Market abolitionism
Encyclopedia
Market abolitionism is a belief that the market
, in the economic sense, should be completely eliminated from society. Market abolitionists argue that markets are morally abhorrent, antisocial
and ultimately incompatible with human
and environmental
survival and that if left unchecked the market will annihilate both.
In large countries in the modern world, the only significant alternative to a market economy has been central planning as was practiced in the early USSR and in the People's Republic of China
before the 1990s. Other proposed alternatives to the market economy
—participatory planning as proposed in the theory of participatory economics
("Parecon"), and the idea of substituting a gift economy
for a commodity exchange
—have not yet been tried on a large scale in the modern industrialized world, though alternative organizational methods have been implemented successfully during short periods of time: the early stages of the Russian Revolution before it was taken over by the Bolsheviks, and the Spanish Revolution
before it was crushed by the alliance of liberal
s and communists.
, creator of Znet and co-creator of participatory economics
, considers himself a market abolitionist and favors democratic participatory planning as a replacement. He and several colleagues, including Robin Hahnel
have elaborated their theory of "parecon" in books, on Znet, and in Z Magazine.
Notably, Noam Chomsky
is one of those who have expressed the opinion that a truly free market (in the context of a sudden transition from the current system) would destroy the species as well as physical environment. He also favors a democratic participatory planning process as a replacement to the market.http://www.chomsky.info/audionvideo/19700216.mp3
, Friedrich Hayek
and Brink Lindsey
argue that if the market is eliminated along with property, prices, and wages, then the mode of information transmission is eliminated and what will result is a highly inefficient system for transmitting the value, supply, demand, of goods, services, resources, along with an elimination of the most efficient mode of market transactions. Opinions as to what would follow range from the total collapse of civilization and mass starvation to mere inefficient allocation.
Market abolitionists may reply that whilst advocates of the Austrian school recognize equilibrium prices do not exist, they nonetheless claim that these prices can be used as a rational basis whilst this is not the case, hence markets are not efficient.
"Contemporary" mutualists
like Kevin Carson (as opposed to "classical" mutualists such Pierre-Joseph Proudhon
) advocate a form of mutualism termed "Free Market Socialism" (which is not the same as Market Socialism
) as an alternative to both Capitalism and State Socialism, noting that a decentralized system can be self-regulating.
Market system
A market system is any systematic process enabling many market players to bid and ask: helping bidders and sellers interact and make deals. It is not just the price mechanism but the entire system of regulation, qualification, credentials, reputations and clearing that surrounds that mechanism and...
, in the economic sense, should be completely eliminated from society. Market abolitionists argue that markets are morally abhorrent, antisocial
Anti-social behaviour
Anti-social behaviour is behaviour that lacks consideration for others and that may cause damage to society, whether intentionally or through negligence, as opposed to pro-social behaviour, behaviour that helps or benefits society...
and ultimately incompatible with human
Human
Humans are the only living species in the Homo genus...
and environmental
Social environment
The social environment of an individual, also called social context or milieu, is the culture that s/he was educated or lives in, and the people and institutions with whom the person interacts....
survival and that if left unchecked the market will annihilate both.
In large countries in the modern world, the only significant alternative to a market economy has been central planning as was practiced in the early USSR and in the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
before the 1990s. Other proposed alternatives to the market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
—participatory planning as proposed in the theory of participatory economics
Participatory economics
Participatory economics, often abbreviated parecon, is an economic system proposed primarily by activist and political theorist Michael Albert and radical economist Robin Hahnel, among others. It uses participatory decision making as an economic mechanism to guide the production, consumption and...
("Parecon"), and the idea of substituting a gift economy
Gift economy
In the social sciences, a gift economy is a society where valuable goods and services are regularly given without any explicit agreement for immediate or future rewards . Ideally, simultaneous or recurring giving serves to circulate and redistribute valuables within the community...
for a commodity exchange
Commodity markets
Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts....
—have not yet been tried on a large scale in the modern industrialized world, though alternative organizational methods have been implemented successfully during short periods of time: the early stages of the Russian Revolution before it was taken over by the Bolsheviks, and the Spanish Revolution
Spanish Revolution
The Spanish Revolution was a workers' social revolution that began during the outbreak of the Spanish Civil War in 1936 and resulted in the widespread implementation of anarchist and more broadly libertarian socialist organizational principles throughout various portions of the country for two to...
before it was crushed by the alliance of liberal
Liberalism
Liberalism is the belief in the importance of liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, liberals support ideas such as constitutionalism, liberal democracy, free and fair elections, human rights,...
s and communists.
Proponents
Michael AlbertMichael Albert
Michael Albert is an American activist, economist, speaker, and writer. He is co-editor of ZNet, and co-editor and co-founder of Z Magazine. He also co-founded South End Press and has written numerous books and articles...
, creator of Znet and co-creator of participatory economics
Participatory economics
Participatory economics, often abbreviated parecon, is an economic system proposed primarily by activist and political theorist Michael Albert and radical economist Robin Hahnel, among others. It uses participatory decision making as an economic mechanism to guide the production, consumption and...
, considers himself a market abolitionist and favors democratic participatory planning as a replacement. He and several colleagues, including Robin Hahnel
Robin Hahnel
Robin Hahnel is a Professor of Economics at Portland State University. He is best known for his work on participatory economics with Z Magazine editor Michael Albert. He is currently a visiting professor at Lewis & Clark College....
have elaborated their theory of "parecon" in books, on Znet, and in Z Magazine.
Notably, 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...
is one of those who have expressed the opinion that a truly free market (in the context of a sudden transition from the current system) would destroy the species as well as physical environment. He also favors a democratic participatory planning process as a replacement to the market.http://www.chomsky.info/audionvideo/19700216.mp3
Criticism
Economists such as Milton FriedmanMilton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...
, Friedrich Hayek
Friedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...
and Brink Lindsey
Brink Lindsey
Brink Lindsey was the Cato Institute's vice president for research. He was also editor of , a monthly web magazine. From 1998 to 2004, he was director of Cato's , helping to make it a leading voice for free trade...
argue that if the market is eliminated along with property, prices, and wages, then the mode of information transmission is eliminated and what will result is a highly inefficient system for transmitting the value, supply, demand, of goods, services, resources, along with an elimination of the most efficient mode of market transactions. Opinions as to what would follow range from the total collapse of civilization and mass starvation to mere inefficient allocation.
Market abolitionists may reply that whilst advocates of the Austrian school recognize equilibrium prices do not exist, they nonetheless claim that these prices can be used as a rational basis whilst this is not the case, hence markets are not efficient.
"Contemporary" mutualists
Mutualism (economic theory)
Mutualism is an anarchist school of thought that originates in the writings of Pierre-Joseph Proudhon, who envisioned a society where each person might possess a means of production, either individually or collectively, with trade representing equivalent amounts of labor in the free market...
like Kevin Carson (as opposed to "classical" mutualists such Pierre-Joseph Proudhon
Pierre-Joseph Proudhon
Pierre-Joseph Proudhon was a French politician, mutualist philosopher and socialist. He was a member of the French Parliament, and he was the first person to call himself an "anarchist". He is considered among the most influential theorists and organisers of anarchism...
) advocate a form of mutualism termed "Free Market Socialism" (which is not the same as Market Socialism
Market socialism
Market socialism refers to various economic systems where the means of production are either publicly owned or cooperatively owned and operated for a profit in a market economy. The profit generated by the firms system would be used to directly remunerate employees or would be the source of public...
) as an alternative to both Capitalism and State Socialism, noting that a decentralized system can be self-regulating.
External links
- Market Madness: Michael Albert interviewed about market ideology in Poland
- Markets Über Alles? by Michael Albert (archived version)