A Symposium from SWEDEN to SOCIALISM
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A Symposium Hobert Heilbroner FROM SWEDEN TO SOCIALISM A Small Symposium on Big Questions have recently posed a question to which I quire an extensive change—I will not say have no answer, but which seems to me to go "fall" —in its living standards. Wasteful private to the heart of the outlook for democratic consumption would have to yield to economical socialism, at least in the advanced capitalist public consumption, automobiles making way countries. The question is: how far beyond the for busses and trains, washing machines for borders of what I call "real but slightly Laundromats. How can a population that clearly imaginary Sweden" would we have to go enjoys its wasteful standard way of life be per- before a visitor to that land knew that he or she suaded to make such a change? was in a socialist, not a capitalist, country? 4. Bourgeois life itself may be a matter of Let me suggest some of the more obvious concern. Sweden is a highly pragmatic, comfort- answers—and the problems they raise: minded, nonideological place. Is that a culture 1. A small number of large corporations that socialism would seek? What other? constitute the dynamic core of the Swedish There are no doubt many ways in which economy. Would these corporations have to Sweden would have to change before the go? With what would they be replaced? The imaginary land to which we refer was unmis- one thing we know is that they should not be takably socialist. To indicate those ways, and nationalized. Then how governed? Or if to consider their economic and political costs, dismantled, into what sorts of units, themselves seems to me the manner in which democratic how governed? socialists should measure the challenge of the 2. Sweden has a large and generous public coming decades. sector. Its purpose, however, is to provide the amenities needed in a capitalist economy, not those of a socialist society. The difference, I Irving Howe adds: Let me supplement Bob should think, is that a socialist public sector Heilbroner's cogent questions with another, would aim at "decommodifying" labor— perhaps preliminary to his, which our critics, removing the necessity for performing unwel- and perhaps some friends, would ask: if we come work. If so, how would these wide- imagine so advanced and attractive a welfare ranging entitlements be provided? What would state as the "Sweden-plus" that he postulates, be their effect on economic and social life? would there be any reasons still to wish to 3. Sweden is closely entwined in the world move further toward a socialist society? If so, capitalist market. To extricate itself would re- what would those reasons be? 96 • DISSENT From Sweden to Socialism Joanna Barkan Poking around Slightly-Imaginary-Sweden socialist points out that because most industry (SIS), even the skeptical socialist is impressed. is privately owned, the system is vulnerable. A solidaristic wage policy (centralized bargain- The left government and unions try endlessly to ing to achieve equal pay for equal work accommodate private capital. Not only must nationwide) forces unproductive enterprises to profits be high, private owners and investors shape up or go under. This boosts overall must be persuaded that they will benefit more economic efficiency. Strong tax incentives pull by staying in SIS than by moving. This gives profits into reinvestment, further raising produc- them excessive economic power and political tivity and creating jobs. Intelligent labor market leverage. But no matter how well the SIS policies (job training and placement, subsidies system performs, private capital will defect if it for worker relocation, and so on) hold unem- perceives significant advantage elsewhere. Na- ployment down to statistically irrelevant levels. tional loyalty is a myth. (The current flight of Because the transition to new jobs is eased, a capital from real Sweden into the EEC powerful democratic labor movement cooper- countries is sad proof.) The gains made in SIS ates in industrial rationalization, once again remain precarious. increasing efficiency and growth. Surplus from The socialist has other reasons for wanting to this dynamic economy is used to protect the move beyond SIS. First, she would like to environment. The surplus also supports a break up concentrations of wealth and power in system of universal, high quality social welfare order to promote democracy. Second, she programs that are decentralized enough to be believes that people can have substantial "user-friendly." Good education builds a control over their work life only if the skilled work force. Progressive tax policies workplace belongs to them. Third, although shrink income inequalities, which keeps the SIS wins high marks for equalizing life market from listing too heavily toward luxury opportunity, redistributing wealth, and foster- goods. Public agencies oversee the immense ing fine (socialist) values, the socialist thinks pension funds, thereby exercising some demo- even more could be done. cratic control over investment. What structural changes does the socialist National legislation prevents arbitrary fir- propose? The innovations must do more than ings, requires worker representation on the upgrade SIS (more than, say, improve day care boards of directors of all firms, allows workers or make taxes more steeply progressive); they to halt production if they find unsafe conditions, must transform capitalist SIS into a socialist and obliges employers to negotiate with local country. Forms of ownership must change, and unions before implementing major changes. the scope of markets be reduced. After living under this system for some The socialist recommends enlarging SIS's decades, most SIS citizens hold dear the values small socialized sector. Under the new system, of equality, social justice, solidarity, democ- the state would own enterprises in key racy, and freedom. Images of the homeless on industries as well as natural monopolies (the the streets of New York shock them. They telephone system, power companies, railroads, pressure their government to increase aid to the and so on). Socialization would keep concen- Third World. They point with pride to the fact trations of power and wealth out of private that the overall health of SIS children in the hands, give the government and labor move- bottom 10 percent income group is identical to ment more control over the economy, and that in the top 10 percent. During their six prevent capital flight. weeks of vacation each year, SISers love to But the skeptical socialist acknowledges travel abroad. But they return convinced that serious problems. The inevitable oversight their system best implements basic values. agencies can undermine freedom of initiative Life is sweet in SIS. Why go beyond? The for the managers of socialized firms. Assess- WINTER • 1991 • 97 From Sweden to Socialism ment of responsibility becomes difficult. Even hensive planning—including price setting, pro- if a good managerial culture develops in the duction quotas, and the allocation of capital, socialized sector, the entrepreneurial function, raw materials, and intermediate goods between essential to a dynamic economy, may be lost. firms—is rejected. No one can fathom how to The socialist doesn't value efficiency, compet- make such a system work, with its built-in itiveness, and economic growth for themselves, inefficiencies, shortages, impossible data re- but rather wants enough of these to fund the quirements, arbitrary prices, and inadequate institutions that make social justice and equal- criteria for evaluation. ity possible. No socialist party wins a free The socialist advocates a lighter touch. The election with a program of enforced autarky for government will shape economic development a state-controlled economy. by phasing out declining industries and promot- So the socialist suggests an alternative form ing new ones with tax credits, discounted of ownership—workers' cooperatives. Cooper- interest rates, and direct subsidies. The social- atives, too, break up concentrations of power ist keeps in mind that too much intervention and wealth and prevent, capital flight. They will undercut market discipline and the econ- give people the greatest control over their work omy will be dragged down by inefficient firms life, eliminate unearned income, and encourage that don't cover their costs. participation. The decision is made to expand Until convinced that something else will SIS's existing cooperative sector until co-ops work, the socialist opts for a level of planning are the dominant form of ownership. and an economy of mixed ownership that resembles more than anything else . well Unfortunately, new difficulties develop. Co- . SIS. The socialized sector has been ops within an industry can compete ruthlessly; enlarged a little to ensure socially useful some knock out others, leading to new production that the market neglects. Rigorous concentrations of wealth and power; some legislation promotes small businesses and worker/members may resort to extreme self- disperses large concentrations of economic exploitation. The socialist proposes laws to power. The co-op sector might be somewhat counter monopolization and to protect workers larger. And perhaps ways are found to root from themselves. But more serious imbalances socialist values more deeply. emerge: cooperatives resist taking in new Our socialist is anything but satisfied. The members in order to keep profits per member fundamental contradiction of the system hasn't as high as possible. Labor mobility decreases been resolved. Improved SIS is still vulnerable throughout the economy. Co-ops also resist to capital flight. Investors might cut out anytime labor-saving technology, undermining overall for places where the wages are lower, the reg- efficiency. ulations fewer, and the ethos less egalitarian— Then Co-op A decides to invest its surplus in thus confirming the dictum that it's difficult to Co-op B, turning Co-op A members into maintain SIS in just one country. The only so- capitalists. Co-op A has the possibility of lution is to operate in an international market becoming a powerful conglomerate.