false 13402399 826514 918139 0742513009 9780742513006 5 http://photo.goodreads.com/books/1179442681m/918139.jpg http://www.goodreads.com/book/show/918139.After_Capitalism 4.47 15 469181 4.28 25 8 5 0 false Mon Jan 01 00:00:00 -0800 2001 Thu Jan 24 10:25:02 -0800 2008 Thu Jan 24 10:42:23 -0800 2008 Market Socialism
with Radical Democracy

Some Notes On Reading
‘After Capitalism’
By David Schweickart

Published by:
Rowman & Littlefield, 2002
PB: $23.95; 193pp.

Reviewed By Carl Davidson

In this short book, building on his earlier work, ‘Against Capitalism,’ David Schweickart has given us an excellent breakthrough in finding the road to a new socialism for the 21st century. Using both practical and ethical arguments, his main objective is to take on the ‘TINA’ argument-‘There Is No Alternative’-of the neoliberals. He convincingly shows there is at least one alternative, a ‘successor system’ that he calls ‘Economic Democracy.’ His critics will find it hard to dismiss his ideas lightly.

First, Schweickart’s Economic Democracy alternative is a working hypothesis, and not a rigid or doctrinaire model. While rooted in historical materialism, Schweickart’s Marxian notions of science are more in tune with the ‘open systems’ and critical instrumentalism of modern pragmatism. He casts a wide net to draw lessons from practice-from the failed Soviet-led command economies, to the ongoing surge of China’s market socialism, to the new smaller and more tentative projects in Spain’s Mondragon Cooperatives and Brazil’s Worker’s Party projects. He uses all these as resources, but he returns to American soil to work out his basic ideas and proposals.

‘Successor-system theory’, Schweickart explains, ‘is meant to be theory with practical intent. If it cannot offer a plausible projection as to how we might get from here to there, successor-system theory remains an intellectual exercise in model building-interesting in its own right, perhaps, and capable of providing a rejoinder to the smug apologists for capital, but useless to people trying to change the world.’ So what is ‘Economic Democracy’? The core idea is that the workers themselves democratically elect the managers of their firms. They also share the wealth they create by sharing the profit among themselves. They make their money the old-fashioned way: by finding consumer needs, meeting those needs with decent products, and selling them to satisfied customers at reasonable prices.

But how are things like costs, prices, new products and production goals determined? Here Schweickart departs from traditional socialist conceptions; he affirms the primary role of the market rather than relying on nationally centralized planning. What to produce is shaped mainly by consumer demand; what to charge for products or services is determined by competition for market share with other worker-controlled or private enterprises; and what to pay the workforce is limited by what’s left over after total costs are deducted from total sales.

What about ownership? Each Economic Democracy plant or workplace is controlled by each respective group of workers, but the firm is not owned by each particular group. The firms are socially owned by the public at large. Because of this public ownership, the local workers are also required to meet the cost of paying into two funds: a depreciation fund, to be used locally by the firm for capital expenditures, and a government-controlled capital investment fund. This latter payment is in the form of a capital assets tax also added to the firm’s costs. In a sense, the workplace is leased by the workers from the government. But what’s left after all the costs are met, the profit, the workers divide among themselves as they see fit. The capital assets taxes that the government takes in is used to finance new enterprises, to maintain and develop infrastructure projects, and other costs spread across the whole of society.

That’s the bare-bones model. Naturally, it has further implications and raises many more questions, not the least of which is how we get from today’s globalized capitalism to the ‘successor system’ of Economic Democracy . In the course of the book, Schweickart addresses a good deal of these problems; but for some issues, he has only hints or open possibilities...

For the full review, go to carldavidson.blogspot.com
]]>