Many people think that money has always existed and therefore it always will. Wrong.
Human beings have lived on this planet for hundreds of thousands of years without using money. When they were hungry, they ate. When they were thirsty, they drank. Whatever was available to anyone was available to everyone.
It wasn't paradise, because food was scarce, and growing communities were eventually forced by this scarcity into a competitive struggle for life.
First came the invention of agriculture, and the consequent need to defend the land, or property, on which crops were grown.
Although this gave communities more stability and growth, agriculture and animal husbandry could not by themselves supply everything which they needed to develop as cultures. For this they needed to associate with other communities and pool their resources. But in the new culture of property there was never again to be such freedom to take whatever was available.
And so began the exchange of products known as trade. And although some quite advanced bronze age societies managed to trade very well by using barter (e.g. the Egyptians), it was a supremely awkward way to conduct transactions. With the advent of the Iron Age, cheap metal was for the first time plentiful, and coinage was slowly introduced to facilitate the trading process.
Civilisation has since grown up on the back of this trade, whose sophistication was made possible by the invention of money. To the modern mind therefore, civilisation relies on money. This is a misunderstanding. In fact, it is only trade which relies on money. Civilisation relies on distribution of material goods certainly, but distribution is not the same thing as trade, just as give is not the same thing as sell. Modern industrial society has given us the means to free ourselves forever from that scarcity which has always dogged our forebears. Money is no longer a necessity or logical feature of society, and only a tiny minority benefit from its presence.
In history, many things become out of date, like the steam engine or quill pens. Money is about to join them.
Money today
Money is indispensable to the capitalist system, but this system is not indispensable to human society. Money as a universal means of exchange represents capital. The possessing of money enables the buyer to acquire goods and services (commodities) and the seller to dispose of goods and services. The key resource that is bought and sold is human labour power?the ability to transform initial wealth (resources, raw material, etc) into more wealth.
We live in a society where almost everything is bought and sold. That which you need to live is a commodity, you must buy it from someone who will make (or at least expect) a profit out of selling to you. It is our passport to existence in capitalism. Not only does the movement of products from producer to consumer come to be mediated by money, but the value of a product comes to be judged not in human terms but in terms of a sum of money.
The key to the rise of continuation of the capitalist system is the ability of members of the capitalist class (owners of means of wealth production and distribution) to buy the working abilities of members of the working class. They combine that labour with capital resulting in commodities that can be sold for more than it costs in total to produce them.
A high proportion of employment in capitalism consists of handling money in some way. There are hundreds of occupations that would not exist in a society that had no need for money: they range from accountants, bank and insurance staff, salespeople, wages clerks to name only some of the more numerous occupations. Tangible products needed only in a money system include bank notes and coins, account books and invoices, meters, safes and many others.
Capitalism as a market system means that the normal method of getting what you need is to pay for it. The normal way for members of the capitalist class to get money is to invest their capital to produce rent, interest, dividends or profit. The normal way for workers to get money is to sell their labour power for wages, salaries, commission or fees. If they are unable to find employment they depend on state or other handouts. The result is poverty in the midst of potential plenty?actual plenty only for the privileged minority.
Socialism: a moneyless society
Socialism means a world society based on production solely for use, not profit. It will be a classless society, in which everyone will be able to participate democratically in decisions about the use of the world's resources, each producing according to their ability and each taking from the common store according to their needs.
In such a society there can be no money?or, more precisely, no need for money. Money is only needed when people possess, and most do not.
Imagine that all the things you need are owned and held in common. There is no need to buy food from anyone?it is common property. There are no rent or mortgages to pay because land and buildings belong to all of us. There is no need to buy anything from any other person because society has done away with the absurd division between the owning minority (the capitalists) and the non-owning majority (the workers).
In a socialist world monetary calculation won't be necessary. The alternative to monetary calculation based on exchange-value is calculation based on use values. Decisions apart from purely personal ones of preference or interest will be made after weighing the real advantages and disadvantages and real costs of alternatives in particular circumstances.
The ending of the money system will mean at the same time the ending of war, economic crises, unemployment, poverty and persecution?all of which are consequences of that system.
The revolutionary change that is needed is not possible unless a majority of people understand and want it. We do not imagine all humankind's problems can be solved at a stroke.
Reforms of the present system fail because the problems multiply and recur. It will take time to eliminate hunger, malnutrition, disease and ignorance from the world.
But the enormous liberation of mental and physical energies from the shackles of the money system will ensure that real human progress is made.
http://www.worldsocialism.org/spgb/sep00/falmoney.html
I choose not to quote this in hopes you'd actually read it.
Also those questioning the incentive to work and evolve please read this, it's worth discussing IMO. And may shed some light on the common misnomer of calling the democrtes or any other other country "socialist" since that is not the case. The liberal european countries and US dems are very much capitalists in a political science debate.
Socialism will work
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Socialists stand for the establishment of a system of society fundamentally different from that which exists now. In a socialist society the means of producing and distributing wealth - factories, farms, mines, docks, offices, transport - will belong to the whole community. Common ownership will do away with the need for exchange, so that money will have no use.
Production in socialism will be determined by people on the basis of social need, not profit. At the moment people may need wealth but, unless they can afford to buy it, they must go without. Production is geared to sale with a view to profit. Socialism means production solely for use: bread to eat, houses to live in, clothes to wear.
What will be the incentive to work in a socialist society? There will be no wages, for in a classless society no person will have the right to buy another person's ability to work for a price. Work in socialist society will depend on cooperation and the voluntary decisions of men and women to contribute to society in order to keep it going. Just as an individual could not survive if he or she did not eat, drink or take basic health care, so a socialist society would not survive unless the people in it acted cooperatively in a spirit of mutuality.
Socialism will not be a Utopia where all the problems of existence have vanished. Unpleasant work will still have to be done. Of course, much of the dirty work of the profit system, such as killing and conning and counting bank notes, will be dispensed with immediately in a socialist society. Other unappealing work can probably be taken care of by labour-saving machines. Where dirty work will have to be done in socialist society we can be quite sure of two things: firstly, it will not be done by the same people all the time - members of society will take turns; secondly, such work will be carried out by socially conscious men and women who will appreciate that society belongs to them and therefore its less pleasant tasks must be performed by them. In the knowledge that we own and control the earth, and all that is in and on it, it is unlikely that human beings will refuse to attend to the dirty work within socialism.
What about the lazy people in a socialist society? Critics of the socialist proposition often tell us that socialism would be confronted with millions of men and women who would refuse to do their bit to make society run efficiently. Indeed, socialist society will contain millions of babies and infants who will not be able to work down mines or milk the cows; but, in the sensible knowledge that these dependents will be the providers of tomorrow, we do not think that the inhabitants of socialism will let babies starve to death. Fifteen million children under five die of starvation every year at the moment - a society based on production for use would not tolerate such obscenity. There will be those in socialist society who are too old or too ill or too incompetent to offer much to society; but they are not lazy and there is no reason why society should not allow them to give according to their varying abilities and take according to their differing needs. And if one who contributes less takes more, why should this be a problem in a society which is based on the satisfaction of needs? Those people living in a socialist society who are too lethargic to work will not be a drain on society's resources for very long, for if they lie in bed for long enough they will die - of boredom, if not of inertia.
But is it not the case that, given a society of unrestricted access to social wealth, human greed will lead people to consume all the wealth of society within one month? Such is the "problem" foreseen by the critics of socialism. To begin with, their prediction is based on the false assumption that socialism would be a society of consumption only, whereas it would obviously be a society where what is consumed would have to be matched by what is produced. So, if people in socialist society decide to eat ten dinners a day - as our critics seem to fear - there will have to be provision made to produce enough food to satisfy such unhealthy gluttony. Of course, in cases where people want what society is unable to produce, or has democratically decided it will not produce, their consumption will have to be limited. This may be bad news for the Utopian but, for the worker who is currently deprived of what he or she needs (not because society cannot satisfy the need or has decided democratically not to but because it is unprofitable to do so) the idea of democratically organised production for use is infinitely preferable to the present social arrangement. For example, the thousands of pensioners who have died of hypothermia are not likely to reject the socialist proposition because it will not allow them to eat ten dinners a day; at least a society based on producing for needs will ensure that no one is unable to have access to warmth.
But what about this greed? The critic of the socialist idea is truly worried that in a society of free access, people will take more than they need. Now it is quite true that if the stores were opened tomorrow and workers were invited to go in and take as much as they want without having to pay there would be a mad rush and the stores would be empty within a day. But why should this be the case if the stores are always open for free access? It would be odd indeed for the inhabitants of socialism to store dozens of loaves of bread, which would go stale before they could be eaten, when the option would exist to go to the store and collect a new loaf of bread each day or few days. It would be no less odd for us to read today of workers filling their lungs up with water because they fear that when they next turn the tap the free liquid will no longer be there to consume. Perhaps, in innocence, the earliest inhabitants of socialism will indulge in a few feasts of conspicuous over-consumption (who would be surprised at such action after years of poverty and social inferiority?), but such antics will soon end when the physical consequences of such irrationality are felt.
But is it not the case that, even if classes were abolished and all people were equal, a hierarchy would soon arise again and society would be back to square one? The opponent of socialism feels convinced that inequality is a phenomenon from which society can never escape. Perhaps - and only perhaps - socialist society will not eliminate inequalities of talent: one person might be a greater pianist than another will ever be, while another will run faster than another could ever train to run. But this does not mean that socialism will establish a hierarchy of pianists or athletes or poets or brain surgeons. In a cooperative society it will be recognised that poets cannot write their literary masterpieces unless the miner is willing to bring the coal from under the ground. Humanity lives interdependently. And who is to say that miners will not be poets when they are not down the mine and the greatest chess player in socialism will not sweep the streets so that the greatest brain surgeon can walk to the hospital without rats biting at the ankles? The rigid division of labour which is a feature of the present system will not exist in socialist society.
In general, critics of the socialist proposition are not saying that they are opposed to the establishment of a socialist world, as defined by socialists. Most of them are raising objections to socialism which reflect their own conditioning by the present social order. The "problems" which they fear are based on the wrong assumption that socialism is going to be imposed on the conditions of capitalism, including the consciousness which props up the system. Of course, a majority of people whose minds are still filled with the ideas and prejudices of the profit system could never run socialism. That is why the Socialist Party of Great Britain states emphatically that there can be no socialist society until a majority of workers understand and want it. Only then will the baseless fears of socialism's critics become as absurd as the quaint old fears of the Victorians that electricity in all homes would lead to dangers which society would be unable to handle. Yes, the future always looks strange when people's minds are imprisoned within the past, but the nearer we get to the next stage in social development the less strange the idea of production for need becomes.
There are thousands of workers walking around with ideas in their minds which are close or identical to those advocated by socialists; as that number grows, and as they gather into the conscious political movement for socialism, the doubts of the critics grow fainter and more absurd and what once seemed unthinkable rises to the top of the agenda of history.
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