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Title: The Two Economies
Author: Kevin Carson
Date: December 5, 2005
Language: en
Topics: economics
Source: Retrieved on 3rd September 2021 from https://mutualist.blogspot.com/2005/12/two-economies.html

Kevin Carson

The Two Economies

Joel Schlosberg sent me a transcript of Graham Seaman’s excellent talk

on “The Two Economies.”

Seaman treats his model of the two economies as analogous to the early

modern period, when the new economy emerged from the guild system:

So I say that’s the first prerequisite — that you have people, that you

have the old system actually producing the situation where there are

people who need to get out of it, people who do not “fit” with the old

system. Secondly, once these new people exist, they start infecting the

old system....

Now I claim that there are bits of elements similar to that in the

present as well. You have the old system becoming, the old system first

generating the new one. It’s becoming increasingly hard for the old

system to produce software products. There are many products —

especially ones that require cooperation of some kind, that require some

kind of sharing, even commercially, that simply can’t be produced under

commercial constraints. And you see attempts at organization of

standards bodies purely by software companies with one another, and the

things break down. [some words are hard to hear] They are just

inherently very, very bad at doing anything that requires real

cooperation with one another. So you have some kinds of products, and I

think this is software products and I think it’s going to increase in

the future, that will exist as free software that do not exist as

proprietary software, and won’t ever exist as proprietary software.

Second..., I would say that as software industries become the leading

sector of the economy, in many ways they’re a sector which is not really

producing profits; they’re a sector which is taking profits from other

parts of the economy.... It’s not, on the whole — commercial software, I

do not believe, is on the whole, a large-scale creator of profits in

itself. It’s a reorganizer, redistributor of profits held by monopoly

and the law of copyright....

Personally ... I think that the value of that software is the value of

the CD that it’s on, it’s the value of the work that went into copying

the CD, and so on; and is absolutely minimal. So, in my opinion, nearly

all of the price of that comes purely from laws which allow monopolies

over software, it comes from copyright laws and so on....

Okay, so you have a market; you have some elements of the old system

being unable to actually continue making a profit in the leading sector

of its economy without the help of quite repressive, and increasingly

repressive laws, that as far as I can see are going to go on to become

even more repressive and interfering in ever-larger areas of peoples’

lives, that go well beyond these non-material products themselves. You

have people working completely outside that system producing products

which become very difficult for the old system to produce and you have

the old system being forced by standard economic reasons to take up the

new products. You have free software working its way into the old

economy, spreading throughout it at quite a high rate, not just people;

partly this is because firms are, especially over the last couple of

years, have been forced to reduce their IT costs, so there is a big

temptation, especially for the bigger firms, to say “Well, why can’t we

use free software instead of paying for the new Microsoft licensing

system?” So that’s happening. You have companies that are starting to

say, “How can we as a small company compete with the big software

houses?” One way to do that is to use free software as a kind of tool

for competition.... But in doing so, they bring free software practices

inside their own companies; they start to lose control. This gets to a

point where, to some extent, managers just can no longer make arbitrary

decisions about the form of software, about the contents, about the way

it’s developed, because they can’t alienate the external people who work

with them; they have to conform to their ideas, practices of free

software developers. So you have the new system spreading back into the

old, and starting to affect it.

There’s a lot of discussion of the specific ways that the new system is

affecting the old, and a libertarian Marxist class analysis of the

groups in the new economy with an interest in breaking through the

restrictions of the old, that’s too complicated to summarize here.

Definitely worth checking out, though. He seems pretty sympathetic to

the “petty bourgeois,” libertarian-capitalist segment of the free

software community.

Anyway, at some point, as the saying goes, quantity gets transformed

into quality:

So, what you have to be talking about instead is some way of actually

spreading from this small social group here, to larger social groups.

Now these are gonna be — if you’re starting to talk about spreading to

other groups, and they’re probably still gonna be in these circles of

unemployed, self-employed still, although not in the programming sector.

You’re talking about people who don’t necessarily know how to program,

or have any interest in programs, programming, or want to become

programmers. If there’s going to be a world based on free software

principles, it will not be a world which is entirely composed of

programmers. Most people find it incredibly tedious and boring and don’t

even want to understand it. So you have to talk about spreading in

stages from this; you have to talk about defining, how is it possible to

get to other groups? Eventually, you hope it will have spread far enough

that the ideas and practices become commonplace for people. And then,

the person stuck in the factory making washing machines can say, “Well,

yes, but in the factory I do this, but when I’m outside here I want to

listen to some music, I do something quite different. And if I need a

program for my computer and it doesn’t work, I ask somebody and they

tell me. Why is it in here that I do everything by orders?” And once

large chunks of people’s lives have become the other way, then there’s

the possibility that they might start to think, “How do I organize this

other stuff that I’m doing differently?” But it’s not going to come all

at once. So...

The application of this “free software” spirit to manufacturing, as

Seamans says, has been quite common in the early, libertarian stages of

modern revolutions. For example:

Now I would claim that it has been done before, that people have

produced material goods on free software principles before, and quite

regularly, but for very short periods of time. Basically, during every

left-wing revolution this century, there has been a period where it’s

happened. It doesn’t happen for very long: if the revolution loses, it

gets squashed; if the revolution wins, it’s being squashed; but it

happens for a short period. There is an enormous amount of creativity,

of wanting to do things, that is in people. So this is something that

does not seem to get documented. I thought this would be so easy to find

out about, getting lots of examples of from books. I found it very hard

to get many examples of this from books, but I’m quite certain it’s

something that happened. I can tell from my own experience where I have

seen, for example, people working in a Peugeot car factory that was

under worker’s control and were getting poor quality input parts coming

from a French factory; communicated with the French factory and telling

them, “We’re running this now. Please, we’re having major problems

because you’re sending us bad parts”. And they got good parts, fixed it.

Those same people then found that Peugeot didn’t want anything to do,

after a few months with the factory, with worker’s control. They went

around the area and said, “What is most in demand here?” And this was a

city on the edge of a farming area. And they got the reply that there

was a real shortage of fridges, so they converted — especially for

people who were in the local farms that found fridges too expensive to

buy — there was a need for fridges. They converted the car plant to

fridge production. God knows how they did that. I knew people who worked

in there, but I don’t know anything about how the thing actually worked.

All I can say is, during that time, people were working on what I think

of as free software principles: they were cooperating with one another

to do things, asking one another what they wanted. I have no idea what

the techniques are involved. I know a little bit about software, I know

absolutely nothing about fridge manufacture. The fridges were a complete

coincidence; it really was fridges, not washing machines; but it was

very, very close.

I couldn’t tell them how to do that; people find their own solutions;

people in that situation find their solutions. Yep....

So, another example which I have seen more of — I should say this, to

give this some context, this was in Portugal in 1975 — people building

their own houses, people living in slum areas, with cooperation from

architects, getting together, and on a really large scale, actually

building housing estates. Very good housing estates, housing estates

that I have found — I have relations who are living in one of these

houses still. It’s very solid; they built it very well. But it was built

by local people; it was built with the design that was done together

with architects. So there were people who came and gave their skills as

well. But it wasn’t somebody coming in from outside and saying, “I’m

doing a bit of slum clearance here. I’m gonna give you new houses.”

People actually built the houses themselves.

So, I mean these things can be done; but, I’ve said, that has been

happening in the middle of revolution.

Murray Bookchin wrote an excellent multi-volume history of the

phenomenon, The Third Revolution. In the period between the

disintegration of the old central state, and the rise of either a

counter-revolutionary regime or a new centralized “People’s State,”

there’s commonly an interval with quite a bit of genuine bottom-up

organization: genuine power exercised by local soviets, workers’

councils, neighborhood committees, and the like. In Soviet Russia, the

one thing Lenin and the Whites had in common is that they didn’t much

care for that sort of thing (although Lenin thought the name was worth

keeping, under new management). In republican Spain, the Madrid

Communists and the Falangists competed fiercely to see who could

suppress such forms of self-organization more quickly in the areas under

their respective control. Interestingly, one of the first forms taken by

the anti-Soviet revolts in East Germany, Hungary and Czechoslovakia was

workers’ councils in the factories; the victims of the Soviet bloodbath

in Budapest, so beloved of the American Right, were the sort who would

have been called up before the HUAC in this country.

And of course, as Seaman points out, all of those revolutions were

eventually supressed, along with the factory committees, either by

counter-revolution or the triumph of the “workers’ party.” Whether its

Kronstadt or the Santiago stadium, it’s pretty much the same.

So the main lesson I’m drawing from this is that the way to get there

from here is “building the structure of the new society within the shell

of the old.” The revolution, in the sense of a dramatic collapse of the

old political order and the substitution of a new way of doing things,

can only succeed if it’s an afterthought to a real revolution built up

over the previous generation or two. And the only way to accomplish the

real revolution is by changing the way we do the most ordinary things

and organize our daily lives. The political revolution, when it comes,

will be only a final cracking of the shell.

Not that there’s no room for political action in the meantime. But the

main arena for political action is simply, as Seaman says, the law.

Seaman’s first priority is replacing the present neoliberal framework of

IP law with a much more free software-friendly system. But the same

principle can be applied more generally: push back, as much as possible,

the framework of state laws that impedes our process of building

counter-institutions.