history

Anirudh Parthasarathy, 13 (San Jose, CA) Socialism Reexplained: Age of Reason to Cold War Anirudh Parthasarathy, 13 History of Socialism In order to understand socialism as a whole, we have to understand how nineteenth century capitalism worked, the critiques of uncontrolled capitalism, and the reasoning behind the call for a more equitable economic system that eventually led to the birth of both socialism and communism. In the eighteenth and nineteenth centuries, feudalism and absolute monarchism were abolished with people wanting more liberty, self-determination, democracy, and individualism. These ideals started becoming popular during the Enlightenment of the seventeenth and eighteenth centuries, which in turn led to the Age of Reason, French Absolutism, and English Constitutionalism. In England, eventually, people were tired of being subjugated by an authoritarian government. Whether the oppressors were a monarch, members of an aristocracy, or even the parliament and government officials, the British people wanted true liberty, eventually leading to a revolution that destroyed the feudal system. England became the first democratic/republican and capitalist country the world had seen since antiquity. Many people probably hoped this new system of governance would be better than the anti-humanistic authoritarian feudal system. They were wrong. England practiced a form of uncontrolled libertarian capitalism in which there was no government intervention. Because of this, nineteenth century England had a small, extremely wealthy capitalist class who owned all the organizations and economic resources—such as land and capital—while the majority were an extremely poor working class who worked very low-paying jobs with terrible conditions. The workers often worked in monotonous jobs for long hours and with wages so low they lived in extreme poverty, while the capitalist class got all the profits and luxury derived from the hard work of the workers! First Socialists This extreme inequality frustrated many people including many intellectuals/philosophers, who became the first socialists. Some of the very first socialists were known as utopian socialists. Such socialists advocated for things like collective ownership of the means of production and enterprises, government intervention (or sometimes even central planning of the economy and of production), solidarity among the working class, a more equitable distribution of wealth, and general empowerment of workers. Another group called the chartists advocated for universal male suffrage (not nearly as impressive as universal suffrage in which females also have a vote). Utopian socialism started with Henri de Saint Simon and then continued with Charles Fourier, Pierre Joseph Proudhon (one of the first anarchists and one who declared “property is theft”), Pierre Leroux, and Robert Owen. Another more far-left brand of socialism called revolutionary socialism believed that rather than creating a socialist system through the cooperation of the workforce, government, and the wealthy, it was up to the workers to launch a revolution in order to completely overthrow the capitalist government and replace it with a socialist system. Communism is a type of revolutionary socialism, but communism and revolutionary socialism aren’t the same because there are other types of revolutionary socialism, some of which have anarchist ideals. A prominent socialist community was the Paris Commune created in 1871. The Paris Commune was designed to benefit the poor and working class over the wealthy. The Paris Commune secularized politics and education, provided subsidized food and housing, created a minimum wage, required private firms to have a delegation elected by the workers, recognized freedom of the press, and made all people legally equal. However, the Paris Commune only lasted for two months and ten days before it was crushed. Despite all the confusion and varying ideas on how to implement socialism, all those socialists were opposed to capitalism and believed the economic system was fundamentally doomed. One problem they believed capitalism had is its competitive nature which led to the continual driving down of profits. For example, suppose one business sells yogurt at $10 while a different business is willing to sell yogurt with the same or perhaps better quality at the much cheaper price of $7. Most people would buy from the cheaper business. The Socialists believed that eventually competition would lead to a decrease in profits to a level that businesses could barely eke out a profit. They also argued that businesses competed to sell their products at the same time workers competed to sell their labor. Socialists argued that this competition among workers was what caused workers to be paid only what they needed in order to afford the most basic food and housing and nothing more. They pointed out that as businesses started making less profits, they’d compensate by paying the workers even less wages until eventually only the most essential workers would be kept with the rest being laid off. Eventually, businesses that weren’t able to keep up would go out of business, causing even more unemployment among both the working and capitalist classes. At this point, socialists believed that either serious reforms or an outright revolution were needed to end capitalism and usher in an era of socialism. Among other reasons, this hasn’t happened in practice in the west because capitalism has been reformed to include elements of welfare and regulation, which has helped reduce inequality. But socialism is unsustainable over time. Drawbacks of Socialism Overall, proponents of socialism argue that it leads to equality, economic security, production for use rather than profit, and the kind of system in which people selflessly contribute to society according to their ability and receive all their needs. As a famous socialist slogan says, “From each according to their ability, to each according to their needs”. However, critics of socialism argue that the system is based on faulty principles and is too utopian to actually happen, and that ultimately the inherent inefficiencies of socialism will lead to major economic problems, with socialism suffering mainly from the motivation and knowledge problem. First, we must understand the motivation problem. One major problem with socialism is that it doesn’t truly reward people with tangible rewards for going beyond the minimum. For example, most people aren’t JUST working in their jobs