Local Council of Economy

Submitted by Juan Conatz on December 22, 2010

There are three practicable schools of economy: (a) Private Capitalism, (b) State Capitalism, (c) Socialised Economy or Communism.

We know the conditions and disastrous results of private capitalism, and we have pointed out our objections to State Capitalism as practiced in Russia. Our solution is the Socialised Economy not only because it is more just but because it is the only means of overcoming the monstrous contradiction of competitive production based on profit.

To facilitate exchange of products, there are two means: (1) The monetary system, (2) the social control of consumption in accordance with available stocks. We choose, naturally, the second method by which we would establish the unit of production and the unit of consumption in accordance with the necessities of society.

After organising production and distribution in every branch of work similar to a great cooperative, in which all have the same equal rights and obligations and in which nobody lives by the exploitation of his fellow workers, it is necessary to associate these diverse branches in an organ of coordination to be called the Local Council of Economy.

It will substitute the actual political organisms, such as municipalities, assemblies, etc. In cases of emergency or danger of a counterrevolution, this local Council of Economy will assume the mission of defence and raise voluntary corps for guard duty and if need be, for combat.

The Local Council of Economy will also act as a clearing house for relations with other localities. The necessities of the various guilds and of the consumers will be determined through these Local Councils of Economy, which will increase and reduce and even suppress production in accordance with needs.

In our brief exposition of the organs of the new economy, we have seen that the new mechanism is not one of class and does not admit oppression or exploitation of anyone. There is no distinction between men and women of working age. But work in the new economy must be a social obligation; if it is not fulfilled voluntarily, one is excluded arbitrarily from the benefits of a productive and free community. We cannot say that with the new economy, coercion or authoritarianism will be impossible. The organisms of the new economy can be good or bad. They can be the guarantees of freedom, and they can also be the instruments of force. This is the essential difference from the bourgeois or state apparatus whose institutions are necessarily authoritarian and cannot be anything else. To pretend that the capitalist state is not such and to hope that it will interpret as well the interests of the workers for whose oppression it has been created, is absurd. On the other hand, the new economy, which is not a class economy and fights only against parasitism and special privilege, has no need of coercion, once parasitism and special privilege are abolished.