-interest like that doesn't survive a open democratic environment like that, you can already see the outlines of this phenomenon in companies like Mondragon
I don't think these things are unique to communism, just any kind of stagnant planned economy. I have worked in several factories where all of these things have been true. The problem is if it goes through the entire system, which capitalism 'solves' by maintaining several planned economies ('firms') in competition with each other. But the ethical issue isn't one of competition, it is one of ownership.
I wholeheartedly agree with a bottom-up approach. If someone has a good idea, it will spread and then somebody who is elected up through elected positions will arrive at a counsel of decision makers and they'll say, "our firm found a good idea." They can do the same thing when somebody is pulling bullshit.
Examples like:
"You increased our quota without giving us more employees"
"Our quota is higher than what we need by a lot"
"This pollution is fucking shit up, we need an alternative"
Or any kind of whistle blowing
In my worldview, there are plenty of people who are naturally curious or lazy who will try to take the shortest route to hit every point necessary. If you empower enough lowly people to explore instead of putting their nose down to be a cog in a machine they'll never see the profit from, you'll find that they'll come up with good ideas - especially if they don't burn the fuck out after a year and a half. Not only that, you can also have education and academic research more robust. Scholars can be put to tasks other than seeking grants by promising short term profit. You can have a bunch of scholars, scientists, and engineers with bright eyes and a dream of improving industry. If you go to a college campus and ask a bunch of people how to change the world, you'll have a bunch of different answers. Currently, none of those ideas fucking matter because the students are all there to become baristas and 1 or 2 of them work for a weapons contractor.
I'm also not opposed to innovators and hard workers getting rich. Perhaps really fucking rich. Just not the kind of rich where you hire a wealth manager to buy up a bunch of houses, precious metals, businesses, majority stocks, etc. You can't seize un-elected control of the means of production, hoard personal property, or get in the way of shared prosperity. But if you honest to god find a way to make enough to travel the world as a vagabond with a blog never touching labor again in your life before late stage communism, then more power to you, I guess. You'd miss out on jobs that focus on personal development, social integration into communities, engagement with purposeful labor, and a direct link to the core vision of shared prosperity. Jobs would also have shorter hours, higher purchasing power, more vacation time, and a slew of quality of life benefits.
Edit: I also realize that this was about books and a request for literature instead of conjecture. As I rebuttal: my posts own and I'm keeping it here. 😎
This is my favourite method by far. It sounds more intuitive / in line with what regular workers want
keep in mind that the state of the soviet union was never the end goal of communism, it was a transitory state, so it being flawed isnt really a criticism of communism
I know but we're not jumping straight into the communism stage. If the fall of feudalism is any indication, it could take the better part of a century to 2 centuries for it to take hold for real. And if the next big socialist project doesn't learn from the Soviets, well pretty good chance it's screwed. Maybe it won't survive the century of development leading there at all.
I love this, and I think that more than Soviets would need to get this answered. My guess is that the CNT-FAI had trouble with some of these issues as well, especially the resource utilization ones - when you divide society along trade lines you get some serious industrial competition over scarce resources. No idea how to address all of them, but I have a few thoughts. I'm not an econ guy so be gentle.
-
What about some sort of pension plan for managers that invented or adopted technology that led to their own obsolescence? This would encourage innovation and keep managers from purposely pursuing inefficient but self-interested management strategies.
-
Managers and employees could be paid higher wages if they achieved higher production. However, there would be no punishment for coming in below quota. This should incentivize risk-taking and trying out strategies to increase output.
-
Rewarding increased output should encourage more efficient use of resource allotments.
-
Rather than reset production quotas to punish successful producers, producers should be given a base quota that is not adjusted not matter the level of production, but if the quota is exceeded then managers and employees receive wage rewards.
I like the pension plan thought I'm not sure if I'd be happy with it if I made myself obsolete, but still really loved the job. Maybe coupled with decreased work hours or promotions it could work.
It always frustrated me when new tech got people fired instead of reduced their work load. And I'd hate if even under socialism it continues.
-
It's Christmas so I cannot effort post, but Parenti isn't dealing with communist society because the Soviet Union never abolished private property (nor could it). (He also does not understand communism at all nor accurately reads Marx, but that's a separate matter.) If dealing with actual communism, then I suppose it's a problem for the labor movement to solve.
Marx suggested (not dictated!) labor vouchers as a way to track production (which are not money because they do not circulate, it would be checking a name off on a computer now), I suppose I'd argue for that myself.
I do get the sense parenti simplifies some concepts sometimes but I find that perfectly acceptable to keep his literature accessible. He's among the first Marxists I listened to and his accessibility was big part of that.
You're the second person to suggest labour vouchers, gtg read more on it although my impression so far is it's way too unfeasible in foreseeable history. Thanks.
You cannot step in the same river twice. This is the age of the internet. A planned economy would look completely different.
I think the best route is a MIXED economy.
A mix between central planning and market socialism.
Centrally designed five year plans for strategic sectors like energy, infrastructure, banking, and housing. "Syndicalist" co-ops for other sectors.
A mix between central planning and market socialism.
"Market socialism" is a meaningless term. Socialism is not just about workers privately owning their individual workplaces. It's about abolishing all private property relations as well as abolishing money and commodity production. So "market socialism" is really just capitalism with private worker ownership of capital. This may be useful as a transition step towards socialism, but it will suffer from most of capitalism's problems. The biggest achievement of "market socialism" however would be the destruction of the economic power of the capitalists. That's no small feat, and in that sense, "market socialism" is as difficult a political goal as socialism.
Capitalism is not just "private property", capitalism is more accurately defined as generalized commodity production. It's about producing goods to be sold, with the incentive being profit. If the profit motive remains even if goods are produced by co-ops, you will see the resurgence of capitalist relations, a rise of black market, increasing inequality etc. This what happened in Yugoslavia and indeed even in the entire USSR as they implemented more and more market-reforms from the 70s onwards.
By eliminating commodity production altogether, you can organize the economy based on conscious planning, instead of relying on the anarchy of the market. I suggest seeing this video that describes the limits of market socialism - https://www.youtube.com/watch?v=XyxnG2ck-sw
except i didn't say everything should be coops competing on the markets
democratic centralism and five year plans for the commanding heights of the economy - no markets (especially no financial markets)
independent union controlled economy (with no patents and copyrights whatsoever) for other less strategic sectors
The point I was trying to make, maybe poorly, is that we absolutely need strict central planning for some sectors, while other sectors would probably benefit from having independent decentralised unions.
This may be useful as a transition step towards socialism
so we agree :)
This all just shooting shit sadly, for the next decade the best we can do is to fight the rising fascism in the west
I mean, why not use computer mediated decentralised planning rather than markets?
I think you are right, and maybe this is just a misunderstanding.
If we'd have workplace democracy and no IPs (everything is open source), this would be such a fundamental change compared to what we have now, we might not recognize it as a "market".
TBH honest I only used "market socialism" because I thought it would save time... but maybe I was mistaken
I think it would be good to read Marxian political economy to get a more concrete understanding. I get where you're coming from but simply having workplace democracy and no IP is not really a fundamental change from capitalism and it quite literally still is a market based system. The basic structure of capitalism will remain along with most of the problems arising from it.
Can you explain why you think markets would work better for some sectors?
It's only for some sectors, like manufacturing household appliances or deodorants or selling shoes etc. And the why is in the OP 1 to 8
But hey if you can explain to me plainly why it's not preferable to have decentralised union-led firms in these sectors as opposed to complete central planning I would be thankful.
Edit: now I see your post
You might not be wrong, but I think that's science fiction territory
Hell, even my post is sci-fi
I just think my scenario is more likely to come to be in my lifetime
I don't think we will have a money-less labor token society in this century
Ie read all your posts in this threead and you havent actually explained why it would be better, you just said it would be better. Not trying to debate, just want to know your reasoning why consumer goods should be made through private property and markets rather than planning
I think what we have here is a failure to communicate
It seems to me you are a purist when it comes to communism
I am talking about actually existing socialism, and a socialism that could possibly exist in this century
We won't have a money-less society unless the whole world goes communist, and we won't have a money-less society unless we have a stateless society - and that's not gonna happen overnight
Therefore we must have a transitionary stage - this could be short in an historical sense, but still could last a lifetime
In the scenario I propose (and I don't think I'm original) there would be Dictatorship of the Proletariat, there would be no patents, and no individuals controlling large companies, no private ownership of land - even this would be completely unrecognizable compared to today's economy
So my main point is that we cannot possibly abandon money and markets during the first decades (or maybe centuries?) of a newly formed socialist country. And in that case in a few sectors, something that's kinda like market socialism is preferable to central planning, because it could eliminate the problems in OPs post
Imagine that India or South Africa goes communist next week. They invite you as an economic adviser, then you say to them that they "need to abandon money for labor tokens ASAP ".
But what does ASAP means in this case? Days? Months? Years? Decades? Until then what?
Surely you wouldn't say Fidel, Mao and Uncle Ho should have read more Paul Cockshott on account they haven't abandoned money altogether?
But maybe I'm missing something, I probably should reread some stuff, so I will go do that. We must stamp out revisionism even in ourselves haha
And Paul Cockshott looks interesting (Cybersyn is cool)
I'm out of coffee
:deng-cowboy:
I got PTSD flashes when you said mixed economy from arguing with liberals
I also was thinking about it, maybe the solution is sort of tick-tock (or more like achieve, optimize, replan) approach, I.e meet quota in however many hours it takes and then based on results in different industries reshuffle the workforce around after say 3 years. It’s kinda the question what you optimize towards: meeting production quotas of the plan; reducing total society labor hours; producing maximum amount of stuff. I think highly specialized work would be an issue, but some people do get bored of their work.
Motivation to reduce ones own labor hours seems like a strong one, but how do you correct it without resentment during reshuffle?Edit The problem with managers seems like a hard one, it’s either have a sort of consulting like force (would be hated probably) which will go around factory outliers in production or having some sort of factory work force motivation to reduce the management role.Edit 2: Also, also: current state of computers allows to consider any factory as just a small matrix multiplication to input-output sources. Inefficiencies can be found by half-trained 15 year old, so the economy can be extremely fluid. So I think in static state all of the problems except managerial ones can be solved already, the only issues would be to add defect rates and ecological damage/spillage. Dynamism can be added via small democratic demands/wishlists in an app (I.e. we want black jeans this year), and computer can optimize to it.Disregard all that.
Can some up or down bear the following posts, so that I know at least one person read it🥺Thanks unknown comrade!Ok, that post got more and more confusing,
let’s imagine a modern planned economy then. Input output tables live in the machine, which sole goal is to a) satisfy maximum amount of needs, probably with some vouchers (I.e. you can wish for 5000 labor hours a year worth of products, outside of food, medicine and housing) b) reduce socially necessary labor hours. c) optimize for material efficiency I.e. minimum ecological impact.
Let’s say then, that designs for products can be freely submitted in the special vault, where a) people can wish for them b) if the product already was made, the labor hours estimation is stored. Also let’s assume that used design is compensated for labor hours spent on its creation, to promote evolution.
Now let’s say people select a new phone design: it’s raw material cost and processing steps required are roughly known, so it can go to production. Considering we are optimizing for ecological impact, most optimal resource would be used electronics as a source raw materials, which are then processed and remade into a new phone.
We have left with two thorny issues: why factory would optimize its own production and how managers would fit into it. Here we can look at the internal structure, and say that for example labor hours required from that factory a) weakly influence received labor hours wishlist rate for workers b) the work cannot exceed 8 hours a day. If the inefficiencies exist, their removal would lead to to higher compensation for workers and managers, if they don’t - new factory would be made with additional work force (or old one expanded).
Now the questions are a) how do you navigate a shitton of designs in the vault b) how weakly or strongly do you compensate productive individual workers c) how do you provide to disabled comrades. B and C both collapse into the question what is the floor and the ceiling of available worker hours for wish lists, and where between them you put disabled people. A) dunno, lel, maybe someone else has an idea.