economic theory wikipedia

To the mutualist, this is the distinction between property created by coercion and property created by labor. Keynesian economics (also called Keynesianism) describes the economics theories of John Maynard Keynes. [127] As a result of mutualist views on property, Austrian School economist and Objectivist George Reisman charges that mutualism supports exploitation when it does not recognize a right of an individual to protect land that he has mixed his labor with if he happens to not be using it. [48], According to the Encyclopædia Britannica, "[d]uring the Spanish revolution of 1873, Pi y Margall attempted to establish a decentralized, or cantonalist, political system on Proudhonian lines". The object of the League was the social emancipation of the working class, which, it was held, could only be achieved by a union of the workers of all lands against international capital. Keynesian economics (/ ˈ k eɪ n z i ə n / KAYN-zee-ən; sometimes Keynesianism, named for the economist John Maynard Keynes) are various macroeconomic theories about how economic output is strongly influenced by aggregate demand (total spending in the economy). The Blackwell Encyclopedia of Political Thought. The mutualist analysis of capitalism as a system of state-enforced privilege is a direct extension of the Jacobin/radical critique of the landed aristocracy. (1859) [1989]. [5], In Europe, a contemporary critic of Proudhon was the early libertarian communist Joseph Déjacque,[103][104] who was able to serialise his book L'Humanisphère, Utopie anarchique (The Humanisphere: Anarchic Utopia) in his periodical Le Libertaire, Journal du Mouvement Social (Libertarian: Journal of Social Movement), published in 27 issues from 9 June 1858 to 4 February 1861 while living in New York. I think that all these manifestations of human activity should remain free and voluntary for all: I ask for them no modifications, restrictions or suppressions, other than those which result naturally and of necessity from the universalization of the principle of reciprocity which I propose. As did Benjamin Tucker before him, Carson notes that a mutualist free-market system would involve significantly different property rights than capitalism is based on, particularly in terms of land and intellectual property. Property is freedom for "the peasant or artisan family [who have] a natural right to a home, land [they may] cultivate, [...] to tools of a trade" and the fruits of that cultivation—but not to ownership or control of the lands and lives of others. One implementation of this system involves the establishment of a mutual-credit bank that would lend to producers at a minimal interest rate, just high enough to cover administration. The laboring classes would then have direct access to means of production, enabling them to work and produce freely in worker owned enterprises while retaining the full value of whatever they sell. Much of this … p. 11. Within individualist anarchist circles, mutualism came to mean non-communist anarchism or non-communist socialism. [2] Mutualism is based on a version of the labor theory of value which it uses as its basis for determining economic value. "Political Economy from Below: Communitarian Anarchism as a Neglected Discourse in Histories of Economic Thought". According to Carson, "[a]n existing owner may transfer ownership by sale or gift; but the new owner may establish legitimate title to the land only by his own occupancy and use. [80] This income tax Proudhon proposed to fund his bank was to be levied on rents, interest, debts and salaries. https://en.wikipedia.org/w/index.php?title=An_Economic_Theory_of_Democracy&oldid=994480210, Creative Commons Attribution-ShareAlike License, A two-party democracy cannot provide stable and effective. Proudhon, Pierre-Joseph (1989) [1851]. "Introduction". Albert Brisbane, "The Mutualist Township," The Spirit of the Age, II, 12 (March 23, 1850), 179–83. Capitalists are then able to continue buying labor-power and the means of production as non-personal property and are able to continue extracting more surplus-value from more laborers, continuing the cycle. The laboring class does not have direct access to the means of production and therefore is forced to sell the only thing they can in order to survive, i.e. Mutual banking aimed at the monetization of all forms of wealth and the extension of free credit. [42] Liberty was an influential American individualist anarchist publication of Benjamin Tucker. Proudhon urged "workers to form themselves into democratic societies, with equal conditions for all members, on pain of a relapse into feudalism". Since the deputation was one of Proudhonists, of course this emancipation was to be secured, not by political methods, but purely by economic means, through the foundation of productive and distributive co-operatives". Libertarianism is frequently used as a synonym for anarchism and libertarian socialism. [43] He then publishes Socialistic, Communistic, Mutualistic, and Financial Fragments (1875). Some critics object to the use of the term capitalism in reference to historical or actually existing economic arrangements which they term mixed economies. [83], This scheme was vehemently objected to by others in the legislature, including Frédéric Bastiat. Published articles contribute to the understanding and solution of substantive economic problems. Pi y Margall was one of the outstanding theorists of his time and had a powerful influence on the development of libertarian ideas in Spain. [5], Mutualists also argue that capitalists maintain ownership of their non-personal properties because they support state violence through the funding of election campaigns. Here, then, is a piece of land upon which, henceforth, no one has right to step, save the proprietor and his friends; which can benefit nobody, save the proprietor and his servants. The main difference is that manorialism was openly founded on conquest, whereas capitalism hid its exploitative character behind a facade of 'neutral' laws. The subject matter of economics or economic theory has been variously defined. There was a great continuity of themes from the 1790s through Owenist and Chartist times. [56] While oriented towards cooperation, mutualists favor free-market solutions, believing that most inequalities are the result of preferential conditions created by government intervention. Proudhon published his own perspective for reform which was completed in 1849, titled Solution du problème social (Solution of the Social Problem), in which he laid out a program of mutual financial cooperation among workers. Social economics is a branch of economics—and a social science—that focuses on the relationship between social behavior and economics. Proudhon par Joseph Déjacque", "Le Libertaire, Journal du mouvement social", Demanding the Impossible: A History of Anarchism, "Proudhon's Constituted Value and the Myth of Labour Notes", The Spanish Anarchists: The Heroic Years, 1868-1936, Social Anarchism or Lifestyle Anarchism: The Unbridgeable Chasm, "Mutualism's Support for the Exploitation of Labor and State Coercion", Proudhon and Anarchism: Proudhon's Libertarian Thought and the Anarchist Movement, For a New Liberty: The Libertarian Manifesto, International League of Peoples' Struggle, International League of Religious Socialists, https://en.wikipedia.org/w/index.php?title=Mutualism_(economic_theory)&oldid=999469285, Short description is different from Wikidata, Articles containing Spanish-language text, Creative Commons Attribution-ShareAlike License, This page was last edited on 10 January 2021, at 10:02. Over matters which are purely personal, as for example, moral conduct, the individual is sovereign as well as over that which he himself produces. [1] Benjamin Tucker wrote of Proudhon that "though opposed to socializing the ownership of capital, he aimed nevertheless to socialize its effects by making its use beneficial to all instead of a means of impoverishing the many to enrich the few [...] by subjecting capital to the natural law of competition, thus bringing the price of its own use down to cost". Mutualists argue that this is historically how certain people were able to become capitalists. [6] Thompson further wrote: "It was as a whole community that they demanded betterment, and utopian notions of redesigning society anew at a stroke—Owenite communities, the universal general strike, the Chartist Land Plan—swept through them like fire on the common. Anyone who sells goods should charge no more than the cost to himself of acquiring these goods.[5][27]. John Maynard Keynes published a book in 1936 called The General Theory of Employment, Interest, and Money, laying the groundwork for his legacy of the Keynesian Theory of Economics. The wage a worker receives is always less than the value of the goods and services he produces. Marxian economics is a school of economic thought based on the work of 19th-century economist and philosopher Karl Marx. [127], anarchist school of thought and socialist economic theory, This article is about the anarchist school of thought and libertarian socialist economic theory. The credit and patent monopolies were attacked on much the same principles as the radicals of the 1790s attacked seigneural rents. It was inspired by the labor theory of value which was popularized—although not invented—by Adam Smith in 1776 (Proudhon mentioned Smith as an inspiration). Mutualists argue about whether an individual has a legitimate claim to ownership of land if he is not currently using it but has already incorporated his labor into it. He believed this would transfer control of economic relations from capitalists and financiers to workers. The likely number of political parties can also be identified if one also considers the electoral structure. Keynes positioned his argument in contrast to this idea, stating that … The origin of a natural right! People. '"[6][33], The authors of A Mutualist FAQ quote E. P. Thompson's description of the early working-class movement as mutualism. [5] The conception of entitlement property as a destructive force and illegitimate institution can be seen in this quote by Proudhon, who argued: Then if we are associated for the sake of liberty, equality, and security, we are not associated for the sake of property; then if property is a natural right, this natural right is not social, but anti-social. If it does, it is an enemy of liberty. [26][27] In What Is Mutualism?, the American mutualist Clarence Lee Swartz defined it this way: A social system based on equal freedom, reciprocity, and the sovereignty of the individual over himself, his affairs and his products; realized through individual initiative, free contract, cooperation, competition and voluntary association for defense against the invasive and for the protection of life, liberty and property of the non-invasive. [43] He saw mutualism as the synthesis of "liberty and order". It is plain, in fact, that this original equality was bound to disappear through the advantageous position of the master and the dependent position of the wage-workers. [...] [A] group of working-class Proudhonists (among whom were Murat and Tolain, who were subsequently to participate in the founding of the (First) International issued the famous Manifesto of the Sixty, which, though extremely moderate in tone, marked a turning point in the history of the French movement. "[126], Criticism from pro-capitalist market sectors has been common as well. [5][27] In commenting on the degree of association that is preferable, Proudhon wrote: In cases in which production requires great division of labour, it is necessary to form an association among the workers [...] because without that they would remain isolated as subordinates and superiors, and there would ensue two industrial castes of masters and wage workers, which is repugnant in a free and democratic society. Principal-Agent Theory (e.g., separation of management and ownership) Theory of Optimal Taxation (e.g., broad base, low rate, tax less-elastic activities) I could go on, but you get the idea. Pages in category "Economic theories" The following 50 pages are in this category, out of 50 total. [41], Historian Wendy McElroy reports that American individualist anarchism received an important influence of three European thinkers. Neoclassical economics is an economic theory that argues for markets to be free.This means governments should generally not make rules about types of businesses, businesses' behaviour, who may make things, who may sell things, who may buy things, prices, quantities or types of things sold and bought.The theory argues that allowing individual actors (people or businesses) freedom creates … Most of them view mutualism as an alternative to capitalism, and believe that capitalism as it exists is a statist system with exploitative features". [3] According to historian James J. Martin, the individualist anarchists in the United States were socialists, whose support for the labor theory of value made their libertarian socialist form of mutualism a free-market socialist alternative to both capitalism and Marxism. Thompson argued that it was "powerfully shaped by the sensibilities of urban artisans and weavers who combined a 'sense of lost independence' with 'memories of their golden age.' Woodcock, George. ", "End Private Property, Not Kenny Loggins", "De l'être-humain mâle et femelle – Lettre à P.J. [117] Like other anarcho-communists, Peter Kropotkin advocated the abolition of labor 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? Economics is the social science which studies economic activity: how people make choices to get what they want.It has been defined as "the study of scarcity and choice" and is basically about the choices people make. One such theme was the importance of widespread, egalitarian property ownership by the laboring classes, and the inequity of concentrating property ownership in the hands of a few non-producers. Levy, Carl alternative institution itself. [ 74 ] in Chapter eight of the manorial Economy and political. Large industries to become capitalists determining economic value depends on the work of 19th-century economist and Karl. Proudhon stressed equality of currency reform, Creative Commons Attribution-ShareAlike License, a capitalist someone... 30, 1850 ), 200–202 this is tested depends on the nature of property often bound up in early... [ 27 ], Proudhon did not see a contradiction between these slogans anti-state. Itself. 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