Seeing as my recent post on “voluntary agreements” got a lot of hits from being linked, I realize that it might not make much sense if taken out of context of my other notes on the subject, together with the timeless arguments of such texts as Proudhon’s What is Property? (with which some familiarity, if not necessarily agreement, would be…um…helpful if you consider yourself an “anarchist”). In keeping with my desire to make a comprehensive critique of the Rothbardian/Nozickian “homesteading” theory of property that, in some form or another, provides the theoretical justification for capitalism, I have been considering a new idea that, to me anyway, makes a lot more sense out of the whole thing. The following observations might make more sense out of other related critiques, such as Iain McKay’s Anarchist Critique of “Anarcho”-Statism [sic], which has resurfaced lately.
Use-Property vs. Exchange-Property
Can labor-mixing create legitimate ownership? Sure it can. This isn’t a catechism, so I’m not going to derive that. It’s something most everybody can agree on. Clearly if you own yourself then you own your labor. But — there are two ways one can exercise this ownership of one’s labor. One can mix her labor with nature in order to use the things she is applying her labor to, or in order to exchange her labor for something provided by someone else. If you don’t intend to use something (in a generous sense; this can include planning to use something later) or exchange it, then it can be safely assumed you have no interest in it as something that should be controlled by you exclusively, which is what property is, in the following argument anyway. Then you don’t see it as labor, and other people shouldn’t either. These two purposes of labor-mixing correspond to the use-value and exchange-value assigned to goods, in classical political economy.
So there are really two different things we might mean by property — the concrete property in the things we want to use, and the abstract property in the labor we perform, whose intent is (presumably) to be exchanged (in the form of currency) for that of the first kind — something concrete that can be used personally. The first kind of property is acquired through actual homesteading (very rarely nowadays — do you hunt your own food?), or by way of exchange for the second kind of property, which one has in one’s own labor and what it creates. Generally speaking, unless you’re living out in the wilderness and providing for your own needs, labor — no matter what kind it is — creates property of the second kind. In market society, that is usually why people labor: to create abstract “property” which can be converted into concrete property by means of currency. These two categories of property, use-property and exchange-property, are entirely different beasts. Understanding the traditional anarchist view on property is going to require an understanding of this distinction. The idea of property as dominion over a space applies to use-property; i.e., your house is your use-property, therefore you have the right to control what happens in it; you can say that people must take their shoes off before coming in, for example. You have the right to control the things you use as well. The opposition to one person’s dominion over another is an axiom of anarchism, one that is applicable to all situations. So use-property as dominion is regulated by the number of people using something, for it then becomes a sort of shared dominion.
However, if one mixes his labor with something in order to exchange it, then it will be understood that he does not really have any interest in the thing itself (at least not in a way relevant to the following argument) — only the socially determined abstract value of the thing, which supposedly represents the value of his labor, to someone who wants it. (Does it really? That’s another question.) We can safely assume that the person feels this way about the thing in question, for if he didn’t, he would simply keep using it. In other words, “homesteading” is not really an accurate way to describe what is going on here: the person does not care about the land within which he works, the resources or tools used — just the value of the labor done. So, homesteading only applies to the acquisition of use-property, not exchange-property. This is going to be something very important to understand. Something cannot have both exchange-value and use-value to you at the same time. If you’re exchanging it, you’re not using it. (This doesn’t include trivial situations like letting a friend borrow a bike; exchanging it is not the reason you acquired the bike and so it would not be categorized as exchange-property.)
When we look at it this way, the exchange made between capitalist and laborer is not much of an exchange at all: granting the extremely generous assumption that the capitalist labored to build the capital (!); the laborer gives her labor, while the capitalist doesn’t give hers or even a specific fraction of it as embedded in the capital; she keeps it indefinitely, to continue “exchanging” with other laborers eternally…until the capital wears down.
(But why would an exchange have to involve equal amounts of labor, though? The answer is pretty simple: otherwise the laborer would simply build the capital herself or buy it from someone else, in the absence of a statist monopoly preventing that. The cost of reproducing labor done is going to be the ceiling on the amount a buyer is willing to bother giving instead of doing it on her own. But this is going to be irrelevant to the main point I am making anyway.)
So there are two separate problems with absentee property, even if we make for the purposes of this…uh…discussion the completely and insultingly ahistorical assumption that the would-be absentee owner did indeed at some point labor to bring the property into a condition ready for use. The first is that this person retains dominion over the area, and the people there, even though it should be understood that the reason he labored to build it is not to use it, but to exchange his labor (embedded in the space/machinery/whatever) for whatever people are willing to give for it. Because it is not the improved land/capital itself this person cares about, otherwise he would just add it to his belongings, there is no reason he should have dominion over the worker’s labor with it — even if he kept the capital afterwards. Anarchism is anti-dominion, and we could still assume a Rothbardian/non-proviso-Lockean-based standard of property and observe that negating the dominion of the “capitalist” over the laborer would still not being violating his property rights. In that case, the capitalist would get a portion of the output that depends on the total profit rather than on labor done, but would still not have authority over the workers during production. (This inability to boss around the workers actually would be a violation of property rights in a traditional sense[how can he maximize profit without telling them what to do?], but one that, as I have tried to show, is incompatible with anarchist principles and need not be the only alternative to total negation of one’s labor-property, even assuming for the sake of argument that mutualism/socialism constitutes that.) The other problem, of course, is that no real exchange is taking place — the absentee owner can use the same, single act of labor (!) to engage in near-infinite “exchanges”, when the reward he is entitled to for this labor is really no more than the cost of reproduction.
At the heart of the justification for absentee property, then, is the psychological conflation of use-property and exchange-property; and this conflation is a relic of political absolutism, in which all the world (or at least the land under control) was declared to be the personal property of the ruling class. This worldview was a characteristic of pre-industrial societies — tsarist Russia, France under the Bourbons, ancient Egypt, take your pick — that has survived to the present day. Capitalist property is sort of a half-way house between this antiquated view of property-as-dominion and a future egalitarian (in terms of rights) construct of property-as-labor. So this psychological detritus from antiquity must be drained from our minds, in which it has accumulated through pro-elite conditioning. What this means is that we are trained to think that working in a capitalist’s factory is roughly similar to coming to his house — you’re entering a space he has dominion over. That’s why socialistic proposals of the workers taking over the factories are often angrily rebuffed with, “So if I invite you over for tea, then you own my house??!” But this is not at all the case — even if the capitalist kept the factory perpetually no matter how many other people were working there, and especially not with the mutualist standard I have been advocating. We need to look at the world differently, such that property in the sense of dominion only has relevance to use-property, i.e. something you are using personally, and the dominion aspect is weakened to the extent there are other people also using it. The compensation/returns the “capitalist” gets for the capital he has built is entirely irrelevant to the question of whether he has dominion over those working there. By “exchanging” his labor, whatever he may get for it (even if he got it back intact at the end, a la Rothbard, a view that of course I am trying to attack simultaneously), it is understood that, even if he “homesteaded” it, he no longer has control over those using it. To say otherwise would be to say that it is his use-property, but you can’t have it both ways. Something cannot be your use-property and your exchange-property at the same time — it doesn’t make any sense.
Notice that this means taking what “the product of one’s labor” really amounts to under capitalism, and universalizing it. Under capitalism, the labor done by the wage-earner does not give him control over the area where he works, the capital he works with, or the ends of production — only the wage, which is supposedly the exchange-value of his labor, an abstract quantity. Their ability to “homestead” is nonexistent. But a theory of property acquisition through labor must be consistent, applying to all people equally, if it is to be upheld by a rational populace. If the homesteading theory of property applies to no laborers, then non-worker ownership of factories is merely arbitrary tyranny: where on earth does it come from? Whereas if the homesteading theory of property applies to all laborers, then those who work at a place will be its owners, provided that those who constructed it have been compensated in full.
On the surface, I have demolished rather than advanced the idea that workers should “own” the means of production. But in fact, the preceding arguments merely present a canvas upon which the actual substance of a free society can be painted. Worker’s self-management does not come from homesteading, but from the basic anarchist principles of, well, self-management and personal freedom. An example I like: let’s say someone says you have to get their permission to swim in the ocean, mocking your objection that paddling in the water would cause you to own the spot where you are swimming. Well, they would be right, paddling doesn’t cause you to own a part of the ocean…but that ignores the elephant in the living room, which is why would they own it? And then you could pretty reasonably make the case to have control over your own swim without having to argue that you’re homesteading the water while doing so.
A Recap
It must be emphasized that the mutualist conception of occupation and use occurring through actual exchanges of labor, meaning exchanges of ownership between “capitalist” and “laborer”, is not some sort of “rule” that’s going to be forced on people from above. It’s simply going to be a natural consequence of…a free(d) market(!!!). Example: Suppose that A builds saws. He does so not to keep them, for he already has a saw, but in order to sell them on the free market. A sells a saw to B for $20. Once A gets the $20, he no longer has any control over the saw: that’s the whole point of exchange. The $20 was all he cared about in the first place — it didn’t matter whether it was building saws or something else. So B goes home with her saw, and at first uses it around the home. But then she has the idea of using it to cut wood and make boards out of it, and sell the boards. So now the saw is capital. Does A have the right to demand a share of her takings? Clearly, the answer is no. The price of saws is generally going to depend on the cost of reproduction, not the usefulness. If A started to overcharge to cash in on this, B would save by making her own saws, or buying them from someone else. If A wants to profit off this board-sawing industry, he’s gonna have to use a saw on his own.
Such is the paradigm for working with capital: for those intending to do so, the default understanding would be that they would purchase it at somewhere between the cost of reproduction and the cost of production from those whose labor is stored in it; whatever the price might be (and it might take years of labor to be paid back!), this does away with both workplace hierarchy and non-labor income. This means there is just one thing left to consider: what if those who built the capital are saying people will only be allowed to work there if they become their wage laborers, etc.? Well, see my July post on cost-price: it is, basically by definition, only by aggressive monopoly that they can prevent either free competition in capital, or if necessary simply the workers going ahead and building their own equivalent factory/workshop/whatever. (If this position was somehow due simply to natural scarcity[and this might not even be possible when Tucker's overt "big four" monopolies are destroyed], then the parties involved would be perfectly justified in setting a socially determined “just price” to compensate the would-be capitalists, and then the workers would move in and run it. Insofar as we move out of the “state of nature”, the capitalism that was originally justified with metaphors of homesteading becomes no more defensible than attempts to “interfere” with it. Actually I think this is going to be completely irrelevant to any actual anarchy we might live to see, since that’s going to involve a more or less full-scale worker/social expropriation of existing, non-trivial means of production, but that’s a separate topic.) So free markets make capitalism impossible and vice versa. And indeed, moving out of our Robinson Crusoe world into the real world, we see that this is indeed the case: capitalism did arise through aggressive State-backed primitive accumulation, and limitations on credit and land, no matter where you look. Note that what I have done is not so much describe what I think a free society will actually look like — I think a lot of these scenarios that get brought up ad nauseam by those on both sides will be pretty much irrelevant after an anarchistic revolution — but rather to take on the homesteading argument, on its own turf.
So from this we can see that doing away with hierarchy does not, as has been feared, restrict individual freedom. A person can labor without restriction, and the reward of her labor merely shifts from dominion to value, the moment that the former would imply control over other people, which can never be accepted. Also, I think that truly grasping this idea, of the distinction between use-property and exchange-property, means uprooting the psychological subjection that, in some form or another, has characterized social relations in the “civilized” world since the days of the pyramids: the notion that we are guests in a Master’s world. It means realizing that outside of personal use — our homes, yards, and property for which unauthorized entry would damage its purpose — no part of the world is someone’s dominion; people can be rewarded for their labor in whatever way they see as appropriate (gold standard, markets, effort & sacrifice, labor-notes, need, desire, ???) without ever creating any form of dominion of one person over another. Hopefully this makes more sense of the occupation-and-use theory of property. Understanding this, rather than seeing the world as already divided up into a bunch of mini-fiefdoms, is one of the most profound forms of self-liberation from the sickness of social submission.