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Title: Notes on Anarchist Economics
Author: Iain McKay
Date: 2018
Language: en
Topics: economics, Anarcho-Syndicalist Review
Source: Retrieved on 28th January 2021 from https://syndicalist.us/2020/06/28/notes-on-anarchist-economics/
Notes: From Anarcho-Syndicalist Review #74, Summer 2018

Iain McKay

Notes on Anarchist Economics

Anarchism is generally not associated with economics. There is no

“anarchist” school of economics as there are “Marxist,” “Keynesian” and

so on ones. This does not mean there are no anarchist texts on

economics. Proudhon springs to mind here, with his numerous works on the

subject – the three volumes on property (most famous being the first,

What is Property?) and the two volumes of System of Economic

Contradictions (of which, only the first has been translated) – as does

Kropotkin, with his Fields, Factories and Workshops. However, in spite

of various important works, there is no well-established body of work

which can be called anarchist economics.

There are various reasons for this. Partly, it is due to the typical

isolation of the English-speaking movement: many works which could be

used to create an anarchist economics have never been translated into

English. Partly, it is due to an undeserved sense of inferiority: too

many anarchists have followed Marxists by taking Marx’s The Poverty of

Philosophy as an accurate account and honest critique of Proudhon’s

ideas (it is neither, as I show in “The Poverty of (Marx’s) Philosophy,”

Anarcho-Syndicalist Review 70). Partly, it is due to anarchists being –

in the main – working-class people who often do not have the time or

resources to do the necessary research – and more often, rightly, prefer

to change the world than interpret it, particularly given we wish to end

the exploitation and oppression we are subject to sooner rather than

later.

What would anarchist economics be? There are two different – if somewhat

interrelated – possibilities.

First, and least important, would be the economics of an anarchist

society. As such a society does not exist, this explains why it is the

least important. Adam Smith did not speculate about markets in theory,

he described them by observing their workings (I write “markets” rather

than “capitalism” as capitalism – wage labor – was not extensive when he

was writing and so he was describing an economy marked by substantial

self-employed artisans and farmers – an ideal which appealed to Smith).

So, in this sense, any anarchist economics would develop as an actual

anarchist society develops. Attempts to produce in detail now how a

libertarian socialist economy would function are misplaced. All that

systems like Parecon can show is that certain notions (such as detailed

planning) cannot and will not work – even if its advocates do not seem

to recognize this.

So all we can do if sketch general principles – self-management,

socio-economic federalism, etc. – and discuss how tendencies within

capitalism show their validity. This is important, as anarchists do not

abstractly compare the grim reality of capitalism to ideal visions.

Rather, as Proudhon stressed (and Kropotkin praised him for), we need to

analyze capitalism to understand it and to explore its tendencies –

including those tendencies which point beyond it.

Which brings us to the other, more relevant, form of anarchist

economics, which would be the analysis and critique of capitalism. The

two are interrelated, for what we oppose in capitalism would not exist

within an anarchist economy. So, for example, Proudhon’s analysis of

exploitation as occurring in production – because workers have sold

their liberty to the boss who keeps the “collective force” and “surplus

of labor” they create – points logically to workers’ cooperatives

(self-management) as the basis of a free economy. Unsurprisingly, he and

subsequent anarchists opposed associated labor to wage-labor.

Here we do have much to build on. Proudhon’s analysis of exploitation

predates Marx’s nearly identical one by two decades – ironically in 1847

Marx mocked the Frenchman for advocating what he later came to advocate

in 1867 (see my “Proudhon’s Constituted Value and the Myth of Labour

Notes,” Anarchist Studies 25:1). Other insights, including

methodological ones, can be drawn from his and Kropotkin’s contributions

– although much of it may need to be translated first.

This does not mean we cannot useful draw upon other schools. Marx, for

all his flaws, provided genuine insights into the workings of

capitalism. Keynes may have sought to save capitalism from itself, but

to do so he had to understand how it works and so is worth reading. The

post-Keynesian school, likewise, has a substantial amount of work which

would be of use in constructing an anarchist economics. (Steve Keen,

author of the excellent Debunking Economics, is a post-Keynesian.) Those

schools that have been developed – often explicitly so – to defend

capitalism (such as neo-classicalism) have little to offer, except

perhaps as examples of what not to do.

Which points to another key aspect of any anarchist economics: an

understanding of the flaws of other schools – particularly the

mainstream neo-classical school. It should help us see when we are being

lied to or when certain conclusions are based on preposterous

assumptions or models. The same applies to Marxist economics, which all

too often woefully mixes up empirical reality and explanatory

categories. As such, it would play a key role in intellectual

self-defense.

The key issue, though, is not to confuse understanding how capitalism

works from a libertarian perspective, an anarchist economics, with the

economics of an anarchy. So an anarchist economics in this sense is

still in its early days – even after over 150 years! – but there is a

foundation there which can be usefully built upon. The real question is,

how do we start? As Kropotkin suggests, by basing our analysis of

empirical evidence rather than the abstract model building of

neoclassical economics. We need to root our understanding of capitalism

in the reality of capitalism – and our struggles against it.

This is no trivial task – but one which would be of benefit.