Economic reconstruction
Encyclopedia
Economic Reconstruction refers to a process for creating a proactive vision of economic change. The most basic idea is that problems in the economy such as deindustrialization
, environmental decay, outsourcing
, industrial incompetence, poverty
and addiction to a permanent war economy
are based on the design and organization of economic institutions. Economic reconstruction builds on the ideas of various institutional economists and thinkers whose work both critiques existing economic institutions and suggests modes of organizing society differently (cf. Veblen, 1998). Economic reconstruction, however, places much more emphasis on the idea of alternative plans and alternative organization.
The need for reconstruction occurs as fundamental problems plague the contemporary organization of the economic, political, and even "oppositional" spheres, such as the contemporary organization of social movements. These spheres each tend to support short term solutions that do not leave in their wake the organization of resources and power in a way that is responsive to citizen needs. Power, democracy and critical alternatives are not linked. In contrast to this state of affairs, economic reconstruction supports the creation of new institutions and the redesign of old ones. The basic idea is to create a new way to organize the economy and society so that institutions work for rather than against peoples' interests and needs.
Advocates of economic reconstruction advocate fundamental change related to key social problems related to environmental decay , militarism
, parasitic globalization
, unemployment
and depressed living standards based on the social organization of work. In the environment, a key challenge is redesigning "the technosphere" or the ways in which the means of production, transportation and distribution are designed on a relatively unsustainable basis. When it comes to militarism, the key challenge is to support a demilitarized society through economic conversion
, disarmament
, alternative security, military budget reductions and related social innovations. When it comes to unemployment and depressed living standards, a key challenge is to promote economic democracy, through concrete institutions and actions such as cooperatives, worker participation and control, employee ownership plans, socially responsible firms, community procurement, and various initiatives to organize the economy on a decentralized basis. In many cases, federations among local cooperatives or networks of such firms may prove essential to move beyond the problem of "economic democracy in one firm."
Economic reconstruction also extends to the ways in which housing or communities and media are organized. By reducing dependency on the automobile, by linking work and residence, we can limit the problems creating by congestion, pollution and commuting (particularly those problems based on petroleum based automobile transportation.
Some may argue that economic reconstruction can be reduced to socialism
or economic democracy
itself or perhaps principles found in various anarchist or radical writings. The problem, however, is that many of these plans lack operational details related to how alternative institutions would actually be designed. These details are essential for creating operational plans and actions. In addition, economic reconstruction is not limited to a specific challenge such as capitalism, but must also address other challenges, i.e. militarism, environmental decay, the sexual and ethnic division of labor, etc. A goal of economic reconstruction is to show the need for multiple, yet integrated solutions to societal breakdown.
The first generation of economic reconstructionists included Thorstein Veblen
and John Dewey
.. The second generation included Lewis Mumford
. The third generation included Seymour Melman
, Percival Goodman
and Paul Goodman
. Key reconstructionists today include Barry Commoner
, Gar Alperovitz
and Marcus Raskin
. Key figures whose work informs the critique of contemporary society found in the work of economic reconstructionists include Stanley Aronowitz
(in his writings about social movements, the state, universities and culture), Noam Chomsky
in his writings about anarchist cooperatives and democracy, and John Kenneth Galbraith
(in his writings about the economy and economists. Another important figure is Simone Weil
whose writings about problems or limits attached to militarism, social science atomization, Marxism, the economy and political parties all resonate with an economic reconstruction agenda.
Deindustrialization
Deindustrialization is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially heavy industry or manufacturing industry. It is an opposite of industrialization.- Multiple interpretations :There are multiple...
, environmental decay, outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
, industrial incompetence, poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...
and addiction to a permanent war economy
Permanent war economy
The concept of permanent war economy originated in 1944 with an article by Ed Sard , Walter S. Oakes and T.N. Vance, a Third Camp Socialist, who predicted a post-war arms race...
are based on the design and organization of economic institutions. Economic reconstruction builds on the ideas of various institutional economists and thinkers whose work both critiques existing economic institutions and suggests modes of organizing society differently (cf. Veblen, 1998). Economic reconstruction, however, places much more emphasis on the idea of alternative plans and alternative organization.
The need for reconstruction occurs as fundamental problems plague the contemporary organization of the economic, political, and even "oppositional" spheres, such as the contemporary organization of social movements. These spheres each tend to support short term solutions that do not leave in their wake the organization of resources and power in a way that is responsive to citizen needs. Power, democracy and critical alternatives are not linked. In contrast to this state of affairs, economic reconstruction supports the creation of new institutions and the redesign of old ones. The basic idea is to create a new way to organize the economy and society so that institutions work for rather than against peoples' interests and needs.
Advocates of economic reconstruction advocate fundamental change related to key social problems related to environmental decay , militarism
Militarism
Militarism is defined as: the belief or desire of a government or people that a country should maintain a strong military capability and be prepared to use it aggressively to defend or promote national interests....
, parasitic globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
, unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
and depressed living standards based on the social organization of work. In the environment, a key challenge is redesigning "the technosphere" or the ways in which the means of production, transportation and distribution are designed on a relatively unsustainable basis. When it comes to militarism, the key challenge is to support a demilitarized society through economic conversion
Economic conversion
Economic conversion, defence conversion, or arms conversion, is a technical, economic and political process for moving from military to civilian markets. Economic conversion takes place on several levels and can be applied to different organizations...
, disarmament
Disarmament
Disarmament is the act of reducing, limiting, or abolishing weapons. Disarmament generally refers to a country's military or specific type of weaponry. Disarmament is often taken to mean total elimination of weapons of mass destruction, such as nuclear arms...
, alternative security, military budget reductions and related social innovations. When it comes to unemployment and depressed living standards, a key challenge is to promote economic democracy, through concrete institutions and actions such as cooperatives, worker participation and control, employee ownership plans, socially responsible firms, community procurement, and various initiatives to organize the economy on a decentralized basis. In many cases, federations among local cooperatives or networks of such firms may prove essential to move beyond the problem of "economic democracy in one firm."
Economic reconstruction also extends to the ways in which housing or communities and media are organized. By reducing dependency on the automobile, by linking work and residence, we can limit the problems creating by congestion, pollution and commuting (particularly those problems based on petroleum based automobile transportation.
Some may argue that economic reconstruction can be reduced to socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
or economic democracy
Economic democracy
Economic democracy is a socioeconomic philosophy that suggests a shift in decision-making power from a small minority of corporate shareholders to a larger majority of public stakeholders...
itself or perhaps principles found in various anarchist or radical writings. The problem, however, is that many of these plans lack operational details related to how alternative institutions would actually be designed. These details are essential for creating operational plans and actions. In addition, economic reconstruction is not limited to a specific challenge such as capitalism, but must also address other challenges, i.e. militarism, environmental decay, the sexual and ethnic division of labor, etc. A goal of economic reconstruction is to show the need for multiple, yet integrated solutions to societal breakdown.
The first generation of economic reconstructionists included Thorstein Veblen
Thorstein Veblen
Thorstein Bunde Veblen, born Torsten Bunde Veblen was an American economist and sociologist, and a leader of the so-called institutional economics movement...
and John Dewey
John Dewey
John Dewey was an American philosopher, psychologist and educational reformer whose ideas have been influential in education and social reform. Dewey was an important early developer of the philosophy of pragmatism and one of the founders of functional psychology...
.. The second generation included Lewis Mumford
Lewis Mumford
Lewis Mumford was an American historian, philosopher of technology, and influential literary critic. Particularly noted for his study of cities and urban architecture, he had a broad career as a writer...
. The third generation included Seymour Melman
Seymour Melman
Seymour Melman was an American professor emeritus of industrial engineering and operations research at Columbia University's Fu Foundation School of Engineering and Applied Science....
, Percival Goodman
Percival Goodman
Percival Goodman was an American urban theorist and architect who designed more than 50 synagogues between 1948 and 1983. He has been called the "leading theorist" of modern synagogue design, and "the most prolific architect in Jewish history."-Biography:Percival Goodman was born in New York City...
and Paul Goodman
Paul Goodman
Paul Goodman may refer to:*Paul Goodman , British politician*Paul Goodman , American ice hockey player*Paul Goodman , Grammy Award-winning sound engineer...
. Key reconstructionists today include Barry Commoner
Barry Commoner
Barry Commoner is an American biologist, college professor, and eco-socialist. He ran for president of the United States in the 1980 US presidential election on the Citizens Party ticket. He was also editor of Science Illustrated magazine.-Biography:Commoner was born in Brooklyn...
, Gar Alperovitz
Gar Alperovitz
Gar Alperovitz is Lionel R. Bauman Professor of Political Economy at the University of Maryland, College Park Department of Government and Politics. He is a former Fellow of King's College, Cambridge; a founding Fellow of Harvard’s Institute of Politics; a Fellow at the Institute for Policy...
and Marcus Raskin
Marcus Raskin
Marcus Raskin is a prominent American social critic, political activist, author, and philosopher, working for progressive social change in the United States....
. Key figures whose work informs the critique of contemporary society found in the work of economic reconstructionists include Stanley Aronowitz
Stanley Aronowitz
Stanley Aronowitz is professor of sociology, cultural studies, and urban education at the CUNY Graduate Center. He is also a veteran political activist and cultural critic and an advocate for organized labor.-Social Text:...
(in his writings about social movements, the state, universities and culture), Noam Chomsky
Noam Chomsky
Avram Noam Chomsky is an American linguist, philosopher, cognitive scientist, and activist. He is an Institute Professor and Professor in the Department of Linguistics & Philosophy at MIT, where he has worked for over 50 years. Chomsky has been described as the "father of modern linguistics" and...
in his writings about anarchist cooperatives and democracy, and John Kenneth Galbraith
John Kenneth Galbraith
John Kenneth "Ken" Galbraith , OC was a Canadian-American economist. He was a Keynesian and an institutionalist, a leading proponent of 20th-century American liberalism...
(in his writings about the economy and economists. Another important figure is Simone Weil
Simone Weil
Simone Weil , was a French philosopher, Christian mystic, and social activist.-Biography:Weil was born in Paris to Alsatian agnostic Jewish parents who fled the annexation of Alsace-Lorraine to Germany. She grew up in comfortable circumstances, and her father was a doctor. Her only sibling was...
whose writings about problems or limits attached to militarism, social science atomization, Marxism, the economy and political parties all resonate with an economic reconstruction agenda.
External links
- Seymour Melman Website Archive of Related Writings
- Economic Reconstruction Website Archive of Related Writings
- Gar Alperovitz Website