Mutualism (economic theory)
Mutualism is an anarchist school of thought and economic theory that advocates for workers' control of the means of production, a market economy made up of individual artisans and workers' cooperatives, and occupation and use property rights. As proponents of the labour theory of value and labour theory of property, mutualists oppose all forms of economic rent, profit and non-nominal interest, which they see as relying on the exploitation of labour. Mutualists seek to construct an economy without capital accumulation or concentration of land ownership. They also encourage the establishment of workers' self-management, which they propose could be supported through the issuance of mutual credit by mutual banks, with the aim of creating a federal society.
This article is about the anarchist school of thought and economic theory. For the biological term and other uses, see Mutualism (disambiguation).
Mutualism has its roots in the utopian socialism of Robert Owen and Charles Fourier. It first developed a practical expression in Josiah Warren's community experiments in the United States, which he established according to the principles of equitable commerce based on a system of labor notes. Mutualism was first formulated into a comprehensive economic theory by the French anarchist Pierre-Joseph Proudhon, who proposed the abolition of unequal exchange and the establishment of a new economic system based on reciprocity. In order to establish such a system, he proposed the creation of a "People's Bank" that could issue mutual credit to workers and eventually replace the state; although his own attempts to establish such a system were foiled by the 1851 French coup d'état.
After Proudhon's death, mutualism lost its popularity within the European anarchist movement and was eventually redefined in counterposition to anarchist communism. Proudhon's thought was instead taken up by American individualists, who came to be closely identified with mutualist economics. Joshua K. Ingalls and William Batchelder Greene developed on mutualist theories of value, property and mutual credit, while Benjamin Tucker elaborated a mutualist critique of capitalism. The American mutualist Dyer Lum attempted to bridge the divide between communist and individualist anarchists, but many of the latter camp eventually split from the anarchist movement and embraced right-wing politics.
Mutualist ideas were later implemented in local exchange trading systems and alternative currency models, but the tendency itself fell out of the popular consciousness during the 20th century. The advent of the internet generated a revived interest in mutualist economics, particularly after the publication of new works on the subject by American libertarian theorist Kevin Carson.
History[edit]
Origins[edit]
According to Peter Kropotkin, the origins of mutualism lay in the events of the French Revolution, particularly in the federalist and directly democratic structure of the Paris Commune.[1] The foundations of mutualist economic theory lay in the radicalism of English socialist Thomas Spence. Drawing from the Bible, as well as the liberal works of John Locke and James Harrington, Spence called for the abolition of private property, and for the workers' control of production through workers' cooperatives.[2] The term "mutualism" was first used during the 1820s; originally defined synonymously with terms such as "mutual aid, reciprocity and fair play".[3] In 1822, French utopian philosopher Charles Fourier used the term "convergent compound mutualism" (French: mutualisme composé convergent), in order to describe a form of progressive education that adapted the Monitorial System of pupil-teachers.[4]
Criticism[edit]
In Europe, a contemporary critic of Proudhon was the early libertarian communist Joseph Déjacque. Unlike and against Proudhon, he argued that "it is not the product of his or her labor that the worker has a right to, but to the satisfaction of his or her needs, whatever may be their nature".[105][106]
One area of disagreement between anarcho-communists and mutualists stems from Proudhon's alleged advocacy of labour vouchers to compensate individuals for their labour and markets or artificial markets for goods and services. However, the persistent claim that Proudhon proposed a labour currency has been challenged as a misunderstanding or misrepresentation.[107] Like other anarcho-communists, Peter Kropotkin advocated the abolition of labour remuneration and questioned, "how can this new form of wages, the labor note, be sanctioned by those who admit that houses, fields, mills are no longer private property, that they belong to the commune or the nation?"[108] According to George Woodcock, Kropotkin believed that a wage system, whether "administered by Banks of the People or by workers' associations through labor cheques", is a form of compulsion.[109]
Collectivist anarchist Mikhail Bakunin was an adamant critic of Proudhonian mutualism as well,[110] stating: "How ridiculous are the ideas of the individualists of the Jean Jacques Rousseau school and of the Proudhonian mutualists who conceive society as the result of the free contract of individuals absolutely independent of one another and entering into mutual relations only because of the convention drawn up among men. As if these men had dropped from the skies, bringing with them speech, will, original thought, and as if they were alien to anything of the earth, that is, anything having social origin".[111]