PARECON

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I, too, was going to bed last night so I missed syndicalistcat's previous reply. I can't reply to all the points raised but I'll try to reply to enough points to make the contrasting approaches of self-management and communism clear.

Like I said, however much I disagree with it, I appreciate syndicalistcat's clear exposition of his approach. It seems a little disappointing that other communists haven't joined this discussion - I think that efforts to ask "nuts and bolts" question about the communist project is important, even if I don't think that a complete, pre-existing blue-print is the answer.

Further, I don't think I'll convince syndicalistcat of my approach. But there is certain Achilles heal to syndicalistcat's approach - he likes to take the tone that his is the only reasonable and realistic approach. I wouldn't say that about my approach - instead I'd say that t and me have different views about how change can happen and what human beings are capable of. With those differences, each of our approaches is realistic in its domain.

SyndicalistCat: To begin with, it's not sufficient to have criticisms, IMO, we need alternatives. And then you also need to show how that alternative is a real alternative.

Red: Being practical and realistic actually doesn't involve planning as much as possible. Rather it involves the right degree of planning for the situation as the situation develops. In my opinion, a fully fleshed-out blue print for a new society is a wrong, excess degree of planning (though parecon has more problems than just being a blue print). Instead, we should look at the possibilities and what has happened in the past. I'll sketch concrete examples giving alternatives to the parecon model but won't give a blueprinted, fleshed out alternative. To be honestly realistic, we should see that rebellion and the seizure of both society and the means of production has not involved some fully fleshed out alternative. Even more, attempts to impose these are between futile and counter-productive. It is worth seeing that large groups of folks can organize production collectively - the wikipedia project is an example of a large-scale, virtually uncontrolled production process. The use of wikis as the coordination mechanism for large scale production is a clear and simple possible approach. Just as much, the concept of communism - that society would aim for producing a large-scale "creative commons" rather than for just lots more individual consumption goods - is important as well.

SyndicalistCat: Among the key things we're talking about is the liberation of the working class from subordination to other classes, liberation from being instruments for those other classes, and thus be exploited by them.

Red: As Peter point out, this is the difference self-management-based syndicalism and communism. You want the "liberation of the working class" and we want the abolition of the working class. We want to abolish both the antagonism of work and the antagonism of commodity production. You want to "liberate" work and commodity production from the "shackles" of capitalist management - a world rather similar to today except without a separate elite. Since no one would really want the bother of self-management simply to live in the present world except without elites, this proposal seem highly unrealistic despite being carefully formulated to be realistic.

RedH-earlier: "Parecon limits your consumption of X commodity, some people will find ways to increase their consumption of X commodity."

Syndicalist Cat: It's not clear what this means. A participatory economy limits your consumption to some finite level. There is no possible human society where this is not true.

Red: Consider the example of a small community with a tool shed. Most folk live in cabins sufficient for their sleeping needs but not really meant for storage. There is a central area where tools are stored and anyone who happens to need a tool can go, get one and use one. They then put it back because no longer have a use for it. There might be some discussion about which tools to get but there isn't competition for who "gets" a tool since the tools are held in common. The contrasting system involves the present infrastructure: say everyone lives in a single-family houses and accumulates the tools they want; parecon might ration thing so everyone got the same number of tools or that folks could get tools or sewing equipment or whatever but parecon wouldn't change the informal competition for stuff. The overall point is not to self-manage the present economy of abundant scarcity but to have actually different social relations.

SyndicalistCat: What would "accumulation of goods" mean? The accumulation that occurs under capitalism is of capital...The accumulation that occurs under capitalism is of capital...which presupposes a certain social framework, in which someone can buy labor-power and other resources on a market, control in a top-down way the use of that labor power, and then sell the product on a market to make a profit.

Red: Yes, under the full-fledged capitalism, you have fully functional money which can become capital. Under one or another systems of waged-labor or scarce-commodities which restrict this, you have corruption and hording of scarce or valuable goods (this can be seen any place where things are rationed). Basically, what you are proposing is a less-developed commodity system which you hope won't develop the qualities of capitalism.

SyndicalistCat: Obviously that social context [the capitalist context - RH] is entirely missing under a participatory economy. Of course people can gain personal possessions under parecon. If you are opposed to that you should say so. I think that would be a hopelessly repressive proposal.

Red: The term "personal possession" seems intuitive but it seems to have quite a bit of leeway your usage. Correct me if I'm wrong but I am believe parecon assumes that entire final result of production would be divided into "personal possessions". In modern society, this is quite a lot of "stuff" and even under a less productive system, it would be lot. I am not proposing that everyone share toothbrushes or underwear but the primary result of production under communism would be collective possessions with under personal items that folks wouldn't have to share their underwear or tooth brushes. You would certainly have quite a bit fewer personal possession than under capitalism - indeed, the entire personal ethos of accumulating personal possessions would have to change - and you are right, this makes communism something that isn't likely to win any elections soon but we aren't talking about social change happening through elections (or the fantasy of one big general strike based on everyone reading the plan and liking it).

Anyway, I don't think you could maintain a "self-managed" social system that continues the modern split of producer/consumer. But if you somehow did, you would have the antagonism created by those roles - those assigned "shit" jobs would like to goof off, those who got fewer credits for working less would like to still get stuff and so-forth. Interpersonal antagonism is built into parecon and interpersonal antagonism would play out with people braking rules and colluding with others who liked to break rules.

SyndicalistCat: You also fail to explain what you mean by "an adversarial relationship between workers and the job" or between "worker and community."

Red: Simple - you get "choice" of jobs but get "paid" a certain wage for each job. If you like to work less, you wind-up doing say an "undesirable" job but that choice of job was a matter of the system and not you just deciding to do it. Just as much, some must make sure you actually do your assigned hours. Likewise, you are allotted certain credits for things and someone is assigned the task of making sure you only spend those credits. These are all clearly antagonistic personal relationships.

RedH.: "Think about who will manage the computer system you are talking about - if they have no other status, they could certainly become more powerful by abusing their power."

SyndicalistCat: And if your society depends on people running certain expensive pieces of infrastructure like the power plant or the sewage treatment plant, how are you going to stop them from abusing their control over that resource?

Red: Those who run a power plant might, say, blackmail the whole of a society but that would be a rather difficult and public activity - naturally one would attempt to design such crucial infrastructure so it could be operated by anyone and so minimize this problem. Even more, as you point out, this could be done in any society and it doesn't happen, much, in the present society. But for that reason, it is a different problem than the problem of those running the parecon computers. They would have much more leeway to, say give to particular people without others being the wiser - this kind of thing (bank fraud) happens even under capitalism on a regular basis even though it is illegal. How much more common would it be in a society without police (or oppositely, how would you organize your "participatory police", wait don't tell me...).
Parecon would be a complex system of control and distribution whether it was participatory or not. Despite constant efforts at computer education today, many people despise computers and few are really adept at them or at other complex-control activities. Thus there will be some people who are better at understanding and using the parecon "system" whatever system that might be (and the more controls you put in place to prevent this, the more complex the system would become and the harder it would be for people to understand it and control).

I hope that summarizes the differences, I don't know if I'll in this much detail again due to time contraints.

Best to all

Red

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R. refuses to say what his alternative really is. Instead we have rhetorical handwaving and vague allegories (like the tool shed business, which provides no clear indication of how an entire mode of production would work).

R.: "Rather it involves the right degree of planning for the situation as the situation develops. In my opinion, a fully fleshed-out blue print for a new society is a wrong, excess degree of planning (though parecon has more problems than just being a blue print)..."

It is certainly not the case that what I propose is a "blueprint." As I've written on numerous occaions, the idea is to be clear about what conditions have to be met to liberate the working class from its subordination to other classes, and thus liberate it. I've mentioned several conditions that this involves:

1. self-management as opposed to subordination in social production and all areas of life. Is R. opposed to self-management? He counterposes self-management to "communism" (never telling us what the heck this vague rhetorical term means), so is he against self-management? Self-management is a basic human need. It is the need to be self-determining in your activities, in your life, in the sense that you plan out what you will be doing, and develop the capacities you need to carry this out, and do so collectively with others in the case of aims that are collective. "Alienated labor" is precisely the opposite of self-management. So if R. is against self-management, is he for alienated labor? Or....?

2. a participatory process of social allocation of resources in social production, producing things for each other. The only other known forms of allocation are the market and central planning. Which is R. for? He never tells us.

3. complete redesign of jobs, and the division of labor, to empower the working class, so that the work now done by the coordinator class is done by the working class. With the elimination of the coordinator class and the capitalist class (private ownership of productive property is replaced by ownership of the facilities of production by the entire society), the idea is the elimination of the class system. R. says there is a difference between the liberation of the working class and "the abolition of the working class" but he never tells us what this might be.

These conditions could be met in quite a number of different concrete ways. The idea is that to liberate itself the working class needs to (1) get rid of private ownership of productive property, making it social, (2) dissolve the class power of the coordinators by enskilling and empowering the working class, eliminating the corporate-style hierarchies, (3) develop an economic allocation system that isn't either the market or central planning.

R.: "The use of wikis as the coordination mechanism for large scale production is a clear and simple possible approach. Just as much, the concept of communism - that society would aim for producing a large-scale "creative commons" rather than for just lots more individual consumption goods - is important as well."

This is another example of R.'s tendency to substitute vague handwaving for a real discussion. This tells us nothing about the process by which humans can collectively control social production. A wiki is an information source, not a process of social interaction. But we can't know what people desire, what we should be doing for them, without a social process that reveals what they most desire.

And R. never tells us how we are supposed to eliminate the disinction between producer and consumer. You could eliminate this distinction if you produce for yourself everything that you consume. But that is not a possibility. It is inevitable that people will produce things others will consume, and other people will produce things they consume. That is why the roles of producer and consumer cannot be done away with.

R.: "The use of wikis as the coordination mechanism for large scale production is a clear and simple possible approach. Just as much, the concept of communism - that society would aim for producing a large-scale "creative commons" rather than for just lots more individual consumption goods - is important as well."

Here we run up against a strawman fallacy. Participatory economy isn't about only producing items for personal consumption. R. seems to have missed something very fundamental. What does he think the point is of the neighborhood assemblies and federations of these across wider geographic scope (city, region, etc)? The point is that these are decision-making venues to make proposals for the production of public goods. The huge role that these have in a socialized, participatory economy reflects the idea that public goods, which capitalism tends to systematically underdevelop and underproduce, would become much more central.

Through the neighborhood assemblies and congresses of the federation of these the proposals for the eco-system are articulated, and proposals for pollution reduction or avoidance, and so on, are articulated, and ecological costs are thus imposed onto the balance sheets of production groups, so that ecological costs are not avoided as they are in capitalism. The ecosystem is a huge public good, but there are many others, such as health care, education, housing, transportation, and so on.

The point here is that the partcipatory, socialized economy imparts an entirely different dynamic to what is produced, not just how it is produced (via self-management). The "logic" of the system would favor a much greater importance of collective, shared goods.

R.: "As Peter point out, this is the difference self-management-based syndicalism and communism. You want the "liberation of the working class" and we want the abolition of the working class. We want to abolish both the antagonism of work and the antagonism of commodity production."

Mere empty rhetoric unless you can cash this out in concrete language. You've not explained the difference
between "liberation of the working class" and its "abolition". Liberation of the working class, as I understand it, means an end to the class system, and thus the abolition of proletarian condition. There is no commodity production without market governance of the economy, which doesn't exist under a socialized, participatory economy.

R.: "You want to "liberate" work and commodity production from the "shackles" of capitalist management - a world rather similar to today except without a separate elite. Since no one would really want the bother of self-management simply to live in the present world except without elites, this proposal seem highly unrealistic despite being carefully formulated to be realistic."

You seem to suggest that everything would be the same except that workplaces would be self-managed. This is simply wrong.

R.: "The overall point is not to self-manage the present economy of abundant scarcity but to have actually different social relations."

Again, this is meaningless rhetoric. In what sense is participatory economics proposing to "self-manage the present economy"? There is no private ownership of means of production, no market governance, no class division, the dominating classes are there anymore, production of public goods moves to the fore, etc.

When I describe what a participatory mode of production would be, I take myself to be describing the economic foundation of a society in which social relations are fundamentally different. What do you mean by "social relations"?

R.: "Basically, what you are proposing is a less-developed commodity system which you hope won't develop the qualities of capitalism."

What do you mean by "a commodity system"? In my understanding, a system of commodity production is a system governed by the market. A socialized, participatory economy is not governed by the market but by participatory planning, which is self-management extended to the entire economy, self-management of social planning.

R.: "The term "personal possession" seems intuitive but it seems to have quite a bit of leeway your usage. Correct me if I'm wrong but I am believe parecon assumes that entire final result of production would be divided into "personal possessions"."

Wrong. See, you've missed something absolutely fundamental, as I mention above. You completely miss the pont of the neighborhood assemblies and federations of these, making proposals for public goods. The point is to have a means through which society can expand public, collective, shared goods. When the residential organizations propose comprehensive free health care, an extensive system of health clinics, free public transit, an aggressive program to reduce air pollution or whatever, these are public goods, not divided into individual consumption.

You can correct me if I'm wrong, but i suspect your problem is you don't agree with the idea that individuals should have the right to request and have produced things for their own personal consumption, their own private enjoyment. And I'd point out that the only way that could be imposed on society would be thru the methods of Pol Pot.

R.: "You would certainly have quite a bit fewer personal possession than under capitalism - indeed, the entire personal ethos of accumulating personal possessions would have to change - and you are right, this makes communism something that isn't likely to win any elections."

So you're saying some tiny, puritanical minority that doesn't like personal possessions is going to impose its will on everyone? You can't hide the authoritarian implications by reference to electoral politics.

R.: "those assigned "shit" jobs would like to goof off, those who got fewer credits for working less would like to still get stuff and so-forth."

You've apparently paid no attention whatever to what the advocates of participatory economics say about dissolving the capitalist division of labor, through things like the job balancing proposal. Under participatory economics, there won't BE any "shit jobs". People who work less would get fewer consumption credits, if they're able-bodied, that's true. One of the first true things I've encountered so far.

R.: "Simple - you get "choice" of jobs but get "paid" a certain wage for each job. If you like to work less, you wind-up doing say an "undesirable" job but that choice of job was a matter of the system and not you just deciding to do it."

No. There are no "undesireable" jobs. And what do you mean that the job "was a choice of the system not you"? In a participatory economy, there is supposed to be a system of worker organizations through which jobs are redesigned, by workers themselves, to integrate decision-making and conceptualization and skill with the physical doing of the work, to eliminate a capitalist-style division of labor. This is an essential point that you seem to have missed.

R.: "Likewise, you are allotted certain credits for things and someone is assigned the task of making sure you only spend those credits."

There are distribution centers where you can get products. Your credit entitles to acquire things up to the level of your budget, determined by your work, if you're an employed, able-bodied adult. There are people who work in these centers, and presumably they do ensure you have the credits to use to acquire the things you are requesting, yes. So what?

R.: "Those who run a power plant might, say, blackmail the whole of a society but that would be a rather difficult and public activity - naturally one would attempt to design such crucial infrastructure so it could be operated by anyone and so minimize this problem. Even more, as you point out, this could be done in any society and it doesn't happen, much, in the present society."

Now there is where you are fundamentally wrong. What the heck do you think "private ownership" is? how is the capitalist firm going to get its profit out the investment? Through its power, entrenched in the ownership of this key asset, they can indeed demand payment for the output. Often firms with scarce skills demand and get super-profits, or firms with gigantic market share like Wal-Mart can do so, by refusing to give to suppliers more than they want to give them...they are limited only by the physical capacity of the supplier to produce at a price.

It is part of the very nature of capitalism that the ownership of the means of production by the capitalists is what enables them to force the working class to work for them at wages low enough to enable them to accumulate.

I will repeat the point I made before. You lay out very vague rhetoric. In regard to ideas about a future beyond capitalism you offer only handwaving and magical thinking.

There is no reason why the movement should take this seriously.

t.

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I just want to add one minor point about the word "communism." My point is that clear discussion requires that we be clear about what it means. Two marxist economists, Reznick and Wolf, have defined a "communist mode of production", in their book "Class Theory and History," as a mode of production where those who produce the social surplus also appropriate it. Now, on this definition, participatory economy would be a form of communism. That's because it is workers and consumers together who "appropriate" the social surplus in a participatory economy, through their joint control over the social planing system and socially owned means of production. And people who aren't working, such as children, the retired, the disabled, people between jobs, people on vacation, are members of the same families as those working, they're not a distinct class. And they are also consumers, and thus participate in the social control over the social economy. Thus parecon satisfies Reznick and Wolf's definition as a "communist mode of production." From the point of view of the Marxist theory of calss that Reznick and Wolf employ, their definition makes sense because it is a marxist way of defining a society with no class division, a classless society, and that is how traditionally communism was understood.

t.

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syndicalistcat wrote:
1. self-management as opposed to subordination in social production and all areas of life. Is R. opposed to self-management? He counterposes self-management to "communism" (never telling us what the heck this vague rhetorical term means), so is he against self-management? Self-management is a basic human need. It is the need to be self-determining in your activities, in your life, in the sense that you plan out what you will be doing, and develop the capacities you need to carry this out, and do so collectively with others in the case of aims that are collective. "Alienated labor" is precisely the opposite of self-management. So if R. is against self-management, is he for alienated labor? Or....?

Self-management is necessary but far from sufficient for a truly free way of life.

Given the long history of groups as un-radical as sections of the left of the UK or Australian Labour Parties advocating the self-management of capitalism us commies tend to be suspicious of any use of the term assuming that it means the self-management of a more or less capitalist economy. Maybe this is unjustified but nevertheless the problem is not so much who manages but what is managed.

I for one have no interest in self-managing my job ATR. I just don't want to have my life stolen from me in 6 hour chunks on a daily basis.

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I've never heard of any UK labor party advocacy of self-management. Social-dems here in the USA rarely talk about it, except possibly as advocacy of coops. Their orientation is towards government programs and electoral politics, getting the state to do this and that.

But the state needs to be replaced with popular self-governance, and structural racism and gender inequality unraveled...the class system isn't all there is to the system of oppression.

There is very good reason for people not to like their jobs given the way they have been designed in the capitalist division of labor, and the subdination to others with alien interests. But work will still be necessary in a liberated society.

t.

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I'm pretty sure there were parts of the left of the Labour Parties talking about self-management in the 70s. In a time when a lot of workers struggles were against work the recuperative nature of this social democratic self-management should be obvious.

This may be more semantics but I don't think we should talk about work ATR. What unites the most diverse sorts of human activity within the category work is that they are all performed for wages. So for me the end of wages means the end of work.

Of course if your utopian blueprint includes wages - sorry consumption credits - then of course there'll still be work.

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Back after long delay (sorry!) to my last post and syndicalistcat replies (top 1/3rd of http://libcom.org/forums/thought/parecon-0?page=2 ).

I asked "What is the incentive in parecon for workers to produce what consumers want as opposed to what the workers themselves want to keep on producing? Is it simply orders from above, from the direction of the facilitation boards reacting to stockpiled inventory, shortages, queues?"

syndicalistcat wrote:
Let's say you have two production groups producing Hawaiian shirts, groups A and B. Let's say A's shirts are shoddy, or they produce too many pink shirts. What happens? At the end of the year when their cost/benefit ratio is calculated, only the shirts actually bought by people count as a benefit provided. If group B does a better job of providing the Hawaiian shirts people really want, it's benefit calculation at the end of the year will be higher. A better cost/benefit ratio justifies further investment in their continued production. If group A falls below the socially average cost/benefit ratio, it must provide a reason why it shouldn't be disbanded, and its resources provided to a different production group. ... Under the scenario I described there is a kind of competition between groups A and B.

Now that sounds to me like a market in consumer goods. One where, to be sure, profts are retained socially (effectively a 100% coporate income tax (US) / corporation tax (UK)), but still a market - A's goods compete against B's goods.

And that would work - we know that because it works now. So it is an interesting idea. But - is it Parecon?

I'm going to suggest it is not, that the two Parecon authors are opposed to markets, even on such a limited scale as that above. Albert would surely have said otherwise during his debate with Schweickart had he felt otherwise.

So, where does that leave us? Is syndicalistcat proposing some market-parceon hybrid here? If so, I think a separate thread might be called for, one where we can:

syndicalistcat wrote:
it would be good if you stuck to MY variant of participatory self-management when discussing with me.

Or, have I misinterpreted that one post of syndicaliscat (his later posts seem to revert to anti-market parecon orthodoxy). If so, my original question remains - or perhaps would then be answered that, yes, it is simply orders from above, from the direction of the facilitation boards reacting to stockpiled inventory, shortages, queues? Which is, however, a little too close to the method in the USSR for a lot of people to stomach nowadays.

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Peter wrote:
I'm pretty sure there were parts of the left of the Labour Parties talking about self-management in the 70s. In a time when a lot of workers struggles were against work the recuperative nature of this social democratic self-management should be obvious.

This may be more semantics but I don't think we should talk about work ATR. What unites the most diverse sorts of human activity within the category work is that they are all performed for wages. So for me the end of wages means the end of work.

Of course if your utopian blueprint includes wages - sorry consumption credits - then of course there'll still be work.

Yes, there was in England at least a fair bit of talk about workers control - always in the context of social democracy as you say. But so what?

After capitalism there will still be stuff that needs to be produced. Food, housing, bicycles, socks, whatever. Someone needs to do it. This is work isn't it? Productive activity? Was anyone in the 70s (outside of proto-primitivist idiots) arguing against the concept of productive activity? Or were they revolting against wage slavery?

We also need to work out a way of sharing out the social product in a fair way, and one that helps plan what we need to make collectively. Personally I think it's reasonable to have a system that will stop me hoarding lots of sex dolls (with their pretty pretty faces) to the detriment of others who may have their own need for sex dolls. If I have a consumption allowance that's a fair reflection of the effort I've given why is that, as you imply, on a par with wage slavery?

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Peter: "I'm pretty sure there were parts of the left of the Labour Parties talking about self-management in the 70s."

As tiger points out, this was phrased in terms of "workers control," not self-management. These are different concepts. Self-management is the workers having complete management power collectively, in regard to issues confronting them together, where they work. *Generalized* self-management also means it has to be NOT limited to the indivdual work place. But certainly self-management of our work is part of the solution.

Peter: "What unites the most diverse sorts of human activity within the category work is that they are all performed for wages. So for me the end of wages means the end of work."

Tiger talks in terms of productive activity. I would add that we are talking about activity that is production of things that are useful to, desired by, others, "productive" in that sense. That is what *social* production is. You produce things for others, and they produce things for you. Productive activity that we need to do to have the things people want is "socially necessary labor time." That is work.

An effective arrangement for social production needs to be one that show how the use of the social facilities for production is to be made accountable to society, and how we can ensure that social production will be effective in actually producing what people most desire, and do so in an equitable way, a way that people will endorse, and that is going to preclude parasitism. As Isaac Puente said, if you want to be lazy and not do work, then you'll have to produce whatever you want entirely by yourself, if you're an able-bodied adult. If you want others to produce things for you, you have to be prepared to do some of the work to produce things for them.

t.

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afraser: "Now that sounds to me like a market in consumer goods. One where, to be sure, profts are retained socially (effectively a 100% coporate income tax (US) / corporation tax (UK)), but still a market - A's goods compete against B's goods."

No. It's not a market. There is no revenue to the production groups from sales. Within parecon, remuneration is based on effort. The two main criteria of this are: length of time working, and how intensely people work. How can we tell how intensely they've worked? How do we know if they fuckoff? Well, there will be a different level of output than similarly situated production groups who work harder. This will entitle them to less investment in terms of remuneration, equipment and so on, as their cost/benefit ratio will be lower, other things being equal.

Other things are not always equal, tho. We have to look at why a group has performed not as well in terms of output. It might be because they were shutdown by a flood, or poor equipment, or poor training. In these cases it might warrant more investment, not less, for better equipment, better training.

t.

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OK I see, there is no market because prices are set by facilitation boards (based presumably on calculated costs of production), instead of by supply and demand. High demand goods simply go out of stock, low demand goods pile up in the warehouses - until, that is, the facilitation board steps in to rectify the situation by switching production resources to produce more of the goods in short supply and fewer of those that are less in demand.

Two objections present themselves:
1) That all gives great power to the facilitation boards. What prevents them assuming the powers of a new co-ordinator class?
2) Where are the incentives for socially beneficial economic behaviour? It is clear that firms (groups) would have incentive not to fall behind the pack, but where would the incentive come for firms to move ahead of the rest - to innovate, to risk launching new products, to implement potentially more efficient (but risky) production techniques, to undertake potentially (but again risky) quality improvements? It could be that facilitation boards would direct such activities, but that would hand yet more responsibilty and power to those institutions.

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afraser:

Quote:
OK I see, there is no market because prices are set by facilitation boards (based presumably on calculated costs of production), instead of by supply and demand. High demand goods simply go out of stock, low demand goods pile up in the warehouses - until, that is, the facilitation board steps in to rectify the situation by switching production resources to produce more of the goods in short supply and fewer of those that are less in demand.

No. Prices are not set by facilitation boards. Prices are the product of an interactive process in which individuals and groups request things, and production groups propose producing things, and propose changes in their work conditions.

Price determination would require that we set up rules to determine what happens to prices in reaction to requests. Remember, participatory planning is a process of negotiation. we start with actual prices. If in the planning for the next period, demand for concrete increases but proposal of the concrete industry is not to produce more, then the price needs to go up to indicate increased demand relative to supply for a scarce resource. This would require that there be a rule, agreed to when the participatory planning process is set up. It might be something like, "When demand for X goes up by N percent, then increase theprice for X by N percent."

So, supply and demand do determine prices, but not via bargaining power in a market, but by way of rules in a planning process.

I think you don't understand the concept of a facilitation board, at least not as I understand its role. Many people put forward requests, and various production groups put forward proposals. We can't figure out if this is a do-able plan unless we know what the totals are. This means we need some group -- a workplace organized like others on the basis of self-management, job balancing -- to collect all this information and then publish a summary to everyone, with the impact on prices based on the rules that have been agreed to, as i described above. This is the facilitation council that does this.

As to innovation, things that reduce total required labor time to produce things benefit everyone, because we can reduce the total amount of time we all have to work. Things that reduce costs improve the production group's cost/benefit ratio.

We would probably also want to have groups that focus on long-term planning and R&D. These would be self-managed workplace groups like any other. They would also make proposals, just as other production groups do.

t.

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Haven't read this entire thread, so apologies in advance if I'm wading in with stuff already discussed or obviously irrelevant.

Wouldn't marketplace driven production not produce the thing most socially beneficial, but:
* the thing that produces either most benefit for the group most able to choose what to purchase - like how now the drugs and treatments that get researched are for "rick people diseases" ie the ones you get from being old, or living in a relatively well off country where the health service can afford the drugs, rather than malaria.
* the thing that produces the most profit by having the most difference between how much someone wants/needs it and therefore will pay vs how much it cost to make.

I remain unconvinced that the marketplace is useful for deciding on what to make.

I think that pro capitalist thinkers argue that the marketplace makes most efficient use of resources and encourages innovation but I think that requires "rational" purely economic based consumers who are willing to chase down what they really need and companies that choose to innovate and perfect their products in genuine ways, rather than just the ways that are going to get noticed at purchase.

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Yeah, markets are horribly inefficient. They fail to take into account any costs the capitalists can shift onto others, like injuries to workers, pollution etc. A market is a system that allocates by bargaining power. If you have more money, you get served. No money, forget it.

Anyway, participatory economy isn't a market economy, but a planned economy.

t.

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How does that hold water?
If prices are set solely by the planning process, then they have to be set by planning for every commodity, in advance, for the next period. For every commodity, all several million of them.
If such planning is only conducted for investment goods, as you appeared to indicate earier (although Michael Albert would not I think hold with that), then prices could either be set by the market; or by an external agency such as a facilitation board, and then based on some criteria such as cost of production.
Which is it?

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afraser: "If prices are set solely by the planning process, then they have to be set by planning for every commodity, in advance, for the next period. For every commodity, all several million of them.
If such planning is only conducted for investment goods, as you appeared to indicate earier (although Michael Albert would not I think hold with that), then prices could either be set by the market; or by an external agency such as a facilitation board, and then based on some criteria such as cost of production.
Which is it?"

Within participatory economy, prices are not set by a facilitation board or a market. They are set through the interactive planning process. There are millions of people involved in this process. What is the problem?

t.

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Th problem is not that there are millions of people involved in the process - that is praiseworthy - the problem is that there are millions of products involved in the process.

I can imagine people indicating in a planning process the dollar amount of comsumer goods they want for the next period.

But how do they indicate the specific goods? How many skirts of length 193 millimetres that are colored gray, and pleated, and woolen? As opposed to skirts of length 236 millimetres, striped, straight, synthetic? And what category of quality for each? And how much demand at each possible price level for each?

Do we indicate all this by a planning process? For each of the hundreds of thousands of possible skirt categories, for each of the millions of possible consumer goods categories in general?

Surely not. But it is that level of specific information that factories need in order to know what to produce, and at what prices, and at what qualities. So where do they get that information from, if not from the planning process and if not from the market?

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afraser wrote:
Th problem is not that there are millions of people involved in the process - that is praiseworthy - the problem is that there are millions of products involved in the process.

I can imagine people indicating in a planning process the dollar amount of comsumer goods they want for the next period.

But how do they indicate the specific goods? How many skirts of length 193 millimetres that are colored gray, and pleated, and woolen? As opposed to skirts of length 236 millimetres, striped, straight, synthetic? And what category of quality for each? And how much demand at each possible price level for each?

Do we indicate all this by a planning process? For each of the hundreds of thousands of possible skirt categories, for each of the millions of possible consumer goods categories in general?

Surely not. But it is that level of specific information that factories need in order to know what to produce, and at what prices, and at what qualities. So where do they get that information from, if not from the planning process and if not from the market?

Having not read all the literature I don't know what Albert/Hahnel might say on this, but I don't see that there's a big deal here. Manufacturers in a market society plan - they make stuff on the basis of demographic studies of their likely purchasers, what has sold in the past and what they think will sell in the future. Moreover they seek to influence consumer preferences.

Skirt manufacturers in a parecon will have a rough idea of demographics, what people wanted before and so on. There'd no doubt be research to see what kind of skirts people wanted. Outside of the planning processes there are likely to be consumer groups expressing preferences or driving styles or fashions. And there'll be an element of supply and demand, as it will be clear what skirt styles aren't 'purchased'.

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I agree with Tiger's suggestion that a Parecon can use various instruments such as previous information on supply and demand, demographic information and surveys as effective tools.

Additionally I have a couple more comments to offer.

First, I think we should we wary of falling into the trap of commodity fetishism in our expectations for a just economy. I mean we should be careful about unconsciously assuming that the pseudo-variety and pseudo-choice that the capitalist market offers for something like skirt-styles is an unproblematic good. I would hope that in a better society folks would be less not more inclined to distinguish themselves merely by the "cool and different" things that they have purchased.

Second, the interactive characteristics of participatory planning seem to lend themselves well to a responsive modification by industries of their production processes and supply chains to meet consumer preferences, depending to a large extent on the nature of the product demanded.

What I mean is that there seem to be few obstacles for a skirt industry to organize itself so that production processes are relatively de-centralized along the supply chain. In the case of skirts, production services for elements related to style, design and perhaps even sizing could be allocated to the last stages of the supply chain, perhaps even at the local distribution depot. There would of course be options available for custom orders at extra expense, and I doubt that the obstacles to transferring between depots, and between depots and other parts of the supply chain, would be any greater, probably less, than they are in a market of competing firms. Once a broad estimation of how much needs to be allocated towards the production of skirts is determined, then considerable flexibility can be built into production planning to account for variability in terms of finished goods.

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People requested that I change my moniker since syndicalistcat was too similar to syndicalist, who is also a member of the same organization, and so people were getting us confused. It's enough to know that "gato" means cat in Spanish and Portugese.

I'm glad to see the intelligent comments by tiger and gordonL here. I don't profess to have all the answers here. i take afraser's question seriously. I think the tendency of many left-communists and anarcho-communists to think the answer is somehow "obvious" is a delusion. A social opportunity cost is not a figment of bourgeois political economy, it's a social reality. Marx recognized this in his suggestion of the need for labor-time accounting. But labor time isn't the only social opportunity cost. Nowadays we more appreciate how our lives are dependent on the eco-system -- a gigantic public good -- and how degradation of the eco-system is another social opportunity cost. And this is one of the structural flaws of markets, their inability to deal with this.

Back in the '70s/'80s period i read a lot of the same literature that got Hahnel and Albert trying to devise a solution. In the early '70s i was in the same organization as Barbara Ehrenreich when she published "The Professional/Managerial Class" with her then-husband. I could see that markets had huge destructive effects, via cost-shifting and externalities. But I could also see the oppressive consequences of central planning. I could see that we needed a program that could avoid the coming to power of a new class based not on ownership but monopoly of positions in a professional/managerial hierarchy.

I think the solution in regard to participatory planning for public goods and inter-production group relations is easier than in regard to private consumption goods. Traditional libertarian communism thought only in terms of basic units of assemblies, in workplaces and/or communities, which assumes that the decisions are about public goods. But individuals differ in terms of taste, and in the USA it's very obvious that we have various sub-cultures, often rooted in things like the ethno-racial diversity of the country. We need a vision that can account for individual and sub-cultural differences in taste/need.

This could easily lead one to think in terms of a compromise along the lines of Pat Devine, where you have a market for private consumption goods but participatory planning for public goods and inter-production group relations (i.e. production goods).

But Michael Albert always reminds me of the horrible consequences of markets. I think, if we think about a likely transitional period, I could imagine something like Devine's idea being put into practice, as an evolution out of the society we are coming from. But people may then be confronted with the problems that markets create.

I like gordonL's suggestion about a closer relation between the producer and consumer, and perhaps the customization of the product for the consumer. A feature of participatory economics that it's critics in the radical orbit sometimes forget is the emphasis on providing *qualitative* information in the participatory planning process, not just quantitative (via the price system). This is important in terms of overcoming the alienation between the producer and consumer and commodity fetishism.

Consider for example housing. In the 1970s Christopher Alexander, an architecture professor at UC Berkeley, particpated in an experiment in participatory design and house building in Baja California, financed by a local credit union. A group of families were involved in working in advance the design of their housers, using modular design concepts, to build houses that were personalized to the desires of their families. A family that wanted to do more socializing had more of the room in the front room, a family that was more focused on providing private space for their kids, had more of the room in the bedrooms.

I've involved in building a grassroots housing organization. We work with tenant associations and tenant organizing groups to help tenants take over and collectivize their buildings. One idea we've had is being able to do new construction where we'd find prospective residents and then work with them to design housing, within the available budget, according to a design that fits with their priorities. On the one building we're currently working on -- an apartment building of low-income Chinese immigrant working class tenants -- we've been doing participatory design to some extent, which involves meetings between the tenants and an anarchist architect on working out the design plan for rehab of their apartments (meetings that are translated between Chinese and English).

I did put afraser's question to Michael Albert. His answer was sort of similar to the comments by tiger and gordonL in that he thought a variety of techniques would be available to determine the exact mix of products people want, and he made a point of emphasizing that incoming input during the course of the year is important to the production group in terms of understanding how well they've been doing in meeting people's desires.

t.

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gatorojinegro wrote:

I could see that markets had huge destructive effects, via cost-shifting and externalities. But I could also see the oppressive consequences of central planning. I could see that we needed a program that could avoid the coming to power of a new class based not on ownership but monopoly of positions in a professional/managerial hierarchy.

And this is why I've been posting on this topic. I think I said earlier in the thread, I don't want to be a mindless cheerleader for Parecon. However, it is one of the few, and certainly the most developed, honest attempts to think through how we will create and share things in a complex society after capitalism. I'm just not convinced by 'make what you want/take what you want'. I really don't like variations on Market Socialism. Vague concepts of localism rooted in 19th C anarchism or more recent ecological ideas remain unconvincing or outright grim. I'm outright annoyed by hippyish suggestions. An - admittedly drunk - well respected radical economist once told me that open source was the model for the future. Much as I love Open Office, it's not a process that's going to keep me well stocked up with jellybabies.

I disagree with Gordon slightly on one thing - I don't think freedom from commodity fetishism, advertising etc will necessarily reduce variety in clothing and related items to a massive extent. There certainly would be reductions - people not feeling they need a new shirt or dress every weekend and so on, or that something barely worn is 'last season' therefore needs to be replaced. However, I'd hope that creativity would be given a fuller reign, avoiding the choices being limited to purely utilitarian designs. Defining ourselves partially through appearance is not a bad thing in my eyes once it's shorn of the external pressures brought to bear through marketing, gender and sexuality based stereotypes and so on. Given that clothes making is not one of my natural talents I want a society where I can choose beyond a few grey t shirts, or a hand knitted rainbow coloured jumper.

So anyway, Parecon isn't perfect, but it seems to be the best we have thus far. It will need a lot more debate and (assuming this is possible to any degree of usefulness, remember I'm no economist or computer expert) modelling. Perhaps aspects will need to be changed. Perhaps someone will come up with something better.

I think the point that it has to deal with a lot of complex information is a fair one - but then so does any economy. The market is only efficient at dealing with this under its own terms and logic. I think we can do better.

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Yeah, I've tried to figure out a realistic vision for a post-capitalist society since the '70s, and parecon is the best attempt i've seen thus far, altho there are aspects of it that i have questions about. I'm not a "mindless cheerleader for parecon" either, despite what the fundamementalist commies may say. I'm not satisfied with hand-waving and vague rhetoric.

t.

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What is perhaps most disconcerting for me is that parpolity has been on the table for years but nothing has been completed in terms of a book-length statement.

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Anarchist who state that ''thinking about how an anarchist society should look like'' as authoritarian should seriously reconsider their statement. I was drawn to parecon because it gives hope on what the future could look like. It is in our own interest to think about the practicality of anarchist economics. We can say that we want a classless stateless society, but people are right when they ask the question, but with what to replace it with? People are nothing with political and social liberation when there economies don't provide them the necessary benefits to sustain a decent standard of living. As anarchist we must notice this fact that if people want to take us serious, we also have to come forward with serious alternatives. It's not that these is the ultimate form of organization that has no flaws, but at least it is an attempt to come closer to the society that we envision. And for you anarcho-communist out there, parecon is a form of anarcho-collectivism, witch could then lead to a more solidaric society, so our goal is the same.