Why capitalism is theft even if it is voluntary and consensual, and a case for universal worker democracy
“Neo-Abolitionism: Towards Abolishing the Institution of Renting Persons”
The talk argues that capitalism is invalid on the basis of the theory of inalienable rights. Inalienable means can’t be given up or transferred even with consent. Capitalist apologists often appeal to contractual consent to defend the system, so this changes the debate
This is a pretty good (if brief) critique of Marx and other anti-capitalist thinkers but he says almost nothing about how a Neoabolitionist society would work in practice. He holds up Mondragon as an example but he does not say anything about other industries besides manufacturing.
For example, say I hire a plumber to fix a leaking faucet in my kitchen. That’s an ordinary thing to do in today’s capitalist society. Does that contract still exist under Neoabolition? If not then what? Does the plumber continue owning my faucet and charge me rent for it? Does the plumber now own a share of my house?
What about surgeons? If I hire a surgeon to fix a damaged tendon in my elbow, does the surgeon own part of my body? No obviously not, since my body is inalienable from me.
You might say that plumbers and doctors are independent contractors and so we should carve out an exemption for them so they can continue to operate, under Neoabolition, as independent contractors who freely sell the product of their labour and derive one hundred percent of the profit from it. Carpenters, plumbers, electricians, movers, repairpersons, and other specialists would all be independent contractors available for hire.
So then the capitalist, under the new system, hires a bunch of independent contractors to build, maintain, and repair his factory which has no permanent employees but is otherwise fully automated.
Am I missing something?
This talk focuses on putting forward the argument against the current system. Ellerman describes economic democracy in detail in other work.
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All firms would be mandated to worker coops. All worker would automatically gain voting rights over the firm by working in the firm. All the firm’s workers are voting members
The plumber sells the faucet to you as part of the contract they make with you.
Independent contractors are legally and theoretically distinct from employees
So then how does this address my scenario of the capitalist who does not hire any employees but relies entirely on independent contractors to do the work of setting up and maintaining the factory? This is in principle no different from me hiring the plumber to install my new kitchen faucet.
You might say the factory is different because it’s on land which is separate from my family home but that’s not a fundamental issue for the capitalist to overcome. Plenty of farmers, for example, build manufacturing facilities (say, for processing crops into livestock feed) on their farms where they live.
The issue of independent contractors is at the heart of the fight over Uber and Uber Eats drivers. Some jurisdictions have sought to try to force drivers to be employees rather than independent contractors in order to give provide them with an hourly wage and benefits such as health insurance, dental care, and pensions. Of course drivers themselves frequently oppose this designation because formal employment necessarily entails the loss of control over working hours and schedules.
Neoabolitionist society would seem to enshrine the independent contractor status of Uber drivers into law. Essentially all employees as we know them today would be converted into gig workers!
Or is there some other mechanism to deal with this? Is there another video by Ellerman that addresses all these questions?
There are legal tests to test whether a worker is an independent contractor or an employee such as the control test. You shouldn’t be able to declare a de facto employee as a de jure independent contractor. The factory with only independent contractors wouldn’t be able to exercise the same managerial authority over the workers as if they were employees. If these contractors cooperate directly, they are almost certainly in a de facto worker coop.
https://www.ellerman.org/wp-content/uploads/2022/01/UsingESOPsInPlatformCompanies.pdf
