ebook img

Papers in Economics and Sociology PDF

596 Pages·1970·8.861 MB·English
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview Papers in Economics and Sociology

PAPERS IN ECONOMICS AND SOCIOLOGY by OSKAR LANGE Translation edited by P. F. Knightsfield PERGAMON PRESS OXFORD · LONDON · EDINBURGH · NEW YORK TORONTO · SYDNEY · PARIS · BRAUNSCHWEIG PANSTWOWE WYDAWNICTWO NAUKOWE WARSZAWA Pergamon Press Ltd., Headington Hill Hall, Oxford 4 & 5 Fitzroy Square, London W. 1 Pergamon Press (Scotland) Ltd., 2 & 3 Teviot Place, Edinburgh 1 Pergamon Press Inc., Maxwell House, Fairview Park, Elmsford, New York 10523 Pergamon of Canada Ltd., 207 Queen's Quay West, Toronto 1 Pergamon Press (Aust.) Pty. Ltd., 19a Boundary Street, Rushcutters Bay, N.S.W. 20111, Australia Pergamon Press S.A.R.L., 24 rue des Écoles, Paris 5e Vieweg & Sohn GmbH, Burgplatz 1, Braunschweig Copyright (§) 1970 Panstwowe Wydawnictwo Naukowe First English edition 1970 Library of Congress Catalog Card No. 68-22080 Printed in Poland 08 012352 X PREFACE TO THE POLISH EDITION When it was decided to publish a collection of my papers, written over a period of thirty years, I had certain doubts about the interest my early work could arouse today, for writings in the social sciences quickly become out of date. Moreover, I am at present engaged upon setting out the results of my work, covering a long period of time, in a book entitled Political Economy, the first volume of which has recently appeared. Is there, then, any need to collect and publish my early works? I have been convinced, however, by two arguments. One is that in Political Economy, on the remaining volumes of which I am working at present, I shall not be able to cover all the details of the problems with which I have been concerned in my research. This book will not, therefore, summarize the whole of my work. The second argument is to show the path I took which has led me to my present conclusions. This shows in a way the whole field of my research and what it covers, together with the gradual development of my conclusions. It is these considerations which have determined the choice of papers in this collection. I have chosen papers directly connected with the general trend of my social and scientific interests and have left out those con- cerned with problems outside this general trend, namely those which are exclusively technical or political, and those which I consider as being of no interest whatsoever today. As a result, the collection consists of papers which I consider to be most characteristic of the development of my work and which, in spite of the time that has elapsed since they were written, are still of interest today. To allow for the variety of topics with which these papers deal, the collection is divided into five parts. It seems to me, however, that from among these various topics the reader will perceive a single guiding idea, namely, an attempt to link a strictly scientific treatment of economic investigation with the needs of social practice, and in particular with the working-class movement and the question of socialism. This aim is served even by abstract, mathematical economic arguments, seemingly so remote from social practice. vii viii Preface to the Polish Edition I think, moreover, that in these papers, written over a period of thirty years, the reader will detect a definite line of development. This line is not always a straight one, more than once breaking off and starting forward anew. This is brought about by the development both of scientific thought as such and of historical conditions, coupled with historical experience, which throws new light on a given problem. For this reason, individual papers obviously do not always reflect my present views on a given problem ; many of them show the path which led me to the views I hold today. In order to help the reader to see both this path and my present view on a given problem, some earlier papers are included next to more recent ones on the same subject. In this way, the reader can compare papers on the same problem written at different periods, and thus see which of my earlier views I still hold and which of those I have since abandoned. Even papers published relatively recently do not always fully reflect my present views on a given problem. As an example I can quote certain proposals from the article How I See the Polish Economic Model (Jak sobie wyobrazam polski model gospodarczy) and in particular the proposal to establish a second Chamber in the Seym to represent the various branches of the socialist economy. The Polish Seym has worked out a different way of parliamentary control of the socialist economy with the help of a good number of permanent committees. This way has proved efficient and must be the basis for the further development of socialist democracy in Poland. The papers contained in this collection have been reprinted without any major revision. In some cases the text has been condensed, and stylistic alterations have occasionally been made. On the other hand, the quotations contained in these papers are generally taken from the newest Polish edition of the given book. Thus, for example, in the paper published in 1931, the quotation by Lenin is taken from the present edition of the Works (Dziela), published by Ksi^zka i Wiedza. In this paper, the quotation from Hilferding's book Das Finanzkapital is taken from the Polish translation published in 1958. This rule is observed throughout, thus making it easier for the reader to find the sources of the quotations. Many of the papers were originally published in languages other than Polish. At the end of the book a bibliography is given of the most important Preface to the Polish Edition jx of my economic and sociological publications. This does not contain publications of lesser or only passing significance, nor those of a purely political nature. OSKAR LANGE Warsaw, September 1961. FOREWORD The table of contents of this volume points to the unusually wide interests of the author: they encompass not only all the economics, in the strict sense, but also related problems of sociology on the one hand and those of mathematics or mathematical statistics on the other. However, in Lange's work three lines of thought seem to me most important: (a) the problem of functioning of the socialist system; (b) dynamics of capitalist and socialist economics; (c) historical mate- rialism. His essay on the modus operandi of a socialist economy, Economic Theory of Socialism, published first in 1937, was one of the most important of Lange's contributions. It played a crucial role in the discussion about the feasibility of rational management of a socialist economy which at that time was in full swing in the West. In reply to the point that such management would require a solution of an enormous number of equations, laboured by reactionary economists, Lange emphasized that the authorities of a socialist economy may always resort to a certain measure of market mechanism. This essay does not appear in the present volume since it was subsequently published in book form conjointly with a paper of Taylor. However, two items related directly to this subject are included: How I See the Polish Economic Model and The Role of the Co-operative Movement in the Construction of Socialism. It should be noted that the ideas expressed in these papers are not necessarily identical with those of Economic Theory of Socialism. This is, in fact, natural since they are not concerned with demonstrating the possibility of rational operation of the socialist system in abstracto, but with a specific analysis of the role of the market (or quasi-market) within the framework of a centrally planned economy. In addition, Lange's views on the subject are clearly influenced by his first-hand experience of the actual functioning of a socialist economy. Lange's research in economic dynamics at the early stage of which he produced the well-known paper The Rate of Interest and the Optimum Propensity to Consume (1938) is represented in the present volume in xi xii Foreword particular by "Some Observations on Input-Output Analysis". This essay established the connexion between the Marxian schemes of reproduction and the input-output matrices. In the same category may be included two papers on planning economic development in the so- called mixed economies: Observations on the Second Five-Year Plan in India and The Tasks of Economic Planning in Ceylon. Finally, a brilliant presentation of the gist of historical materialism is contained in an early paper (1936) included in this volume, Ludwik Krzy- wicki—Theorist of Historical Materialism. In another paper of the present volume, Current Problems of Economic Science in Poland, the applicability of the method of historical materialism to the evolution of socialist systems is developed. All these lines of research as well as others were to converge in a great three-volume treaty on Political Economy which was to be in a sense the crowning stone of Lange's work. Unfortunately, only the most valuable first volume and a part of the second were published. The illness and the untimely death prevented bringing this great undertaking to an end. In the present volume Lange's ability of synthesis of the most important problems of economics is exemplified by the paper on The Political Economy of Socialism which was written initially for the Polish General Encyclopedia. It follows from the above that the present book concerned with manifold subjects constitutes at the same time an essay on the subject Oskar Lange — a Universal Economist. M. KALECKI THE ROLE OF THE STATE IN MONOPOLY CAPITALISM The most important problem facing the working-class movement today is the need to be clearly aware of the economic role which the State plays at the present stage of monopoly capitalism, and of the funda- mental change taking place which is affecting its social function; for, the attitude the working-class movement adopts to all present-day economic and political problems may depend on just such awareness. The transformation of freely competitive capitalism into monopoly capitalism begins with the concentration of production and capital. When a high level of concentration is reached, there must necessarily appear among the capitalist groups, controlling concentrated production plants, the desire to use their power to secure for themselves a mono- polistic position and additional monopoly profits exceeding the level of profit resulting from free competition. This is achieved by agreements between the biggest capitalist magnates to form cartels, trusts or syn- dicates and to refrain from competing against each other. By this means they operate monopoly price and production policies and force the smaller producers of a given branch of production to follow these policies, threatening them with complete ruin should they fail to comply. Thus, the basis of capitalist monopoly is the economic power which results from the concentration of large amounts of capital in the hands of a small group of capitalist potentates. Concentration of capital is the basis upon which certain capitalist groups gain monopolistic positions, since by this means all the capitalists of a certain branch of production can be forced into a monopolistic agreement and all recalcitrant outsiders rendered harmless. This is the fundamental condition of the development of capitalist monopoly. However, economic power resulting from concentration is not of itself enough to create a monopoly, for it meets with two serious obstacles. The most important obstacle is that as long as the agreement does not cover the capitalists of a given branch of production throughout the whole world, the fact that particular groups of capitalists have set up 3 4 Marxist and Socialist Theory cartels or trusts does not yet establish a monopoly, since the various groups of capitalists continue to compete among themselves. The only change which occurs is in the level at which the competitive struggle is carried out: competition between individual capitalists is replaced by competition between organized capitalist groups such as cartels, trusts, syndicates, large joint-stock banks, and so on. It is only the organizational form of competition which is changed ; its economic content remains as before. The second obstacle is the possibility that substitution goods may be brought into the market against the goods produced by monopolies, e.g. gas, electricity, oil, coal and so on. This would mean that a cartel would have to compete with the producers of substitution goods, and allow in its policy of prices and production for the possibility of a shift in consumption towards such goods. This difficulty can only be overcome by also drawing the producers of all these substitution goods into monopoly agreements, thus limiting the monopoly activities of rivalling cartels and trusts.1 It appears that the economic power of capitalist combinations, the concentration of control in the hands of a few groups with large amounts of capital, is in itself not enough to secure a monopoly position. Some- thing more than economic power is needed for this: political power is also necessary—the need to exert appropriate influence on the State which alone can, by certain political acts, protect the monopoly com- binations within its territory from competition of foreign capitalists. This protection must extend not only to goods produced within the monopolized sector, but also to all substitution goods. It is only State intervention that can create monopoly conditions for capitalist combina- tions, such as cartels, trusts and large joint-stock banks. Monopoly 1 There is yet a third factor limiting monopoly control by capitalist combinations. Outsiders may appear for whom production is worth while even at higher costs than those prevailing in the cartel when the monopolists raise the price. The influence of this factor is usually over-estimated, for it cannot break up the monopoly since it is itself dependent on monopoly prices. On the break-up of the monopoly and the subsequent fall in prices, the outsider is eliminated since he is producing at higher than marginal costs. He can reduce the surplus profits of the monopolists, but he cannot earn them himself without being forced into liquidation. For this reason also, cartels and trusts tolerate such outsiders fairly willingly, especially during a boom, allowing them to meet part of the increased demand which the boom creates. However, it is on these outsiders that the whole weight of a crisis falls. The Role of the State in Monopoly Capitalism 5 conditions are accomplished by a policy of tariffs and foreign trade regulations, a suitable system of trade agreements, a tariff policy for State railways, a colonial policy, and so on. Only such intervention by the State can transform the economic power of the capitalist combina- tions so that they occupy a monopoly position, assuring to certain groups of capitalist potentates monopoly profits exceeding profits which would result from free competition, due to the operation of the law of profit equalization. Thus, the age of monopoly capitalism is increasingly characterized by the intervention of the State. With the end of the nineteenth and the beginning of the twentieth centuries, a fundamental change takes place in the function of the capitalist State. This change is connected in capi- talist systems with growing trends towards the formation of monopolies. In the age of freely competitive capitalism, in the age of comparative liberalism, the bourgeois State followed the principle of non-intervention in economic life. It is true that this rule was quite frequently broken, but the State's general attitude to economic life was based on the principle of laissez faire, which was then the generally accepted ideal of the whole capitalist world. During the period of liberalism, the State confined itself to forming and supporting the general conditions of the capitalist economy, such as private ownership, maintenance of law and order, communications, the monetary system, legal security, and so on. How- ever, with the appearance of capitalist combinations with clearly mono- polistic tendencies, such as cartels, trusts, etc., the function of the capitalist State fundamentally changed. Henceforth the capitalist State does no longer confine itself to maintaining the general conditions of the capitalist economy, but actively intervenes in economic life. The principle of laissez-faire is left to the universities, and active intervention in economic life is considered by the State to be its highest duty. In this way, it contributes enthusiastically to "the favourable development of the national economy" and to the "protection of the nation's most vital interests", that is, to the creation of privileges for cartels, trusts and large joint-stock banks—privileges which give rise to high monopoly profits. Thus, begins a great wave of protection by tariffs and control of foreign trade. In contrast to former "development" tariffs, which were designed to give less industrialized countries an equal start with highly industrialized England, and which were, therefore, of a temporary

See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.