Marx and libertarians

Posted: 30 June 2017 in Uncategorized
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Tansey_Mark_Duet

Mark Tansey, “Duet” (2004)

There are plenty of reasons why contemporary libertarians might want to read Karl Marx—and at least one reason why they wouldn’t.

Chris Dillow suggests libertarians “would be surprised by a lot of Marx” and offers three reasons why they should read him.

One is that Marx saw economics as a historical process.

One implication of this for libertarians is that they must ask: what material economic basis would make our ideas more popular? I’d argue that one such basis is greater equality, as this would diminish demands for statist regulation.

A second is Marx’s view of the relationship between property rights and technical progress.

This might speak to our current secular stagnation. Why are productivity growth and capital spending so weak? Might one reason be that the fear of future losses from competition is deterring investment? Or that excessively tight intellectual property laws are restricting innovation? Marx poses the question: how should property rights alter to foster growth? This surely should interest libertarians.

The third reason lies in Marx’s attitudes about the expansion of the realm of freedom.

Marx’s main gripe with capitalism wasn’t so much that it was unfair but that it thwarted our freedom to develop our human potential. Work, instead of being a source of self-expression, is oppressive and alienating under capitalism.

According to Dillow, libertarians should read Marx because, in all three cases, he poses some questions to them that should sharpen their thinking.

I agree.* But, as I explained back in 2012, there’s at least one reason why Marx would infuriate libertarian readers—because of their sense of the right of private individuals to do what they like on and with their property.

Marx, in chapter 6 of volume 1 of Capital, presents an analysis of private power to which libertarians are—and, I suspect, always will be—blind:

This sphere that we are deserting, within whose boundaries the sale and purchase of labour-power goes on, is in fact a very Eden of the innate rights of man. There alone rule Freedom, Equality, Property and Bentham. Freedom, because both buyer and seller of a commodity, say of labour-power, are constrained only by their own free will. They contract as free agents, and the agreement they come to, is but the form in which they give legal expression to their common will. Equality, because each enters into relation with the other, as with a simple owner of commodities, and they exchange equivalent for equivalent. Property, because each disposes only of what is his own. And Bentham, because each looks only to himself. The only force that brings them together and puts them in relation with each other, is the selfishness, the gain and the private interests of each. Each looks to himself only, and no one troubles himself about the rest, and just because they do so, do they all, in accordance with the pre-established harmony of things, or under the auspices of an all-shrewd providence, work together to their mutual advantage, for the common weal and in the interest of all.

On leaving this sphere of simple circulation or of exchange of commodities, which furnishes the “Free-trader Vulgaris” with his views and ideas, and with the standard by which he judges a society based on capital and wages, we think we can perceive a change in the physiognomy of our dramatis personae. He, who before was the money-owner, now strides in front as capitalist; the possessor of labour-power follows as his labourer. The one with an air of importance, smirking, intent on business; the other, timid and holding back, like one who is bringing his own hide to market and has nothing to expect but — a hiding.

 

*Although I can’t agree with Dillow’s suggestion that readers should start volume 1 of Capital at chapter 10, and turn to the first nine chapters last. In my view, readers should begin with the first three chapters, on the commodity, where Marx presents the initial steps in his critique of political economy. In fact, every time I teach Capital, I run the risk of rushing through the remaining material precisely because I find so much to present to contemporary students about commodities and markets in that first section.

Comments
  1. Equal exchange should not be a principle in economics. If Bill Gates’s net worth is $89 billion that could be explained two ways. A. Bill himself, not his company his personal contribution, gave society $89bn worth of stuff and the exchange was equal, or B. Bill found a scheme to exchange things unequally, with employees, partners or the public, and accumulated the error in his favor. Which of these is more likely?

    Staggeringly, libertarians believe in equal exchange. The proper economic principle is not voluntary or equal but something like “mutually agreeable”. Which is morally very weak. It’s mutually agreeable for a single mum to sew clothing or clean rooms for a marginal wage, rather than starve, but it’s not voluntary or equal.

  2. You have provided no valid reason whatsoever for why libertarians should read Marx. This can be contributed either by your misunderstanding of what libertarianism is really about, or your desire to project onto libertarians what they ought to be about. To make a potentially complicated story simple: libertarianism is not about freedom from reality, freedom from choice or freedom from the facts of life.

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