How is economics different from sciences like astronomy and physics? What are the limitations of "science"? Should economics be left to the experts? Why or why not? What are the features of structure and agency discussed by the author? What is the "crisis of our time"? What is the proposed solution? What are the problems with capitalism identified by the author? Do you agree with the author's analysis?

Reading Material Below:

WhySocialism?(1949)

Isitadvisableforonewhoisnotanexertioneconomicandsocialissues toexpressviews on the subject of socialism? I believe for a number of reasons that it is.

Letusfirst considerthequestion fromthepoint ofviewofscientificknowledge.Itmightappear that there are no essential methodological differences between astronomy and economics: scientists in both fields attempt to discover laws of general acceptability for a circumscribed group of phenomena in order to make the interconnection of these phenomena as clearly understandable as possible. But in reality such methodological differences do exist. The discovery of general laws in the field of economics is made difficult by the circumstance that observed economic phenomena are often affected by many factors which are very hard to evaluateseparately.Inaddition,theexperiencewhich hasaccumulatedsince thebeginningof the so-calledcivilizedperiodofhumanhistoryhasasiswellknownbeenlargely influenced and limited by causes which are by no means exclusively economic in nature. For example, most of the major states of history owed their existence to conquest. The conquering peoples established themselves, legally and economically, as the privileged class of the conquered country. They seized for themselves a monopoly of the land ownership and appointed a priesthood from among their own ranks. The priests, in control of education, made the class division of society into a permanent institution and created a system of values by which the people were thenceforth, to a large extent unconsciously, guided in their social behavior.

But historic tradition is, so to speak, of yesterday; nowhere have we really overcome what Thorstein Veblen called "the predatory phase" of human development. The observable economic facts belong to that phase and even such laws as we can derive from them are not applicable to other phases. Since the real purpose of socialism is precisely to overcome and advancebeyondthepredatoryphaseofhumandevelopment,economic scienceinitspresent state can throw little light on the socialist society of the future.

Second, socialism is directed towards a social-ethical end. Science, however, cannot create ends and, even less, instill them in human beings; science, at most, can supply the means by whichtoattaincertain ends.Buttheendsthemselvesareconceivedbypersonalitieswithlofty ethical ideals andif these ends are not stillborn, but vital and vigorousare adopted and carried forward by those many human beings who, half unconsciously, determine the slow evolution of society.

For these reasons, we should be on our guard not to overestimate science and scientific methods when it is a question of human problems; and we should not assume that experts are theonlyoneswhohavearighttoexpressthemselvesonquestionsaffectingtheorganizationof society.

Innumerable voices have been asserting for some time now that human society is passing through a crisis, that its stability has been gravely shattered. It is characteristic of such a situationthatindividualsfeelindifferentorevenhostile towardthegroup, smallorlarge, towhich they belong. In order to illustrate my meaning, let me record here a personal experience. I recently discussed with an intelligent and well-disposed man the threat of another war, which in my opinion would seriously endanger the existence of mankind, and I remarked that only a supra-national organization would offer protection from that danger. Thereupon my visitor, very calmly and coolly, said to me: "Why are you so deeply opposed to the disappearance of the human race?"

I am sure that as little as a century ago no one would have so lightly made a statement of this kind. Itisthestatementofamanwhohasstriveninvaintoattainanequilibriumwithin himself and has more or less lost hope of succeeding. It is the expression of a painful solitude and isolation fromwhichsomanypeople aresufferinginthesedays. Whatisthecause?Istherea way out?

It is easy to raise such questions, but difficult to answer them with any degree of assurance. I musttry,however, asbestIcan,although Iamveryconsciousofthefactthatourfeelingsand strivings are often contradictory and obscure and that they cannot be expressed in easy and simple formulas.

Man is, at one and the same time, a solitary being and a social being. As a solitary being, he attempts to protect his own existence and that of those who are closest to him, to satisfy his personal desires, and to develop his innate abilities. As a social being, he seeks to gain the recognitionandaffectionofhisfellow humanbeings,toshareintheirpleasures,tocomfortthem in their sorrows, and to improve their conditions of life. Only the existence of these varied, frequently conflicting, strivings accounts for the special character of a man, and their specific combination determines the extent to which an individual can achieve an inner equilibrium and can contribute to the well-being of society. It is quite possible that the relative strength of these two drives is, in the main, fixed by inheritance. But the personality that finally emerges is largely formed by the environment in which a man happens to find himself during his development, by

the structure of the society in which he grows up, by the tradition of that society, and by its appraisal of particular types of behavior. The abstract concept "society" means to the individual humanbeing thesumtotal ofhisdirectandindirect relationstohiscontemporariesandtoallthe peopleofearliergenerations.Theindividualisabletothink,feel, strive,andworkbyhimself; but hedependssomuchuponsocietyinhisphysical,intellectual,andemotionalexistencethatit is impossible to think of him, or to understand him, outside the framework of society. It is "society" which provides man with food, clothing, a home, the tools of work, language, the forms of thought, and most of the content of thought; his life is made possible through the labor and the accomplishments of the many millions past and present who are all hidden behind the small word "society."

It is evident, therefore, that the dependence of the individual upon society is a fact of nature whichcannotbeabolishedjustasinthecaseofantsandbees.However, whilethewhole life process of ants and bees is fixed down to the smallest detail by rigid, hereditary instincts, the social pattern and interrelationships of human beings are very variable and susceptible to change. Memory, the capacity to make new combinations, the gift of oral communication have made possible developments among human being which are not dictated by biological necessities. Such developments manifest themselves in traditions, institutions, and organizations; in literature; in scientific and engineering accomplishments; in works of art. This explains how it happens that, in a certain sense, man can influence his life through his own conduct, and that in this process conscious thinking and wanting can play a part.

Man acquires at birth, through heredity, a biological constitution which we must consider fixed and unalterable, including the natural urges which are characteristic of the human species. In addition, during his lifetime, he acquires a cultural constitution which he adopts from society through communication and through many other types of influences. It is this cultural constitution which, with the passage of time, is subject to change and which determines to a very large extent the relationship between the individual and society. Modern anthropology has taught us, through comparative investigation of so-called primitive cultures, that the social behavior of human beings may differ greatly, depending upon prevailing cultural patterns and thetypesoforganizationwhich predominateinsociety. Itisonthisthatthosewhoarestriving to improve the lot of man may ground their hopes: human beings are not condemned, because of theirbiologicalconstitution,toannihilateeachotherortobeatthemercyofacruel,self-inflicted fate.

If we ask ourselves how the structure of society and the cultural attitude of man should be changed in order to make human life as satisfying as possible, we should constantly be conscious of the fact that there are certain conditions which we are unable to modify. As mentioned before, the biological nature of man is, for all practical purposes, not subject to change. Furthermore, technological and demographic developments of the last few centuries havecreatedconditionswhichareheretostay. Inrelativelydensely settledpopulationswiththe goods which are indispensable to their continued existence, an extreme division of labor and a highly-centralized productive apparatus are absolutely necessary. The timewhich, looking back, seems so idyllicis gone forever when individuals or relatively small groups could be completely self-sufficient. It is only a slight exaggeration to say that mankind constitutes even now a planetary community of production and consumption.

Ihavenowreachedthepointwhere Imayindicatebrieflywhattomeconstitutestheessenceof the crisis of our time. It concerns the relationship of the individual to society. The individual has becomemoreconsciousthaneverofhisdependenceuponsociety.Buthedoesnotexperience this dependence as a positive asset, as an organic tie, as a protective force, but rather as a threat to his natural rights, or even to his economic existence. Moreover, his position in society is such that the egotistical drives of his make-up are constantly being accentuated, while his social drives, which are by nature weaker, progressively deteriorate. All human beings, whatever their position in society, are suffering from this process of deterioration. Unknowingly prisonersoftheirownegotism,theyfeelinsecure,lonely,anddeprived ofthenaive,simple,and unsophisticated enjoyment of life. Man can find meaning in life, short and perilous as it is, only through devoting himself to society.

Theeconomicanarchy ofcapitalistsociety asitexiststodayis,inmyopinion,therealsource of the evil. We see before us a huge community of producers the members of which are unceasinglystrivingtodepriveeachotherofthefruits oftheircollectivelabornotbyforce, but on the whole in faithful compliance with legally established rules. In this respect, it is important to realize that the means of productionthat is to say, the entire productive capacity that is neededforproducingconsumer goodsaswellasadditionalcapitalgoodsmaylegally be,and for the most part are, the private property of individuals.

Forthesakeofsimplicity,inthediscussionthatfollowsIshallcall"workers"allthosewhodonot share in the ownership of the means of productionalthough this does not quite correspond to the customary use of the term. The owner of the means of production is in a position to purchase the labor power of the worker. By using the means of production, the worker produces

newgoodswhich becometheproperty ofthecapitalist.Theessentialpointaboutthisprocessis the relation between what the worker produces and what he is paid, both measured in terms of real value. Insofar as the labor contract is "free," what the worker receives is determined not by the real value of the goods he produces, but by his minimum needs and by the capitalists' requirements for labor power in relation to the number of workers competing for jobs. It is important to understand that even in theory the payment of the worker is not determined by the value of his product.

Private capital tends to become concentrated in few hands, partly because of competition among the capitalists, and partly because technological development and the increasing division of labor encourage the formation of larger units of production at the expense of smaller ones. The result of these developments is an oligarchy of private capital the enormous power of whichcannotbeeffectivelycheckedevenbyademocraticallyorganizedpoliticalsociety. Thisis true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by private capitalists who, for all practical purposes, separate theelectoratefromthelegislature.Theconsequenceisthattherepresentativesofthepeople donot in fact sufficiently protect the interests of the underprivileged sections of the population.

Moreover, under existing conditions, private capitalists inevitably control, directly or indirectly, the main sources of information (press, radio, education). It is thus extremely difficult, and indeedinmostcases quiteimpossible,fortheindividualcitizentocometoobjectiveconclusions and to make intelligent use of his political rights.

The situation prevailing in an economy based on the private ownership of capital is thus characterized by two main principles: first, means of production (capital) are privately owned and the owners dispose of them as they see fit; second, the labor contract is free. Of course, there is no such thing as a purecapitalist society in this sense. In particular, it should be noted that the workers, through long and bitter political struggles, have succeeded in securing a somewhatimprovedformofthe"freelabor contract"forcertain categoriesofworkers. Buttaken as a whole, the present day economy does not differ much from "pure" capitalism.

Production is carried on for profit, not for use. There is no provision that all those able and willingtoworkwillalwaysbeinapositiontofindemployment;an"armyofunemployed"almost always exists. The worker is constantly in fear of losing his job. Since unemployed and poorly paid workers do not provide a profitable market, the production of consumers' goods is restricted,andgreathardship istheconsequence.Technologicalprogress frequentlyresultsin more unemployment rather than in an easing of the burden of work for all. The profit motive, in conjunction with competition among capitalists, is responsible for an instability in the accumulationandutilizationofcapitalwhichleadstoincreasinglyseveredepressions.Unlimited competition leads to a huge waste of labor, and to that crippling of the social consciousness of individuals which I mentioned before.

ThiscripplingofindividualsIconsidertheworstevilofcapitalism.Ourwholeeducationalsystem suffers from this evil. An exaggerated competitive attitude is inculcated into the student, who is trained to worship acquisitive success as a preparation for his future career.

I am convinced there is only oneway to eliminate these grave evils, namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals. In such an economy, the means of production are owned by society itself and are utilized in a planned fashion. A planned economy, which adjusts productiontotheneedsofthecommunity,woulddistributetheworktobedoneamongallthose able to work and would guarantee a livelihood to every man, woman, and child. The education of the individual, in addition to promoting his own innate abilities, would attempt to develop in himasense ofresponsibilityforhisfellowmeninplaceoftheglorificationofpowerandsuccess in our present society.

Nevertheless, it is necessary to remember that a planned economy is not yet socialism. A plannedeconomyassuchmaybeaccompaniedbythecomplete enslavementoftheindividual. The achievement of socialism requires the solution of some extremely difficult socio-political problems: how is it possible, in view of the far-reaching centralization of political and economic power, to prevent bureaucracy from becoming all-powerful and overweening? How can the rights of the individual be protected and therewith a democratic counterweight to the power of bureaucracy be assured?

Clarity about the aims and problems of socialism is of greatest significance in our age of transition. Since, under present circumstances, free and unhindered discussion of these problemshascomeunder apowerfultaboo, Iconsiderthefoundationofthismagazine tobean important public service.