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Communism As an Economic Ideal Paul M Sweezy THE ECONOMIC WEEKLY SPECIAL NUMBER JULY 1962 Communism as an Economic Ideal Paul M Sweezy While socialism in the sense of public ownership of the means of production does away with pro­ duction for profit (in the public sector), it does not by any means eliminate. what is often called the profit motive, which economic theory since long before the time of Adam Smith has rightly regarded as the main­ spring of economic activity. When we speak of the profit motive, we mean simply that, those who engage in economic activity are moved primarily by the desire to reap as large a material reward as possible, and this of course applies not only to the owners or managers of capital but also to workers and farmers and lawyers and professional baseball players. There is nothing in the nature of socialism that conflicts in any way with the continued operation of the profit motive in this sense. What changes is only the definition of the jobs of the managers, not the motives which lead them to strive for optimum performance. The basic condition for the advance to communism is a tremendous increase in the productivity of labour. Scarcity as it has existed in the world up to now —and as it has been taken for granted by the science of economics must be perhaps not altogether abolished but at any rate greatly reduced. And of course, this mil be accomplished only as the result of a considerable period of rapid techno­ logical advance, improvement of living standards, rebuilding of physical environments etc. These are, from an historical point of view the specific tasks of the socialist stage. The transition to the communist stage will be gradual and may occupy a period measured in decades rather than years. [This paper is based upon a lecture delivered at the School of Advanced International Studies of Johns Hopkins University. The School is located in Washington and trains future U S diplomats and others pre fitt­ ing themselves for a career in international affairs.] THE conception of a communist ownership of the means of produc­ tion of the society of the future. So society in which all property is tion is substituted for private owner­ it came to pass that by the time owned in common is. of course, an ship, and that is what most people national parties came into being in old one. dating hack at leant as far regard as the differentia specifica the 1870's, and 1880"s most of them as. Thomas More's Utopia written of socialism today. Rut during the called themselves socialist or social early in the l6th century. But later 1830's and' the early 1840's democratic and proclaimed their what the world understands by com­ writers calling themselves socialists goal to be socialism -- a state of munism today is almost entirely a of one sort or another came forth society in which private property in product of Marxian thought and with a great variety of schemes, all the means of production has been practice. For this reason, attention intended to improve or perfect the replaced by public ownership, and will be confined here to what may human condition but differing so the guidance of production by prices he called Marxian communism. To widely about the means to be em- and profits has been replaced by begin with, a terminological clari­ ployed that anyone seeking to de­ planning. Marx and his followers, fication seems called for. fine socialism in that period would however, did not bold the view that ha\e been hard put to it to find history would stop with the estab- The word socialism was first used any common core of meaning to lishment of socialism. Socialist socie­ around the beginning of the 19th the numerous "socialisms"' of the ty would undergo development and century in France, and first in Us day. It was at just this time that evolution and would eventually be present-day sense by the socialist Marx and Engels came on the scene. transformed into a higher form of seets in France and England during Feeling a need to differentiate them, society which was now given the the 1820's and 1830's The Owen- selves from the various existing old name of communism. ites. for example, meant by social­ schools of socialism they adopted ism a society in which collective the label communist. The famous Thus before the end of the 19th * Most historians of the subject would document issued on the eve of the century, the two words had acquired trace the origins of communist doc­ revolutions of 1848 was thus the fairly generally accepted meanings: trine to the world of classical anti­ Communist Manifesto, not the Socia­ socialism was the first or lower quity, citing Plato and the Essenes stage of the collectivism society as outstanding protagonists. Plato's list Manifesto. "communism" however, rested on a which would lake the place of capi­ basis of slavery; and the Essencs Socialism as Public Ownership talism; communism was the second were a religious sect preaching with­ Subsequently, however, as Marx­ or higher stage. From the Marxian drawal from the world rather than its reform. Doctrines and movements ism rose to dominance among the point of view, therefore, commun­ like these, while recurring from time radical tendencies of the day, the ism must be thought of as growing to time prior to the 16th century, word socialism returned to favour out of socialism just as socialism can hardly he considered true fore­ grows out of capitalism; and to runners of modern socialism and and came to he more and more communism, identified with the Marxian concep- understand the, sense in which-corn- 1127 SPECIAL NUMBER JULY 1962 THE ECONOMIC WEEKLY munism is the goal of the whole industries can no longer be to maxi­ expected will be removed or cured movement, one must view it not as mize the profits of the enterprises under socialism ? A full list would an abstract Utopia but as the end for which they are responsible. The be long, much too long to be in­ product of an historical process public sector —and, since it is as­ cluded in the brief space available which has to be treated as a conti­ sumed to be dominant, this means here. But we can note those which nuous whole. What this end product the whole economy as well — must socialist's regard as of the greatest will be like and why it is regarded be governed by an economic plan, importance, as an ideal worth striving for are and each enterprise must be given therefore questions that can best be a specific role in the plan. The goal Exploitation of Man by Man answered in a step-by-step fashion. of managements must then be to Socialists believe that the wealth First, let us inquire in what respects fulfil, and if possible overfulfil, and income of society are produced socialism represents an advance over the targets set for them in the plan. by the collective labour of society' capitalism, and then proceed to a Success (or failure) with all its con­ and that the existence of a class of consideration of the further trans­ sequences is judged accordingly; owners which reaps far more than formation which socialism is expect­ just as under the present system suc­ a proportionate share by virtue of ed to undergo on the road to full cess (or failure) is judged by the its ownership and without the ne­ communism, yardstick of profit's (or losses). cessity to work is ipso facto proof of exploitation of workers by own­ As already noted, the differentia Nota bene that while this ar­ ers. The results of this are very far- specifics of socialism as compared rangement does away with produc­ to capitalism is public owners-hip of reaching, going way beyond the ex­ tion for profit (in the public sec­ treme inequality of incomes to which the means of production. This does tor), it does not by any means eli­ not mean all the means of produc­ it gives rise. All of history shows minate what is often called the pro­ that exploitation inevitably divides tion: what it does mean is that fit motive, which economic theory those 'branches of the economy society into hostile classes and de­ since long before the time of Adam grades not only the exploited but which are decisive for its function­ Smith has rightly regarded as the ing must be in what is nowadays of­ also the exploiters. In such a socie­ mainspring of economic activity. ty, human brotherhood and solidari­ ten called the "public sector". There When we speak of the profit motive, is no general rule for determining ty are mere empty slogans impossi­ we mean simply that those who en­ ble of realization. Seeing each other exactly what must, be included, the gage in economic activity arc moved branches which are to be consider­ as means rather than ends human primarily by the desire to reap as beings become alienated, hostile, and ed decisive varying in different large a material reward as possible, economics at different stage's of deve­ embittered. Socialists consider that and this of course applies not only overcoming this tragic human con­ lopment. To take an example, one to the owners or managers of capi­ might hazard the guess that in the dition, which has persisted in vari­ tal but also to workers and farmers ous forms for so many millenia is United States today the socialization and lawyers and professional base­ of all corporations with assets of a the first and greatest achievement of ball players.
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