Introduction by Alex

For Marxists, this article shouldn’t tell us anything we don’t already know, but for the rest of the population, it is a great summation of capitalism and it very briefly touches on the Marxist alternative. Although it does not have a wealth of information, it serves as a very straightforward summary of Marx’s Das Kapital, and it comes from one of the greatest minds in the history of mankind.

Since this is Einstein talking, I believe it is a good “first step” into the vast world of Marxist thought because it is short, sweet, and to the point, and his name, unlike the name of Marx, has not yet been tarnished by the ruling class.

[There was an attempt by the FBI, during the Hoover administration, to show that Einstein was a Soviet spy, but this failed and the investigation was swept under the carpet.]

Einstein mentions that the solution to all of capitalism’s problems is an economy that is run in a planned way. He does, however, make this distinction:

“Nevertheless, it is necessary to remember that a planned economy is not yet socialism. A planned economy as such may be accompanied by the complete enslavement of the individual. 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?”

He does not answer that question and I think it is something that needs to be addressed now.

Central planning is a tool that the workers may use, and indeed, in moderation, central planning may be very useful. But we have to understand that this is not our goal, and it is not and cannot be the only tool that we will use. Central planning on a massive scale where every last little thing is micromanaged is extremely inefficient, and that is what led to the collapse of the Soviet Union. It is also extremely vulnerable to corruption without, as Einstein puts it, “a democratic counterweight.”

So what, then, is our answer to Einstein’s question?

It is that:

a) Central planning is not our goal and it is not the only tool that the workers will use. Our goal is a society where everyone runs the economy in common without money, wages, or exchange of any kind, with the necessary precursor of workers’ rule.

b) Under workers’ rule, the entire working class will have concrete democratic rights of free speech and the freedom to organize independently of the “Marxist” party without permission from the state. In this way, any corruption or hypocrisy that develops can and will be exposed/dealt with.

Because I don’t want to waste any more of your time, I will only post the second half of the article, as the first half isn’t really relevant. However, you can find the whole article here: [link]

Albert Einstein: Why Socialism?



[…]

The economic anarchy of capitalist society as it exists today is, in my opinion, the real source of the evil. We see before us a huge community of producers the members of which are unceasingly striving to deprive each other of the fruits of their collective labor — not by force, but on the whole in faithful compliance with legally established rules. In this respect, it is important to realize that the means of production — that is to say, the entire productive capacity that is needed for producing consumer goods as well as additional capital goods — may legally be, and for the most part are, the private property of individuals.

For the sake of simplicity, in the discussion that follows I shall call “workers” all those who do not share in the ownership of the means of production — although 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 new goods which become the property of the capitalist. The essential point about this process is the relation between what the worker produces and what he is paid, both measured in terms of real value. In so far 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 the smaller ones. The result of these developments is an oligarchy of private capital the enormous power of which cannot be effectively checked even by a democratically organized political society. This is 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 the electorate from the legislature. The consequence is that the representatives of the people do not 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 indeed in most cases quite impossible, for the individual citizen to come to objective conclusions 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 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 pure capitalist society in this sense. In particular, it should be noted that the workers, through long and bitter political struggles, have succeeded in securing a somewhat improved form of the “free labor contract” for certain categories of workers. But taken 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 willing to work will always be in a position to find employment; an “army of unemployed” 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, and great hardship is the consequence. Technological progress frequently results in 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 accumulation and utilization of capital which leads to increasingly severe depressions. Unlimited competition leads to a huge waste of labor, and to that crippling of the social consciousness of individuals which I mentioned before.

This crippling of individuals I consider the worst evil of capitalism. Our whole educational system 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 one way 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 production to the needs of the community, would distribute the work to be done among all those 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 him a sense of responsibility for his fellow-men in place of the glorification of power and success in our present society.

Nevertheless, it is necessary to remember that a planned economy is not yet socialism. A planned economy as such may be accompanied by the complete enslavement of the individual. 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?