Remaking Scarcity: From Capitalist Inefficiency to Economic Democracy

225 Pages·2011·10.788 MB·English

by  Costas Panayotakis

REMAKING
' SCARCITY
From Capitalist Inefficiencyto Economic Democracy
Costas Panayotakis
Foreword byJoel Kovel

THE FUTURE OFWORLD CAPITALISM
REMAKINGSCARCITY
TheFutureofWorldCapitalism
Serieseditors:RadhikaDesaiandAlanFreeman
Theworld is undergoing a major realignment. The 2008 financial
crashandensuingrecession,China’sunremittingeconomicadvance,
andtheuprisingsintheMiddleEast,arelayingtorestalldreamsof
an‘AmericanCentury’.Thiskeymomentinhistorymakesweighty
intellectualdemandson all whowish to understand and shapethe
future.
Theoreticaldebatehasbeendetailed,andcriticalthinkingstifled,
byapologeticandsuperficialideaswithalmostnoexplanatoryvalue,
‘globalization’beingonlythebestknown.Academicpoliticaleconomy
hasfailedtoanticipatethekeyeventsnowshapingtheworld,andoffers
fewusefulinsightsonhowtoreacttothem.
TheFutureofWorldCapitalismserieswillfosterintellectualrenewal,
restoring the radical heritage that gave us the international labour
movement,thewomen’smovement,classicalMarxism,andthegreat
revolutionsofthetwentiethcentury.Itwillunitethemwithnewthinking
inspiredbymodernstrugglesforcivilrights,socialjustice,sustainability,
andpeace,givingtheoreticalexpressiontothevoicesofchangeofthe
twenty-firstcentury.
Drawingonaninternationalsetofauthors,andaworld-widereader-
ship,combiningrigourwithaccessibilityandrelevance,thisserieswill
setareferencestandardforcriticalpublishing.
Alsoavailable:
TheBirthofCapitalism:
ATwenty—First-CenturyPerspective
HenryHeller
Remaking Scarcity
From Capitalist Inefficiency
to Economic Democracy
CostasPanayotakis
m PlutoPress FernwoodPublishing
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Firstpublished2011byPlutoPress
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LibraryandArchivesCanadaCataloguinginPublication
Panayotakis,Costas
Remakingscarcity:fromcapitalistinefficiencyto
economicdemocracy/CostasPanayotakis.
(Thefutureofworldcapitalism)
Includesbibliographicalreferences.
ISBN978-1-55266-461-2
1.Sustainabledevelopment--Citizenparticipation.
2.Economicpolicy--Citizenparticipation.3.Capitalism--
Socialaspects.4.Scarcity.I.Title.II.Series:Futureof
worldcapitalism(Winnipeg,Man.)
HD75.6.P352011 338.9'27 C2011-903614-2
Copyright©CostasPanayotakis2011
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assertedbyhiminaccordancewiththeCopyright,DesignsandPatentsAct1988.
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CONTENTS
ForewordbyjoelKouel vii
Preface xi
1 Capitalism,scarcity,andeconomicdemocracy
Planofthebook
2 Theneoclassicalapproachtoscarcity
3 Scarcityandcapitalaccumulation
Thesourceofcapitalism’stechnologicaldynamism
Economiccrisesandthecyclicalnatureofcapitalism’s
configurationsofscarcity
Scarcityandthelong-termevolutionofthecapitalist
system
Doweneedtoabolishscarcity?
Scarcityandtheundemocraticlogicofcapital
AnoteontheSovietexperience
4:. SIscasrccairtcyi,tycapointlaylitshteexpprloodiutcattioonf,ianflnadtecdonnseuemdps?tion
Consumerismandcapitalism’sconfigurationsofscarcity
Consumerism,exploitation,andeconomicdemocracy
VI Einceoqnuaolmiiticesdeamnodcrstarcuyggalensdthemultiplicityofsocial 57
Strugglesovertheprofitrate 57
Configurationsofscarcityandcapitalism’scross-cutting
socialinequalitiesandstruggles 59
Capitalism,scarcity,andhouseholds 61
Economicdemocracy,households,andthequestionoftime 62
Capitalandtheviciouscyclesundercuttingeconomic
democracy 64
Thestruggleovertheworkingdayasastrugglefor
economicdemocracy 67
CONTENTS
Theculturaldimensionofthestruggleforeconomic
democracy 70
ON CGalpoibtaalliisnme,qusaclairtciietsy,asanaddgilmoebnaslioinneqoufalciatpiietsalism’s 72
configurationsofscarcity 74
Thegrowthofglobalinequalities:abriefhistorical
overview 78
Thestruggle(s)againstneoliberalismandthelogicof
profit 88
\l TSchaercdietyepaenndintgheecdoeleogpiecnailngcriescioslogicalcrisis 93
Ecologicalproblemsaseconomicexternalities? 97
Politicaleconomy,externalities,andtheroleofthestate 103
Externalities,efficiency,andtheconflictapproachto
scarcity 106
Thelinkbetweencross-cuttinginequalitiesandecological
problems 109
on IPomsatg-icnapiintgaleicstonaoltmeircnadtievmeosc:rmaacryk:ettwsoocmioadleislmsversus 113
democraticplanning 114
DavidSchweickart’s‘economicdemocracy’ 115
AlbertandHahnel’smodelofaparticipatoryeconomy 119
Economicdemocracyandthedebateonpost-capitalist
alternatives 124
\0 Tsthreatwegayyofforrewfaorrdm:seacnodnofmuincdadmeemnotcarlatsiozcaitailocnhaasngae 129
Conclusion 149
HumorousAppendix:AusterityNutandhismessage 155
Notes 159
Bibliography 171
Index 201
FOREWORD
InRemakingScarcityCostasPanayotakisexpertlydissectsacapi-
talistsystemintheagoniesofintractablecrisisandgivesaradical
yetpracticableguidetoitstransformation.Butwhatisspecialabout
thebookappearsinthetitle.ForPanayotakis,tore-makescarcity
meanstoovercometheillusionsocialistshavefoistedonthemselves,
thatoncetheworkershavetakenpower,anewageofabundance
willhavedawned.Thisisanancientnotion,perpetuallyresurrected.
OneofitslineagesleadstoArcadia,arealplaceinthePeloponnese
peninsulathatcametosymbolizeaGoldenAgeofabundance.Inthe
Americanfolktraditionwefindthe“BigRockCandyMountain,”
acornucopiaoverflowingwithgoodnessandplenty.InBritainand
theContinent,thelandofCockaigneservedthepurpose.Similar
ideascropupwhereverexploitationandrepressionsetintomotion
thehopeforabetterworld.
Wearenottalkinghereaboutthesalutaryimpulsetoundothe
hardships and insults imposed by a ruthless class society, from
hungertolackofshelterandhealthcare—inshort,theprovision
ofadecentlifeforall,orwhatonemightcallredistributivejustice.
Thereishoweverawaythattherationalandjustdemandfora
betterworldcancomebundledwiththeboundlessnessofdesire;and
itisthislatterfactor,usefulasitmaybeforstirringuptheenthu-
siasmneededtogetasocialmovementgoing,whichhasweighed
heavilyuponsocialismbycompromisingtheall-importantquestion
ofsupersedingcapital. Capitalism isby fatthemostproductive
systemhumanshaveeverdevised,andpromotesitselfassuchby
promisinglimitlessnessand instantgratification. Bemusedbythe
dazzlingcollectionoftoysthedominantconsumerismrainsdown
uponus,progressivesandsocialistsalltoooftensuccumbtothe
argumentthatcapitalismmaybeadisaster,butatleastithassolved
thequestionofproduction;whynot,therefore,getridofthebad
aspectofcapitalismandretainwhat’sgood?Whynotbuildupon
capital’sproductivegeniusandproduceourwaytohappiness?The
viii FOREWORD
wholecomplexisconditionedbytheeconomicorthodoxywhich
holdsthatwhatiswrongwithsocietytodayisinsufficientdemand.
Costas Panayotakissets outto disabuse people ofthis idea,
andpowerfullysucceeds,withasophisticatedreadingofpolitical
economy, sociology and, thanks to his work on the journal
CapitalismNatureSocialism,radicalpoliticalecology.Heunder-
standsthelessonsoftheecologicalcrisisandisunafraidtodraw
thetoughbutessentialconclusion,thatcapital’sproductivegenius
ispreciselytheinstrumentofitsdisaster:itonly,truly,knowshow
toproducethingsandforcehumanitytolivebythem—ordie.As
CheGuevaraoncesaid,undercapitalismwegettochoosetherazor
bladewithwhichtocutourthroat.Capitalismwouldcollapseifit
madepeoplehappy;itrunsondiscontent,competition,addiction:
thatis,byevokingtheevils latentin human nature. Capitalist
productionandtheideaofendlessgrowtharejoinedatthehip.And
sinceendlessgrowthwillbringtheplanetandourcivilizationdown,
itfollowsthatallourenergiesandresourcesneedtobededicated
tothemakingofapost-capitalistworld.
Panayotakisrecognizes thata survivablepost-capitalistworld
meansaworldofsufficiency,notendlessexpansionofproduction.
ltsrealmoffreedomisbuiltonafoundationofmateriallimit—the
necessaryunderstandingthatwecan’talwaysgetwhatwewant.
Indeed,theveryneed-structureofhumanity,its‘wanting,’needs
transformation.Weneedtoturnawayfromthepresentaddictive/
consumeristmodeltoonerespectfuloflimitastheconditionfor
creativity.Thusscarcitybecomesaframeworkforbuildingaworth-
whilesociety,asabuildingisconstructeduponthefirm,limiting
foundationofmatterandnottheficklesandsofdesire.
Panayotakisseesthisintermsofdemocracy,nolongerconfined
tothepoliticalspherebutasthereigningprincipleofeconomic
activity.Thus wecan build a humanly worthwhile, sustainable
worldbyexpandingthenotionofdemocracyintothesphereof
production.Thisisthechiefconclusion,illustratedfruitfullyinthe
latterpartofhisbook.Itcomprisesanimportantmaturationof
theleftassocietyconfrontsthebreakdownofitsreigningmodeof
production.
However the notion of socialism may have been battered
throughoutthenineteenthandtwentiethcenturies,thepresentcrisis
withitsecologicaldimensionendowsitwithnewlife.‘Economic
democracy’ is a good description of Panayotakis’s vision of a
sustainableworld.Butitisamethoddirectedtowarddefiniteends.
Thelogicisinexorable:societybaseduponindividualizedownership
ofthemeansofproduction—andalltheexploitationandaggression
entailedbythis—isunsustainable,indeed,arecipeforextinction.
Economic democracy, therefore, means the return of collective
ownershipandasocietyofmutuality,oritmeansnothingatall.The
name’snotthething,butanindexofthething.Callit‘commoning';
callita‘co-operativecommonwealth’;callit‘ecosocialism’;callit
‘economicdemocracy.’Butrememberthis:theoldworldisdying;
hereistheshapeofthenewonewaitingtobeborn.
JoelKovel