David Schweickart

Since first published in 2002, After Capitalism has offered students and political activists alike a coherent vision of a viable and desirable alternative to capitalism. David Schweickart calls this system Economic Democracy, a successor-system to capitalism which preserves the efficiency strengths of a market economy while extending democracy to the workplace and to the structures of investment finance. In the second edition, Schweickart recognizes that increased globalization of companies has created greater than ever interdependent economies and the debate about the desirability of entrepreneurship is escalating. The new edition includes a new preface, completely updated data, reorganized chapters, and new sections on the economic instability of capitalism, the current economic crisis, and China. Drawing on both theoretical and empirical research, Schweickart shows how and why this model is efficient, dynamic, and applicable in the world today.

David Ramsay Steele's From Marx to Mises argues correctly that the standard account of the economic calculation debate is a misrepresentation. Mises and Hayek were not bested by Lange and Taylor. However, it is not true, as Steele claims, that socialists have yet to face the Misesian challenge, nor that the debate over socialist calculation sheds much light on the recent collapse of communism. Steele's critiques of market socialism and worker self‐management and his treatment of Marx are, moreover, deficient, as a consequence of his “Libertarian Panglossism.” Tout est an mieux... dans ce meilleur des mondes possibles.

Schweickart argues that Gould in her most recent book seems to have shifted away from the notion of economic democracy as “one person, one vote” to a less radical modified stakeholder view in which the various constituents of the economic enterprise, including employees, stockholders, and managers, share in decision-making power. Noting that Gould does not explain why she holds that workplace democracy is a too stringent participatory demand, Schweickart brings up a variety of arguments that might be offered in support of her claim and finds them all clearly wanting. More briefly, he addresses Gould’s normative analysis of terrorism, concluding that it raises, but does not address, the difficult question, “Should we empathize with the [suicide] terrorists?” [Abstract prepared by the Editors.]

Professor Arnold's reply to my reply seems not to have touched the substance of my argument. Perhaps I have been unclear. Arnold contends that any form of market socialism, if unchecked by central authorities, would revert to a system essentially undistinguishable from capitalism. Against this contention I have argued that a democratic, worker-controlled, market socialism that generates its investment fund by taxation exhibits no such tendency. Specifically, I argued that in such a society 1. there exists no tendency for socialized property to revert to private property ; 2. the ability of private individuals to accumulate vast wealth is sharply curtailed ; 3. the authority structures within enterprises are much more democratic than under capitalism; 4. intra-firm income differentials will be far more egalitarian than under capitalism.

This book is a completely rewritten version of the author's earlier Capitalism or Worker Control?. Its central thesis is that, despite the collapse of communism in Eastern Europe and the break-up of the Soviet Union, capitalism cannot be justified on either economic or ethical grounds. There is in fact an alternative to capitalism that promises greater efficiency, and equality, and more rational growth, democracy and meaningful work. This alternative, Economic Democracy, is market socialism with decentralised investment planning and workplace democracy. Professor Schweickart compares this model with other models – laissez-faire conservatism, the Keynesian welfare state, and 'neo-liberalism' – and argues that it is really superior on every count. He also sketches out a possible transition from advanced capitalism, from what is left of the centrally planned economies, and from Third World underdevelopment, to Economic Democracy. The author concludes with some reflections on Marx's communism, as historical materialism, and on the future of Marxism.

Democratic Socialism -- The relationship between democracy and socialism is a curious one. Both traditions are rooted philosophically in the concept of equality, but different aspects of equality are emphasized. Democracy appeals to political equality, the right of all individuals to participate in setting the rules to which all will be subject. Socialism emphasizes material equality--not strict equality, but an end to the vast disparities of income and wealth traceable to the inequalities of ownership of means of production.

My interest in China was rekindled several years ago by an invitation to a conference, "Modernization, Globalization and China's Path to Economic Development," to he held in Hangzhou, July, 2002. The conference was organized by Cao Tian Yu, a philosopher of science at Boston University and his wife Lin Chun of the London School of Economics--both deeply concerned about the future of China. It was attended by a number of Western Leftists (Samir Amin, Perry Anderson, Robin Blackburn and myself), by China specialist Joseph Fewsmith, by representatives from Singapore, Taiwan and India, by representatives from China's developing "New Left," (among them Wang Hui, whose book China's New Order was recently published by Harvard University Press1), by the president of Hangzhou College of Commerce (where the event was held) and by three retired, once prominent government officials, among them Du Runsheng, a principal architect of China's agricultural reform of the late 70s, early 80s.

What are we to make of the "Parecon" phenomenon? Michael Albert 's book made it to number thirteen on Amazon.com a few days after some on-line promotion.1 Eight of the twelve Amazon.com reviewers had given the book five stars. It has been, or is being, translated into Arabic, Bengali, Telagu, Croatian, Czech, Finnish, French, German, Greek, Italian, Japanese, Korean, Spanish, Swedish and Turkish.2 The book has been endorsed by Noam Chomsky, who says it "merits close attention, debate and action," by Arundhati Roy, who calls it "a brave argument for a much needed alternative economic vision," by Ben Bagdikian, who finds it "a compelling book for our times," and by Howard Zinn, who sees it as "a thoughtful, profound meditation on what a good society can be like."3 Yet it is a terrible book